Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market factors
- Asian population holding steady, accounts for nearly 5% of all Americans
- Asian immigration overtakes Hispanic immigration, and most become citizens
- Asian population is aging, but average age is younger than general U.S. population
- Asians are the most likely to marry of any population group
- Asians generally live in larger households than most consumers, intermarriage increasing
- Asians are generally more educated than the average consumer, Indians most educated
- Asians, mostly Indian, enjoy high rates of employment in remunerative fields
- Asians (Indians, in particular) enjoy higher incomes than consumers of any other ethnicity in the U.S.
- Asian buying power sums to a significant share in Hawaii and California
- The consumer
- Luxury means exclusivity and craftsmanship
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- Figure 1: Consumer definitions of luxury purchases, March 2013
- Asian Americans are huge discount seekers when buying luxury goods
- Clothing, accessories dominate luxury purchases among Asian Americans
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- Figure 2: Luxury/Designer brands purchase categories, by gender, March 2013
- Asians purchase luxury goods once a quarter, women more often than men
- Asian Americans have mixed feelings about flaunting their luxury brands, but most will not adjust their spending
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- Figure 3: Attitudes about luxury/designer brands, March 2013
- Younger Asian consumers buy luxury goods to treat themselves and to look good, while a majority are driven by quality and craftsmanship
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- Figure 4: Luxury/Designer brands purchase motivations, by age, March 2013
- Asians tend to shop at higher-end stores and engage in more online and mobile shopping
- South Asians spend more on luxury goods and value quality and craftsmanship
- What we think
Issues in the Market
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- Can second- and third-generation Asian Americans be addressed through “Asian media”?
- How can Asian Americans be motivated to make luxury purchases in the U.S. when luxury retailers are everywhere?
- Why does Europe continue to dominate the fashion market when the money is in Asia?
Insights and Opportunities
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- Create communities where none exist
- Luxury communicates across cultures, but not often in languages of origin
- Brash falling out of style, but many still love it
- The end of “Chinatowns” and the rise of the “ethnoburb”
Trend Application
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- Inspire Trend: Prepare for the Worst
- Inspire Trend: The Real Thing
- Mintel Futures
- East Meets West
Market Drivers
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- Key points
- Asian population to remain a smaller minority group, but still nearly 5% of the total U.S. population
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- Figure 5: Population, by race and Hispanic origin, 2008-18
- Asian immigration rates continue to rise
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- Figure 6: Percentage of Hispanic and Asian immigrants to the U.S., 2000-10
- Like U.S. population, Asian population skews older
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- Figure 7: Asian Population by age, 2007-17
- Asians are the most likely to marry of any population group
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- Figure 8: Marital Status of People aged 15+, Race, and Hispanic Origin, 2012
- Asians generally live in larger households than most consumers
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- Figure 9: Average Number of people per household, by race and Hispanic origin, marital status, age, and education of householder: 2012
- Asians are generally more educated than the average consumer
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- Figure 10: Educational attainment of Asians aged 25 or older, by age, 2012
- Figure 11: Educational attainment of people aged 25 or older, by age, 2012
- Indians most educated of all Asian groups
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- Figure 12: Proportion of population aged 25 or older with a bachelor’s degree or more, by ethnicity, 2010
- Indians most likely to speak English very well
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- Figure 13: Proportion of Asians who can carry on a conversation in English “very well,” by Asian immigrant groups, 2012
- Asian intermarriage increasing, may diminish signature “Asian” tendencies
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- Figure 14: Asian household structure, by alone or in combination, 2000-10
- Health insurance status of Asians vs. other ethnicities
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- Figure 15: Health insurance status by gender and age, for Asian alone and White alone, not Hispanic, 2011
Asian Demographic Snapshot
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- Key points
- Chinese make up nearly one quarter of Asian Americans
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- Figure 16: Largest U.S. Asian groups, March, 2012
- Asian employment higher than most, but unable to counter overall trends
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- Figure 17: Labor-force participation rate of people aged 16 or older, by race and Hispanic origin, 2002-2012
- Asians employed in more remunerative fields
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- Figure 18: Occupations of employed people aged 16 or older, by race and Hispanic origin, 2012
- Skilled Indian workers dominate all immigration to the U.S.
