Retailers Cannot Afford to Overlook Asian-American Consumers
NEW YORK -- The Asian-American market represents a significant growth opportunity, with a 51-percent increase in population since 2000 and $718 billion in buying power that is expected to reach $1 trillion in five years. Business can expand by appealing to this consumer base that is also affluent, well-educated and technologically savvy, according to "State of the Asian-American Consumer Q3 2012," a new report from Nielsen.
The Asian-American population is currently experiencing the highest growth rate of any multicultural segment, slightly outpacing the Hispanic population, and has grown at double-digit rates in 49 out of 50 states, according to the report. Additionally, 28 percent of Asian-American households have annual incomes greater than $100,000, compared to 18 percent of total U.S. households, and 50 percent of Asian-Americans 25 years and older have a Bachelor's degree, versus 28 percent of the total U.S. population.
"With their significant buying power and growing population that stems from a continuous wave of immigration, the Asian-American consumer group is one that marketers simply cannot ignore," stated Frank Piotrowski, senior vice president, measurement science, Nielsen.
The Asian-American market has a relatively low cost of entry and potentially high return on investment. While Asian-Americans come from many nations with distinct cultures, the community has developed shared values as a whole, according to Nielsen. However, it is difficult to package Asian culture so that it makes cohesive sense for marketers, who will need to appeal to the market through culturally relevant themes, such as family, and demonstrate a strong understanding of its dynamics and unique diversities.
"By cultivating a deeper understanding of this consumer, marketers are poised to increase brand awareness, develop improved product offerings and services, and establish partnerships within Asian-American communities," stated Susan Whiting, vicechair, Nielsen.
To download a copy of "State of the Asian-American Consumer Q3 2012," go here.