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The
Melting Blog
Musings
on the Intersection of Marketing, Culture, and Research
Friday,
April 30, 2004
Asian
America Rising
This
isn't new news per se but the
Associated Press says it is, so there you go. Who am I to
argue? According to U.S. Census Bureau estimates, Asian Americans
are going to be the fastest growing population segment in the
country over the next half-century, accelerating faster than all
other ethnic segments, including Hispanics:
Recent
Census Bureau projections show the Asian population could
grow by a third, to 14 million, by 2010 and more than triple
to 33 million in 2050.
---
Asians with a Chinese background are the largest single group,
with 2.4 million. But the population of Indian-Americans grew
the most during the 1990s 106 percent to 1.7 million.
Vietnamese were next at 83 percent and grew to 1.1 million
in 2000.
The
technology boom of the 1990s lured many immigrants from India.
Large numbers settled in California's Silicon Valley and other
high-tech hotbeds like the Dulles Corridor outside Washington.
A
catch-all category of "other Asians" had 1.3 million
people in 2000. This included groups like the Hmong, whose
population nearly doubled to 169,000. The Hmong are an ethnic
group from the highlands of Laos who fought the communists
alongside the CIA (news - web sites) during the Vietnam War.
---
Growth has occurred beyond traditional gateways like New York
and California. Towns along the Gulf of Mexico have for years
attracted immigrant fishermen from Vietnam and Cambodia, and
resettlement programs have created large Hmong refugee communities
in Minnesota and Wisconsin.
As
luck would have it, here's a nice tie-in to the discussion of
my previous entry:
The scents of herbs and spices
waft out of a Vietnamese medicine store, down a hall and past
a restaurant where diners sip tea and eat bowls of pho. Pulsing
Vietnamese music plays in the background.
It's a scene out of Hanoi
but it's really a suburban Washington strip mall that
has become a hub for the burgeoning Vietnamese community and
an example of what's happening elsewhere in the country.
"A good bit of it reminds
me of home," Nguyen Ngoc Bich, 67, says as he strolls
past the shops. Bich, a former Vietnamese diplomat who settled
in the United States as a refugee in 1975 after the Vietnam
War, was one of the mall's original investors.
"Just close your eyes
and all you hear around is Vietnamese being spoken. It's all
the familiar sounds of home," he said.
--
More businesses and strip malls like Eden Center are sprouting
across the country, as more Asian families settle outside
of cities. One such mall in Las Vegas, called Chinatown Plaza,
bills itself as the "largest master-planned Chinatown
in America."
More
you say? Okay, read this recent report (two parts) about the generational
struggles over Hmong identity here
(a classic assimilation struggle that pits a resilient tradition
against the overwhelming allure of American culture), then head
on over to the L.A. Times and peep this
read about Orange County's Little Saigon community, the largest
Vietnamese population outside of Vietnam (free subscription).
Much like Cuban American exiles in Miami, they hate them some
communists!
Posted
by Thomas
Tseng, 5:26 pm
The
New Chinatowns

Yesterday's
Wall Street Journal contained this
fascinating report (paid subscription only) about the growth
of mini-Chinatown malls now dotting the landscape of our nation's
suburban edges. These are not your traditional Chinatowns -- i.e.,
full-scale urban districts in the heart of a dense metropolitan
area, a la San Francisco or New York -- but are a whole new animal
altogether. The story begins with one entrepreneur, James Chen,
who, during one routine visit to Las Vegas, realized he couldn't
get any decent Chinese food anywhere:
"I asked people, looked
at the map, checked the phone book. No Chinatown in Las Vegas."
That's why Mr. Chen had to
invent one. Nine years ago, he built what he calls America's
first "master-planned Chinatown" -- and, on the
way, helped take immigrant enterprise into new territory.
Mr. Chen and a few others, mostly East Asians with capital,
have come up with an angle that lets middle-class immigrants
move away from the coasts and into America's inland car culture
without leaving their own cultures behind.
