Asian Americans’ spending power has reached $1 trillion
According to a report by Nielsen, the spending power of Asian Americans reached $1 trillion in 2018.
Titled ‘Informed Influencers and Powerful Purchasers: The Asian American Consumer Journey’, the report said Asian Americans’ spending power is expected to reach $1.3 trillion by 2023.
The community’s buying strength stems from having 17% larger households than average in the US. More children and more generations tend to live together and share their purchases.
These households thus have a higher household income. Asian Americans are also growing faster than the general population.
10 states accounted for 75% of Asian American buying last year. Each of these states saw Asian American buying power increases of more than 50% over the last eight years.
“Over the next decade and well beyond, Asian Americans will offer an unparalleled marketing opportunity for businesses and brands,” the report says. “Asian Americans are positioned to be a primary source of growth for brands.”
“Asian Americans are reshaping the American path to purchase via their leadership of the online shopping revolution and global purchasing perspective.”
Asian Americans are spending more online and have the highest rates of internet connectivity. The community exhibited consuming subscription video on demand faster than the general population.
“Insightful marketers who understand the thriving influence of Asian Americans can activate strategies to meet their unique needs and will be the first to benefit from this prime opportunity to drive relevance and future growth,” the report concludes.
“Given the outsized influence of Asian Americans in the U.S. path to purchase, these strategies will allow marketers to remain on the forefront of meeting the needs of the new American mainstream—a younger mainstream that is increasingly diverse and multicultural.”
