More than $2 trillion in purchasing power.
That's the economic clout that minorities--Hispanics, blacks, Asians and Native Americans--have in this country. So says an annual buying power study, "The Multicultural Economy 2007," from the University of Georgia's Selig Center for Economic Growth. Marketers should be salivating over the opportunity to reach out to these underserved groups with more combined purchasing power than the GDP of many countries.
The Statistics
Since 2007 Hispanics have topped all U.S. minority groups for purchasing power, with $862 billion in buying power, according to an annual buying power study from the University of Georgia's Selig Center for Economic Growth. This is a 307 percent increase from 1990. By 2012 nearly one person out of every six living in the U.S. will be of Hispanic origin, with buying power of a little more than $1.2 trillion.
Here are additional findings from the 2006 UGA's Selig Center for Economic Growth report, written by director Jeff Humphreys:
- For 2007, Asian buying power was projected at $459 billion, an increase of 294 percent from 1990. It should reach $670 billion in 2012.
- The African American consumer market had a projected buying power of $845 million in 2007. Its buying power in 1990 was $590 million. That equals a growth of 166 percent. It's expected to climb to $1.1 trillion in 2012.
- Buying power for Native Americans, the smallest of the four minority groups included in the Selig Center report, was projected at $57.1 billion for 2007. That's a 190 percent increase in buying power since 1990, when it was $19.7 billion. It should rise to $77.4 billion in 2012.
The good news is, you don't have be a member of a particular ethnicity to market to that minority. But before you can reap a share of that potential purchasing power, you'd better do your homework and find out what is important to each group. For example, you should recognize Martin Luther King Day if you're marketing to blacks, Cinco de Mayo if you're marketing to Hispanics and the Lunar New Year if you're marketing to Asians.
If you fail to undertake a smart, targeted and genuine approach, you might as well throw your marketing dollars into the ocean. Simply tweaking an existing campaign to reach various ethnicities will not work.
Today's marketer has the advantage of the internet to conduct extensive research on various ethnic groups, but when it comes to performing in-depth homework, nothing beats tried-and-true methods. One of those methods is to be where the people you want to reach hang out. To focus your marketing efforts on a specific ethnic group, start by joining or financially supporting organizations with that group's best interests at heart.
Membership in an ethnic business organization shows that you care about the group. Plus, your membership should provide opportunities to advertise in the organization's newsletters, on its website, in its directories and at its expos.
What's more, with most business organizations, dues-paying members have access to the organization's membership contact list, including e-mail and address lists. This is exactly what you need to deliver concise, direct messages to these members, who could turn out to be your best champions.
To be your champions, however, people want to know that you know them.
Make It Personal
People are 47 percent more loyal to companies that remember their birthdays and recognize them individually, according to data from the greeting card industry. So if you're marketing a service-oriented business, such as insurance, fitness, beauty or any kind of consulting business, use direct and personal marketing for the highest impact and return.
How does that translate to ethnic marketing? You have to recognize individuals and pay attention to what is dear to them. You can use special holidays to show members of ethnic groups that you care about them and their culture.
With today's online templates and databases, entrepreneurs can mail unique, tangible and personal cards on recycled paper to individuals' homes via the U.S. Postal Service--hundreds or even thousands of cards at a time. CardsFromBarry.com http://cardsfrombarry.com/ is one service that allows business owners to create an ethnic holiday card campaign with unique and special art and messages, then mail the paper cards to customers and prospects. Users can upload marketing lists, special photos, logos, art and even insert signatures.
Claire Kim is a South Korean-born American who owns Claire Design http://www.clairedesigncenter.com/, a web, graphic design and advertising firm. She says it's wise to market to different ethnic groups. "It would really impress me if someone marketing financial services sent me a Chuseok [Korean Thanksgiving] or Korean New Year card," Kim says.
Chuseok is celebrated in the autumn, sometime from mid-August to October, based on the lunar calendar. The Korean New Year also follows the lunar calendar and coincides with the Chinese New Year. [For a list of ethnic holidays, click here]
The term "Asian" includes many cultural backgrounds. Beyond Chinese and Koreans, there are a wide variety of Asians in the U.S. The Selig Center's data for Asians broaden the definition to include those who identify themselves as Asian, Native Hawaiian or Other Pacific Islander.
Leisa Ruiz, owner of Pura Vida Day Spa http://www.puravidadayspa.com/ in Laguna Niguel, California, recognizes her clientele's special days with cards, discounts and free gifts. "We receive about a 10 percent return on the cards we send out with a return reward," she says. Return rewards are excellent ways to gauge your marketing efforts.