These investors have brought
to life what might be called the ethnic commercial enclave,
a cross between the regional mall and the corner store. Because
their customers live scattered in unsegregated subdivisions,
instant-Asia shopping centers can park anyplace where the
rent is low and the drive-time reasonable. These commercial
spaces are taking on all the intimate social functions of
the old immigrant neighborhood. The neighborhood is the only
thing missing.
Rice-loving shoppers from
the suburbs are driving to about 70 stand-alone Asian shopping
centers on the coasts -- not only in New York and Los Angeles,
but Seattle, Baltimore and Miami -- and to about 50 in such
mid-American cities as Denver, Minneapolis and Phoenix.
So
this cat Chen begins modestly by first opening a Chinese video
store, giving him the necessary market intelligence on where the
local Asian community lives (how's that for bootstrap market research?).
It's a small population (in 1990), so he orients (no pun) his
business plan around the annual streams of Chinese gamblers en
route from California who don't want to be relegated to all-you-can-eat
buffet specials at Vegas casinos (Chinese are an infamously finicky
bunch when it comes to grub):
In 1990, Nevada's entire Chinese
population was just 6,618. To test the market for his shopping
center, he opened another Chinese-video service there. Customers
supplied their zip codes, and that gave him a map of where
Las Vegas Asians lived. Video rentals were understandably
sluggish. "It was very risky," he says. "People
warned us." But like all Chinatowns, he reckoned his
would draw tourists -- especially in the shape of hungry Asian
gamblers.
"Do you want population
before you build, or do you build to attract population?"
says Mr. Chen. "You don't want to be late. You want to
be early. That's the game."
With Mr. Hwang (who immigrated
on an investor's visa) and a second friend who owns a button
factory in China, he acquired eight acres on Spring Mountain
Road for a project that would cost $10 million. It was a rough
district of wholesalers, small factories, topless bars and
no Chinese people.
That's where Mr. Chen wanted
to build. But first, he went after the one anchor tenant that
he knew would make a desert Chinatown work: 99 Ranch -- America's
biggest Asian supermarket chain with 26 west-coast stores
and franchises in Phoenix and Atlanta. The number 99 is lucky
to Chinese, and "ranch" sounded trendy to another
Chen from Taiwan -- Roger Chen -- who founded the chain in
1984.
Ah
yes, 99 Ranch,
the mother of all Asian grocery stores. Think of the largest Kroger
supermarket you know, but triple the size and selection of the
seafood and butcher sections. Picture endless rows of fish tanks,
shellfish, and gourmet seafood esoterica like geoduck. 99 Ranch
stores usually anchor a shopping strip, which include a number
of complementary restaurants and retail businesses. They are a
magnet for luring Asian shoppers from all over and are a distinguishing
feature of Chinese American suburbia. Hell, they practically define
it. When Charles Schwab decided to target the U.S. Chinese market
several years back, they simply opened up retail branches right
next to 99 Ranch stores.
 
But
I digress. By adopting the "if you build it, they will come"
approach, Mr. Chen's Chinatown
Plaza succeeded. Pretty soon, waves of Asian Americans poured
into Las Vegas over the intervening decade, a move made easier
by the fact there was now a "Chinatown" not too far
away:
Since it opened in Las Vegas,
and perfected an ability to truck swimming fish over long
distances, the 99 Ranch here has turned into a gold mountain.
"I thought the population growth would slow down,"
says Jason Chen, Roger's nephew and the Las Vegas franchisee.
"It went the other way. It keeps going and going."
The nation's fastest-growing
state, Nevada had two million people in 2000. Of them, 90,000
were Asian, a 250% increase in 10 years. Yet Las Vegas census
maps show them lightly sprinkled. Fewer than 2,000 live in
Chinatown Plaza's immediate surrounds.
In suburban Los Angeles or
New Jersey, and the old urban enclaves of New York or San
Francisco, Asian districts encircle Asian malls. In Las Vegas
and young cities like it, the ghettos are gone. Hispanics,
more numerous and less affluent, still cluster, but Asians
often migrate from the coasts and integrate economically before
they arrive. Along with the many others who move to Las Vegas
each year, Asians are buying houses in the developments that
are advancing into the desert like pink-stucco lava flows.
