America’s Changing Face
Come 2010, racial and ethnic groups will account for one-third of the U.S. population. Will you be ready?
The ethnic and racial makeup of the U.S. population is changing—dramatically. In July 1998, racial and ethnic groups made up a little more than a quarter of the the population of the United States. By 2010, the multicultural population is projected to climb to one-third of the total U.S. population.
The three largest racial and ethnic groups driving this growth are Hispanics, African-Americans and Asian-Americans. The demographics of these groups point to a decidedly young population. As of March 2002, approximately one-third of Hispanics and African-Americans, and 26 percent of Asian-Americans were under the age of 18, according to The U.S. Department of Commerce, Bureau of the Census. As such, the growth and size of these markets will continue to present great opportunity to direct marketers who initiate a culturally relevant relationship.
A common misconception among marketers is that they already are reaching these communities with their general market offers. This may be true to some degree; however, various studies have shown that racial and ethnic markets receive only a fraction of the direct mail volume received by the general population. Marketers who learn how to talk to different groups often report receiving higher response rates for such campaigns than for their general market offers. With this in mind, let’s take a look at each of these communities and at how direct marketers can develop offers that speak to them.
At 38.8 million, the U.S. Hispanic population continues to be the fastest growing ethnic market, and accounts for one-half of the nation’s population increase of 6.9 million between April 2000 and July 2002, according to a June 2003 release by The U.S. Department of Commerce, Bureau of the Census. Tie to these growth metrics a current estimated purchasing power of $580.5 billion, and you have the makings of an attractive market.