What beauty brands need to know about Asian-American buying power
In the just released third edition of a report called Asian-Americans: Culturally Connected and Forging the Future, the performance management company anticipates that buying power in this vital market segment will climb to $1tn by 2018.
“Increasingly ambicultural, Asian Americans' cultural identities are shaping the mainstream market,” affirms Betty Lo, vice president of Community Alliances & Consumer Engagement at Nielsen.
The broad view
If Asian-Americans were a nation unto themselves, that nation’s economy would rank 19th among the world’s top economies, the Nielsen report observes. And last year alone, the segment’s buying power rose 7% from $718bn to $770bn.
While 66% of the general population own a credit card, that share jumps to 88% among Asian Americans, according to the data.
Millennial Asian-America women, as a group, are eager to save on their purchases. The report notes that they are “31% more likely than non-Asian-American millennials to use a manufacturer's coupon when they make a purchase.”
Regardless of age, the segment is over 30% more likely than the average consumer to purchase organic foods and 23% more likely to evaluate product nutrition, notes Nielsen. That behavior likely spills over into nutraceutical, ready-to-drink and personal care shopping too, as beauty consumers in general increasingly opt for products that deliver on wellness-related claims.
Skin care sells
Compared to their peers, Asian-Americans are decidedly loyal to quality brands that have excellent reputations, according to the analysis. That loyalty is likely to be felt most in the skin care and fragrance categories. “Asian-American households spend 70% more than their average share on skin-care preparation products and 25% more on fragrances,” reports Nielsen.
Market trends matter
Forging valuable digital relationships with consumers is of the utmost importance, and some brands continue to overlook women’s experience in the online space. “So brands that encourage women to participate, that make them feel heard, have a distinct digital advantage,” Kim Haley, EVP of account strategy at Women’s Marketing tells Cosmetics Design.
Additionally, video content is a must have for personal care and beauty brands. “Creating content that users want to engage with is key for successful brands with video. Igniting meaningful conversations will create brand evangelists,” Lauren Roth, associate media director for Women’s Marketing tells this publication.
Nielsen data underlines the value of these consumer trends: “Asian Americans are leaders when it comes to technology, mobile and social media usage…[and] 42% of Asian Americans are more likely to agree that the Internet is a source of entertainment.”
Data in action
The Nielsen numbers are good news for skin care brands and their suppliers. Though there is plenty to navigate within the swiftly changing category. Join in on the Cosmetics Design Skin Care Ingredients virtual event later this month, and keep pace with the competition. FREE registration is open now.