Race, Ethnicity And The Way We Shop

American Demographics, Feb 1, 2003

Byline: REBECCA GARDYN AND JOHN FETTO

They may be outnumbered at the shopping mall, but minority consumers and their buying power should not be underestimated. In 2002, blacks, Hispanics and Asians wielded significant discretionary income: $646 billion, $581 billion and $296 billion, respectively, according to the Selig Center for Economic Growth at the University of Georgia, which defines "buying power" as the total personal income available, after taxes, for spending on goods and services - that is, disposable income. And while whites continue to account for the majority of total consumer spending ($6.3 trillion), their market share is dwindling. In 1990, whites represented 87 percent of the total consumer marketplace, but they accounted for 82 percent by 2002, according to the Selig Center. By 2007, analysts expect white consumers' share to shrink to 80 percent of all U.S. consumer spending.

As the buying power of blacks, Hispanics and Asians increases, understanding the differences between these groups in terms of how, when, where and why they shop for goods and services becomes even more important to businesses' bottom lines. Here, we highlight some of the more interesting differences between the attitudes and behaviors of Asian, black, Hispanic and white Americans. The data was culled from a Simmons Market Research study of about 22,000 consumers (18,542 whites; 1,444 blacks; 1,349 Hispanics; and 640 Asians) fielded between January and May 2002.

asians

How do you say "shop till you drop" in Japanese or Korean? Not only are Asian consumers the most frequent shoppers of all racial and ethnic groups, they are also the most brand-conscious. Almost half (43 percent) say that they always look for a brand name when they shop. Yet, interestingly, they are also the least brand-loyal. Fully a quarter of Asians say they change brands often, compared with 22 percent of Hispanics, 20 percent of blacks and 17 percent of whites. Asian consumers are also the most concerned about keeping up appearances. More than a quarter (26 percent) say they buy what they think their neighbors will approve of, compared with 12 percent each of Hispanics and blacks and just 10 percent of whites. Asians also do not like to shop alone: 31 percent say they prefer shopping with their friends, compared with 25 percent each of Hispanics and blacks, and 23 percent of whites. And Asians never leave home without a plan. They are 125 percent more likely than the average consumer to rely on the Internet to help them plan their shopping trips.

whites

Whites may make up the majority of the shopping hordes, but they are the least likely to enjoy the process. Just 35 percent of white consumers say that they enjoy shopping, even when they don't buy anything, compared with almost half (47 percent) of Asian, 43 percent of black and 42 percent of Hispanic shoppers who say the same. Almost two-thirds (62 percent) of white consumers say they go shopping only when they absolutely need something, versus 57 percent of Asians, 54 percent of Hispanics and 47 percent of blacks who say they do the same. And nearly half of white consumers don't stick around to browse: 49 percent say that when they do go shopping, they usually just get what they want and leave. Interestingly, white consumers are the most likely to say they make spur-of-the-moment purchases (41 percent, versus 37 percent of Hispanics, 35 percent of Asians and 34 percent of blacks). Yet they are also more likely (59 percent) to plan far ahead to buy expensive items than are Asians (53 percent), Hispanics (52 percent) or blacks (44 percent).

hispanics

Hispanics, who may be of any race, tend to make shopping a family affair. More than a third (36 percent) say they prefer shopping with their families and 30 percent report they like shopping with their children, compared with 29 percent and 26 percent, respectively, of the total population. A quarter of Hispanics say their kids have a significant impact on the brands they buy. Hispanics are almost twice as likely as white consumers to go out of their way to find new stores (13 percent versus 7 percent). And they would rather shop at national chains than at local mom-and-pop stores. Just 26 percent of Hispanics say they would rather shop at a local store than at a national chain, compared with 28 percent of blacks and 30 percent each of Asians and whites.

blacks

Blacks are the most fashion-conscious of all racial and ethnic groups. In fact, 34 percent of black consumers say they like to keep up with changes in trends and fashion, compared with 28 percent of Asians, 27 percent of Hispanics and 25 percent of whites. Blacks are the most likely of all groups to be willing to travel an hour or more to shop at their favorite store and almost twice as likely as the average consumer to go out of their way to find new stores, especially if a bargain is to be had. The Simmons study found that a third (34 percent) of the black respondents will travel an hour or more to shop at a factory outlet store, compared with 27 percent of all consumers. And once they get there, black consumers, more than anyone else, prefer conquering the sales racks alone, rather than with friends. Indeed, blacks simply enjoy shopping, even for something as mundane as the groceries.