Buying power expected to hit $1-T by 2018
By Hannah De Castro-Abinuman
Asian Americans are making a significant and powerful impact on the new American mainstream. Nielsen’s 2015 Asian American Consumer report entitled, “Asian-Americans: Culturally Connected and Forging the Future,” radically highlights how this flourishing segment is making a powerful impact on today’s economy and culture with their unique tastes, preferences and habits. In one year, the buying power of this market segment notably increased by more than $50 Billion. In its most recent report, Nielsen says the Asian American segment is considered as the fastest growing and most culturally diverse segment in the US population and is perceived to potentially be the multicultural majority in the United States in the near future. In 2014, the Asian-American Buying power was at $770 billion. Showing a 46% growth in population from 2012 to 2014, this unique market segment is expected to increase its buying power to $1 Trillion by 2018.
“Asian Americans are focused on the future, trendsetting and leading the way in technology, digital entertainment and fresh food while maintaining strong ties to their cultural heritage. Increasingly ambicultural, Asian Americans’ cultural identities are shaping the mainstream market.” said Betty Lo, Nielsen’s vice president of Community Alliances & Consumer Engagement. “
Nielsen’s report examines Asian-American consumption behaviors in relation to the food, beverage and health and beauty categories. In addition, Nielsen has provided more detail on the ever-evolving technology and digital content categories, where Asian-Americans continue to exceed and are trendsetters when compared to the general consumer market in America.
Here are the highlights indicated in the media briefing recently done by Nielsen:
Diverse and Culturally confident – their culture defines their shopping habits. They are increasingly confident about sustaining their cultural roots and are assertive about their shopping tastes and preferences. Asian Americans are generally wealthier than the average American household.
One the Move – Majority of the Asian-Americans in the U.S. are living in major urban areas of West Coast and Northeast, but their numbers are also growing in the suburbs and in parts of the Midwest and South.
On a journey from Inner health to outer well-being – They are drawn to brands that speak to the holistic dimension of Asian traditions. These consumers want product and services that reflect and complement “dual” lifestyles that engage both their native culture and the American mainstream.
Family-centric – They tend to live in extended multi-generational households. Thus, they often shop in bulk and seek saving for the entire family budget. Asian-Americans frequently shop at warehouses for good deals on bulk purchases.
Long-life buyers – Asian-Americans have a higher life expectancy and a lower median age than non-Hispanic whites.
Discriminating shoppers who want and demand the best quality at a good price – Millenial Asian-Americans are loyal to brands. They do not mind spending more for quality wine and beauty products.
Socially empowered and digitally adept – Asian Americans lead the way in technology, including both mobile and social media.
Increasingly “ambicultural” consumers – They are able to navigate the American mainstream in a way that maintains their native culture with effortless duality.
These significant insights aid us in understanding how cultural identity plays a major role in molding the Asian-Americans’ buying habits and can provide the basis for a business strategy to activate the fastest-growing and highest income consumer segment in the American mainstream.
“Being someone who works in the advertising and marketing industry, reports like this get us so excited because having been in this business for 20 years, we know how lacking data is about the Asian consumer…” said Nita Song, president and chief operating officer of multicultural advertising agency IW Group and member of the Nielsen Asian Pacific American External Advisory Council. “Without data, companies don’t make very critical decisions.”
Source: Nielsen’s 2015 Asian American Consumer Report