Young ethnic populations good prospects
FAMILY-FRIENDLY FURNITURE Across the board, ethnic groups are planning to buy dining room furniture — both casual and formal — at a far higher rate than their proportion of the population would suggest.
By Kay Anderson -- Furniture Today, November 12, 2001
Three racial/ethnic groups — Hispanics, Asian-Americans and blacks — have purchase plans for both formal and casual dining that translates into a more than $590 million opportunity for the industry.
More good news — all three groups are showing tremendous population growth. According to 2000 census figures, these three ethnic groups now account for 79 million out of 281 million Americans. By 2020, according to Census Bureau projections, the number of blacks will increase another 25%, the number of Asian-Americans, another 64% and the number of Hispanics by 64%.
This is a youthful population. Most of the households in the three groups that plan to buy either casual or formal dining furniture this year are under age 45. Nationally, households under 45 make up 56% of those planning to purchase casual dining furniture this year and 59% of those planning to buy formal dining. The percentage of buyers under 45 is even higher among black, Hispanic and Asian-American households, ranging from a low of 57% of blacks planning to buy casual dining to a high of 96% of Hispanics planning to buy formal.
Asian-Americans appear to be equally divided about whether to buy formal or casual dining. The plan-to-buy index for blacks indicates a stronger preference for formal dining room, while the plan-to-buy index for Hispanics is higher for casual dining.
Median planned spending amounts for Asian-Americans match the national median for formal dining room purchases of $1,000, while the median plan-to-spend amounts for blacks ($700) and Hispanics ($500) is lower. Planned spending for casual dining furniture by all three groups is under the $400 national median.
The planned spending is not necessarily tied to lower income levels for the groups. Among Asian-Americans planning to buy casual dining, nearly three-quarters have incomes of $50,000 or more. On the other hand, only one-third or lower of blacks and Hispanics planning to buy casual or formal dining have household incomes of $50,000 or more. Income levels among both of these groups is rising, however, and along with it, their purchasing power.
| Ethnic opportunities | ||||||
|---|---|---|---|---|---|---|
| Those that plan to buy casual or formal dining in 2001 at a rate higher than their proportion in the population. | ||||||
| Blacks | Asian-Americans | Hispanics | ||||
| Plan-to-buy index* 100 *An index of 100 = planning to spend at same rate as the groups proportion to the overall population |
||||||
| Casual dining | Formal dining | Casual dining | Formal dining | Casual dining | Formal dining | |
| Projected number of households planning to buy | 475,000 | 420,000 | 60,000 | 45,000 | 155,000 | 95,000 |
| Median dollar amount planning to spend | $300 | $700 | $300 | $1,000 | $250 | $500 |
| Total plan-to-spend dollars | $145 million | $295 million | $18 million | $45 million | $40 million | $48 million |
