Who buys ď‚ž What sells ď‚ž Why
America Reimagined: Empowerment in the Self Made Economy Latino Franchise Symposium July 19, 2017
ALL U.S. GROWTH IS COMING FROM MULTICULTURALS Mortality has exceeded births for the non-Hispanic White population since 2012
41.6M M
19.8MM
10.3MM 5.6MM
14.2MM 9.7MM
: From the Ballot Box to the Grocery Store - August 2016 Source: U.S. Census Bureau National Population Projections. Nielsen: From the Ballot Box to the Grocery Store, August 2016 Report
WHAT IS DRIVING THE TECTONIC SHIFT IN THE NEW AMERICAN MAINSTREAM % Foreign Born Population of European Ancestry
41.6M M
# Foreign Born (MM) % US Pop Foreign Born
19.8MM
10.3MM
14.2MM 9.7MM
5.6MM
Years
THE BLENDED NEW MAINSTREAM BY GENERATION Bln
UnBln MC GI GEN (AGE 70+)
BOOMER (AGE 50-69)
GEN-X (AGE 40-49)
16.6%
12.0%
20.9%
27.5%
UnBln NHW
28.6% High MC Influence
71.4%
15.2%
36.1% High MC Influence
63.9%
20.2%
47.7% High MC Influence
52.3%
41.6M M
MILLENNIAL (AGE 20-39)
GEN NEXT (<20)
29.8%
32.1%
22.8%
52.6% High MC Influence
47.4%
22.8%
45.1%
54.9% High MC Influence 19.8MM
Population in Blended Households 10.3MM + MC 5.6MM Households now accounts for the majority (53%) of the under 50 American population
<50
50+
% of Total US Population
66%
34%
UnBlended NHW Pop
47%
66%
UnBlended MC + Blended Pop
53%
34%
14.2MM
9.7MM
MULTICULTURAL CONSUMERS ARE A LONG TERM INVESTMENT •
Because of the much younger age of the multicultural market, and their longer life expectancy as compared to the white non-Hispanic population, multiculturals’ value to product and service providers is greater.
Source: CDC NCHS 2010 Life Expectancy/ACS Median Age
â&#x20AC;ŚAND THE MULTICULTURAL POPULATION IS INFLUENCING THE MAINSTREAM Multicultural consumers are having unprecedented influence on societal and retail trends and are driving product innovation
52%
Copyright Š2016 The Nielsen Company. Confidential and proprietary.
over half of all Americans agree it is important to speak more than just English
49%
of all adults
Would shop more at a retailer that offers a wider selection of multicultural products
32% of all Americans would pay more for a brand that understands multicultural needs
65%
of all Millennials
Source: 2016 Harris Poll Study
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LATINOS LEAD THE WAY IN NEW BUSINESS GROWTH IN THE SELF MADE ECONOMY 5 Year Growth in Majority-Owned Businesses 46%
38% 35%
34%
24%
Growth in # Firms Sales Growth 12%
11% 7%
2%
All firms
-5%
White
Black or African American
US Census Survey of Business Owners (5 yr. data released 12/15)
Asian/PI
Hispanic
Copyright Š2016 The Nielsen Company. Confidential and proprietary.
EthniFacts and Nielsen have joined forces to develop a unique intercultural Household Panel analysis tool that incorporates the Aggregation model powered by EthniFacts to better pinpoint cross-cultural activation strategies for the new mainstream:
NIELSEN INTERCULTURAL AFFINITY SEGMENTATION
The leading global information and measurement company, provides insights & data about what people watch, listen to & buy.
EthniFacts, a next generation consumer research consultancy and cross-cultural insights provider.
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Intercultural Affinity Aggregation Allows Clients to â&#x20AC;&#x153;Make the Buckets Biggerâ&#x20AC;? Tapping Into Larger Budgets Traditional Niche Segmentation
EthniFacts Aggregation
Multiculturals (38% = 121M) Multiculturals (38% = 121M)
Hispanics (18% = 57M)
Foreign Born Hispanics (6% = 19M)
Multiculturals + their spouses/ households (+4%) (42% = 134M)
(%) = 10M
Multiculturals + their spouses/households + other ambicultural whites (+8%) (50% = 159M)
Many Small Activation Buckets Costly to Implement
Cost Effective Activation to Culturally Adjacent Consumers
Spanish Dominant
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Source: 2014 U.S. Census
MONOCULTURALS
% of U.S. Pop 18+
TASTES & PREFERENCES
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
INTERCULTURAL AFFINITY MODEL: SEGMENT PROFILES
11% Do not experience in diverse tastes. May even reject or avoid.
5 YR % Pop Growth Projection
SIDELINERS
22% Aware of but generally uninvolved in diverse tastes.
EXPLORERS
ENTHUSIASTS
28%
AMBICULTURALS
22%
Experiment with and situationally engaged in diverse tastes.
Exposed and embracing diverse tastes. Practicing, but not leading.
17% Environment & lifestyle leader. Influencer with high desire to share diversity.
.
+3% HIGH IC AVERSION
+3%
+5%
+8%
+13% HIGH IC AFFINITY
Aggregates consumers from all races and ethnicities by their affinity to cultures other than their own root culture(s). 10
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
THE ICA MODEL CAN HELP OPTIMIZE STORE LOCATION AND ASSORTMENT •
Ambicultural Spectra Demand Indices for Chain A
Source: Spectra
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Mission: To provide actionable insights on the New American Mainstream
Core Strength: Thought leadership in conceptualizing culture and providing metrics and models for understanding and activation
Select Clients: Coca-Cola, Nielsen, Anheuser-Busch, AT&T, NBC Universal, Pepsico, CVS, AARP, Telemundo, Disney, Target, Mission Foods, Mass Mutual, Toyota
MIKE LAKUSTA I mlakusta@ethnifacts.com I 972-567-1981