MULTICULTURAL consumers make up nearly half of the Millennial generation (42%) and drive 47% of the to- tal US gross domestic product, according to experts.
A new Nielsen report, “Multicultural Millennials: The Multiplier
Effect” estimates the group influences upward of $1 trillion in total consumer spending. Multicultural Millennials are bridging the
gaps between their birth culture, their own children and mainstream society.
Most of them are fully ambicultural, shifting from what
was once a dominant family-based culture to a posture that
blends a variety of cultures into a new mainstream, according
to Nielsen. The profound influence on their peers as well as on
both younger and older generations, deemed the“multiplier
effect,” can be harnessed by marketers and advertisers to expand their market share.
“In addition to the influence they command on their more
non-Hispanic white peers, there is another reason marketers
and advertisers should be interested in multicultural Millennials:
many of them are first generation professionals who are in prime
acquisition mode,” said Courtney Jones, vice president of multi-
cultural growth and strategy at Nielsen. “A growing disposable
income among multicultural Millennials is a ripe opportunity for
companies that court them and make an effort to cultivate and
earn their business.”
When exploring the top consumer categories that multicul-
tural Millennials purchase, African-American Millennials spend
more than average on ethnic hair and beauty products while
Asian-American Millennials spend more on skin care prepara-
tions than the average consumer. Unfortunately, these shopping
habits haven’t translated at mass.
In the mass market, multicultural beauty sales have stalled.
Ethnic, Afro-American products stayed flat at $567.4 million, according to data from Information Resources Inc. (IRI) for total US
multi-outlet (supermarkets, drugstores, mass market retailers,
military commissaries and select club and dollar retail chains) for
the 52 weeks ended Jan. 17, 2017. In this category, ethnic Afro-American shampoos and conditioners also were even at $177.2
million. Ethnic Afro-American styling aids rose 2.3% to $197 million, ethnic Afro-American relaxers/activators fell 9.8% to $73.9
million, ethnic Afro-American hair color was flat at $42.4 million,
ethnic Afro-American accessories increased 1.7% to $26.4 million and children’s products slipped 6% to $13.4 million. Ethnic
Afro-American skin care decreased 2.9% to $37.1 million.
In the ethnic Mexican-American category, sales fell 5.2% to
$211.1 million, reported IRI. The Hispanic hair sector slipped
2.9% to $43 million, Hispanic skin care rose 2% to $73 million
and“other” Hispanic products slipped 11% to $95.1 million.
So, what will bring this consumer out to the stores? “Today,
the multicultural market is heavily reliant on the internet shopper
for researching the newest beauty products,” Julie Zepeda, chief
executive officer of the National Latino Cosmetology Association,
Las Vegas, NV, told Happi. “Between family responsibilities and
work the highest percentage of shoppers research of beauty
products is done on a home computer.”
According to Zepeda, today’s multicultural beauty consumers are“ incredibly astute shoppers” who“spend an astronomical
amount of time researching their favorite products.”
A variety of outlets are reaching out more and more to the multicultural consumer. For example, the Environmental Working
Group (EWG) Skin Deep database recently added more than
By Melissa Meisel • Associate Editor
Multicultural shoppers are driving innovation
in formulation and packaging of beauty products.