With a population that continues to grow rapidly and household incomes that are 54 percent more likely than overall U.S. households to reach $100,000 or more, Asian Americans have emerged as a powerful economic force according to Nielsen’s Asian American consumer report. Capturing this segment’s substantial purchasing power, however, requires a tailored approach; Asian American buying behaviors and viewing patterns are different and unique from the total population. Specifically, this group is more tech savvy than any other and has a growing penchant for shopping online. By building on Asian Americans’ heritage, academic achievement, adaptability and spending clout, businesses can find considerable growth opportunities among these consumers.
Significant Purchasing Power
Currently, 19 million Asian Americans live in the U.S., comprising approximately six percent of the country’s overall population. Asian Americans are the fastest growing multicultural segment, growing nearly 58 percent between 2000 and 2013,which is nearly five times faster than that of the general population. In addition, Asian Americans earn more than overall U.S. households and have a median household income of $63,400 versus $49,600. The segment is expected to have a collective buying power of $1 trillion by 2017.
Sophisticated Shopping Style
Asian Americans’ increasing buying power and unique purchasing behaviors make this group attractive to marketers. Asian Americans tend to shop more than the average consumer in four key categories including food, transportation, housing, insurance and apparel. When asked about shopping style, 35 percent said they were “swayable shopaholics,” meaning they enjoy the act of buying and can be impulsive and willing to pay extra for products. Brands are also important to Asian Americans, who on average are more likely to say that they’ll spend more for name brands.
Asian Americans lead the way when it comes to e-commerce purchases. Seventy-seven percent of Asian Americans have made an online purchase in the past year, compared with 61 percent of the general population. Asian Americans are twice as likely as the general population to spend at least $2,500 or more per year on Internet shopping.
Asian Americans are heavy influencers in the digital and media spaces, with higher rates of smartphone usage, online video consumption, and internet connectivity than any other segment. In addition, many enjoy multi-platform lifestyles. Traditional TV viewing is still the dominant medium that the group watches based on time spent. However, Asian Americans spend an average of 12 hours and 23 minutes a month watching videos on the internet, which is twice as much as the general population. Also, 29 percent own a smartphone and a tablet and use both simultaneously while watching TV.
For more detail and insights, download Nielsen’s Asian American Consumer report.