Asian American Market

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Asian American Section of The Source Book of Multicultural Experts 2010/2011 (280 KB)

The Asian American Market:  Looking Ahead from Census 2010

Saul Gitlin
Executive Vice President-Strategic Services/New Business
Kang & Lee Advertising

Based on early data  from Census 2010  that has been released in the last few months,  we can certainly say that Asian American consumers continue to ‘come of age.’ With a total population of 17.3 million recorded by Census 2010, Asian-Americans now represent 5.6 percent of the total U.S., and are heavily concentrated in key regions of the country. For example, 50% of all Asians live in just three states: California, New York, and Texas. In California, Asians represent 13 percent of the total state population. Asians also form critical double-digit percentages of the local populations in key metropolitan areas such as New York, Los Angeles, and San Francisco, among others.

The Asian-American market stands out from all other segments as a market of superlatives. With 43.7% population growth across the country between 2000 and 2010 , Asians experienced the fastest population growth rate of all racial groups. In top states, Asian population growth in the last ten years remained robust, with 32% growth in California, 36% growth in New York, 74% growth in Texas, and 51% growth in New Jersey. But outside of these ‘traditional’ Asian markets, Asian population growth rates spiked even more dramatically: 119% growth in Nevada, 94% growth in Arizona, and 88% growth in North Carolina, to cite a few. As of this writing, Census 2010 has not yet released details on the full range of demographic characteristics including education, income, and many others which validate the attractiveness and potential of Asian households and consumers. Nevertheless, we already know from Census 2000 and the annual American Community Survey (ACS) reports from 2001 through 2009, that Asians excel on most such measures. For example, Asians enjoy the highest median household income of all groups - almost $10,000 ahead of non-Hispanic White households, and far in excess of Hispanic and African- American median income. One reason that income is so strong is that Asians also have the highest level of educational attainment of all groups in the country, with 44% of Asians holding a B.A. degree or higher. Asians also exhibit disproportionately high rates of entrepreneurial activity. Per the last published U.S. Economic Census survey of minority businesses in 2007, Asians owned and operated $1.6 million businesses nationwide, generating $514 billion in annual sales revenue. By contrast, our nation’s 2.3 million Hispanic-owned businesses in aggregate generated $345 billion in annual sales revenue  - 33% less than that for Asian businesses.

The above figures demonstrate  a key point that marketers need to understand about Asians as consumers: while they number less than many other population segments, their economic power and corresponding potential bottom-line impact to many product categories and brands is disproportionately large. According to the Selig Center at the University of Georgia, Asian-American purchasing power in 2009 reached $509 billion, representing an 89% increase in purchasing power since 2000, and nearly twice the purchasing power growth rate for the total U.S. population during the same period.

Such an attractive market profile has spurred a wide range of categories to ‘lock in’ on Asian American consumers, including a very deep bench of historical players in the financial, telecom, automotive, spirits, and retail industries. More recently in the last five years, first-mover brands have also entered the Asian market in the pharmaceutical, travel and leisure, QSR, and CPG categories, to name just a few.

The decision to implement targeted Asian marketing is no longer a question of if, but rather of when. The demographic ‘writing is on the wall,’ and Asian programming will sooner or later be viewed by all marketers as essential.