This excerpt contains highlights from the full 50+ page report available exclusively to members.
The Big Shift analysis continues the investigation on the role of multicultural consumers in the context of the rebounding economy.
The top finding: Multicultural impact on future growth is growing even faster than we thought.
In 2016, Multicultural purchasing power was $3.8 trillion and in 2017 it was $4.0, a growth rate of over 5.2%. That’s substantially greater than the purchasing growth rate of the White segment, which was about 3.2% from 2010-2018.
The growth rates in real consumer expenditure by segment have also increased substantially, especially for the Asian population.
Finally, the updated data reveal that the multicultural market also offers significant risk protection.
Last we examined data from 2006 to 2016, and this year we examined data from 2007-2017. In both cases, we applied scenario modeling to determine the size of multicultural impact 10 years hence, in three cases: a stagnant economy, an average economy, and a high-growth economy.
Adding just one year to the forecast, from 2026 to 2027, shows that the importance of the multicultural market has increased in the stagnant economy scenario. If the US economy is stagnant in 2027, Multiculturals account for almost 100% of spending growth, up from about 82% of growth over the period from 2016-2026. Why? Household formation. Even in a weak economy, higher multicultural birth rates guarantee an even higher contribution to growth.
Members use the data in the Big Shift as the linchpin of business case development for all aspects of multicultural strategy development and to capture their fair share of billions in growth under any scenario.