Still, they're rarely more than 10 miles from Chinatown Plaza.
"We don't go to the neighborhood,"
says James Chen's son, Alan, who was born in Los Angeles.
"The neighborhood comes to us."
What's
amazing about this case study is that places like Chen's Chinatown
Plaza are now being replicated by like-minded pioneers in new
residential subdivisions across the country -- places where, though
there may not be a densely concentrated Asian community, there
are enough patrons willing to traverse relatively lengthy distances
for a small taste of home. Subsequently, these "New Chinatowns"
have become the catalyst for further economic development, as
consumers begin purchasing homes and forming communities in proximity
to them.
(Hat
tip, Joel.)
Posted
by Thomas
Tseng, 1:46 am
Wednesday,
April 28, 2004
The
Warped World of Youth Marketers
I
hate it when researchers tout their study as "groundbreaking"
-- especially when the results are only merely "interesting."
So file this one under the latter category. (BTW, I'm sure I've
committed this sin myself, using "groundbreaking" or
"landmark" in my own press releases in the past, so
call me a hypocrite. Mea culpa. I've reformed and vowed to choose
more original terminology for the future.)
In
any case, Harris Interactive and Kid Power have recently released
their own poll among youth marketers, and this is what they've
found:
ROCHESTER, N.Y. April
20, 2004 A new ground-breaking survey of professionals
who work in youth-related fields shows that they feel it is
appropriate to begin marketing to children at age seven, on
average. This is more than two years before they feel most
young people can view advertising critically (age 9.1), or
when they feel most young people can effectively separate
fantasy from reality in media and advertising (age 9.3). Youth
marketers feel it is appropriate to target marketing to children
almost five years before they feel that most young people
can make intelligent choices as consumers (age 11.7).
In other words, most youth marketers are as contradictory as I
am -- except more so. At least I'm cognizant about being contradictory
consistently! (Huh? -- ed. Don't think about it too much.)
These
youth marketing professionals believe Age 7 is an appropriate
age to target kids with advertising, yet also say that Age 9 is
when kids can start viewing advertising critically. Er, isn't
that a tad erratic? Other results show that 61% believe advertising
to children begins at too young an age (presumably this means
7 years old is just right), and 74% think the positive impacts
of their organization outweighs any negatives. If there's anything
"groundbreaking" about this study, it's that youth marketers
are a confused, screwed-up bunch!
Incidentally,
did anyone think to ask the parents of these kids what the appropriate
age is to market stuff to them? More later...
Posted
by Thomas
Tseng, 6:42 pm
Koolin'
It Down
Here's
a followup to my post from April 1 on the cigarette brand, Kool,
accused of targeting youth (a tsk-tsk accompanied by a heady fine
if true), especially African American minors, using hip hop iconography
and grassroots marketing promotions. It looks like the tobacco
firm will be ceasing
its hip-hop themed promotions and modifying course:
WASHINGTON (AP) - Brown &
Williamson Tobacco Corp. has scaled back a marketing campaign
featuring hip-hop characters that critics said was aimed at
black youths and violated a legal settlement between the industry
and 46 states.
Brown & Williamson attorney
Neil Mellen said in a recent letter to Maine Attorney General
Steven Rowe, who is in charge of enforcing the 1998 agreement
with tobacco companies, that the company no longer is packaging
Kool cigarettes using images of youthful rappers, disc jockeys
and dancers to sell them.
The April 16 letter, obtained Friday by The Associated Press,
said the Louisville, Ky.-based company stopped distributing
those cigarettes March 30, shortly after receiving a complaint
from Rowe.
Rowe told the company to halt
the ad campaign, saying the advertisements, retail displays
and packaging "appear to be targeted to youth, and particularly
African-American youth." Under terms of the legal settlement,
tobacco companies are barred from targeting teens through
advertising or marketing.
