Asian-Americans’ buying power up 257% since 2000: Report
As the fastest growing ethnic group, Asian-Americans’ consumer buying power has grown exponentially to $986 billion, up 257 per cent since 2000, versus 97 per cent for the total US, according to a recent report. They spent an average amount of $1,151 on e-purchases in the last 12 months, 20 per cent higher than online spending by non-Hispanic whites.
Asian-Americans thrive in an increasingly digital world and their proclivity toward everything digital affects their viewing habits and purchasing preferences, says the Nielsen report called Asian-Americans: Digital Lives and Growing Influence.
Asian-Americans are active online shoppers—spending an average amount of $1,151 on internet purchases in the last 12 months, 20 per cent higher than online spending by non-Hispanic Whites. Millennial Asian-Americans made most online purchases in the categories of clothing or accessories, outpacing non-Hispanic white purchasing in this category by 13 per cent.
“Year over year, as we develop this report, we have seen consistent growth and expansion in the Asian-American consumer segment,” said Mariko Carpenter, vice president, strategic community alliances, Nielsen. “Asian-Americans’ growth, influence and spending power are key characteristics of a powerful consumer group that can make an impact on any industry or business. Now, with a growing millennial population, we are seeing Asian-Americans rising as trendsetters and leaders in business, sports, fashion, food and entertainment.”
The report highlights Asian-American consumers as predictive adopters of new media and technology what they buy online.
Smartphones and other mobile devices are core to the Asian-American lifestyle and identity. Thirty-three per cent of Asian-Americans say their cell phone is an extension of their personality, and 73 per cent note that text messaging is an important part of their daily life. They outpace non-Hispanic whites in ownership of the latest digital devices and are also more likely to use their digital devices to purchase products online and more.
With a population of 21.8 million, Asian-Americans currently represent 7 per cent of the total US population. Much of the growth has come from immigration. In 2017, California had the largest Asian-American consumer spending with $323 billion. The next highest spend state was New York at $88 billion, followed by Texas at $78 billion. Their households are also more likely to have internet access than the total population and spend more annually ($61,400) than the average US household ($53,510), says the report. (KD)