Asian American buying power rose more than $50B in 1 year — Nielsen
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NEW YORK CITY – Asian American buying power increased 7 percent from $718 billion to $770 billion in 2014 and continues to rise. It is expected to reach $1 trillion by year 2018 and currently exceeds the economies of all but 18 countries worldwide. These are just some of the findings in a new report released by global performance management company Nielsen.
The third edition of Nielsen’s Asian American consumer report, Asian Americans: Culturally Connected and Forging the Future, profiles the fastest-growing and most racially diverse segment of the US multicultural majority.
To help marketers understand and better serve Asian American consumers, the report highlights how Asian Americans are making a powerful impact on today’s US economy and culture with their unique tastes, preferences and trendsetting habits.
“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,” said Betty Lo, vice president, Community Alliances & Consumer Engagement, Nielsen. “Increasingly ambicultural, Asian Americans’ cultural identities are shaping the mainstream market.”
The report examines Asian American consumption behaviors in relation to the food, beverage, 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 “over-index” and are trendsetters when compared to the general consumer market.
Some insights from the report are:
- Nearly 28 percent of Asian Americans live in a multigenerational household, contributing to a diverse shopping list that reflects the age, health and dietary habits of the entire family.
- Millennial Asian American women are 31 percent more likely than non-Asian American millennials to use a manufacturer’s coupon when they make a purchase; the search for quality and value drives their purchasing decisions, including how frequently they buy and how much they are willing to spend.
- Asian Americans are selective shoppers and will spend more on foods that support a longstanding tradition of holistic wellbeing. They are 31 percent more likely than average to buy organic foods and are 23 percent more likely to evaluate the nutrition of products. •Their households spend more on wine and kitchen appliances/gadgets used for cooking, which supports a high tendency to entertain family and friends at home. According to Scarborough Research, they are 140 percent more likely to buy a bottle of wine worth $20 or more.
- Asian American households spend 70 percent more than their average share on skin-care preparation products and 25 percent more on fragrances. They are also highly loyal to brands and will spend more to guarantee they are of high-quality reputation and value.
- Eighty-eight percent of Asian Americans own credit cards, compared with 66 percent of the general population.
- Asian Americans are leaders when it comes to technology, mobile and social media usage. They also watch and download more movies than any other ethnic segment. Overall, 42 percent of Asian Americans are more likely to agree that the Internet is a source of entertainment.
Nielsen worked closely with its Asian Pacific American External Advisory Council, which comprises industry, community, academia and business leaders, to establish best practices for panel recruitment and procedures to better reflect the consumer habits of the Asian American community.
In addition, Nielsen continues to partner with Asian American and Pacific Islander-serving organizations to understand what issues matter most to this uniquely diverse community.
“We are proud to work closely with Nielsen to accurately reflect the unique patterns and behaviors that make up the multi-faceted Asian American community,” said Mike Sherman, co-chair, Nielsen Asian Pacific American External Advisory Council and Asian American Advertising Federation (3AF) board member.
“Diverse voices matter, and in order to ensure they are heard loud and clear, we encourage Asian Americans to say ‘yes’ if the opportunity to participate as a Nielsen household arises,” Sherman added.
To download a copy of the full report, visit www.nielsen.com.
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