But in recent years, more businesses are realizing that this culture is one that continues to grow and they make up a considerable portion of the country.
Because of that, it is important that companies explore new ways to target this important audience.
After all, the impact it has on the economy is unique since the Asian American buying power does target their own trends, preferences, and even tastes in items.
As a rule, this group is focused on the future.
They want to be part of the trends that are being set, and they have a vested interest in technology.
While digital entertainment is embraced, they do explore other options.
The group also maintains a strong cultural identity and they are committed to preserving their cultural heritage at the same time.
Because of their importance, polling companies like Nielsen have taken the time to look at the Asian American buying power.
They wanted to gain a better understanding of what the group is interested in and to paint a clearer picture for companies to review, so the market can be appropriately focused on.
These reports brought to light some very interesting facts.
The first is that the Asian American buying power has seen a significant increase of 7% in the last year.
This is a rise from $718 billion to an impressive $770 billion.
By 2018, the group is expected to hit the $1 trillion mark.
This makes them one of the most powerful and influential groups of buyers in the world.
So it comes as no surprise that they are one that is heavily targeted.
In the households of the Asian American buying power, there are several generations living together.
This allows them to remain close to their families and to free up extra funds that can be spent on items for the home, and personal items.
These groups share many of the same dietary habits and decisions often weigh the impact of the entire family, rather than just the individual who is making the purchase.
This means if there is some kind of conflict or negative connotation associated with something, the group is less likely to make the purchase.
Coupons have also seen an increase in use among this group.
Currently, millennial Asian American women have shown that they are 31% more likely to make a purchase with a manufacturer’s coupon, over those who are not Asian American.
That doesn’t mean that they will simply make a purchase just because they have a coupon.
While it will influence their purchasing decisions, they will still pay close attention to cost, and the quality of the item they are picking up.
If it is not something their family would commonly use, they are less likely to pick it up.
In fact, it has been showing that the Asian American buying power is incredibly selective when it comes to buying food.
These individuals will purchase items that reflect their traditional eating habits, while also being holistic in nature.
31% of those who were featured in the Nielsen survey also stated that they were more likely to purchase an item because it was organic.
Of the group 23% also stated that the nutritional information of a product also holds a considerable bearing on whether or not they would purchase the actual item.
That means healthier choices remain important to those who were a part of the poll.
Wine is also important to these Asian American homes.
It is suggested that entertainment is important, so wine along with kitchen appliances and gadgets they could use to dazzle their guests were a common expense.
A study that was done by Scarborough research actually takes things a step further.
It shows that the Asian American buying power is almost twice as likely to purchase a bottle of wine valued over $20, as long as the focus remains on the quality.
They don’t simply purchase a vintage just because of a brand name, or because it is a pricey bottle of alcohol and they want to make an impression of any kind.
Beauty products are very important to the women who make up the Asian American buying power.
It is estimated that 70% of these homes purchased more than the American average on skin care products.
Additionally, the group also buys 25% more fragrances than many of the other consumers out there.
When the group finds a brand they believe in, they remain loyal to it.
High quality and reputation is more important on these products, rather than how much the product costs.
So they will pay more for Brand A, as long as it has a guarantee of high quality products and an exceptional reputation, even if Brand B does the same thing and is half the cost from a brand they have never heard of.
Of the payment methods out there, Asian Americans do use more credit cards than other consumers.
In fact, 88% of the Asian American population owns and routinely uses their credit cards.
The general population in comparison is only at 66%.
That shows a considerable difference in spending habits of both.
That doesn’t mean they won’t pay with cash.
While credit card use is on the rise, more of the Asian American audience is making cash purchases on smaller items and using their established credit to cover purchases for higher dollar value items.
This includes technology, education, and some luxury items that they wouldn’t be able to otherwise afford.
That doesn’t mean the group is living beyond their means.
On the contrary, they continue to focus on value and are not foolish about the items that they are spending money on.
Finally, technology is important to this group.
They are more likely to have the latest mobile and technological devices out there.
This group is also 42% more likely to regularly use the internet as their main form of entertainment.
This includes online games, viewing videos, streaming music, and even using digital reading devices.
Each year, these statistics do change and are reviewed by places like Nielsen.
That means it is important to pay attention to the annual surveys when they are released.
This information can help you to determine the current trends and help you to continue to stay on top of things.
The main report to focus on is the Asian Pacific American External Advisory Council and Asian American Advertising Federation that has Mike Sherman as their co-chair.
As a business, if you plan to cater to this community, you do need to pay close attention to their needs and make sure that you are considerate of their traditional values.
While many of these individuals are more than willing to shell out the money, tradition and their culture are important to them.
That means a background in this diverse community is critically important.
Take the time to understand how this works and do all you can to leave a lasting impression on the group.