At the midway point this year between Census 2000 and Census 2010, we can certainly say that multicultural consumers have "come of age." The release of Census 2000 statistics on the nation's largest multicultural populations has caused a significant perceptual shift in corporate America concerning the need for multicultural marketing. Whereas in the last 10 to 15 years, multicultural programs have been considered as good options, they are now increasingly being viewed by top corporate executives as business imperatives.

This transition has occurred for good reason. Census 2000 documents that the nation's three largest multicultural groups - the Hispanic, African-American, and Asian-American populations – in aggregate now constitute almost one-third of the total U.S. population. Together they command a total annual purchasing power of $1.5 trillion, a figure that exceeds the individual gross domestic products (GDP) of such countries as France, the United Kingdom, South Korea, Canada, Australia, and Belgium. These three multicultural groups are also the fastest growing populations in the country. Combined, they form the population majority in each of the nation's top-10 urban areas, and they are the fastest growing populations in 50 of the top-100 urban areas. For the first time in history, Hispanics, Asians, and African-Americans account for 50 percent of the population in California, the single largest state market. Totaling more than 80 million people across the country, these multicultural consumers are also equal in size to the oft-touted 'Baby Boomer Generation,' the intensely analyzed and aggressively courted 'holy grail' of many marketers in this new century. By 2050, these three groups alone are projected to account for roughly half of all consumers in the U.S.

Within this multicultural spectrum, the Asian-American market is uniquely attractive as a market of superlatives. With 49 percent population growth between 1990 and 2000, Asians experienced the fastest population growth rate of all racial groups in the country. Asians also enjoy the highest median household income of all groups, more than $9,000 ahead of non-Hispanic White households, and far in excess of Hispanic and African-American median income. One reason that Asian income is so strong is that Asians also have the highest level of educational attainment of all groups in the country, with 44 percent of Asians holding a B.A. degree or higher. Asian income is also influenced by the disproportionately high rates of business ownership found in this population.

Since the mid 1980s when Asian-American consumers first garnered the attention of the major telecommunications companies due to their high value as consumers of international calling services, Asian-American marketing has been growing steadily. In the early 1990’s, the financial services category began its first serious steps to recognize the untapped potential of Asian-Americans in critical regions of the country. The current financial competitive landscape in the Asian-American market includes most national and regional retail banks, virtually every major insurance company, and most full-service and discount brokerage firms. But Asians don't just call on the phone, open bank or brokerage accounts, and buy insurance policies. They also are the most likely to buy new (versus used) cars, the most likely to spend more on a car, and the most likely to buy luxury makes. These facts propelled the automotive category into the Asian market during the mid to late 1990s with Toyota, Honda, Ford, General Motors, and DaimlerChrysler now all competing for Asian-American share of garage. Over the years, several other categories have also shown unusual commitment to Asian-American consumers based on the unique consumption patterns for their products and brands. Such categories include fine spirits, cosmetics, and department stores, to mention a few.

Yet, for marketers in a host of other categories – including consumer packaged goods, pharmaceutical, computer hardware/software, and travel and leisure – the Asian-American market still remains largely uncharted territory. Brands in these categories which have the vision to take action soon can still enjoy what may be the last frontier of first-mover advantage, thereby establishing a solid position in a market which will inevitably be addressed by all competitors.

To download comprehensive Asian-American market demographic and media profiles, please visit www.kanglee.com and click on the "Asian-American Market" page.

Saul Gitlin
EVP - Strategic Marketing Services/New Business

Contact information:
Kang & Lee Advertising
20 Cooper Square, 4th Fl.
New York, NY 10003
Ph. 212-375-8130
Fx. 212-375-8255
saul_gitlin@kanglee.com
http://www.kanglee.com