Asian Americans score highest in internet usage

Asian Americans are heavily linked to the internet and most likely to use smart phones and computers to learn about products and services before purchasing them and then use those devices to tell friends and relatives about those purchases.

For several years in a row, Nielsen surveys have issued reports on the growing influence of Asian Americans in the American marketplace, as consumers and trendsetters. This year's report reinforces those roles.

Nielsen unveiled its "Informed Influencers and Powerful Purchasers" report of the 22.6-million Asian American market, a demographic that it believes “offers unparalleled marketing opportunity for business and brands.”

Mariko Carpenter, VP-strategic community alliances, presented some key findings during a Thursday (May 9) luncheon at the New York Stock Exchange.

She mentioned that Asian-Americans have moved into the national spotlight following success of the movie Crazy Rich Asians, Sandra Oh’s “It’s an honor just to be an Asian” declaration during the Emmys, New York Fashion Week’s first-ever all-Asian runway show by designer Claudia Li and a Hmong-American baby beating out 544K others to notch the 2019 “Gerber Baby of the Year” contest. Asian-Americans also turned out in record numbers during the November election.

Nielsen believes those dramatic cultural touchstones show that Asian Americans are a key force shaping the country's mainstream.

Asian Americans are the fastest-growth ethnic or racial group in the U.S., combining for $1-trillion in buying power. That buying power will grow to $1.3T in 2023, "with a powerful long tail of younger and bigger spenders," says the Report.

Nielsen calls the Asian American group “tech-enabled, digitally vocal influencers with immense spending power, which has risen 68 percent since 2010 (vs. 32 percent for the total U.S.)."

They have the highest level of internet connectivity, connecting to TV through broadband and subscription video on demand faster than the general population, according to Nielsen.

Asian Americans represent more than two dozen countries and are “expert navigators between the influences of the native cultures and those of mainstream America.”

READ the report at www.nielsen.com/AsianAmericans.

Asian Americans' economic impact is greater than their numbers might indicate within the overall American market. They owe their undue influence because of their devotion to their digital devices, says the report.Before looking into this group’s specific tech behavior, it’s important to note just how fast the Asian American population is growing, as well as how much spending power it has—and will have going forward. Notably, Asian Americans have grown in population by 7 million people in the last decade alone, the most of any ethnic or racial group in the U.S. That increase represents a 45% uptick, significantly outpacing the 8% growth of the total U.S. population.

In addition to growing as a demographic, Asian American households are markedly bigger than the U.S. average—17% bigger, in fact. Their greater household size contributes to Asian Americans’ household income. In fact, Asian American households boast the highest incomes of any racial or ethnic group in the U.S.—incomes that have boosted the buying power of Asian Americans by 68% since 2010. And it’s not going to slow down: We expect Asian Americans' buying power to increase to $1.3 trillion by 2023.

Because Asian Americans are so connected, the overall reach of internet-connected devices among them is 22% higher than among the general public. For example, Asian Americans are 21% more likely to watch a video on a computer than the general public and they are 24% more likely to use social media networks on a computer.

Among this demographic, the reach of video on a computer, social networking on a computer, and internet on a computer is 21%, 24% and 15% higher than the average U.S. consumer, respectively.

Overall, 97% of Asian American households have a smartphone and 89% have a computer, out-networking the average U.S. household by 6% and 13%, respectively.

Asian Americans’ usage of internet-connected devices outpaces the average U.S. consumer.  Bearing this out, 87% of Asian-Americans report having made an online purchase in the last 12 months, which is 22% higher than the average U.S. consumer.

“The Asian American path to purchase is a unique journey that’s informed by a rich cultural heritage, as well as the latest advancements in technology,” notes Carpenter in the new report.

As such, Carpenter believes Asian Americans are playing key roles in shaping the next generation of retail and e-commerce trends.

Asian Americans' purchasing habits is a social experience, often depending on recommendations or endorsements of frirends, relatives or review found on the Internet.

• 53% of Asian Americans agree with the statement: “My spouse has a significant impact on the brands I choose,” while 42% cite the influence of their children
• 29% of Asian Americans agree with the statement: “I prefer to buy things my friends or neighbors would approve of” -- 15% higher than the average U.S. consumer.
• 32% of Asian Americans agree they “like to share my opinions about products/services by posting reviews and ratings online.”
• 71% of Asian Americans say they recommend food products,
• 68% recommend automobiles
• 43% say they share their opinions regarding the latest consumer technologies.

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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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