Long before the Hispanic marketing juggernaut took off in the early 2000s, a number of leading insurance companies had already begun developing a smaller but no less compelling niche group of consumers -- the Asian-American market. For over a dozen years, many companies have been courting this demographic group -- so how can you tailor your practice toward this market -- and why?
Attention-getting wealth and education
The Asian-American median household income is nearly $10,000 more than that of non-Hispanic whites, and the median home value of Asian-American homes is greater than that of any other demographic group in 48 of 50 states. These enviable markers of consumer attractiveness are the result of two important and converging attributes:
o Asian-Americans are the most educated group of Americans, with at least 40 percent more college graduates than the country as a whole.
o Asian-Americans are 68 percent more likely to own a business than the general market is.
By most measures, Asian-Americans tend to equal or exceed the general market in terms of savings rates and consumption of life insurance products. On average, Asians also tend to maintain similar levels of health insurance coverage as non-Hispanic whites.
Important basics
There are a few basics that you should know before running out to build your Asian-American market. To begin with, the majority of Asian-Americans do not identify themselves with such a blanket demographic. Rather, they identify with one of more than 20 specific ethnic groups. The good news is that, according to the 2000 U.S. Census, nearly 90 percent of the estimated 12 million Asian-Americans fit into one of the following categories*:
| o | Chinese - 23.7 percent |
| o | Filipino - 18.1 percent |
| o | Asian Indian - 16.4 percent |
| o | Other Asian - 13 percent |
| o | Vietnamese - 11 percent |
| o | Korean - 10.5 percent |
| o | Japanese - 7.8 percent |
The majority of all Asian-Americans are foreign-born and, according to Census data, exhibit a strong preference for communicating in their native language. Note that this is true regardless of how many years the immigrant has been in the U.S. and what level of English-language proficiency they have.
Getting the market's attention
With or without support from your corporate headquarters, there are some basic steps that you can take to unlock the business potential of the Asian-American market:
1. Understand your community: Take an active role in understanding your community's diversity. Walk or drive around and try to notice what, if any, businesses have sprung up that serve Asian consumers. Do you notice more Chinese or Korean shops? Have any South Asian-targeted stores opened that offer traditional movie rentals or foods?
Next, visit a few newsstands and bookstores within your community and purchase several Asian newspapers and magazines. Take a quick look to see which companies and local agents are advertising.
Finally, hit the Internet or local chambers of commerce to learn more specifics about the local demographic mix.
2. Materials check: Although the standard English language contract and policy description is usually considered to be a binding legal document, experienced multicultural marketers know that they must first be able to explain and close a sale in a linguistically and culturally competent manner. Corporate headquarters or regional reps should be the first stop on this journey. Many companies may already produce brochures, premiums, and mailers for their ethnic agents. Now that you have added the needed support staff, you can begin to tap into those resources.
If not available, you can consider sending your support staff to gather competitive materials and then tasking them with drafting one or two preliminary pieces for your agency.
3. Spread the word: Begin with a modest advertising budget in some ethnic publications. More often than not, the ad format will include a picture of your support and a claim that "We speak your language." Make sure to ask the media sales rep about any value-added PR opportunities that will allow you to be interviewed about your agency's offering. Don't leave this ripe market untapped. Learn your Asian-American community today -- and serve it well.
Larry Moskowitz is vice president of Strategic Planning and New Business at K&L Advertising, a full-service Asian-American agency.
*Actual ratios differ from city to city, so those interested in learning more about the Asian community in their own territory can begin by visiting the Census Bureau's Fact Finder Web site at www.factfinder.census.gov/.
