Report: Asian American women are trendsetters, influencers

ASIAN AMERICAN women are a marketer's dream target. A new report from Nielsen says that Asian American women's buying power is greater than the coveted Millennials and greater than all but 18 countries.

As a result, Asian American influences are having a profound and recognizable impact on the country’s mainstream culture. At the helm of this influence, are Asian American women.

Despite reports of poverty and studies showing that Asian American women make less than their white counterparts, and the bamboo ceiling blocking employment advancement, marketers still say AA women are the group to watch. It makes one wonder if a new stereotype is being created for Asian/American women to go along with the subservient sex slave and the Dragon Lady?

Neverthelesss, according to Asian American Women: Digitally Fluent with an Intercultural Mindset, a Nielsen report released May 8, at an average age of 36, Asian American females are overwhelmingly multilingual, diverse and have a cross-cultural mindset firmly rooted in the values and traditions of their native countries.

For marketers and advertisers, this combination of youth, digital fluency and an intercultural mindset, makes Asian/American women a powerful consumer segment. The recent Korean beauty phenomenon is a perfect example of Asian/American women’s digital influence. What began as passionate consumers posting on social channels, exploded into magazines and has ultimately influenced store shelves. 

According to the annual report, Asian/American women are tech-savvy jetsetters. This group is in a constant state of discovering new content and consumer products as they travel the world, juggle family and pursue professional goals. At work, 39% of Asian American women are entrepreneurs, and 46% say their goal is to make it to the top of their profession. When it comes to spending, they’re not afraid to demand brands and products that support and speak to their values or personal goals: setting the stage for trends that are yet to hit the mainstream marketplace.

RELATED: PEW report on Asian/Americans

“For brands, this fast-growing, young and digitally fluent consumer segment's ability to influence trends can not be ignored,” said Mariko Carpenter, vice president, Strategic Community Alliances, Nielsen. “Asian/American females are the group to watch. At 19%, Asian/American women comprise the largest group to immigrate to the United States between 2010 and 2015. Highly educated and adventurous—Asian/American females are not only discovering new products and experiences as they explore the world, but they are also using social media to create shareable content that influences the marketplace.”

This new report is part of Nielsen's ongoing efforts to provide insights that help marketers better understand and serve Asian/American consumers, who are the fastest growing U.S. racial group, having increased 47% in population growth the last 10 years. This report is the first of the three-part 2017 Diverse Intelligence Series that will focus on women of color, with the Latino and African/American installments being released later this year.

“Nielsen continues to prove it is the definitive source of data and insights on consumers of color,” said Sharmila Fowler, member, Nielsen Asian Pacific American External Advisory Council. “Culturally relevant data about our multifaceted community are a vital tool for delivering better products, services and content to Asian Americans. This is why it is so important for consumers of color to say ‘yes’ if the opportunity to participate in a Nielsen survey or panel arises.”

Highlights of the Nielsen report:

Ambicultural with an Immigrant Edge

• The U.S.-born Asian/American female population is growing faster than the foreign-born population, with 60% growth vs. 43%, respectively, since 2005
• 78% of U.S.-born Asian/American women are age 34 or younger
• About half of all U.S. foreign students are from China, India and South Korea
• 16% of Asian/American females ethnically identify as two or more races

Savvy Shoppers

• 76% of Asia/ American women will pay for a brand they trust, even if it is slightly more expensive
• 71% try to buy foods grown locally where they live
• 42% used natural or organic beauty products in the last 12 months (10% higher than non-Latino white women)

Jetsetters

• 54% of Asian American women have traveled outside the continental U.S. in the last three years, which is 67% higher than non-Latino white women
• 12% took a foreign business trip during the last three years (2.6 times the percentage of non-Latino white women)
• 14% took a domestic business trip in the last 12 months (55% more than non-Latino white women)

Tech and Digital Content Mavens

• Asian/American women have the highest smartphone penetration of any racial or ethnic group in the U.S.
• Asian/American women over-index against the total population for computer, tablet and video game ownership
• 83% of Asian/American women have used a social networking site in the past 30 days, with Snapchat having the highest reach, over-indexing by 23% compared to total women
• Asian/American women over-index on communication apps such as Skype, GroupMe, WhatsApp and Hangouts
• 66% of Asian/American females use online banking, 22% higher than the total adult population

For more details and insights, download Asian American Women: Digitally Fluent with an Intercultural Mindset.

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The impact and influence of the AAPI community is fast expanding

FROM FOOD to technology to entertainment, Asian/American influence continues to rise in the U.S. and is spanning across the country.

Asian/Americans' impact and influence are shifting and growing, according to Asian Americans: Culturally Diverse and Expanding Their Footprint, a Nielsen report released today. Members of this diverse segment are starting businesses, creating jobs and contributing to the U.S. economy, with a current $825 billion in consumer buying power—which is expected to rise to $1.1 trillion by 2020.

As the fastest-growing U.S. population segment with an expanding geographic footprint in the Midwest and South – beyond traditional immigrant enclaves in the West and Northeast – the Asian/American impact on consumer preferences is rippling across mainstream America, with far-reaching implications for brands and marketers.Still the nation’s fastest-growing population segment, Asian/Americans are about 20.5 million strong and represent 6 percent of the U.S. population. 

