14 Dec AC&M Insights: Multicultural Holiday Spending
The Holiday season is in full effect, and if you haven’t noticed yet there is a growing trend when it comes to spending money on gifts. As you run around shopping centers and malls looking for the perfect gift this year, make sure to pay attention to the very diverse crowd. Especially the Hispanic and African-American shoppers who continue to grow in size and tend to spend more money during the holidays than any other group of people.
Here are three stats that show the power of multicultural consumers during the holiday season:
- According to Think Now Research, multicultural consumers plan on spending over $500 this holiday season on gifts for family members and friends. With an expected total of over 100 billion dollars in sales this year multicultural consumers will be major players.
- African-American and Hispanic consumers spend more than other consumers during the holidays than any other time of the year. On average African-Americans spend 15 percent more while Hispanics tend to spend 13 percent
- When comparing sales from the 2016 holiday season to this years projected sales, African-Americans are expected to spend 46% more!.
Another trend that has been growing exponentially over previous years is online shopping. Total Cyber Monday sales alone this year amounted to an impressive $6.5 billion. This year was the first year that online sales surpassed Black Friday sales, by $1 billion to be exact. A large amount of these sales can be attributed to smartphone apps which generated a total of $2 billion in sales.
Retailers understand that creating attractive online deals offer consumers a more convenient way to do their holiday shopping. This trend among digitally savvy shoppers does not exclude multicultural consumers. According to AdAge, 62% of Hispanics will be doing their holiday spending online through their smartphones this year.
With multicultural audiences becoming such a large player in holiday spending, it is imperative that retailers and brands include these consumers in their plans from the get-go. Having a marketing plan which appeals to the consumers’ unique traditions creates a connection with the brand, therefore creating a higher chance of spending their holiday budget on that brand.