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- Figure 19: H-1B Visas Issued, by top nationalities, 2011
- Most Asians are first-generation Americans
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- Figure 20: Generational distribution of the population by gender, for Asian alone and White alone, not Hispanic, 2011
- Most Asian Americans are citizens through birth or naturalization
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- Figure 21: Nativity and citizenship status by gender, for Asian alone and White alone, not Hispanic, 2011
- Housing tenure among Asians vs. other ethnicities
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- Figure 22: Housing tenure by household type, for Asian alone or in combination and White alone, not Hispanic households, 2011
- Indian consumers
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- Figure 23: Characteristics of U.S. Indian Adults, 2010
Asian Buying Power
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- Key points
- More Asians are in higher-income brackets than consumers of any other ethnicity
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- Figure 24: Household income distribution by race and Hispanic origin of householder, 2011
- Asian median household income is higher than any other ethnicity
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- Figure 25: Median household income in the past 12 months (in 2006 inflation-adjusted dollars), Asian alone householder, 2011
- Indian median household income is highest among all Asians
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- Figure 26: Median household income by race and Asian subgroup, 2010
- Asian buying power sums to a significant share in Hawaii and California
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- Figure 27: Asian share of total buying power – Top 10 Asian buying power states, 2012
- High concentration of Asian buying power in Western states
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- Figure 28: Top 10 Asian buying power states ranked by share of overall Asian buying power, 2012
- Asian buying power growing rapidly in smaller markets, but Western states still dominate
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- Figure 29: Top 10 states and Washington, D.C. ranked by rate of growth of Asian buying power, 2000-12
- Asians in the Consumer Expenditure Survey
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- Figure 30: Average annual expenditures of consumer units, by race and Hispanic origin of reference person, midyear 2012
Leading Companies
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- Automotive Companies
- Daimler
- BMW
- Volkswagen
- Fashion Apparel, Accessories, Fragrance, and Skincare Companies
- LVMH
- Coach
- Prada
- Burberry
- Ralph Lauren
- Salvatore Ferragamo
- Shiseido
- AmorePacific
- Chanel
- Estée Lauder
- Dior
- Hermès
- Gucci
- Jewelry and watch companies
- Cartier
- Tiffany & Co.
- Travel companies
- Marriott Hotels
- Starwood Hotels
Innovations and Innovators
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- Key points
- MetLife
- Louis Vuitton
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- Figure 31: Louis Vuitton Chinese New Year Promotion, February 2011
- Year of the Snake (2013) Global Luxury Marketing Response
- Tiffany
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- Figure 32: Tiffany luck charms, May 2013
- Gucci fortune luggage tags
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- Figure 33: Gucci fortune luggage tag, February 2013
- Johnnie Walker zodiac-labeled whiskeys
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- Figure 34: Johnnie walker zodiac-labeled whiskeys, February 2013
- adidas Chinese New Year shoes
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- Figure 35: adidas Superstar 80s Chinese New Year shoes, February 2013
Marketing Strategies
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- Key points
- The importance of communicating across Asian generations
- TV Advertising
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- Figure 36: IOPE TV Ad, April 2013
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- Figure 37: Macy’s Chinese Ad, June 2012
- Figure 38: Cosmos TV Ad, December, 2012
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- Figure 39: Emirates Airlines TV Ad, May 2013
- Figure 40: Verizon TV Ad, May 2013
- Print and Web-based Advertising
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- Figure 41: Wells Fargo advertisement, 2012
- Figure 42: Verizon Chinese web portal, May 2013
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- Figure 43: Godiva year of the snake advertisement, February 2013
- Figure 44: Citibank strike gold campaign advertisement, February 2013
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- Figure 45: Foxwoods Casino advertisement, June 2011
- Figure 46: Infiniti print campaign, 2010
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- Figure 47: SK-II ad in Vogue, August, 2010
How Consumers Define Luxury Purchases
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- Key points
- Luxury purchases are high quality and exclusive
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- Figure 48: Perceptions of features used to define an item as “luxury,” March 2013
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- Figure 49: Perceptions of features used to define an item as “luxury,” by age, March 2013
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- Figure 50: Perceptions of features used to define an item as “luxury,” by household income, March 2013
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- Figure 51: Perceptions of features used to define an item as “luxury,” by education, March 2013
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- Figure 52: Perceptions of features used to define an item as “luxury,” by region, March 2013
Discount-Seeking Behavior
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- Key points
- Consumers who seek deep discounts
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- Figure 53: Luxury/designer brands discount-seeking behavior, March 2013
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- Figure 54: Any purchase – luxury/designer brands discount-seeking behavior, by gender, March 2013
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- Figure 55: Any purchase – luxury/designer brands discount-seeking behavior, by age, March 2013
- Figure 56: Any purchase – luxury/designer brands discount-seeking behavior, by household income, March 2013
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- Figure 57: Any purchase – luxury/designer brands discount-seeking behavior, by region, March 2013
Luxury Brands Preferred Purchase Categories
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- Key points
- Clothing and accessories are the most common luxury goods purchases
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- Figure 58: Luxury/designer brands purchase categories, by gender, March 2013
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- Figure 59: Luxury/designer brands purchase categories, by age, March 2013
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- Figure 60: Luxury/designer brands purchase categories, by household income, March 2013
Luxury Brand Purchase Frequency
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- Key points
- Asian women purchase more luxury goods
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- Figure 61: Luxury/designer brands purchase frequency, by gender, March 2013
