Let's Be Serious About Multicultural Marketing
Statistics Canada predicts that by 2031, 63 per cent of the GTA’s population will be visible minorities with South Asians and Chinese leading the pack – that’s up from the 43 per cent in 2006. With the minority set to become the majority, the GTA has become the battleground for marketers from major retailers, banks and wireless providers trying to attract the ethnic consumer.
With ethnic minorities predicted to become the majority across the GTA in the near future, mainstream businesses are looking to capitalize on the demographic shift. But ever since I've begun to counsel clients on multicultural marketing when I first immigrated to this country in 1990, I've always been skeptical about how long does it take for companies to realize it takes more than Google Translate to 'multiculturalize' a marketing strategy.
Data collected by Statistics Canada in 2006 shows the cities of Toronto, Markham, Brampton, Mississauga and Richmond Hill experienced a major surge in visible minorities from the previous census year (2001). Markham had the highest proportion of visible minorities in the country – they made up 65.4 per cent of its population. About half were Chinese and one-quarter were South Asian.
In Brampton, the census subdivision that ranked behind Markham, 56 per cent of residents were South Asian.
Recently, grocery giant Metro purchased a majority share of Adonis, a grocer with a steady following of Mediterranean and Middle Eastern consumers. This came two years after its competitor, Loblaw, snatched up T&T, a major Chinese supermarket chain. Both deals give Metro and Loblaw access to suppliers and business strategies geared to reaching ethnic consumers.
While marketers realize that multicultural marketing is very different from using the same approach as preaching to predominantly white, middle-class consumers, very few mainstream companies are willing to dedicate manpower and budget to properly communicate and connect with multicultural audiences. As recently as 2006, major brands seemed to be missing the mark when it came to ethnic consumers. In a survey conducted that year by a Toronto-based research company, 52 per cent of the 3,000 visible-minority participants agreed with the statement, “I rarely see advertising messages intended for me.”
But there is good news after all these years. Though it still trails the steady growth of these populations, the industry is slowly gaining sophistication. Major businesses are co-ordinating ethnic merchandising teams and hiring ethnic marketing firms. With geographic information systems, they can learn which ethnic groups to target at various store locations. With loyalty programs, they can data-mine for consumption trends among their diverse customers. A year ago, Loblaw hired a senior manager of ethnic marketing. Scotiabank and Rogers have their own multicultural marketing managers. And in offices in Markham, North York, Mississauga and downtown Toronto are dozens of marketers who specialize in reaching Indian, Chinese, Filipino and other visible-minority consumers.
Most mainstream marketers fail to understand generational differences call for different ad strategies. The newcomer requires different treatment from the established family or the Canadian-born children of immigrants. Sterotyping visible minorities are not going to get you anywhere.
Is brand awareness enough to drive sales behaviour among multicultural consumers? Like their mainstream counterparts, the ethnic population shops around for prices. So, other than variety, pricing is also important because most of the new immigrants are smart shoppers. But being serious about understanding the diverse mix of new Canadians is an important first step in winning over the ethnic consumer.
Lina Ko
>
3 Comments
chloe Malik said
This is not only a problem in Canada but the UK too. Below is a piece have written about the UK market.
Why are so many companies overlooking the opportunities presented by the ethnic population?
Advertisers are missing out on a huge potential market by failing to communicate properly with Black and Asian people in the UK. According to the Institute of Practitioners in Advertising the combined disposable income of ethnic minorities in the UK is £32bn. However, it would appear that companies are often guilty of ignoring this sector, maybe because very few businesses or agencies know how to target it effectively.
Most businesses don’t target using specialist media and are unsuccessful in reflecting minority cultures in mainstream advertising - 65% of black people say that mainstream media has no relevance to them. Where budgets are limited it seems some marketers are afraid to explore this unknown territory. There are those companies who have tried to target the ethnic sector and in the end got it so very wrong. For example Iron Bru some years back placed a poster campaign throughout predominantly Gujarati Hindu areas in Leicester depicting a cow (sacred in the Hindu religion) with the strap line: “When I grow up I want to be a burger.” The real answer is to use specialist ethnic media and also support it with a mainstream campaign.
There is now an enormous diversity of cultures in the UK and ethnic minorities are the fastest growing sector. In 10 years time this sector is projected to represent up to 50% of the urban population. Ethnic minorities are likely to be upwardly mobile and better educated than the white population. South Asians are the fastest growing middle class and account for half of all new UK millionaires. Mintel reports that Ethnic Minorities represent high ownership of TV’s, multiple ownership of cars and houses and are extremely brand conscious. The mistake many companies make is to look at Ethnic Minorities as one homogenous sub-culture. It is imperative that companies conduct research, look at buying habits, the effect of culture, language, religion, westernisation and acculturation.
The same mistakes are being made time and time again. Large companies throw a sum of money at the ethnic population without really knowing where it should go. It seems inevitable that activity is centred on religious festivals and that the creative execution harps back to stereotypes or Bollywood. - the easy route for an agency with little understanding of the South Asian population in the UK.
This is not to say there haven’t been success stories. HSBC has recognised the power of the “brown pound” and has increased its share of the South Asian Business market from 8% to 20% with its bespoke service. But it does beg the question what are other brands and retailers doing?
Many mainstream agencies have simply ignored this diverse and burgeoning sector because they don’t know where to start or haven’t found it profitable enough. In other instances agencies have simply paid lip service when marketing to different communities by creating safe and unimaginative campaigns.
We constantly hear in the media all the negatives surrounding multi-cultural Britain but the country really should start seeing how valuable it is to the economy.
Michael Lu said
Lina
Excellent post. Thank you!
I am working in marketing at one of the largest global FMCG companies and would love to learn more insight from you on ethnic marketing.
Can you please let me know if you are interested in a one on one connect? I am based in Toronto.
Thanks.
Michael.
Lina said
Michael:
Please send me an email via linakocanada@yahoo.com
Lina