Cultural Diversity and its Impact on Global Consumer Markets

EXECUTIVE SUMMARY

Market drivers

Chart 1 Leading Countries for Net Migration in 2013

Impact on consumer markets

Marketing strategy

Outlook

Chart 2 Forecast Numbers of Foreign Citizens in Developed Markets 2018

INTRODUCTION AND DEFINITIONS

Overview

Shared values
People on the move
The rise of bi-culturalism

Definitions

Ethnicity
Migration
Asylum seekers

MARKET DRIVERS

Increase in foreign citizens

Greater mobility
The US melting pot
Australia and Germany are desirable destinations
Italy sees rapid growth
Table 1 Number of Foreign Citizens Residing in Developed Markets 2008/2013
Australia has highest penetration of foreign citizens
Switzerland’s wealth attracts foreign professionals
Japan and South Korea lag behind
Chart 3 Proportion of Foreign Citizens Residing in Developed Markets 2013

Migration trends

The search for a better life
EU enlargement led to surge in movement between states
Net migration highest in the US
Spain’s downturn leads to an exodus of migrants
Table 2 Net Migration by Country 2008/2013
Table 3 Net Migration by Country 2008/2013
Mixed attitudes towards immigration
Economic and cultural benefits

Remittance flows

Chart 4 Top 10 Countries by Remittance Inflows 2013
Chart 5 Top 10 Countries by Remittance Outflows 2013

Refugees/Asylum Seekers

Numbers continue to rise
Germany is largest recipient of asylum applications
Syrians flock to Turkey to escape crisis
Australia toughens up
Table 4 Number of Refugees/Asylum Seekers in Selected Markets 2008/2013

Foreign study

Strong demand from China
Overseas students contribute to economic growth
Table 5 Number of Foreign Students in Selected Host Countries 2008/2013

Influence on demographics

Ethnic minorities have generally youthful populations
Chart 6 Age Structure of Hispanic Population in the US 2013
...And bigger families
Concentration in urban areas
Regenerating American cities

Growing purchasing power of ethnic consumers

Minorities gain economic clout
Asian-Americans have above average incomes
African Americans shop frequently
Chart 7 Median Household Incomes in the US by Race/Ethnicity, June 2014
UK Asians are high earners

Religious diversity

United by faith
Muslim communities grow
US has largest Jewish community outside Israel
Table 6 Selected Religions by Country in 2010

IMPACT ON CONSUMER MARKETS

Islamic consumerism

A market worth US$2 trillion
Halal food
Challenges to overcome
Case study: France’s halal market takes off
Reputation for quality
Lamb is the preferred meat
Table 7 Global Sales of Meat by Type 2008/2013
Muslim-friendly restaurants
Case study: UK foodservice companies go halal
Anti-halal backlash
Halal personal care makes an entrance
Hair care products for veiled hair
Halal health
Islamic fashion
Halal holidays
Western destinations step up their Islamic services
Islamic banking

The Kosher market

Food and drink

Ethnic consumers buy in large quantities
Price is the overriding factor
Table 8 Shopping Behaviour Among Canadian Ethnic Consumers 2014
Eating habits differ by community
Supermarkets take up the challenge
Asda widens its world food offer
Morrisons supports world food events
The Hispanic food market
New product developments
Mainstream consumers become more adventurous
Influence on consumer foodservice
The search for authenticity

Ethnic skin care

Segmenting the offer
Addressing ethnic skin problems
Asians drive skin whitening category
Table 9 Skin Whitening Anti-Agers as a % Of All Anti-Agers 2008/2013
Matching skin tone
Targeted advertising

Ethnic hair care

Addressing specific hair care needs
Hair care a priority for black women
Market continues to grow
Trend towards natural ingredients
Weave becomes more popular
A fragmented market
Summary 1 Selected Ethnic Hair Care Launches 2013-2014
Ethnic men’s grooming and sun protection – growing niches

MARKETING STRATEGY

Consumers from ethnic minorities still under-represented
Varying techniques
Multicultural marketing
US companies invest heavily in Hispanic media
Chart Largestt Spenders in Hispanic Media in 2013
Case study: Kraft wins over the US Hispanic community
Total market and cross cultural approaches

Communication preferences

Creating affinity
Language barriers
Supporting community causes
Use of social media
Younger, tech-savvy audiences

Celebrity endorsement

Universal appeal
Launching ethnic beauty lines
The power of black athletes
Summary 2 Leading Multicultural Celebrity Brands

Acquisition of ethnic brands

KEY MARKET TRENDS

Australia

Almost a third of population born overseas
10 million consumers from ethnic minorities
Chinese Australians among the country’s most educated
Chart 8 Australia: Foreign Versus Native Population 2008/2013/2018
Chart 9 Australia: Top 10 Foreign-born Populations by Place of Birth 2008/2013
Small but growing Muslim community

Canada

Most new immigrants of Asian origin
Chart 10 Canada: Foreign Versus Canada-born Population 2008/2013/2018
Chart 11 Canada: Top Five Foreign-born Populations by Place of Birth 2008/2013
Chart 12 Canada: Permanent Residents Admitted by Source Country 2012

France

A fifth of the population now first or second generation immigrants
Maghreb remains largest source region for France’s minorities
Chart 13 France: Foreign-born Versus France-born Population 2008/2013/2018
Chart 14 France: Top 10 Foreign-born Populations by Place of Birth 2008/2013
Ethnic tensions run high

Germany

Migrants support German economy
Turks remain the dominant ethnic community
12% of population is of migrant background
Attitudes towards German identity
Chart 15 Germany: German Versus Foreign Citizens 2008/2013/2018
Chart 16 Germany: Top Five Foreign Populations by Citizenship 2008/2013
Adapting to the growing Muslim population

UK

BME groups account for 16% of population
A new wave of immigrants from Romania and Bulgaria
A popular destination for foreign students
Chart 17 UK: Foreign-born Versus UK-born Population 2008/2013/2018
Chart 18 UK: Top 10 Foreign-born Populations by Place of Birth 2008/2013
Chart 19 UK: Non-White Population by Race/Ethnicity 2013
Islam is the UK’s fastest growing religion

US

Immigration policy favours diversity
Hispanics straddle two cultures
African-Americans place importance on heritage
Asian-Americans are a lucrative consumer group
Share of foreign-born population remains stable at 13%
Chart 20 US: Foreign-born Versus US-born Population 2008/2013/2018
Chart 21 US: Top 10 Foreign-born Populations by Place of Birth 2008/2013
Chart 22 US: Total Population by Race/Ethnicity in 2013
Muslim and Jewish communities

FUTURE OUTLOOK

Trends to watch

Diversity is here to stay
A critical market
Ethnic beauty – room for development
Expanding the world food offer
Higher birth rates drive demand for baby products
Targeting the Muslim dollar
Specialist e-tailers
Opportunities in the events market
The shift towards cross-cultural marketing
The power of the black celebrity

Forecasts

Immigration flows will continue
But policies will become more stringent
Table 10 Forecast Numbers of Foreign Citizens in Developed Markets 2013/2018
Table 11 Forecast Net Migration in Key Markets 2013/2018

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