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Archive for the ‘Uncategorized’ Category
Tuesday, March 17th, 2009
The fastest growing segment of the United States population in the 21st century is ethnic consumers. Recent demographic projections from the U.S. Census Bureau indicate that ethnic consumers will compromise the majority of the nation’s population by 2042 – eight years earlier than previous estimates.
In the not-too-distant past, multicultural and mass marketers generally referred to this consumer group as “minorities.” Historically, the term refers to a group that differs – especially in terms of race, religion or ethnic background – from the majority of the United States population.
Fast forward to today. Within this large “minority” demographic, there is a growing subset of upper middle class and wealthy consumers that we call Royaltons™. Royaltons™ is a term coined by Andrea Hoffman of Diversity Affluence to describe people of ethnic backgrounds who earn a minimum of $75,000 annually as individuals or at least $150,000 as a household. We do not use the term “minorities” when referencing Royaltons™ as is only serves to perpetuate stereotypes and does not reflect their economic status.
The Landscape of Opportunity
Within the Royalton™ segment are African American Royaltons™, or AARs, who represent not only an exciting new opportunity for marketers, but also a consumer group that has the potential for a high return on investment (ROI). But first, let’s look at the overall African American consumer population and its economic clout. The African American consumer market has a population exceeding 39 million, and their purchasing power is projected to exceed $1.1 trillion in 20123. Beyond Barack and Michelle Obama exists a large group of peers that are not black celebrities, ball players or hip hop artists…..
Currently, the purchasing power of African Americans is calculated at $892 billion. Clearly, African Americans are a critical part of the American consumer economy. Focusing on the affluent segment, a 2008 Packaged Facts report found there are 2.4 million affluent African American households that have an annual income of $75,000 or more. Interestingly, with the average annual income of those households at $122,000 (only 17% of all African American households), the affluent segment has an influential grasp of 45% of the total purchasing power in the African American market.
Within the population of 39 million, the market segment of this market has gone unnoticed – until now. African American Royaltons™ (AARs) alone represent well over $87.3 billion in purchasing power. While some marketers and industry experts, including Packaged Facts, still define “affluent” as households earning $75,000 annually, Diversity Affluence redefines affluence as individuals earning a baseline annual salary of $75,000; a more relevant figure for today’s economy. Therefore, we believe every marketer should intentionally seek to engage the AAR segment of this audience, which can no longer be ignored.
Tags: affluent consumer research, diversity affluence, luxury brand marketing, marketing research, Michelle Obama, retail marketing
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Sunday, January 18th, 2009
I am excited to announce that Diversity Affluence now has an updated Economist Report available for luxury marketers and other brands and businesses interested in insight on affluent ethnic consumers. Conducted by our chief economist, this 12 page report (only $495) provides estimates of Population, Income, and Purchasing Power for African Americans, Asian Americans, and Hispanics in America.
Study Overview:
The report estimates the population, income, and purchasing power of “affluent ethnic consumers in the United States. The ethnic market continues to be an important segment for businesses to target. The ethnic population in the United States grew at rates almost three times that of the total population from 2000 to 2007. For the purpose of this analysis, the ethnic population is composed of three groups:
1. Non-Hispanic, African Americans/Blacks
2. Non-Hispanic, Asian Americans
3. Hispanics/Latinos
From 2000 through 2007, the ethnic population grew 19.9 percent, compared to only 7.2 percent for the total population. In total, the ethnic population increased by almost 15.8 million people. The Asian American and Hispanic/Latino populations both grew at rates of 29 percent, four times that of the national population. In 2000, the Hispanic population totaled just 12.5 percent of the U.S. population. By 2007 that share represented 15.1 percent. The ethnic share of the total U.S. population now stands at 31.6 percent, compared to 28.2 percent in 2000. Considering this trend, the affluent ethnic population is an important target market for businesses across the country. Statistics for these ethnic groups are presented for affluent individuals with annual income of $75,000 or greater, and households with annual income of $150,000 or greater.
Call Diversity Affluence for a synopsis or to inquire about purchasing this report. We also welcome media inquiries for articles and feature stories.
Tags: affluent ethnic consumers, affluent minorities, diversity affluence, minority purchasing power, wealth hispanics, wealthy african americans, wealthy blacks
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Sunday, January 18th, 2009
Groundbreaking Strategic Insights Paper Now Available. 39 pages of insight for luxury brands and luxury retailers. Only $895 (includes 1 hour of complimentary phone consulting). Visit us for more information at http://www.diversityaffluence.com/content/research/index.html
Tags: affluent african americans, diversity affluence, luxury marketing, wealthy african americans, wealthy blacks
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Thursday, November 6th, 2008
Today, 13 percent of American households have an annual income of $100,000 or more, compared with just four percent a decade ago, according to the U.S. Census 2000. Increasingly, a greater proportion of that total belongs to members of the diverse ethnic population.
For example, of the 38.3 million African-American households, more than 5 million report an income of $100,000 or more. That, perhaps surprisingly, is about the same percentage as for the overall U.S. population. Forty-three percent own their homes, and more than one million blacks hold advanced degrees. The African-American enrollment at elite universities is at a high of nine percent.
Hispanics represent our largest minority, now numbering about 42 million. Of those, 6 percent earn more than $100,000. Merrill Lynch estimates, however, that this relatively small segment of affluent Hispanics will spend $300 billion this year– representing almost two-thirds of overall Hispanic buying power. Hispanics make up between five and ten percent of elite enrollments; some 40,000 Hispanics are physicians.
America’s single most affluent consumer group is a minority: Asian-Americans, who now total about 13 million. The number of Asian-American families with incomes of more than $200,000 is about the same (156,000) as Hispanic and African-American families combined, according to Packaged Facts. This group represents between 10 and 25 percent of elite enrollments. Within this group, Asian Indians are the fastest-growing and wealthiest ethnicity, with a median household income of nearly double that of the national average ($46,326). Almost 40 percent of all Indians hold a professional degree.
A less familiar ethnic group, Russian-Americans, has arrived with a fury– about 4 million strong. They are twice as likely to have graduated from college as the overall American population, and 50 percent more likely to report an income of $75,000 or more.
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