Asian Americans and Pacific Islanders are flexing and spending their money. Asian American buying power is stronger than ever and getting stronger. According to a new Nielsen report, Asian Americans and Pacific Islanders combined for over $1 trillion in buying power in 2018. This is up from $986 billion for 2017, reports NBC. The report estimates by 2023, Asian Americans and Pacific Islanders will top $1.3 trillion in spending. Nielson gathered their information from those who reported themselves as Asian or Pacific Islander.
On Thursday, Neilson released its annual Asian American spending report. The report titled “Informed Influencers and Powerful Purchasers: The Asian American Consumer Journey” showed that AAPI buying power grew the fastest of all races since 2010. It increased by 257% over that time period. This is not too surprising as Asian Americans are the fastest growing racial group in terms of population in the United States. Asian Americans grew to a total of 21.4 million which is a whopping 21% since 2010. During this time, the United States population only grew around 5 percent.
Neilson noted Asian Americans are growing not just in buying power but in representation and politics. There has been a growing number of Asian American influencers and stars along with a record number of Asian Americans who voted in the November election.
“Brands interested in ‘what’s next’ need to take a serious look at this burgeoning and predictive segment,” Nielson’s vice president of strategic alliances, Mariko Carpenter, said.
“Insightful marketers who understand the thriving influence of Asian Americans can activate strategies to meet their unique needs and will be the first to benefit from this prime opportunity to drive relevance and future growth,” the report said. “Given the outsized influence of Asian Americans in the U.S. path to purchase, these strategies will allow marketers to remain on the forefront of meeting the needs of the new American mainstream — a younger mainstream that is increasingly diverse and multicultural.”
The report found that Asian Americans were much more tech-savvy than any other racial group. They owned smartphones and computers at a higher than average rate and not surprisingly preferred to share their interests online. Asian Americans were described by the report as “tech-enabled digitally vocal influencers with immense spending power,” reports O’Dwyers’. Asian Americans preferred to shop online and read up on recommendations. As expected, Asians loved using Yelp and considered what their family thought about what they were purchasing.