Photo: Latino's have increased buying power in the U.S.
According to the Selig Center for Economic Growth, the buying power of minorities in the U.S has grown into a diverse and formidable consumer market in the last decade. The rise of minority buying power in the marketplace has generated a demand to learn why these gains are taking place as well as how to tailor products, advertising and media to each market segment.
“The numbers are impressive,” says Jeff Humphreys, director of the Selig Center and author of the Selig Center’s annual Multicultural Economy report. “For example, in 2012, the $1.2 trillion Hispanic market is larger than the entire economies of all but 13 countries in the world.”
The Selig Center’s annual report includes state-by-state projections of buying power for the nation’s three most populous racial groups (African American, Asian and American Indian), as well as Hispanics, who are categorized by the U.S. Census as an ethnic minority and not a racial minority. Its information provides businesses a first step towards a more comprehensive analysis of its markets and is among the most popular and downloaded resources offered by the Terry College. The full report is available at the Selig Center’s website.
According to Humphreys, buying power, also referred to as disposable income, is the total personal income available for spending on goods and services after taxes. The state-by-state projections are broken down by market size, growth rate and market share.