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Asian American Premium Brand Consumer - US - June 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
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
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
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
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
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
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
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
Inspire Trend: Prepare for the Worst
Inspire Trend: The Real Thing
Mintel Futures
East Meets West
MARKET DRIVERS
Key points
Asian population to remain a smaller minority group, but still nearly 5% of the total U.S. population
Figure 5: Population, by race and Hispanic origin, 2008-18
Asian immigration rates continue to rise
Figure 6: Percentage of Hispanic and Asian immigrants to the U.S., 2000-10
Like U.S. population, Asian population skews older
Figure 7: Asian Population by age, 2007-17
Asians are the most likely to marry of any population group
Figure 8: Marital Status of People aged 15+, Race, and Hispanic Origin, 2012
Asians generally live in larger households than most consumers
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
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
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
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
Figure 14: Asian household structure, by alone or in combination, 2000-10
Health insurance status of Asians vs. other ethnicities
Figure 15: Health insurance status by gender and age, for Asian alone and White alone, not Hispanic, 2011
ASIAN DEMOGRAPHIC SNAPSHOT
Key points
Chinese make up nearly one quarter of Asian Americans
Figure 16: Largest U.S. Asian groups, March, 2012
Asian employment higher than most, but unable to counter overall trends
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
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.
Figure 19: H-1B Visas Issued, by top nationalities, 2011
Most Asians are first-generation Americans
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
Figure 21: Nativity and citizenship status by gender, for Asian alone and White alone, not Hispanic, 2011
Housing tenure among Asians vs. other ethnicities
Figure 22: Housing tenure by household type, for Asian alone or in combination and White alone, not Hispanic households, 2011
Indian consumers
Figure 23: Characteristics of U.S. Indian Adults, 2010
ASIAN BUYING POWER
Key points
More Asians are in higher-income brackets than consumers of any other ethnicity
Figure 24: Household income distribution by race and Hispanic origin of householder, 2011
Asian median household income is higher than any other ethnicity
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
Figure 26: Median household income by race and Asian subgroup, 2010
Asian buying power sums to a significant share in Hawaii and California
Figure 27: Asian share of total buying power – Top 10 Asian buying power states, 2012
High concentration of Asian buying power in Western states
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
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
Figure 30: Average annual expenditures of consumer units, by race and Hispanic origin of reference person, midyear 2012
LEADING COMPANIES
 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
Key points
MetLife
Louis Vuitton
Figure 31: Louis Vuitton Chinese New Year Promotion, February 2011
Year of the Snake (2013) Global Luxury Marketing Response
Tiffany
Figure 32: Tiffany luck charms, May 2013
Gucci fortune luggage tags
Figure 33: Gucci fortune luggage tag, February 2013
Johnnie Walker zodiac-labeled whiskeys
Figure 34: Johnnie walker zodiac-labeled whiskeys, February 2013
adidas Chinese New Year shoes
Figure 35: adidas Superstar 80s Chinese New Year shoes, February 2013
MARKETING STRATEGIES
Key points
The importance of communicating across Asian generations
TV Advertising
Figure 36: IOPE TV Ad, April 2013
Figure 37: Macy’s Chinese Ad, June 2012
Figure 38: Cosmos TV Ad, December, 2012
Figure 39: Emirates Airlines TV Ad, May 2013
Figure 40: Verizon TV Ad, May 2013
Print and Web-based Advertising
Figure 41: Wells Fargo advertisement, 2012
Figure 42: Verizon Chinese web portal, May 2013
Figure 43: Godiva year of the snake advertisement, February 2013
Figure 44: Citibank strike gold campaign advertisement, February 2013
Figure 45: Foxwoods Casino advertisement, June 2011
Figure 46: Infiniti print campaign, 2010
Figure 47: SK-II ad in Vogue, August, 2010
HOW CONSUMERS DEFINE LUXURY PURCHASES
Key points
Luxury purchases are high quality and exclusive
Figure 48: Perceptions of features used to define an item as “luxury,” March 2013
Figure 49: Perceptions of features used to define an item as “luxury,” by age, March 2013
Figure 50: Perceptions of features used to define an item as “luxury,” by household income, March 2013
Figure 51: Perceptions of features used to define an item as “luxury,” by education, March 2013
Figure 52: Perceptions of features used to define an item as “luxury,” by region, March 2013
DISCOUNT-SEEKING BEHAVIOR
Key points
