3. 1
Americans are more racially and ethnically diverse than in
the past, and the U.S. is projected to be even more diverse
in the coming decades.
Much of this change has
been (and will be) driven
by immigration
By 2044, the U.S. Census
Bureau projects that
more than ½ of
Americans will be in a
minority group.
By 2060, nearly one in
five of the total
population is projected
to be foreign-born.
Hispanics (currently 18%)
- People that have a historical link to Spain
The Hispanic Population has accounted for
more than of the U.S. population increase in
the last decade
Asian (currently 8%)
One of the fastest growing ethnic
populations.
4.
5. 2The American family is
changing.
• Single person U.S. households are 38
million strong and growing.
• The typical size of an American family
is 2.5 persons per household, with
one quarter with children headed by
single moms.
• Smaller households are a long-term
choice for adults choosing not to be
married and/or have fewer children.
3
Millennials, young
adults born from 1981
to 1996, are the new
generation to watch
• This gen is more diverse than the
preceding ones.
• 44% of it is a part of a minority race.
• The generation of the youngest
Americans i.e. those younger than 5
years is even more diverse.
• In 2014, this group became majority-
minority for the first time. They had
an equal no. of both the races.
6. 4 The share of Americans who live in middle class
households is shrinking.
In the past, those in middle-income
group typically moved up into higher
income levels.
Today, the opposite is true.
Reason being declining and stagnant
wages coupled with growing income gap
during past 15 years.
7. As a supermarket retailer, how would you address
the rise in U.S. single-person households?
First of all, we should ask
ourselves the following two
questions:
"Do we have products that are ideal
for single person households?”
“And if not, what can do to change
that?"
We once said, "The customer is king." Today she's more like a dictator and demands
products designed and marketed specifically for her. Marketing is not making people
buy what you want to sell, but selling what people want to buy.
8. Buying patterns of Single Households
• Products in smaller sizes
• A recent Mintel study reported that the most desired
attribute from pizza restaurants was personal-sized pizza
• They hate wasting not only the food but the packaging
and everything that goes with it.
• They're willing to try more variety of flavors, especially
the younger single households.
• They hate large value packs as they contain unwanted
portions that usually go waste.
• While many retailers have moved away from bulk
products such as cereals, pasta, candies, spices, etc., this
is often ideal for singles as they can take the exact
amount that they need or want.
• They require the same quantity of household appliances
like refrigerators, televisions, oven etc.
9. As a local gift shop, how would you address
the rise of Hispanics in United States?
They Value holiday
Traditions
(45% H to 32% NH)
- Cinco de Mayo
- Día de la Constitución
More Hispanic decorate
their homes
(89% H to 80% NH)
H = Hispanics
NH = Non Hispanics
They are self-gifters
(50% H to 38% NH)
Brands can find Hispanics
in physical stores rather
than online
Esp. at the time of
Thanksgiving, Blackfriday
& Cyber Monday
We can keep a stock
of Hispanic souvenirs
Around the time of
holidays
Frequently bought
Items include
decorative,
Cosmetics and
perfumes.
10. What are the implications of the following to
the retailers?
The share of adults who live in middle-income
households has eroded over time from 61% in
1970 to 51% in 2013, according to Pew Research
Center study. Stagnant wages and a growing
income gap during the past 15 years have caused
families to slip out of the middle class.
Big retailers like GE Appliances is
focusing on catering to the needs of
the customers who belong to high-
income category by offering
refrigerators typically retailing for
$1,700 to $3,000.
Retailers, at street level, are struggling
with the change.
Sears and J. C. Penny, whose products
were aimed at middle-income group,
are announcing closing of stores.
Competition from online giants like
Amazon has only added to the problems
faced by old-line retailers
11. More Demographic Trends
• Asia has replaced Latin America (including Mexico) as the biggest source of new
immigrants to the U.S.
• The world’s religious makeup will look a lot different by 2050: Over the next four
decades, Christians will remain the largest religious group, but Islam will grow faster
than any other major religion, mostly because Muslims are younger and have more
children than any other religious group globally. By 2050, the number of Muslims
will nearly equal the number of Christians. In the U.S., the Muslim population will
remain small, but is projected to grow rapidly.
• The world is aging. The demographic future for the U.S. and the world looks very
different than the recent past. Growth from 1950 to 2010 was rapid — the global
population nearly tripled, and the U.S. population doubled. However, population
growth from 2010 to 2050 is projected to be significantly slower and is expected to
tilt strongly to the oldest age groups, both globally and in the U.S. Public opinion on
whether the growing number of older people is a problem varies dramatically
around the world. Concern is highest in East Asia where large majorities describe
aging as a major problem for their countries.