Multicultural Home Improvement Market

In the 1990s, the population of Hispanics in the U.S. increased by 58%, more than four times the rate of growth achieved by the total U.S. population. Coincidentally, the percentage of Hispanic homeowners increased dramatically in the decade ending 2003. The statistics, of course, are not being ignored by American businessmen and, according to this report, their marketing and advertising efforts are being refocused.

"It's a very underserved market," said Cindy McConkey, vice president of communications for Scripps Network, which owns Home and Garden Television and is studying plans for a Spanish-language channel. "We have measured Hispanic viewership and it is on the rise."

Home improvement spending by Hispanics has grown 80% over the last seven years and the total market is estimated to be $25 to $30 billion.

During the 2004 National Hardware Show in Las Vegas, experts noted that the burgeoning growth and affluence of the Hispanic and Asian populations provide compelling reasons for directed multicultural marketing. Marketing consultant Luis Garcia noted:

"With 40 million Hispanics and their $600 billion in annual purchasing power, this group represents an economic opportunity larger than Canada and wealthier than any Latin American country," said Garcia.

I guess Garcia is saying that there are more Mexicans in the United States than there are Canadians in Canada. This is not surprising to anyone with even the smallest familiarity with the news.

Regarding the Asians, Saul Gitlin, Executive Vice President of Kang & Lee, a multicultural marketing agency, stated that the Asian home improvement industry "is the most overlooked market in the U.S." Gitlin cites data indicating that Asians are significantly more affluent than other demographic groups and are, therefore, "ripe for manufacturers and retailers."

Consequently, experts agree that there are many Hispanics ready to buy and there are many upper-middle class Asians ready to buy and it's up to the home improvement firms to take action for their business. Any rational assessment of the growth and potential for growth of the home improvement industry would have to agree that the indicators are overwhelmingly positive. The future is bright despite the pronouncements of various politicians that the current economy is trending negative. And, personally, I've fairly had my limit of hearing that the U.S. economy is the worst in 50 years.