America, the colorful
A diverse mainstream beckons toy industry
By Kay Anderson, Tina Benitez and Maria Weiskott -- Playthings, 6/1/2005
The face of America has changed substantially in the past decades. It is now more colorful, for one.
In fact, according to the U.S. Census Bureau, while the White population grew in every decade throughout the 20th Century, the White share of the total U.S. population did not follow this same pattern.
Since 1930, the White share of the total population has decreased every decade, while the Black, or African-American, and Latino share has increased.
Additionally, The Asian American population has also undergone dramatic changes. Since 1970 and the end of immigration limits originally imposed in 1924, the Asian American population has grown from 1.5 million to nearly 12 million in 2000 (including mixed race), and is projected to grow to 20 million by 2020, according to RAND Policy Brief and the National Research Council.
And not only is the United States growing more diverse mathematically, it is growing so geographically as well.
In 1980, Colorado was the only state not bordering Mexico that had a Latino population of at least 10 percent. By 2000, five more non-border states had populations that were at least 10 percent Latino, according to the U.S. Census Bureau:
- Florida
- New York
- Nevada
- Illinois
- New Jersey
And although the Black population has remained relatively stable by comparison to Latinos and Asian Americans, it has also undergone shifts.
After several decades of net migration from the South to large cities in the North and West, African-Americans began returning to the South in 1970.
Furthermore, the Black population is also becoming more ethnically heterogeneous. Census estimates project that by 2010 as many as 10 percent of Americans of African descent will be immigrants from Africa or the Caribbean.
Today, half way into the first decade of the 21st Century, the American 'mainstream' has a different definition than it did even a decade ago.
Do the mathFor toy retailers and manufacturers, the changing demographic of the United States can mean big business; or not, depending on how quickly they move to meet the needs and demands of their increasingly diverse consumers.
As more ethnic populations quickly grow in number and buying power, the toy industry will have to deliver toys representing diverse backgrounds.
While many manufacturers and retailers may already be ahead of the curve, the industry has a way to go according to some minority leaders.
Guy Garcia, author of The New Mainstream: How the Multicultural Consumer is Transforming American Business, says that retailers don't often cater to different ethnicities in their stores. This, even though non-Anglo Americans are the “most brand loyal customers out there,” he notes.
“The new mainstream will transform how America eats, drinks and plays,” he says. “There's a cultural spill-over not only in the music they listen to and the TV they see. Understanding the concerns of the mainstream consumer is more than just hiring people of color. Diversity and dollars are symbiotic and intrinsically linked,” he says.
And the numbers are hefty—a fact important to manufacturers and retailers that have been in the throes of a soft toy market for several years.
By 2009, it is expected that the Latin market niche will account for 9 percent of all U.S. buying power, up from 5.2 percent in 1990. The buying power of Latinos is expected to reach a whopping $923 billion in 2009, according to a 2004 study by Selig Center for Economic Growth, Terry College of Business, The University of Georgia.
The same study reports that the combined buying power of African Americans, Asians and Native Americans will account for 14.1 percent of the nation's total buying power in 2009, up from 10.7 percent in 1990. This gain amounts to an additional $379 billion in buying power in 2009.
And a substantial part of that spending power will find its way into a toy market that can meet the needs and wants of an ethnic consumer.
Growing kid populationOf the 4,091,063 babies born in the United States in 2003, for example, 43 percent were born to minority mothers, according to National Vital Statistics reports. Compare that to the 20 percent of infants born to minority mothers in 1997, just six years earlier.
Garcia uses the popularity of MGA Entertainment's Bratz dolls as an example of a successful attempt to satisfy the diverse needs of the new mainstream.
On the other hand, Michelle Ebanks, president of Essence magazine, New York, tells Playthings that she has a very difficult time shopping for toys for her children. In fact, she will not buy particular toys because they are not diverse enough.
More toys need to appeal to all ethnic and racial backgrounds. “Diversity is not just about a language shared,” she says. “It's about a culture cherished through unique music, art and beyond.”
“The multi-faceted retail community is constantly changing,” notes Sherice Torres, vice president, Hard Goods, Nickelodeon & Viacom Consumer Products. This month at Licensing 2005 International (LIMA), Torres will be moderating a panel—The Business Case for Diversity: the Multi-Ethnic consumer—that addresses the importance of diversity.
With the increase of cross-cultural buying at retail, there is strong evidence that diversity is good for business and the need for multi-cultural consumer products and targeting marketing is on the rise.
“As a result, it makes good business sense to create a broad variety of products that reflect the diverse cultures and experiences of consumers in the world today,” Torres adds.
| Area | All races | Non-Hispanic white2 | Black2 | Asian or Pacific Islander2 | Hispanic3 | Total % minority4 |
| United States1 | 4,091,063 | 57% | 15% | 5% | 22% | 43% |
| Alabama | 59,621 | 64% | 30% | 1% | 5% | 36% |
| Alaska | 10,122 | 48% | 4% | 7% | 8% | 52% |
| Arizona | 91,005 | 43% | 4% | 3% | 44% | 57% |
| Arkansas | 38,159 | 70% | 19% | 1% | 9% | 30% |
| California | 540,995 | 31% | 6% | 12% | 50% | 69% |
| Colorado | 69,363 | 61% | 4% | 4% | 31% | 39% |
| Connecticut | 42,848 | 65% | 12% | 5% | 18% | 35% |
| Delaware | 11,264 | 58% | 26% | 4% | 12% | 42% |
| District of Columbia | 7,606 | 24% | 69% | 3% | 13% | 76% |
| Florida | 212,286 | 49% | 22% | 3% | 26% | 51% |
| Georgia | 136,012 | 51% | 32% | 3% | 13% | 49% |
| Hawaii | 18,114 | 24% | 3% | 70% | 14% | 76% |
| Idaho | 21,802 | 82% | 0% | 2% | 13% | 18% |
| Illinois | 182,590 | 55% | 17% | 5% | 23% | 45% |
| Indiana | 86,600 | 79% | 11% | 2% | 8% | 21% |
| