Asian-Americans to Become Largest Demographic Group
This dramatic painting by Chinese-American artist Tiffany Chang illustrates the amazing evolution of Asian-Americans in the United States. This dynamic market segment is one that cannot be ignored by today’s marketers. It is the fastest growing and wealthiest segment of the U.S. population. Artist Chang’s painting shows the original Chinese immigrants as railroad workers, gold miners and laundry workers. Then in full color the painting shows how these immigrants have now become well-educated and highly-paid citizens that are fully participating in American society.
The number of Asian Americans is expected to reach almost 26 million this year and according to the U.S. Census Bureau will outnumber U.S. Hispanics by the year 2055. That will make it the largest U.S. demographic group. Although Chinese Americans represent the largest group, this is a very diverse market segment. Asian Americans come from 40 different countries including Vietnam, Korea, Japan, The Philippines, India and many others.
What should be of interest to most marketers is that Asian-Americans are the wealthiest segment of the U.S. population. The median Asian-American household income is 39% greater than the national U.S. median income. As a group Asian-Americans have a combined spending power of over $8 billion. Because of the size and economic significance of the Asian-American market segment it is important for today’s marketers to understand how to connect with this powerful consumer group.
Although there are numerous differences within the various Asian-American sub-cultures, there are some commonalities that can be useful in developing a marketing strategy. Naturally the importance of these will vary from one industry to another. The following are a few examples:
- Eco-Friendly – Asian-Americans are generally more concerned than the average American about using eco-friendly products. Promoting eco-friendly features of a manufacturer’s product can by important to this market segment.
- Healthy Food – Most Asian-Americans pay attention to their nutrition and try to eat healthy foods. They eat more fresh fruits, vegetables, seafood and other fresh items than the general population. They also buy more organic foods. Marketers can do well to promote the health benefits of their food products to this market segment.
- Luxury Brands – Most Asian-Americans will pay more for a brand they trust, even if it is more expensive. They also tend to believe that luxury brands indicate social status and symbolize achievement. Companies with luxury brands will do well to target this market segment.
- Baby Products – Family is what matters most to Asian-Americans and they are more likely than the general population to have a baby within the next year. This market segment spends substantially more each year on baby products than the general population. .
The Asian-American market segment has tremendous potential which should be seriously considered in a marketing campaign. Because of the diversity of this segment, however, it is more complicated to develop a message and marketing strategy for this important group. The best way to gain an understanding of how to market your brand or product to this market segment is to spend time talking with them. Focus groups and individual interviews can give you tremendous insight into how your offering can best be positioned to fit into this diverse group of consumers.
About the Author – Winslow Bud Johnson has traveled extensively throughout China for the past 30 years and has conducted extensive research regarding the Asian consumer. He is the author of several books on the Chinese culture including Should You Consider Dating A Rat, Business Success Today and Chinese Zodiac Art. He is President of the Stamford Marketing Group, a firm that specializes in qualitative research with Asian-Americans and U.S. Hispanics. StamfordMarketingGroup.com. He has worked with over 50 major corporations on refining their marketing strategies. In addition to English he speaks Spanish and Mandarin Chinese.