New Study Shows Well-to-do Ethnic Consumers Hold $282 Billion in Purchasing Power

"Our data confirms wealthy ethnic groups, defined as 'Royaltons,' are a significant audience for all marketers to target," Mr. McBoat said. "Of the three primary groups of Royaltons that we researched African Americans possess $87.3 billion in purchasing power, Asian Americans possess $90.2 billion, and Hispanic Americans hold $104.5 billion."

These influential consumers are the "new holders of the gold," said Andrea Hoffman, Diversity Affluence CEO. "While these recessionary times have luxury marketers overly cautious, reducing spending is an imprudent way to cut costs because a brand risks attracting new audiences that could otherwise help them survive and thrive," she said. "However, marketers should reallocate money towards new media and new audiences. It's more affordable, measurable and can deliver prospects instantly with the right call to action."

Ms. Hoffman suggests that marketers better educate themselves about the Royaltons' needs, interests and economic significance, particularly since affluent ethnic consumers -- have an average household income of $233,000.

"Although they account for only 2.4 percent of all ethnic individuals in the country, Royaltons represent 39 percent of total income, a significant portion of wealth," said Mr. McBoat. "In other words almost one of every 42 people is affluent, income earned by the Royaltons represents one dollar out of every $2.56 earned."

"No ethnic group possesses the raw buying power and growth potential more than Hispanic Americans," Ms. Hoffman said. "Marketers' traditional market base is saturated and it is imperative to find new customers to maintain sales and revenue growth -- regardless of economic times."

Ms. Hoffman also noted that the new study will help marketing managers, media buyers, retail and business development executives substantiate initiatives and pilot programs that target, attract and build loyalty between brands and Royaltons.

Source: PRNewswire

Related aticles:


Trackback from your site.

Editorial Staff

Portada Staff

MORE FROM PORTADA

BRAND MARKETING RESEARCH: 41% of Consumers Have Switched Brands Due to Poor Personalization

BRAND MARKETING RESEARCH: 41% of Consumers Have Switched Brands Due to Poor Personalization

A summary of the most exciting recent research in brand marketing in the U.S., U.S.-Hispanic and Latin American markets. If you're trying to keep up, consider this your one-stop shop.


Hispanic Mobile Network AdsMovil Provides Advertisers with Viable Alternative to Duopoly

Hispanic Mobile Network AdsMovil Provides Advertisers with Viable Alternative to Duopoly

Could Adsmovil be the long-awaited viable alternative to the Facebook/Google duopoly?


Meredith Corporation Buys Time Inc. for US$2.8 billion

Meredith Corporation Buys Time Inc. for US$2.8 billion

Meredith Corporation has entered into a binding agreement to acquire all outstanding shares of Time Inc. for US$18.50 per share in an all-cash transaction valued at us$2.8 billion.Meredith adds leading media brands to already strong portfolio of National and Local Media Properties, creating media powerhouse with US$4.8 Billion in Revenues, Including US$2.7 billion of advertising revenues.