SIGNIFICANT AND FAST(EST) GROWING
In 2019 Asian American buying power has reached $1 trillion, and is expected to reach 1.3 trillion in 2022.
The buying power of Asian Americans has grown 314% over the past two decades, the fastest among all ethnicity groups.
The average expenditure of Asian American household is $61,000 per year, 14% over index of total U.S. average.
The ten states with the highest Asian American buying power accounted for 75% of the total U.S.
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).
TV and Internet are the 2 most important channels, with TV being the most important channel to learn about new products/services.
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.
Spending on New Cars
Asian Americans spend an average of $3,504 annually on new cars (CES data, Bureau of Labor Statistics), over indexing the total population by 93%.
Active Online Shoppers
Asian Americans over index the total population in online spending in many categories including hair care, oral hygiene, skin care, housewares, computers and equipment.
And millennial Asian Americans made most online purchases in the categories of clothing or accessories.
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.”
36% of Asian Americans are likely to buy products based on the advertisement’s effort to feature Asians or other people of color
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
- 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