South Asian Americans represent one of the fastest-growing, highest income, and most educated population segments in the USA. With a median household income of $120,000 is significantly higher than the national median income of $53,889.
If your company is in an ultra-competitive landscape, segment marketing for affluent South Asian Americans should be integral to your marketing strategy because it can make a huge difference to getting new customers into your product silo. Having a clear segment marketing strategy is the only way to differentiate your business model–especially when facing a wide range of industry competitors.
Market segmentation can also help pinpoint exactly what messaging your company should be using to convert unique and affluent customers at key touch-points in their product journey.
Why Market To Minorities?
Companies have to recognize that South Asian Americans have quietly overtaken other minorities as the fastest growing multicultural segment in the USA. The cultural and linguistic uniqueness of this community requires marketers to use different approaches to reaching this well-heeled community.
If you are a business keen on expanding your client base with wealthy, influential new customers, you cannot ignore South Asian American in your marketing.
This unique cohort has to be approached differently than the mass market communications. Not only are South Asian Americans fueling the economy as consumers and taxpayers, they are also entrepreneurs, employing 5 million workers in the USA.
The Rise Of The South Asian American Consumer Segment
As you walk on main street in any American city, it is clearly evident that this country is made of people with different ethnic and racial backgrounds. According to Nielsen, nearly 6 million South Asian Americans now wield buying power of $1.3 trillion and this is expected to grow to $1.6 trillion by 2024.
South Asian Americans are today’s relevant segment. They are a driving force both as cultural influencers and powerful consumers. Building a culturally sensitive narrative is critical to your marketing efforts to reach this consumer in the U.S., this should be your business priority in 2021.
You cannot give your competitors an advantage by ignoring this consumer group. By creating content aimed exclusively at this wealthy market segment without resorting to stereotypes or generic marketing you can exceed market expectations.
If you have multiple products, aim to segment this unique customer with multiple brands.
According to Nielsen:
- South Asian Americans have increased in population by 46% in the last 10 years
- 90% growth in buying power
- Fiscal buying power is estimated at $1.3 trillion and expected to grow to $1.6 trillion by 2024
How Does One Craft A Marketing Strategy For Affluent Consumers?
If you are treating South Asian consumers’ as the same as regular consumers–your strategy isn’t going to work. You must address the cultural nuances by segmenting your audience and tailoring the content.
When you start shaping your marketing strategy remember that this should be part of your overall attempt to reach new consumers.
Here are some additional facts:
- Although there are different religions and languages used by South Asian Americans, they share common cultural values that can help target them as a community
- Most Indian Americans give importance to education from elementary school to postgraduate studies
- South Asian Americans are among the largest and most affluent ethnic groups in the USA
- Most Indian Americans follow Hinduism and Sikhism and do not eat beef. A large number of this cohort is vegetarian
- South Asian Americans value close family ties
If marketers and companies want to be successful, it is imperative to accurately reach this influential segment.
To effectively reach South Asian American consumers without stereotypes try:
- Using custom messaging. South Asian consumers in the USA are the leaders in online shopping, technology adoption, and smartphone usage. This makes them open to effective targeting
- Creating content that resonates. Focus on themes such as family, community, and tradition. Experiment with new storylines that appeal to their modern identity as affluent South Asians
- Choosing languages other than English if needed. Although English is often the mother tongue of South Asian Americans, those born overseas may prefer local dialects in their preference for messaging
- Having a clear benefit statement. Hire FrontAd to clearly articulate the benefits of your product or services. South Asian American are value driven. They are willing to pay more for high quality products and react better to tailored messaging.
As a business leader, only you can show this segment that your brand understands their unique needs and cares for their cultural values.
If South Asian Americans were a country, their spending would represent 18th largest economy in the world
This particular segment believes the right brand represents social status–symbolizing achievement and wealth.
According to Euromonitor, South Asian consumers remain important for international luxury brands during the pandemic. The pent-up demand for luxury goods is only going to accelerate after the pandemic.
As you market to South Asian Americans with FrontAd, you’ll have a relatively low cost of entry and a potential for high return on investment. Marketers should strive to:
- Always include South Asian American segment in your budget
- Use FrontAd to collaborate for strategy, creativity and placement
- Leverage language that is modern, yet culturally sensitive
- Find visuals that evoke a response as this is an emotive, visual culture
South Asian Americans are an untapped segment for hyper growth
Although this demographic is spread out across the country, the U.S. cities with the highest South Asian population are:
- New York, NY
- Los Angeles, CA
- San Jose, CA
- San Francisco, CA
- Honolulu, HI
- San Diego, CA
- Chicago, IL
- Houston, TX
- Fremont, CA
- Seattle, WA
Now is the time to accelerate your market share with a new segment
South Asian Americans represent a powerful consumer segment in the U.S. marketplace. To truly stand out from your competitors, businesses should market to this affluent segment because they provide a significant opportunity for new growth.
FrontAd can assist by helping you develop both the strategy and creative messaging to effectively reach this wealthy segment that loves online shopping. It is a customer base that is growing, affluent, well-educated, and technologically savvy.
Translate brand strategy to creative execution with FrontAd and reach an affluent South Asian American segment today.