More Mixing in the American Melting Pot Understanding

More Mixing in the American Melting Pot § Understanding today’s consumers is crucial for brands, retailers – and media sales AEs. New niches of consumers are being added to the American “melting pot, ” bringing their cultural influences, spending behaviors and media choices into the marketplace. § New technologies are helping, such as Next. Gen TV, which will make it easier for local retailers, but especially minority businesses, to engage with neighborhood audiences who are more likely to buy their products and services. § This Special Report from Media Group Online explores the ever-increasing and ever-changing diversity of American consumers and their cultural influences. It is a trend requiring more attention and awareness from you and your prospects and clients.

Cultural Influences Are Always Dynamic § Unlike basic demographics, music or fashion trends, for example, from a specific ethnic or cultural origin are adopted by others and integrated with their cultural origins to create something new, and newly influential. § Food is certainly an excellent example. According to Statista, 69. 2% of Americans prefer a “good selection of ethnic foods in their primary grocery store” and 44% of Americans purchase Mexican foods at retail stores. § Fashions and designs are often adopted from native people and become mainstream options for almost everyone. Ponchos, for example, which are popular choices, are originally from various South American civilizations.

Improving Cultural Representations in Media and Advertising § As our cultural diversity increases, it is having a major influence on how brands and their advertising (and by inference retailers) represent women and women of color. § Despite improvements, an August 2020 survey from See. Her and Dentsu found 33% of Caucasian American women, 36% of Latinx American women and only 26% of African American women think progress has been made. § Of the three groups surveyed, 57% of Latinx American women and Caucasian American women think brands can contribute to gender equality by increasing female leadership with their organizations while 51% of African American women want accurate portrayals in ads.

Positive Entrepreneurial Trends § An unexpected consequence of the pandemic is the 4. 5 million applications for new businesses during 2020, the most ever recorded and 24% more than during 2019. It’s a clear sign many people are economic optimists. § Although there are more (and decades-old) barriers for women and people of color to become entrepreneurs, a December 2020 Guidant Financial survey found larger percentages of people of color are small business owners, compared to the entire US population. § Despite the disproportionate effect of the pandemic on SMBs and especially among people of color, 46% of African American entrepreneurs are women. A 2018 American Express study found female African American business ownership has increased 164% since 2007.

Cross-Cultural Influences § Cross-cultural fashion and beauty influences on consumer markets are likely to increase as groups of teenagers and young adults are more ethnically diverse than older age groups. § For many women of color, fashion and beauty is often (but not exclusively) a catalyst for their business. As they open businesses in “mainstream” locations, their cultural influences are influencing in turn new customers from different ethnicities. § Numerous news reports have revealed significant increases in support of entrepreneurs and small businesses who are women and/or people of color from major, global corporations, leading to more of their influences evident on Mainstreet USA.

Home Is the Focus of the Latinx American Community § Although the median age of all Latinx Americans is younger than other US ethnicities, their households are 40% more likely to be multi-generational, so younger Latinx Americans benefit from the advice and wisdom of grandparents and aunts and uncles in the household. § According to a 2021 report from Inmobi, 25% of Latinx American households speak only Spanish or more Spanish than English, but 37% prefer only English in their media choices and 23% prefer more English than Spanish. § Latinx Americans also rely on social media to access news, especially about the pandemic. According to March/April 2020 Nielsen data, they were 57% more likely to use social media as their primary news source than all other Americans.

Equality Is the Cultural Focus on African Americans § At the nexus of social justice and consumerism, African Americans are insisting brands and retailers where they spend their money support issues important to the community. § According to Nielsen’s 2020 report, Power of the Black Community – from Moment to Movement, 58% of survey respondents are more likely to expect this support, compared to 4% during 2019. § That commitment also leads to spending, as 37% are more likely to be customers of these supportive brands and retailers, a huge increase from 2019’s just 1% more likely.

Small Business Owners Support Equality § The August 2020 Special Report on Race and Inequality on Main Street from Met. Life and the U. S. Chamber of Commerce reveals local, small businesses are focusing on actions to help African American small businesses. § Of all the small businesses surveyed, 79% said, “It is important to make a commitment to fairness in hiring, promotion and pay. ” An almost equal percentage (74%) said it is essential to support African-American small businesses. § 35% said they had made a statement of support for racial equality and fairness, 28% found ways to support local African-American-owned businesses and 25% donated to organizations supporting racial equality.

Asian Americans Present a Mix of Cultural Influences § Advanced educational achievements and careers in the sciences are two traditional cultural influences that have led to 23% of Asian Americans working in STEM professions: science, technology, engineering and mathematics, and allied fields. § Interestingly, Asian Americans are at the forefront of two of the newest cultural influences, especially among American and global youth. First is the incredible worldwide popularity of South Korean K-pop groups, and BTS specifically. § Second is the Asian influence on the gaming industry and the increasing interest in esports. Tencent is the largest game company in the world and is located in Shenzhen, China. Asian-American gamers skew younger than all US gamers 18+.

Positive Signs for 2021 § As much as culture influences consumer markets, Americans’ perceptions of their financial situation and the US economy also influence spending, especially as the country and the world recover from the pandemic. § According to Think. Now’s January 2021 Total Market Consumer Sentiment, 53% of African Americans, 47% of Latinx Americans, 42% of Asian Americans and 36% of Caucasian Americans expect their 2021 household incomes to be better than 2020. § General economic and personal financial optimism usually correlates with consumers who are willing to spend money. The data on page #7 of the report certainly provides some strategic insights for you and your prospects and clients.

Cultural Influences and Media § Data from The Media Audit’s 60 -Market 2020 Aggregate Survey reveals African Americans were 28% more likely than all adults to watch 300+ minutes of TV daily while Asian Americans were 36% less likely. § Latinx Americans, however, are 41% more likely to be heavy users (300+ minutes/day) of social media than all adults, with African Americans a close second at 35% more. § Collecting, digesting and applying consumer demographic data is always a challenge, but recognizing cultural influences on consumer markets provides an additional level of knowledge which can be a significant advantage, even among local retailers and advertisers.