Don't leave yourself open to charges of favoritism, however. "When opting for an ethnic marketing campaign, it's important that you not leave anyone out," Ruiz advises.
Market Via the Web
As a professional web designer, Kim sees many companies opt to create websites in various languages. She mentions a bicycle rental company that opted for web pages in English, French, German, Swedish and Spanish. "It is pretty easy to view the website with different languages. We simply link to different web pages with different languages, but keep the same graphics," she says.
"Even if you are bilingual, it is really nice to see marketing in your native language," Kim says.
Something else Kim recommends to keep in touch with customers and prospects is a newsletter. A monthly or quarterly newsletter that is long on information important to people's lives and short on sales pitches is an effective way to stay in front of large groups. "We can make these festive for holidays, no matter what the occasion, by adding unique graphic designs to our marketing messages," Kim says.
Two trillion dollars is a lot of money, too much to ignore for any business owner with a product or service to offer. So do some homework, get to know ethnic groups outside of your own, and create marketing programs aimed directly at what they need and care about the most. You won't capture the entire market, but even a slice of a pie that large will help most any business grow.
Karen Gleason and her team at Going Global Communications http://www.ggcpr.com/ advise clients on custom media and marketing strategies.
Ethnic Holidays in the United States
Here are many of the most recognized ethnic holidays in the United States.
Hispanic Holidays
Cinco de Mayo: This holiday commemorates the Battle of Puebla on May 5, 1862, when Mexican forces led by Gen. Ignacio Zaragoza triumphed over the French.
Hispanic Heritage Month: Recognizes the September 15 anniversary of independence for five Latin American countries--Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. In addition, Mexico declared its independence on September 16 and Chile on September 18.
Mexican Independence Day: On Sept. 16, Mexico celebrates the events and people who led a 10-year revolt that eventually resulted in independence from Spain, the country that until 1821 had control over the territory of New Spain, as it was known then.
African-American Holidays
Martin Luther King Day: This holiday, held on the third Monday of January since 1986, marks King's birthday, which was January 15.
Black History Month: February is Black History Month, which honors the lives and achievements of African Americans throughout history.
Malcolm X Day: The third Sunday in May marks the celebration of Malcolm X Day.
Born Malcolm Little on May 19, 1925, Malcolm X became one of the most outspoken and popular leaders of the Black Nationalist movement in the 1960s.
Juneteenth: June 19 celebrates the freedom of more than 250,000 slaves at the close of the Civil War. The holiday is based on events that occurred mainly in Texas but is now celebrated nationwide.
Kwanzaa:Kwanzaa,which in Swahili means "first fruits of the harvest," is based on the Nguzo Saba (Seven Guiding Principles), one for each day of the observance. Kwanzaa is celebrated from December 26 through January 1.
Asian Holidays
Lunar New Year: January 6, 2009 The Lunar New Year dates from 2600 BC, when the Emperor Huang Ti introduced the first cycle of the zodiac. Because of cyclical lunar dating, the first day of the year can fall anywhere between late January and the middle of February. On the Chinese calendar, 2009 is Lunar Year 4706-4707.
Asian Pacific American Heritage Month: Asian Pacific American Heritage Month was enacted by Public Law 102-450 on October 23, 1992. The purpose of the law was to honor the achievements of Asian/Pacific Americans and to recognize their contributions to the United States.
Chuseok: Korean Thanksgiving, also called Han-ga-wi (from archaic Korean for "great middle"), is a three-day holiday in Korea. Celebrated on the 15th day of the eighth month of the lunar Korean calendar, it is the Korean equivalent of the Mid-Autumn Festival, which originated in China and also is celebrated in Japan and Vietnam.
Tet Nguyen Dan: A Vietnamese festival beginning on the first day of the first lunar month. It marks the beginning of the lunar New Year and the arrival of spring. Tet is the most popular festival in Vietnam, and artifacts suggest that it has been celebrated since at least 500 B. C
American Indian Holidays
American Indian Heritage Month: The month of November is dedicated to recognizing the cultures, events and achievements of American Indians and native Alaskans.
Cherokee National Holiday: Every Labor Day Weekend to commemorate the signing of the Cherokee Nation Constitution of 1839.
Indigenous Peoples' Day: Observed on September 26, this is a day for celebrating the life-affirming spiritual traditions of indigenous people worldwide.