From 2009-2014, the Asian-American population grew 25 percent. With immigration from Asian countries continuing to boost the American population, U.S. Census projections show the Asian/American population will reach 25.7 million by 2019. 

RELATED: AAPI population will surpass African/Americans by mid-century

Asian/Americans are a very diverse group, representing more than 40 countries of origin. Asians of Chinese ancestry are the largest group, comprising 20 percent of the Asian-American population in the U.S. South-Asian Indians (17 percent), Filipinos (16 percent), Vietnamese (9 percent), Koreans (9 percent) and Japanese (6 percent) are the next-largest ethnic groups. Multiracial groups are also among the most rapidly expanding segments of Asian-Americans, making up 18% of the total Asian-American population in 2014.

If current birth rates and immigration rates continue, Asian/Americans will outnumber U.S. Latinos by 2055 according to U.S. Census Bureau projections.

"If marketers and companies want to be successful, it is imperative they develop growth strategies that account for Asian Americans' diverse ethnicities to better resonate with the cultural nuances of this unique multicultural community," said Betty Lo, vice president, Community Alliances & Consumer Engagement, Nielsen. 

"This segment not only has culturally specific tastes and preferences, but also buying behaviors that are unique to geographic regions. In addition, U.S. Census projections show that Asian Americans are on track to become the largest immigrant group in the nation by 2055. As entrepreneurs, tech titans and digital content consumers, Asian Americans' cultural identities will play a unique role in impacting the U.S. economy and marketplace.b

NEILSEN HIGHLIGHTS

Geographic Expansion

• The majority of recent Asian immigrants migrated to large cities; 63 percent live in 15 U.S. cities. The top five destination metro areas for recent Asian immigrants are New York-Newark-Jersey City, NY-NJ-PA; Los Angeles-Long Beach-Anaheim, CA; San Francisco-Oakland-Hayward, CA; Washington-Arlington-Alexandria, D.C.-VA-MD; and San Jose-Sunnyvale-Santa Clara, CA.
• Between 2009 and 2014, immigration, relocations, and new births have led to a population increase of 33 percent (over 1.1 million) in the South and 29 percent (538,000) in the Midwest.
• The South saw the highest growth in Asian-American buying power (43 percent) between 2010 and 2015 and is projected to continue to see the highest growth in the next five year
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Entrepreneurial Economic Drivers

• Of the 87 U.S. startup companies valued at over $1 billion with the potential to become publicly traded on the stock market, 19 were founded by Asian/American immigrants.
• In the U.S. Census' recently released Survey of Business Owners, the number of Asian/American-owned businesses grew by 24 percent between 2007 and 2012 and claimed the highest percent sales increase (38 percent) of any racial or ethnic group.
• Of the 11.6 million Asian/Americans in the workforce, about 70 percent are employees of for-profit businesses, 12 percent are government employees, 7 percent work for nonprofits, and 9 percent are self-employed, while 1 percent are unemployed.

Unique Culinary Tastemakers and Environmentally Sustainable Consumers

• Seventy-nine percent of Asian/Americans agree they prefer cooking with fresh food rather than canned or frozen food. On average, Asian/Americans purchase 69 percent more fresh seafood, 72 percent purchase more fresh vegetables, and 29 percent purchase more fresh fruits than the general population. Asian/American shoppers say they are more likely to buy and pay more for recyclable and eco-friendly products than the general population.

• More and more consumers of other races and ethnicities are adopting Asian/American cooking styles and habits. Items such as soy milk, seaweed, Asian curries and many others are entering mainstream markets.

Tech Titans and Content Consumers

• Nearly half of Asian/Americans watching English TV also watch TV in an Asian language (dual-language viewers).
• Asian/Americans outpace the general population in ownership of all three major Internet personal devices: smartphones, household computers and tablets. Online purchasing sentiment outpaces the general market, as well.
• Asian Americans take the lead in using multimedia devices, averaging almost twice the minutes per day of the general population; they spend half the time on live TV as the general population. Additionally, Asian/American households have a much lower rate of DVR usage (43 percent) than the general population (62 percent). Sixty-eight percent of Asian/American households have subscription video on demand (SVOD) services, a 21 percent higher rate than the general population.

"Nielsen has been a longtime partner to Asian/American and Pacific Islander-serving organizations by providing culturally sensitive data about our multifaceted community," said Nita Song, co-chair, Nielsen Asian Pacific American External Advisory Council and President, IW Group. 

Producers in Hollywood who are resistant to casting Asian/Americans in significant roles should take note of the report. The market for movies and television programs featuring more diverse casts is obviously there if the decision-makers in the entertainment industry could overcome their inherent biases.

"Without these diverse insights, we would not be aware of the tremendous buying power and cultural influence that Asian/Americans have on the mainstream market."

For more details and insights, download Asian Americans: Culturally Diverse and Expanding Their Footprint.

To learn more about Nielsen's Diverse Intelligence research series, visit www.nielsencommunity.com.

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For more news about Asian/Americans & Pacific Islanders, read AsAm News.