It'll
be interesting to see what kind of marketing path Brown &
Williamson adopts from here. It's difficult to make the case Kool
only targets Black kids, since most hip hop consumers (and trend-followers)
aren't event Black. Nevertheless, it's apparent Kool already has
loyal brand cache with young African Americans, as evidenced by
this
column in the St. Louis Dispatch:
Being cool wasn't a motivating
factor for me. I started smoking in my early 30s. My business
partner smoked. Maybe it was curiosity, boredom, stress or
the fact that I liked her that got me started (after all,
we were married years later). Either way, I went from "bumming
a square" to buying whole packs.
One day, I stopped at a gas
station to buy cigarettes with a buddy of mine. I asked for
the brand I usually smoked - Marlboro Lights. My friend gave
me the oddest look.
"What're you doing smoking
those white folks' cigarettes?" he asked.
My friend smoked Kools with
menthol. He shook one out of his pack, lit it and took a long
drag.
"These, my brotha, are
the kind black folks smoke."
Here
I thought all cigarettes tasted the same (like I said before,
I'm a stogie kind of guy), but no...
My friend wasn't just, ahem,
blowing smoke. Blacks make up 65 percent to 75 percent of
menthol cigarette consumers, according to the Centers for
Disease Control and Prevention. The most popular mentholated
brands among black adults and teens are Newport, Kool and
Salem.
Tobacco companies spend millions
attracting and maintaining consumers. And blacks are big business.
A CDC study released this year reported that the tobacco industry
promotes a positive image in the community by supporting African-American
cultural events, colleges, community organizations and scholarship
programs. It also pointed out that major African-American
magazines receive proportionately higher profits from cigarette
advertisements than other magazines
Read
the rest of the article here.
Hat tip to Negrophile.
Posted
by Thomas
Tseng, 6:04 pm
Last
week, I was going to blog about two important Hispanic media studies
that were released, one by the Association
of Hispanic Advertising Agencies (AHAA) and the other by the
Pew Hispanic Center
out of Washington DC. I didn't have time to tackle the former,
and only marginally touched upon the latter, but thought both
studies deserved to be discussed and dissected in a single piece
since they produced very different conclusions. Instead, I've
put my thoughts into this
week's RetailWire column. Here's the lede:
Mixing Media: Spanish-Language
Advertising and Hispanic Marketing
By Thomas Tseng
In two influential studies
released last week, marketers who target the Hispanic market
learned two things: one, Spanish-language advertising spending
is not commensurate with the total size of the U.S. Hispanic
population; and two, it may not really matter.
Let me explain. The first
study was sponsored by the Association of Hispanic Advertising
Agencies (AHAA). At their semi-annual pow-wow in Miami last
week, the trade group released their annual report on corporate
advertising allocations to Hispanic marketing. The report,
"Ad Budget Alignment: Maximizing Impact in the Hispanic
Market," showed that among the top 670 U.S. corporate
advertisers, 5.1% of total spending is now dedicated to Hispanic
advertising.
......
You'll
have to the rest of it at RetailWire
(it's a free subscription), where you can also read the comments
of other esteemed panelists on my piece (and offer your own opinions
too).
It's an ongoing dialogue. I'm still playing catch-up this week
on multiple things and dealing with a flood of work, so more stuff
later in the day.
Posted
by Thomas
Tseng, 11:04 am
Tuesday,
April 27, 2004
Meet
the New American Family
Remember
the Elliotts?
That mixed-race family that kicks off Verizon's "Meet the
Families" television campaign I blogged about back on March
22? Well, you can also meet their neighbors in the Verizon ads,
the Davises
and the Sandovals,
who are African American and Latino, respectively (What? No
Chens? -- ed.) No doubt each family's execution was conceived
by Verizon's three different agencies for this campaign.
Seth
Stevenson, ad critic for Slate magazine (I hear him also on NPR's
Day-to-Day every once in awhile),
critiques the Verizon Elliotts campaign and finds that in
spite of the ads' trite elements, he kinda enjoys the family-sitcom
riff -- especially the transcultural, rainbow-color casting of
the strategy. Some highlights:
But most intriguing of all
to me is the mixed-race casting of the Elliott family. Because
while the Davises and Sandovals are narrowly targeted to specific
demographics, the Elliotts are Verizon's "mass market
family," as Rubenstein puts it. They're meant to appeal
to everyone, nationwide, as a flagship symbol of Verizon's
brand. Yet they're pretty non-traditional by the standards
of gargantuan ad buys. I've seen a few other ethnicity-blind,
mass-market spots. (A recent Volkswagen ad comes to mind,
in which the characters were all SouthAsian.) But I
don't think I've seen a mixed-race family as the focus of
a large, long-term campaign. And certainly not a mixed-race
family where the dad's so defiantly white-bread and race is
so beside the point.
