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Customer LoginsWhy all OEMS need to pay attention to the U.S. ethnic markets
We all know there are changes occurring in the demographic make-up of the U.S. population, what may be a surprise and definitely worth paying attention to is the magnitude of those changes and what it will mean for automotive marketing and OEMs.
The U.S. Census Bureau projects that the Non-White/ Hispanic (read ethnic) population in the U.S. will grow from 35% of the population in 2010 to 50% of the population by 2050. By as early as 2020 the Census Bureau projects that ethnic groups will make-up nearly 40% of the population. Ethnic group growth is projected to far outpace the growth of White America, in fact it will be 2-5+ times faster depending on the ethnic segment.
This is important for OEMs because if they do not establish themselves with ethnic groups, they will miss out on growth opportunities and may be marginalized in the U.S. market as it will be defined by a changing U.S. demographic.
With larger U.S. populations, ethnic groups may be able to maintain more of their own cultural identity and assimilate less than in the past. We are already seeing our culture accommodate Spanish-speaking groups in many parts of the country. This will make the necessity of more targeted marketing versus generic mainstream more critical.
With ethnic groups already accounting for about a third of the population on their way to being one half of the population - OEMs - stand up and take notice! Reaching out and marketing to ethnic groups is no longer a nice secondary concern. For growth and long-term survival, establishing a relationship with ethnic groups needs to be a primary concern.
The question is, what are the OEMs doing to establish their brands with these groups, which brands are succeeding and which brands are struggling? Polk did an assessment of the Hispanic market late last year. Watch for assessments of the African-American and Asian markets coming soon.