As the fastest growing multicultural segment in the U.S. with an outsized impact on the consumer marketplace, Asian Americans have emerged as a powerful economic force. The group’s buying behaviors and viewing patterns, however, are different and unique from the total population.
The segment has grown at a rate of almost 58 percent between 2000 and 2013, mainly spurred by immigration. This is more than 4.9 times that of the general population. On top of this, the average Asian American household’s income continues to soar and represents the highest of all multicultural segments. Their spending power outpaces even that of the coveted Millennial demographic, those currently in their 20s and early 30s, by nearly 40 percent.
Culture, value, efficiency, convenience and a strong emphasis on the family shape the buying behavior of Asian Americans and often drive their purchasing decisions. This includes the types of stores they visit, the number of trips they make and their online habits. Asian Americans make up the leading segment of online shoppers, with 77 percent making internet purchases in the past year, versus 61 percent of the general population.
For marketers, understanding the Asian American population is critical for realizing the bottom-line potential of many key product and service categories.
In 2012, Asian American households spent 19% more than overall households. Ringing up an average of $61,400 in expenditures, Asian American households particularly over-indexed on food, transportation, housing, clothing, and insurance.