But despite these setbacks, the Great Recession did not reverse the general historical trend towards increased multicultural share of total consumer expenditures. The key ingredients here are fourfold: (1) younger consumers have higher future earnings potential overall; (2) rising education rates increase the rate at which their future earnings will grow (3) larger families require more spending, and (4) immigration is bolstering household formation, especially for the Asian segments.
These trends guarantee continued and increasing multicultural contribution to expenditure growth even under the dire economic impacts of COVID-19. While individual multicultural households are more likely to see greater price sensitivity in the short term, their growth fundamentals continue to improve.
Multicultural consumers will continue to represent an ever-growing share of your target markets. No consumer brand can afford to abandon any multicultural segment now, no matter what happens in the near term. Their loyalty will be 100% responsible for powering your return to normal growth in the recovery. It is in your immediate interest to let these consumers know you are on their side during these difficult times.
So how do you make that happen?