Consumers who seek deep discounts
Figure 53: Luxury/designer brands discount-seeking behavior, March 2013
Figure 54: Any purchase – luxury/designer brands discount-seeking behavior, by gender, March 2013
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
Figure 57: Any purchase – luxury/designer brands discount-seeking behavior, by region, March 2013
LUXURY BRANDS PREFERRED PURCHASE CATEGORIES
Key points
Clothing and accessories are the most common luxury goods purchases
Figure 58: Luxury/designer brands purchase categories, by gender, March 2013
Figure 59: Luxury/designer brands purchase categories, by age, March 2013
Figure 60: Luxury/designer brands purchase categories, by household income, March 2013
LUXURY BRAND PURCHASE FREQUENCY
Key points
Asian women purchase more luxury goods
Figure 61: Luxury/designer brands purchase frequency, by gender, March 2013
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
Key points
Most consumers want to show off their luxury brands
Figure 64: Attitudes toward luxury/designer brands, by gender, March 2013
Younger consumers hold luxury brands in higher esteem
Figure 65: Attitudes toward luxury/designer brands, by age, March 2013
Households with $75K+ income more willing to indulge in luxury
Figure 66: Attitudes toward luxury/designer brands, by household income, March 2013
Southerners less eager to purchase luxury goods
Figure 67: Attitudes toward luxury/designer brands, by region, March 2013
Attitudes and spending habits
Figure 68: Attitudes about luxury/designer brands, by regular and discount-seeking respondents, March 2013
MOTIVATIONS FOR PURCHASE
Key points
Quality, rewards, and indulgence motivate women to buy luxury goods
Figure 69: Luxury/designer brands purchase motivations, by gender, March 2013
Figure 70: Luxury/designer brands purchase motivations, by age, March 2013
Figure 71: Luxury/designer brands purchase motivations, by region, March 2013
Figure 72: Attitudes about luxury/designer brands, by luxury/designer brands purchase motivations, March 2013
Figure 73: Attitudes about luxury/designer brands, by luxury/designer brands purchase motivations, March 2013
WHERE ASIAN CONSUMERS SHOP
Key points
More Asians shop at premium retailers
Figure 74: Retailers visited in last three months, by race/Hispanic origin, October 2011-November 2012
Figure 75: Retailers visited in last three months, by race and age, October 2011-November 2012
Figure 76: Retailers visited in last three months, by race and household income, October 2011-November 2012
ATTITUDES TOWARD ONLINE SHOPPING
Key points
Asians outpace all other ethnicities in online and mobile shopping
Figure 77: Attitudes/opinions about shopping, by race/Hispanic origin, October 2011-November 2012
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
Figure 80: Attitudes/opinions about online shopping, October 2007-November 2012
IMPACT OF RACE AND ASIAN ORIGIN
Key points
Luxury equals price for East Asian consumers, but not for South Asian consumers
Figure 81: Consumer definitions of luxury purchases, by Asian heritage, March 2013
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
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
Figure 86: Luxury/designer brands purchase motivations, by heritage, March 2013
CUSTOM CONSUMER GROUPS
Key points
Older Asian women seek craftsmanship and history
Figure 87: Consumer definitions of luxury purchases, by gender and age, March 2013
Older Asian men are not discount seekers
Figure 88: Any purchase – luxury/designer brands discount-seeking behavior, by gender and age, March 2013
Figure 89: Luxury/designer brands purchase frequency in last year, by gender and age, March 2013
Figure 90: Attitudes about luxury/designer brands, by gender and age, March 2013
APPENDIX – OTHER USEFUL CONSUMER TABLES
Figure 91: Any purchase – luxury/designer brands discount-seeking behavior, by gender, March 2013
Figure 92: Any purchase – luxury/designer brands discount-seeking behavior, by age, March 2013
Figure 93: Any purchase – luxury/designer brands discount-seeking behavior, by household income, March 2013
Figure 94: Any purchase – luxury/designer brands discount-seeking behavior, by region, March 2013
Figure 95: Any purchase – luxury/designer brands discount-seeking behavior by gender and age, March 2013
Figure 96: Any purchase – luxury/designer brands discount-seeking behavior, by heritage, March 2013
Figure 97: Retailers shopped in last three months, by household income, October 2011-November 2012
Figure 98: Retailers shopped in last three months, by region, October 2011-November 2012
Figure 99: Attitudes/opinions about shopping, by age, October 2011-November 2012
Figure 100: Attitudes/opinions about shopping, by household income, October 2011-November 2012
Figure 101: Household composition of the Asian population by selected categories, 2010 census summary
Figure 102: Labor-force participation rate of men aged 16 or older, by race and Hispanic origin, 2002-2012
Figure 103: Homeownership rate, by race of householder, 2002-12
Figure 104: Region of residence, U.S. population, Asians and Asian subgroups, 2010
APPENDIX – TRADE ASSOCIATIONS

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