There are a multitude of blogs that provide advice on getting a better night’s rest. If you are running a business, here are questions that will help you do just the opposite. Here are three things that should keep you up at night.
Ask yourself these questions:
1. How much of your revenue is derived from sales to multicultural customers?
2. Are your competitors capturing your share of these markets?
3. Why is it critical to focus on these markets?
The answer to questions #1 and #2 may not be readily available. But, the answer to question #3 is.
In October 2007, the lead article in USA Today pointed to an amazing development in the United States; we were about to become a nation of 300 million citizens. Why this was so incredible was that in 1970, our population was only 200 million! Don’t forget to consider the fact that most of Western Europe’s population has been virtually flat during this same period.
Today our population stands at 328 million. Experts predict that by 2040, we will be a nation of 400 million, double what it was in 1970.
As a business owner, the prospects are endless.
Since 2000, 80% of this growth has been from the multicultural markets. Additionally, since 1970, the net growth of the Caucasian segment has been virtually zero.
There are 117 million US citizens that are non-white. This represents one-third of our population. If a stand-alone country, this segment represent a GDP greater than 97% of all civilized nations. These markets are not “emerging” they are exploding. For those of us 10 years ago who thought the internet was a passing fad, missing this opportunity would be similar to your business not using the internet, a website, and email. An absurd thought!
Over the past 10 years, incredible brands have disappeared; Blockbuster, Kodak and The Sharper Image. These businesses failed to adjust their customer driven strategy to the changing landscape. Simultaneously, startups that have championed the latest and greatest technology or market segmentation strategies have exploded. Uber, the mobile car service is being valued at $17B. It did not exist 2 years ago. Company’s % of new business is being derived from the multicultural segment.
How is the multicultural broadly defined? Think of three segments: Hispanic, African-
American and Asian. Here are the compelling numbers:
While these segments purchase goods and services similarly to the other 2/3 of the population, and the immigrant population is assimilating into the US culture more quickly than ever, the visionary business owner will be able to capture a larger share of these segments if there is a strategic plan in place.
Consider these facts: 60 million Americans speak other than English at home. Asian-Americans household income is 50% higher than Caucasians. Lastly, if you think you are getting your share of these markets without a strategy, imagine if Citibank or JP Morgan Chase did not have Chinese symbols on their ATMS in New York and Californian Chinese geographical markets.
Still awake? Losing sleep? Good! This lack of sleep will be your business’ next big opportunity.
One of my passions is helping businesses navigate these markets. Here on my blog I will continue to share concepts and ideas on how to create an explosive segment of your business.