Whites and Asians have the largest incomes, and generally have more disposable income than Hispanics or Blacks to spend on consumer goods and services. However, culture and lifestyle factors introduce variations in spending by category, according to data from New Strategist Who’s Buying series based on Bureau of Labor Statistics cited in the 2010 Retail Business Market Research Handbook, available from Research Alert parent EPM Communications.
Asians and Hispanics, for example, outspend other races/ethnicities on groceries (see chart below). Both cultures favor cooking with fresh ingredients, some of which are exotic and can be more expensive than common canned or frozen ingredients. In addition, Hispanics tend to have larger households that include extended family members, driving up their grocery bills.
Asians outspend other races/ethnicities in the consumer electronics category. This is a cultural difference: many Asian countries are leaders in technology, and their higher-than-average spending may be to keep up with the trends they hear about from their homelands.
Non-Hispanic Whites and Asians dominate spending on jewelry, a category that is largely dependent on having disposable income.
Hispanic spending on toys and games and sporting goods is second only to Non-Hispanic Whites. Hispanic families have more children than families of other races/ethnicities. In addition, Hispanics are the youngest ethnic group and are more likely to be in the early stages of starting a family, when spending on toys and games is at its highest. [Consumer Spending & Attitudes, Emerging Majorities]
Source: “2001 Retail Business Market Handbook,” Richard K. Miller & Associates, available from EPM Communications, 19 W. 21st St., #303, New York, NY 10010; 212-941-0099; info@epmcom.com; www.epmcom.com. Price: $335 for subscribers to any EPM newsletter, $385 for non-subscribers.
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