Of course, nothing's really
beside the point when it comes to a big-budget ad. Verizon
is using race as a marketing tool but in a way we haven't
seen much before. The casting here isn't intended to pander
to one specific ethnic audience. Nor is it a grudging corporate
concession. (Look, we put a black guy in our ad! Way back
in the corner! Not speaking!)
In the Elliotts campaign,
race is 1) an attention-getting gimmick and 2) a way to lend
the brand a modern, distinctive vibe. This is a delicate (and
slightly duplicitous) balancing act, because No. 1 relies
on the fact that a mixed-race family is still sort of a big
deal while No. 2 relies on Verizon treating it as no big deal
at all.
Grade: B. This ad made me
stop and pay attention. And I'm a sucker for PC utopias. I'm
actually looking forward to more Elliotts "episodes."
Read
it all here.
Incidentally, one of the reasons for my blogging hiatus (at least
these past few days) is because I was at this
conference as one of its presenters and co-chairs. But more
on that later. Coincidentally, one of Verizon's multicultural
directors was also there to talk about their grassroots multicultural
marketing activities -- but no discussion of the Elliotts! So
I jumped at the opportunity to ask him at the conclusion of his
presentation.
As
I suspected, the initiative was pushed by the higher-ups at Verizon
who demanded their three agencies of record (general market, African
American, Hispanic) work together on the campaign. A forced advertising
marriage if you will. This is, as you'll remember, called "crossover
creative" which I'll be talking more about in the months
ahead.
Posted
by Thomas
Tseng, 5:40 pm
Wednesday,
April 21, 2004
Television,
Drug of the Nation (Still!)

Some
late afternoon headlines for y'all:
- Reports
of television's
demise have been greatly exaggerated! Sure, TV ratings are
down among the much touted 18-34 male demographic -- much of
it blamed on the migration to the Internet and gaming. BUT,
this
study just unveiled by the Online Publishers Association (OPA)
demonstrates that young consumers still consider TV just as
integral as the Web. In fact, they frequently use 'em both at
the same time!
- So
what are they watching on TV? According to Children Now,
they are seeing mostly,
uh, white people, and a few more Latinos than before --
at least on prime-time network television. In the group's 4th
annual Prime-Time
Diversity Report, which tracks minority casting on prime-time
network shows, results show that:
The number of Latino characters
has increased to more than six percent of the 2003-04 prime-time
population, up from 4% in 2001-02. Among opening credits
characters, the percentage increased threefold, from two
percent to six percent. More than half of all prime time
shows now include at least one Latino character.
The percentage of Asian/Pacific
Islander characters has not changed over the past five years,
and the percentage of Asian "opening credits"
characters actually declined, from two percent in 1999-2000
to one percent this season.
Nearly half of Arab/Middle
Eastern characters (46%) were criminals. Both Latinos and
Middle Easterners were more likely to be criminals than
to have a professional job such as a doctor or a judge.
- But,
hey, maybe things are a slightly better in print
media's newsroom! Oops, maybe
not...
- Speaking
of print media, the editor of the newly-launched (at least here
in L.A.) Hoy -- the chief thorn-in-the-side to Spanish-language
daily La Opinión -- pens
this denunciation (in English!) against Samuel Huntington's
book in the op-ed pages of their mothership, the Chicago Tribune.
- Speaking
of Sam Huntington, a number of folks in the blogosphere have
identified the
true unmeltable Hispanic menace here. Warning! Not for the
faint-hearted (Seen originally at Latino
Pundit).
