The Asian-American market represents a significant growth opportunity for the nation’s businesses that sell goods and services. Asian-American consumers provide growth opportunity to businesses by appealing to a consumer base that is growing, affluent, well-educated, technologically savvy and has a tremendous buying power that continues to soar.
With a 51-percent increase in population since 2000, Asian-Americans are experiencing the highest growth rate of any multicultural segment, slightly outpacing the Hispanic population. Asian-Americans represent an exciting growth opportunity for businesses, with a $718 billion in buying power that is expected to reach $1 trillion in just five years (equal to the 18th largest economy in the world).
Over the past decade, the Asian-American population has grown at double-digit rates in 49 out of the 50 states. In fact, a dozen states have counties that have seen growth rates of over 200 percent. Not only are Asian-Americans the fastest growing segment, many are also affluent and educated. The Asian-American household median income is 28 percent higher than the total U.S. median in 2012. For marketers trying to reach affluent consumers, it is important to note that 28 percent of Asian-American households have annual incomes greater than $100,000, compared to 18 percent of total U.S. households. In addition to being affluent, they are also well-educated. Fifty percent of Asian-Americans 25 years and older have a Bachelor’s degree, compared to 28 percent of the total 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,” says Frank Piotrowski, senior vice president, measurement science, Nielsen.
Marketers Cannot Afford to Overlook the Asian-American Market
With a relatively low cost of entry and a potentially high return on investment, the Asian-American market represents a significant growth opportunity for all businesses that sell goods and services.
“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,” said Susan Whiting, vicechair, Nielsen.
Marketers Can Appeal to Asian-Americans’ Shared Values
Although Asian-Americans hail from many nations with distinct cultures, the community has developed shared values as a whole. It is still difficult, however, to package Asian culture so that it makes cohesive sense for marketers, allowing them to take a holistic approach towards common cultural values. Marketers can still resonate with Asian-Americans through shared, culturally relevant themes–such as family– and will need to demonstrate a strong understanding of the dynamics and unique diversities within the Asian-American market.
For more insight into the Asian-Consumer, download The State of The Asian-American Consumer here.