ShareThisCapturing the Loyalty of a Critical Market Segment
Multiculturalism is redefining what it means to be American today. With the changing appearance of the U.S. population comes new definitions of the U.S. consumer and new dilemmas for marketers trying to reach those whose tastes, customs and language may differ from what is commonly known as "general market". Culturally relevant marketing plans will become increasingly critical as the population becomes more diverse and the buying power of U.S. Hispanics becomes more significant.
The biggest mistake that a company can make is to view the U.S. Hispanic market as homogeneous. Acculturation levels, language preferences and country of origin make for unique sub-groups within the segment.
Asian-American & Hispanic Marketing
Asian-Americans are the fastest growing ethnic group in America. Overall, the Asian-American population grew 48% from 1990 to 2000, more than four times the growth rate of the U.S. population. With $254 billion in annual buying power, Asian-Americans are a powerful force in the U.S. consumer market. Over the past decade, their spending power has increased 125%, from $118 billion in 1990 to $253 billion in 2001. Projections from the Selig Center for Economic Growth indicates that Asian-American sending power will reach $528 billion by 2009, an increase of nearly 347% since 1990.
According to the 2000 Census, the five states with the largest Asian-American markets account for 62% of the group's buying power. By comparison, the five states with the largest total U.S. buying power account for 38% of the total U.S. buying power.
Hispanic Demographics & Statistics
Hispanic-owned businesses in the U.S. totaled 1.2 million firms, employed over 1.3 million people and generated $186.3 billion in revenues in 1997, according to a report released today by the Commerce Department's Census Bureau. Hispanic-owned firms made up 6% of the 20.8 million non-farm businesses in the nation and 1% of the $18.6 trillion in receipts for all businesses.