Posted
by Thomas
Tseng, 4:21 pm
NASCAR
Kids
Is
this the NASCAR
demographic Dubya is pandering too? Today's Miami Herald has
the
scoop on the latest street fad being embraced by the hip hop
commonwealth:
It's a phenomenon quietly
spreading across the United States, from Los Angeles to New
York, Miami to Detroit, and taken some by surprise: Garb associated
with NASCAR, historically the gritty darling of white men
and women from the South, is now a must-have for many urban
African-American youths.
''I only just recognized [the
trend] last week,'' said Marshal Cohen, chief industry analyst
for NPD Group, a New York retail consulting firm. ``It was
the young urban consumer, primarily African-American.
'I thought, `Wow! What's going
on?' We're talking about white, blue-collar, rural sports,''
Cohen said. ``NASCAR will argue they're not that. But tell
that to the African-American community.''
A
funny thing about grassroots, urban hip hop trends: the confounding
cluelessness registered by representatives of the product in question.
We've seen this before among spokespeople for Cadillac, Lincoln,
La Courvoisier, and others when their brands unexpectedly surge
in hip hop popularity. I mean, you can almost see the bewildered
looks on the faces of these people:
Not
everyone is aware of the trend -- even among those selling
NASCAR wares. QVC, the cable shopping station with a weekly
NASCAR program, doesn't gather demographics on its customers.
Still,
when Dennis D'Angelo, QVC's director of merchandising for
NASCAR, was asked about new urban clientele: ''We don't know
about that,'' he said.
The
street fashion industry has yet to register the movement,
too. Joe Hudick, an employee at h272, a store owned by hip-hop
artist DJ Honda in the Village in Manhattan, saw plenty of
NASCAR jackets in Orlando recently.
Said
Hudick, who is 25 and white, ``The puffy ones, like redneck
style.''
But
they weren't on black kids, he said.
''I
would never believe that, if you told me,'' he said.
This
is genuine viral marketing, straight up. Even if it is unintentional.
Shout out to Negrophile.
Posted
by Thomas
Tseng, 6:20 am
Tuesday,
April 20, 2004
Hispanics
Migrating to English-Language Media
Research
alert, research alert! There was a time any private research
firm surveying Latino households -- especially those tied to Hispanic
marketing -- who put out data showing Latinos as consuming anything
other than Spanish-language media, were instantly relegated to
black-sheep status, to be shunned by the
Hispanic marketing establishment. Call it the Univision stranglehold
effect. Thankfully, the not-for-profit Pew Hispanic Center now
releases this
type of agenda-less research, so the rest of us don't have
to. Fresh off the AP newswires:
The poll found 31 percent
of Hispanics get all their news in English, 24 percent get
all their news in Spanish and 44 percent get their news from
media in both languages.
"The preference for Spanish-language
media is highest among recent arrivals to this country,"
said Roberto Suro, director of the Pew Hispanic Center, sponsor
of the poll. "It's very clear that the size of the future
market for the Spanish-language media depends on the number
of Hispanics allowed to emigrate here."
Suro said "the longer
Hispanics are here in this country, the more they migrate
out of Spanish-only media, either to English-language or to
be switchers. There's a question whether the Spanish-language
media can still exercise some hold on the second generation
of immigrants."
Not
surprising really. To me, the real story here -- marketers take
note! -- is the number of people who say they consume both forms
of news media -- English and Spanish -- so a mix in advertising
and communications in both languages may be the ideal. Still,
while it's clear English-language media gradually becomes the
preferred medium with greater acculturation, it's also apparent
that there's greater implicit trust in Spanish-language media's
portrayal of Latinos:
Views of the media's role
in society were generally far more positive among those who
get all of their news from Spanish-language outlets.
"Only half of the foreign
born population gets all their news from Spanish-language
media only," said Suro. But he said that "the Spanish-language
media is held in very high esteem as an ethnic institution,
it is very important to the Hispanic community."
Lastly,
here's something that should give pause to both President Bush's
and Senator Kerry's existing campaigns to court the Hispanic vote:
Hispanics who are registered
to vote and have cast ballots tend to prefer English-language
media. More than half of Hispanic voters, 53 percent, get
all their news in English, and 40 percent of that group gets
their news in both languages, the poll found.
