Market Brief

U.S. Asians, Chinese, Vietnamese

Hispanic & Asian Marketing Communication Research, Inc. (H&AMCR) conducted a study of two groups of U.S. Asians – Chinese and Vietnamese – to develop financial, consumer, and demographic profiles. These profiles were then compared to each other to estimate the extent to which financial, consumption, and demographic differences exist in the U.S. Asian market.

The study was conducted in May 1997 in the San Francisco-San Jose-Oakland DMA, using computer-assisted telephone interviews of 414 respondents, aged 18 years or older. Respondents were equally divided between Chinese and Vietnamese; it was found that the vast majority of both groups were immigrants who have lived in the U.S. for a number of years. Some interesting differences were found between the two groups of Asians; there are also differences between these Asians and the general U.S. population. Some of the findings include:

Chinese respondents, compared to their Vietnamese counterparts, are more likely to be highly educated, gainfully employed, own their own homes, and enjoy higher annual household incomes. However, experience leads us to speculate that Vietnamese are quickly gaining in education and earning power, making them an attractive segment within the Asian population from a marketing perspective.

Both groups use basic banking services such as checking, savings, and ATM cards, as well as credit cards. However, it appears there is a lack of knowledge on how to invest and make their money work for them. This indicates a potential opportunity for financial services to expand into this ethnic market.

A vast majority of these respondents speak their native language at home. This has a potentially major impact on television and radio programmers, as well as advertising agencies, since this audience may be responsive to in-language media.

Respondents from these two U.S. Asian groups tend to use electronics such as cell phones, pagers, fax machines and, perhaps most importantly, computers and Internet services. This offers an excellent opportunity to the electronics product marketer who targets this market.

Summary Conclusion

The study by H&AMCR finds that a large majority of Chinese and Vietnamese living in the San Francisco-San Jose-Oakland DMA are immigrants. Among these primarily foreign-born Chinese and Vietnamese, most continue to retain their cultural ways regardless of their length of residency in the U.S. Although many believe Asian immigrants become more acculturated the longer they live in the U.S., our study indicates that a vast majority of foreign-born Chinese and Vietnamese in the San Francisco Bay Area speak their native language at home, regularly use in-language media and frequently shop at Asian stores.
At the same time, the Chinese and Vietnamese actively participate in many aspects of the American lifestyle. They are basic consumers of electronics, financial services, and travel. They enjoy shopping. However, it appears they could benefit from more exposure to and information about these various products and services. Many of them appear to have money to spend. It may be well worth a Company's investment to target the particular needs and preferences of the Asian market.
As an ethnic market, Asians offer an appealing profile to a manufacturer, advertiser, or retailer. However, Asians differ in their preferences and habits, not only from the general market, but from one Asian group to another. It is imperative to identify and acknowledge these differences when targeting a multi-cultural market.

Source: Hispanic & Asian Marketing Communication Research, Inc., (650) 595-5028

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