SIGNIFICANT AND FAST(EST) GROWING
Asian Americans have tremendous spending capabilities, with $1.3 trillion in buying power and a median household income of $104,646, well above average income for the U.S.
The buying power of Asian Americans has grown 314% over the past two decades, the fastest among all ethnicity groups.
Research shows that AAPI audiences are the most likely to buy from brands that feature someone from their identity group in ads, and 64% of AAPI people will stop buying from brands that devalue their identity group.
CONSUMER CHARACTERISTICS
Concentrated Geographically
The ten states with the highest Asian American buying power accounted for 75% of the total U.S.
Consumer Longevity
A loyal Asian American consumer will provide 25% more year’s of effective buying power (51.3 years, versus 40.2 years). The mean age of the Asian American population (35.4) is younger than that of the overall population (38.7), and the average life expectancy of Asian Americans is also much longer than that of the overall U.S. (86.7 versus 78.9 years).
Information Channel
TV and Internet are the 2 most important channels, with TV being the most important channel to learn about new products/services. Asian audiences spend 17.5 hrs with TV compared with 32 hours for the general population.
Shopping For Family
Asian American moms, typically their household’s primary shopper, buy for children as the intended user 34% more often than the total population, with health-related items for children being purchased 97% more often than by the total population, the highest differential in shopping for children.
Active Online Shoppers
Asian Americans over index the total population in online spending in many categories including sports equipment, games and toys, skin care, cosmetics, computers and equipment.
And millennial Asian Americans made most online purchases in the categories of clothing or accessories.
Powerful Influencers
Asian Americans are avid social media users in terms of sharing their reviews of products/service. Every one in three Asian Americans agree that they “like to share my opinions about products and services by posting reviews and ratings online.”
WHAT IMPACTS THEIR PURCHASING DECISIONS
Asian Americans appreciate inclusive brands
Over half of Chinese, Korean, and Vietnamese Americans prefer that to buy brands that advertise in their language.
Culturally Tuned-In Messages
4 out of 10 Asian Americans are likely to buy products because of culturally tuned-in advertisements.
Social/ Political Issues
4 out of 10 Asian Americans are likely to buy products because of the brand’s support of social and political issues they believe in
ETHNIC MEDIA ADVERTISING
- 45% of Asian Americans say that it is important for brands/advertisers to advertise in Asian Media
- 3 out of 10 Asian Americans say they are more likely to consider brands that advertise on Asian media
- 3 out of 10 Asian Americans say that brands that do not advertise in Asian media are sending a signal that they do not care about their business.
Data source: Nielson, The Asian American Consumer Journey (2019) Report; Nielsen, Engaging Asian American Consumers at the Down of a New Decade(2020), Horowitz. State of Consumer Engagement; Focus Asian, 2020 Edition