POWER IN NUMBERS
The portrait of America is more of an ever-evolving landscape now than ever before. The 2010 census statistics are expected to demonstrate the colossal population increase among African-Americans and Hispanics, and now research backs up the growth in affluence and spending power of these populations as well.
The Selig Center indicated that in 2009 African American buying power was $910 billion. That same year Hispanic buying power hit $978 billion. These numbers mark the milestone that the above-mentioned markets possess buying power larger than the entire economies of all but fourteen countries in the world (based on the 2008 GDP measured in U.S. dollars).
The San Jose Group, an integrated multicultural marketing communications agency, interprets this research to mean that now with the minority being the majority, allocating more marketing dollars to the African American and Hispanic markets is no longer a trend, but a necessity for success. The multicultural market has officially transpired into the new general market.
The Selig Center’s further research exhibits astronomical growth and demonstrates that African Americans and Hispanics are about to invigorate the consumer market with their spending power. African American buying power has risen from $318 billion (1990) to $590 billion (2000), then $913 billion (2008) and is expected to hit $1.2 trillion in 2013. The Hispanic market leapt from $212 billion in 1990 to $490 billion (2000), then $951 billion (2008), and is paced to reach $1.4 trillion in 2013.
As these populations experience record-breaking surges of growth from a population and a fiscal perspective, it has never been more evident that reaching out to these budding multicultural communities is not only a tremendous opportunity, but a crucial business decision.