An Immigrant's Eye-View Of Multicultural Markets

As an immigrant, I have endured war in my native Vietnam and an Indonesian resettlement camp before coming to the U.S. I have walked in the footsteps of an immigrant, but I also have worked closely with and studied multicultural markets so as to sensitively approach them with the understanding that certain rules and techniques don’t work as they do in the general market.

Here are some of my insights for the successful engagement of multicultural markets.

Geographic distribution

A stereotype exists regarding where certain multicultural groups live in the United States, but that’s all it is–a stereotype. The reality is that multicultural markets are distributed across the country. Not too long ago, there were recognized geographic Asian and Hispanic markets, one on the East Coast and one on the West.

Both of the largest Asian-American populations can still be found in New York and California, but growing numbers of Asian-Americans also can be found in central and southern regions of the U.S., as Asian-Americans migrate to growing technology, retail and medical professions. The Hispanic markets are experiencing a similar trend with large concentrations on either coast, but increasing numbers in the central and northern United States, gravitating to the growing housing and construction markets.

Evolving segments

Geographic location, though changing, is the only commonality among these groups. All Asians, even those in one geographic area like San Francisco or Boston, cannot be lumped together, nor can all Hispanics. Their expectations and needs differ depending on their country of origin, education, occupation and amount of time spent in the U.S.

My segmentation process begins by organizing multicultural markets into three general groups, including those who: (1) immigrated to the U.S. within the last 15 years; (2) are first-generation or were raised in the U. S.; and (3) are second-generation or were born in the U.S.

Immigrated to the U.S. within the last 15 years–These immigrants generally came to the United States to provide a better future for their children and started from scratch. As many among them have little knowledge of financial products, a direct, simple approach to explaining these solutions would be most effective. And these immigrants are most comfortable doing business in their native language with someone from their own community. This group tends to make emotional rather than logical decisions, and may work through adult children. A good deal of time early in the relationship must be used to build trust.

First generation or raised in the U. S– Raised and educated in the United States, this group of immigrants generally migrated as infants or were born soon after their parents arrived. Generally seeking economic growth, this more acculturated group includes formally educated professionals who have exposure to financial services and products. They also make decisions based on advice from respected family members and friends and on what they have read in both the main-stream and multicultural media.

Preferring to do business within their community with someone from their own generation, this segment requires their planners to be educated on the financial planning process and various products available. Valuing education and the backing of a strong financial institution, they base their purchase decisions less on trust than on respect for the expertise of the financial services professional. And they are willing to go outside of their community to find a representative who meets their criteria.