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- Figure 62: Luxury/designer brands purchase frequency, by age, March 2013
- Figure 63: Luxury/designer brands purchase frequency, by household income, March 2013
Attitudes Toward Luxury/Designer Brands
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- Key points
- Most consumers want to show off their luxury brands
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- Figure 64: Attitudes toward luxury/designer brands, by gender, March 2013
- Younger consumers hold luxury brands in higher esteem
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- Figure 65: Attitudes toward luxury/designer brands, by age, March 2013
- Households with $75K+ income more willing to indulge in luxury
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- Figure 66: Attitudes toward luxury/designer brands, by household income, March 2013
- Southerners less eager to purchase luxury goods
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- Figure 67: Attitudes toward luxury/designer brands, by region, March 2013
- Attitudes and spending habits
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- Figure 68: Attitudes about luxury/designer brands, by regular and discount-seeking respondents, March 2013
Motivations for Purchase
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- Key points
- Quality, rewards, and indulgence motivate women to buy luxury goods
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- Figure 69: Luxury/designer brands purchase motivations, by gender, March 2013
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- Figure 70: Luxury/designer brands purchase motivations, by age, March 2013
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- Figure 71: Luxury/designer brands purchase motivations, by region, March 2013
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- Figure 72: Attitudes about luxury/designer brands, by luxury/designer brands purchase motivations, March 2013
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- Figure 73: Attitudes about luxury/designer brands, by luxury/designer brands purchase motivations, March 2013
Where Asian Consumers Shop
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- Key points
- More Asians shop at premium retailers
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- Figure 74: Retailers visited in last three months, by race/Hispanic origin, October 2011-November 2012
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- Figure 75: Retailers visited in last three months, by race and age, October 2011-November 2012
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- Figure 76: Retailers visited in last three months, by race and household income, October 2011-November 2012
Attitudes Toward Online Shopping
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- Key points
- Asians outpace all other ethnicities in online and mobile shopping
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- Figure 77: Attitudes/opinions about shopping, by race/Hispanic origin, October 2011-November 2012
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- Figure 78: Attitudes/opinions about online shopping, by race and age, October 2011-November 2012
- Figure 79: Attitudes/opinions about online shopping, by race and household income, October 2011-November 2012
- How attitudes about online shopping have changed over time
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- Figure 80: Attitudes/opinions about online shopping, October 2007-November 2012
Impact of Race and Asian Origin
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- Key points
- Luxury equals price for East Asian consumers, but not for South Asian consumers
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- Figure 81: Consumer definitions of luxury purchases, by Asian heritage, March 2013
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- Figure 82: Any Purchase – Luxury/designer brands discount-seeking, by Asian heritage, March 2013
- Figure 83: Luxury/designer brand categories purchased in the last year, by Asian heritage, March 2013
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- Figure 84: Luxury/Designer brands purchase frequency in last year, by Asian heritage, March 2013
- Figure 85: Attitudes about luxury/designer brands, by Asian heritage, March 2013
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- Figure 86: Luxury/designer brands purchase motivations, by heritage, March 2013
Custom Consumer Groups
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- Key points
- Older Asian women seek craftsmanship and history
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- Figure 87: Consumer definitions of luxury purchases, by gender and age, March 2013
- Older Asian men are not discount seekers
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- Figure 88: Any purchase – luxury/designer brands discount-seeking behavior, by gender and age, March 2013
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- Figure 89: Luxury/designer brands purchase frequency in last year, by gender and age, March 2013
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- Figure 90: Attitudes about luxury/designer brands, by gender and age, March 2013
Appendix – Other Useful Consumer Tables
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- Figure 91: Any purchase – luxury/designer brands discount-seeking behavior, by gender, March 2013
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- Figure 92: Any purchase – luxury/designer brands discount-seeking behavior, by age, March 2013
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- Figure 93: Any purchase – luxury/designer brands discount-seeking behavior, by household income, March 2013
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- Figure 94: Any purchase – luxury/designer brands discount-seeking behavior, by region, March 2013
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- Figure 95: Any purchase – luxury/designer brands discount-seeking behavior by gender and age, March 2013
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- Figure 96: Any purchase – luxury/designer brands discount-seeking behavior, by heritage, March 2013
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- Figure 97: Retailers shopped in last three months, by household income, October 2011-November 2012
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- Figure 98: Retailers shopped in last three months, by region, October 2011-November 2012
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- Figure 99: Attitudes/opinions about shopping, by age, October 2011-November 2012
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- Figure 100: Attitudes/opinions about shopping, by household income, October 2011-November 2012
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- Figure 101: Household composition of the Asian population by selected categories, 2010 census summary
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- Figure 102: Labor-force participation rate of men aged 16 or older, by race and Hispanic origin, 2002-2012
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- Figure 103: Homeownership rate, by race of householder, 2002-12
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- Figure 104: Region of residence, U.S. population, Asians and Asian subgroups, 2010
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Appendix – Trade Associations
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