What
have I been saying all along? Go and visit the Pew
Hispanic Center for more details. Download the report here
(Adobe Acrobat required).
Posted
by Thomas
Tseng, 12:20 am
Monday,
April 19, 2004
Coiffure
& Cream

There
is perhaps no other industry that has to consider physical features
and cultural preferences among consumers of different race and
ethnic backgrounds more than the cosmetics industry. In fact,
L'Oreal, the French hair-product and makeup conglomerate, has
a
crackpot team of researchers out of their think tank in Chicago
who specifically study this sort of thing. No wonder, it's big
business:
Following the purchase of
SoftSheen/Carson last year, a brand marketed to African Americans,
the Paris-based company has said it is upping money earmarked
for research to 4% of US$22-billion in annual sales, up from
3% previously. L'Oreal, known for everything from Maybelline
makeup to Lancome skin cream, has 17 research facilities around
the world and the Chicago laboratory will soon be joined by
an institute in China dedicated to finding new offerings for
those of Asian descent.
Chicago, with its diverse
population and collection of universities, seemed the perfect
spot for L'Oreal's US$11-million investment and there appears
to a big business opportunity in hair sprays and skin creams
made just for African Americans.
U.S. figures suggest "ethnic"
consumers account for 51% of all hair-care sales and spend
twice as much of their income on hair products than Caucasians.
There is, however, scant research
about this population's hair and skin, meaning most products
on the drugstore shelf aren't made with their unique traits
in mind.
There's
a method to this: study how to improve beauty products geared
to a diversifying base of ethnic consumers on the one hand, and
scale
up your marketing efforts to reach them on the other:
Looking
at individual marketers, L'Oreal almost doubled its Hispanic
TV spending last year, to $18 million between January and
September 2003 from $10 million the previous year. Comparable
print figures aren't available, but L'Oreal is the biggest
advertiser in this month's debut issue of Thalia, named for
Mexican singer-actress Thalia Sodi, from American Media's
Latino Magazine Group.
Results?
Market leadership in ethnic beauty sales, for one; two, L'Oreal
will likely reach
it's 20th straight year of double-digit earnings growth in
2004:
In the global $60 billion
beauty industry, being first feels familiar to L'Oreal. Analysts
expect that 2003 sales, to be released this week, will hit
$18.2 billion, allowing the company to achieve its 19th consecutive
year of double-digit earnings growth. According to Morgan
Stanley, L'Oreal is the only cosmetics company over the past
five years to have maintained or grown its market share in
categories like cosmetics and hair care, both globally and
in the U.S.
For
an alternative take on the ethnic beauty business (the surgical
side of things), check out MTV's SuChin Pak's journal
on her "My
Life Translated" series, which recently tackled the story
of Asian American women who get double eyelid surgery. My personal
opinion of this procedure: it's a tragedy. I never realized how
prevalent it was. After watching the program myself, I now look
at every single random Asian female on the street to determine
if their eyelids have been done (being here in L.A., you wonder
if a lot of other things are real too). I can't help it, it's
become a fixation. Like Austin Powers staring at Fred Savage bespotted
face yelling "moley mole!"
More
on Suchin in this
month's Audrey. (I predict big things for this standout among
MTV VJ's).
Posted
by Thomas
Tseng, 6:20 pm
Friday,
April 16, 2004
Melting
Blog Rundown:
image from Transculturalism
Recent
visitors to this site may be asking What's this blog about?
Well, besides whatever the heck captures my fancy, this space
is dedicated to my (near) daily musings on how U.S. marketing
is being shaped by America's growing cultural diversity and changing
demographic forces -- and vice versa. Specifically, how is the
unprecedented growth of ethnic and immigrant populations transforming
the consumer landscape? What's Corporate America doing about it?
As a research house hired by corporate marketers to investigate
this stuff, we like to think we have a unique take on this multicultural
marketplace.
