Currently the Asian American makes up roughly 6% of the entire population or 19.4 million.
This number reflects a rise of 46% over the last decade.
That means they are one of the fastest growing cultures in the United States and by 2050 the group is expected to make another 150% jump in the population.
Because of their projected growth, there is a spotlight that is placed on these Asian American consumers.
In fact, Nielsen has their own report on Asian Americans they release that explores the current media and consumption habits of this important group.
The goal of this information is to provide some value to companies who are looking at how they can market to the group.
After all, these Asian American consumers have been shown to focus on high quality products that are recognizable, and adhere to their cultural traditions.
Once the group has locked into a particular brand, they remain extremely loyal to it and will continue to buy it for years to come.
Of the group of Asian Americans an estimated 79% of them were born in the United States.
That means the group has been here for some time and they are being raised in multigenerational households.
Their older relatives continue to push their cultural heritage, while incorporating many of the American traditions in the home.
That means that the group is experiencing a blend of two cultures and both have a significant impact on the U.S. Economy.
As a rule, Asian Americans are among the most educated in the country.
Currently 49% of Asian Americans have a college degree, while only 28% of the general population holds a college degree.
Of the Asian American households, 57% of them have spent more on their college tuition than other non-Hispanic white households.
Thanks to their higher education levels, this group also has a higher rate of earning than the national average.
Nielsen shows the group makes about 39% more than the National Average income.
The Asian American households taking in $72,472 while the average American family takes in $52,250.
This is another reason why more companies are targeting the group, since they do have a higher disposable income that can be used to make purchases.
Another thing to note is that the concentration of Asian Americans in the leading metropolitan areas, is one of the reasons why targeted advertising is important.
This cultural group is found in places like Chicago, San Francisco, New York, Los Angeles, Washington D.C. and Honolulu.
Each of these major cities have unique advertising campaigns in place that focus a great deal on this group.
Of course, other major cities like Portland, Phoenix, and Orlando all have their own sets of targeted advertising also.
Businesses that want to succeed in these areas need to focus on current trends in the area, so they better understand how to entice Asian American consumers, and ensure that they are more willing to spend their hard earned money in these areas.
Speaking of money, you do need to keep in mind that these consumers are spending quite a lot of money.
In 2014, they spent $770 billion dollars. While that is more than some countries spend in a year, it isn’t as high as this group is expected to reach.
By 2018. The Selig Center for Economic Growth has projected that Asian American consumers will be spending as much as $1 trillion.
This number is a rise above what many non-Hispanic white families are projected to spend over the same course of time.
This is why so many companies are turning towards this group and looking to target them for their advertising efforts.
After all, if you know they are projected to have the highest amount of disposable income in the years to come.
If you want to put it in terms of states, this group will spend more in a year than any state will with the exception of New York, Texas, and California.
The group also has a longer lifespan than others. Their average is about 8.6 years younger with the average life expectancy being 87.3 years.
This means they not only plan on what they are spending during their years working towards, retirement, but they also are concerned with their retirement years and making investments.
That means long term strategies are important, so investment firms also look at the group and their potential to invest, especially when they are at a young age, since the group is notorious for remaining loyal in their younger years.
Of course, there are other things to remember when you are looking to cater to Asian American consumers.
The first is that tradition and holistic foods play a role in what they buy.
They will spend more to pick up organic items, and they pay close attention to nutritional labels.
If there is a particular product that is part of their tradition, they are more likely to spend more money on it than they would on similar products.
The group is more likely to go to specialty markets to get the foods they need also.
Because of that, distributors will want to cater to the local ethnic markets in larger cities where the Asian Americans purchase their traditional foods.
This is the best way to have your product at the forefront so they are more willing to make a purchase.
Method of payments are also important to the Asian American consumer.
With 88% owning credit cards versus 66% of the general population, the bulk of these cards are used for buying larger items.
Since they are savvy shoppers, they will spend cash on smaller items to help avoid experiencing the interest rates they might otherwise experience.
Finally, technology is an important part of the buying experience that these consumers have.
They are more likely to stream movies and music online.
They will also download content more than other groups.
Currently, 42% of these consumers will use the internet as a form of entertainment over the other ethnic groups in America.
Any business that is looking to succeed in 2015 and beyond cannot overlook how important the Asian American consumers are.
Take the time to learn about their customs and heritage and incorporate those ideas in your market and advertising.
When you do that, you stand a greater chance of establishing a new customer base that will remain incredibly loyal to you in the years that come.
You should even find that profits also increase as more of these consumers spend their hard earned money with you.