Affluent ethnic consumers (also known as 'Royaltons') have amassed some US$110 billion in purchasing power in the US, and many businesses are still failing to recognise and take advantage of this increasingly lucrative demographic, according to a report from Diversity Affluence.
The report has been written to provide facts, figures and ideas to allow marketers to understand and address the affluent ethnic marketplace, and begins by highlighting some interesting research findings, such as:
- Affluent ethnic consumers have US$110 billion in purchasing power;
- Affluent Hispanics alone have US$25.4 billion in purchasing power;
- Affluent ethnic consumers should not be called "minorities";
- Affluent ethnic consumers are easy and affordable to reach;
- Affluent ethnic consumers require a different marketing strategy.
Niche markets are vital
According to Andrea Hoffman, founder and CEO for Diversity Affluence, and author of the report, "Today's marketers are faced with different obstacles that they need to overcome for their products or businesses to reach their full potential. In this age of cost consciousness, every expense is being scrutinised and accountability has become a primary focus. Businesses, both large and small, expect to produce tangible results from their marketing strategies. As marketers face the very real scenario of most of their traditional markets maturing and even declining, they need to focus their energies on emerging and growing markets to remain successful."
Indeed, in an era of increased accountability at all levels of business, many companies - particularly retailers and service providers - can no longer avoid aiming their marketing strategies toward individual markets such as affluent ethnic consumers.
US market divisions
The fastest growing segments of the US population are ethnic consumers, the report says. But multicultural and mass marketers generally refer to this group as "minorities" - a term applied many years ago to refer to a group differing in terms of race, religion, or ethnic background from the majority of the population.
With within this group is a growing body of affluent ethnic consumers who need to be viewed quite differently. Marketers who want to leverage the spending power of this segment of consumers will need to devote special attention to the group Diversity Affluence nick-named 'Royaltons'. Royaltons is a term created specifically to describe people of ethnic backgrounds who earn more than US$100,000 annually as individuals, or at least US$200,000 as a household. The three major ethnic groups that are covered by the term are African Americans, Asian Americans and Hispanic Americans.
Obtaining the report
The company's latest 12-page report was written with the objective of helping brand marketers, the media and agencies accomplish their ethnic marketing goals more effectively. While the report costs US$395, a 15% discount and free 45-minute consultation are available to those who wisely mention The Wise Marketer when ordering. Hoffman can be contacted directly by email (firstname.lastname@example.org) or by telephone at +1 (973) 846-0155.