Crazy Rich Asian American Consumers
May is Asian American Pacific Heritage Month. According to Nielsen’s 2019 Diverse Intelligence Series, “Asian Americans offer unparalleled marketing opportunity for businesses and brands.” They are informed influencers and powerful purchasers as they lead in household income and education.
Asian Americans have the highest growth rates in population and spending power of any U.S. ethnic or racial group. Their spending power has surpassed $1.0 trillion in 2018 and is expected to reach $1.3 trillion by 2023. These diligent consumers are passionate about sharing their opinions on products and services.
Below are some key statistical findings from the 2019 Diverse Intelligence Report.
99% of Asian American households have internet access.
91% of Asian Americans agree the internet is a great way to gather information on products and services when considering a purchase.
Asian Americans spend nearly 23 hours each week watching TV.
81% of Asian American households subscribe to at least one streaming service, such as Netflix, Hulu or Amazon Prime Video (19% higher than the total population).
Asian American consumers are passionate about sharing their opinions on products and services.
74% read online reviews when considering a purchase
71% typically recommend food products
68% recommend automobiles
43% are eager to share their technology opinions
29% of Asian Americans prefer to buy things friends or neighbors would approve of (15% higher than U.S. population).
33% agree that they are influenced by what’s hot and what’s not.
Asian Americans are leaders in online shopping, buying at a 34% higher rate than the total population.
87% made an online purchase in the last 12 months.
68% used the internet or apps in the past 30 days for shopping (22% higher than the U.S. population).
Asian Americans are conscious shoppers who care about the the environment and family health.
52% are willing to give up convenience in return for a product that is environmentally safe.
57% buy natural products because they are concerned about the environment.
54% are more likely to purchase brands that support a cause they care about.
80% prefer to cook with fresh food, and 58% buy natural products because they are concerned about their families’ health.
91% of Asian Americans agree that the internet is a great way to gather information on products/services before buying.
The top 3 states with the highest Asian American purchasing dollars in billions:
California ($337), New York ($88), Texas ($78), New Jersey ($58)
The mean individual income of Asian Americans is $41,947 versus $33,315 for the total U.S. population.
The mean household income is $85,000 versus $60,000 for the total U.S. population
“A loyal Asian American consumer will provide over 25% more years of effective buying power.”
The effective years of buying power for Asian Americans is 51.3 years versus 40.2 years for the total population.
The mean age of the Asian American population is 35.4 years old and is younger than that of the overall population, which is 38.7 years old.
The findings show that Asian Americans are loyal to brands they like and whose image and values align with their own. Quality and brand trust are top of mind for these selective consumers.
7 in 10 agree that “I buy based on quality, not price.”
69% describe themselves as “typically willing to pay more for high-quality items”
Asian Americans are fashion forward with an annual spend on apparel, footwear, and clothing services that is 22% higher than the total population.
They over-index by 31% for spend on apparel for men and boys,
by 29% on apparel for women and girls, by 37% on apparel for children under 2, and
by 26% on footwear.
60% of Asian Americans are willing to use the internet to shop for fashion products.
54% actually bought clothing online in the last 12 months.
Competitive brands should recognize that Asian Americans are a primary source of growth. Popular-culture trends play an even stronger role in Asian American purchases than they do in the total population. Asian Americans feel a sense of responsibility to the environment and their families’ well-being. Asian Americans exceed the total population in their use of social media for product research and engagement.
@YvonLux is a marketing CEO and founder of VANT4GE, LLC who is also a social and beauty influencer, Yvon Lux and @YvonLuxFood. She is also a published blogger and editor for her Apple News channel.
The young female founder has been featured in the Los Angeles Times, Orange County Register, Modern Luxury Magazine, and various other media outlets. Connect with her on Instagram and subscribe to her channel!
