Multicultural consumers have impressive spending power in the U.S. In today's diverse and rapidly evolving market, understanding and engaging these audiences is more critical than ever for brands seeking revenue growth.
Hispanic Americans, projected to make up 28% of the U.S. population by 2060, have seen their spending power increase by 320% since 2000, with expectations of reaching $2.4 trillion by 2024. Between 2000 and 2021, Black Americans' buying power increased by 18% to $1.7 trillion, while Asian Americans' spending power increased by 367% to $1.4 trillion.
Understanding how to engage these and other often overlooked cultural and ethnic groups poised to become formidable forces in the marketplace is critical. Locally owned, non-chain, independent retail stores are precious locations where brands can effectively intersect and connect with multicultural audiences.
Why independent stores are a gateway
Independent stores are often better equipped to cater to multicultural audiences' cultural nuances and preferences, attracting more members of these communities. Local grocery, convenience stores, and bodegas tend to stock products that reflect unique cultural tastes and traditions, offering a personalized shopping experience that larger chains struggle to deliver. As a result, independently owned neighborhood stores tend to enjoy greater customer loyalty, enhanced satisfaction, and repeat business.
Brands engaging in culturally relevant marketing campaigns have significantly higher loyalty and engagement. Marketers have opportunities to reach and engage multicultural consumers at these independent community store locations, but only by understanding the unique nuances of consumer behavior, purchase habits, and preferences. Most importantly, brands must adopt a genuinely authentic approach, demonstrating understanding and care for the community.
Practical strategies
These are some practical strategies brands eager to engage multicultural audiences can adopt to reach multicultural audiences in the most commonly and frequently visited local retail locations:
Understand the true meaning of cultural relevance: Cultural relevance is more than just a marketing tactic. It extends beyond simply translating advertising copy into the relevant language. Brands should invest in market research to gain the cultural insights that can help inform the creation of campaigns that successfully resonate on a cultural level . Brands that succeed in reaching multicultural audiences will be able to reflect the nuances, traditions, and values that matter, leading to trust and loyalty.
Leverage digital platforms and technologies: Multicultural audiences, particularly Hispanic consumers, continue to become highly proficient and deeply engaged with digital media, including social media and video content. Brands eager to connect with and influence these digitally savvy consumers must adopt a multi-channel approach using a mix of platforms from Instagram and TikTok to YouTube and traditional media to ensure consistent and repeated exposure. Leverage in-store digital networks to design personalized offerings, develop rewards programs, and serve contextually relevant content. Doing so will create a more cohesive and resonant brand presence.
Pursue meaningful collaborations and partnerships: In addition to essential advertising campaigns, brands should seek partnerships with local stores that create unique cultural experiences and can, therefore, foster a greater sense of community. Invest in "buy local" campaigns and other economic initiatives demonstrating a commitment to the community's financial health. Collaborations can enhance brand authenticity, reputation, and credibility within the community and enable brands to establish a direct line with community members.
The value of the local store
All companies are eager to grow revenue and deploy marketing investment to that end. However, brands that engage locally owned stores to reach multicultural audiences also deliver economic and social benefits. Studies have shown that local businesses significantly outplace chain stores in terms of local economic contributions. This is because local stores tend to source goods locally, boost employment, and invest more deeply in their communities.
By supporting local businesses, brands can build stronger, more meaningful connections with diverse, multicultural communities, driving economic growth and social cohesion while realizing their own commercial goals.