In
addition, TMB will make occasional (okay frequent) forays into
immigration issues, the cultural assimilation debate, the influence
of hip hop culture in the marketplace, the nation's evolving post-ethnic
identity, and the general, fascinating interweaving of America's
amazingly diverse ethnic quilt -- quite a mix, huh? One thing
TMB will not delve into is politics -- not because there's no
interest on my part (I'm a part-time policy wonk afterall) --
but because there's already enough freakin' great political blogs
out there. Then again, I reserve the right to renege on that.
It's my blog afterall.
Lastly,
this blog is an attempt for me to hang onto to any hip credentials
I used to have (or thought I had) now that I'm in my thirties.
Y'know, just to prove I'm not simply another corporate lackey
(did I mention I was involved in public policy?)
Y'all
still with me? Good. Here's a rundown of some recent TMB-approved
items:
- From
the publishers of Trace
Magazine comes this book launch, entitled "Transculturalism"
-- a collection of essays on "how the world is coming together."
You can read a few of 'em: in particular, check out Trace editor-in-chief,
Claude Grunitzky's intro piece on what "transculturalism"
means and Graham Brown-Martin's "Rise of the Mixed-Race
Majority." Many of these themes are echoed in my
own article on transculturalism's impact on ethnic marketing
from last year.
- What
do you call yourself if you're Nigerian-Jamaican-Canadian? Peep
the
Black Girl Chronicles, as spotted by Black
Cinderella.
- On
the business front, Meximerica Media (mentioned here this past
Monday) formally unveils the
name of their Spanish-newspaper endeavor: Rumbo. The term
"on your way" evokes a Spanish phrase "heading
north for a better life" according to the press release.
Distribution begins in key Texas markets this summer.
- To
counter, Monica "Bring
It On" Lozano, publisher of La Opinión -- no
doubt feeling the heat from the recent surge of new competition
-- announces
a partnership with the Houston Chronicle to distribute the youth-oriented
La Vibra ("the Vibe"). The Chronicle begins distributing
this
weekly pop entertainment tabloid for young Latinos in Houston
next week -- bringing total circulation for it up to 250,000.
- Whoa!
One-third of all telecommunications services in the U.S. will
be spent by ethnic markets, according to this
new study. That's $94 billion dollars of $288 billion for
you folks at home keeping count. Makes sense, who else is making
all those long-distance calls?
- A
shamless plug: our company has launched Retail
Wire's Multicultural Marketplace -- it's just like a blog,
except it's for retail executives looking to dialogue among
other experts. Limited appeal, I know, but those of you out
there interested in retail trends (we know you're out there)
in the grocery, supermarket, or big-box business, join the fun!
- Completely
off-topic: Mark Cuban pimp slaps Donald Trump! Read the
Dallas Mavericks owner's own blog for the scintillating
details.
Finally,
I've received more than a few inquiries asking about RSS feeds.
Yeah, I know it's about time I move over to a more blog-friendly
format. I'm working on it. The full transition to Movable Type
will happen. Be patient....
Posted
by Thomas
Tseng, 4:42 pm
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TMB
Family:
JoelKotkin.com
Julio's
Blog
Morse's
Code
Whitmore's
Wisdom
A
Melting Blogroll:
Adrants
Angry
Asian Man
Black
Catharsis
Black
Cinderella
Business
2.0 Blog
Fast
Company Blog
hightext
Hispanic
Market Blog
Latino
Pundit
Low
Culture
Mahoot
Blog
The
Manifest Border
MarketingWonk
A
Mixed Blog
Negrophile
Pop
Life
re:invention
Blog
Seth
Godin's Blog
Snark
Hunting
Turbanhead
Viral
Marketing Blog
Websense
The
Wily Filipino
TMB
Reads:
Advertising
Age
Ad
Week
American
Demographics
Black
Enterprise
Black
Electorate
Brandweek
Colorlines
DiversityInc
EurasianNation
HispanicAd.com
Hispanic
Business
Hispanic
Market Weekly
Hyphen
Magazine
KoreAm
Journal
Los
Angeles Biz Journal
Los
Angeles Times
New
California Media
New
York Times
Pacific
News Service
Wall
Street Journal
Washington
Post



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