Asian American households outspend median US households by an average of 19 percent, and earn 28 percent more on average than the US median income, according to a consumer report released by Nielsen this week. As early adopters of new technologies, they also lead in high-speed Internet access, mobile connectivity, use of social media and in the number of internet pages viewed each month.
“With a relatively low cost of entry and a potentially high return on investment, the Asian American market represents a significant growth opportunity for the nation’s businesses that sell goods and services,” reported Nielsen, which provides information about consumers in more than 100 countries. “While population growth in the non-Hispanic White segment is slowing, Asian American consumers provide growth opportunity to your business by appealing to a consumer base that is growing, affluent, well-educated, geographically concentrated, technologically savvy and has tremendous buying power that continues to soar.”
The Asian American population, which includes people with origins in China, Japan, South Korea, Vietnam and several other countries, has experienced a 51 percent jump in size since 2000, but while growth of the Hispanic population has been due to in-country births, the Asian American population has grown largely in part due to steady immigration. Three out of four Asian Americans are foreign-born, with 76 percent of Chinese not born in the US.
Chinese are the largest segment of the Asian American population, at 22 percent, and Indian Americans follow at 19 percent.
Additionally, the median Asian American household has grown 97 percent since 2000, with 28 percent of Asian American households reporting an income of more than $100,000. In comparison, 18 percent of US households report the same.
As the leading online shoppers, 77 percent of Asian Americans shopped online last year with an average of $2,500 spent, compared to 61 percent of all Americans, who averaged about half in spending online.
Asian Americans are also blurring the lines between traditional and emerging media, playing a major role in the use of new technologies, Nielsen said. This is in part because mobile usage in Asia is 76 percent, and leads the world in broadband usage.
A major unifying factor among “Asian values” is a focus on family, with 54 percent of Asian Americans reporting that a successful marriage is one of the most important values in life; 34 percent of the general population reported the same.
Buying power in the Asian American demographic was $718.4 billion in 2012, and is expected to top $1 trillion by 2017, according to Nielsen.
“You cannot afford to keep Asian Americans under the radar any longer,” Nielsen said of American businesses. “This is a segment that is vital to your growth and success.”