BUSINESS
The Interview
INDUSTRY INSIGHTS FOR NTA MEMBERS
Making the most of the multicultural market
The United States ’ steady march to multiculturalism is what experts are calling the defining demographic force of our era . By 2044 , the country ’ s population is projected by the U . S . Census Bureau to be a plurality of racial and ethnic groups , with no single group in the majority .
Terry Soto , CEO of Burbank , California-based About Marketing Solutions Inc ., helps clients deepen their understanding of the Hispanic market , and , in the process , boost their sales . Courier asked Soto to share her market insights and offer suggestions to leaders in the travel industry .
Terry Soto , CEO of About Marketing Solutions Inc .
Courier : Why is it important to understand multiculturalism ? Soto : America ’ s population is rapidly becoming majority multicultural , by which I mean people with a heritage other than European . The fact that this dynamic has continued to unfold at such a rapid pace has huge social , political , economic and business implications for the travel industry . The U . S . multicultural population is over 120 million strong and increases by 2.3 million people each year , 191,932 each month , 6,310 every day and 263 every hour . The multicultural population represents 38 percent of the U . S . population and controls $ 3.4 trillion in buying power .
This market ’ s growing size , clout and buying power require thoughtful understanding of what they represent to an organization ’ s bottom line . The need for a culturally focused and strategic roadmap to this consumer has never been greater .
Courier : How does multiculturalism affect consumer trends ? Soto : The multicultural population is not only driving growth for dozens of products and services , but it ’ s exerting unprecedented influence on the attitudes and consumption habits of non- Hispanic white consumers , upending outdated assumptions and expanding the multicultural market opportunity .
While some worry about the effect that foreign cultures have on American culture , the truth is that America ’ s culture has always evolved and continues to change . America has its roots in divergent sets of immigrants whose cultures continue to make an indelible mark in modern society .
Courier : Can you give some examples ? Soto : When a multiculturally casted and messaged Broadway show like “ Hamilton : An American Musical ” can command $ 800 and up for one ticket — and be sold out for months — it becomes a leading indicator of change and multicultural influence .
Another example of cultural influence on an even broader market is Justin Bieber reaching out to Luis Fonsi and Daddy Yankee , two of the most celebrated artists in Latin America and among U . S . Hispanics , because he wants to be a part of their hit record , “ Despacito .” On that recording , Bieber sang in Spanish for the first time in his career . Last spring the “ Despacito ” video reached one billion YouTube views in 97 days , becoming the second-fastest video to reach the milestone ( behind Adele ’ s “ Hello .”)
Keep in mind that a song in Spanish achieved such spectacular fame at a time when nativism is at an all-time high , and there is much concern over protection of borders .
Courier : What about influences outside of entertainment ? Soto : Food is another critical area in which multiculturalism has considerable influence . U . S . consumers have never been so curious about — and adventurous with — their food choices . Hispanic foods , the most ubiquitous in the U . S ., is a $ 17.5 billion industry that is projected to grow to over $ 21 billion by 2020 .
Consumers also can ’ t get enough of Asian foods , and demand for foods from Japan , Korea , Thailand and Vietnam catapulted to new heights in the past five years .
Younger consumers hunger for diversity in their everyday experiences , including their friends , their music and the countries they travel to — all in search of greater authenticity .
16 October 2017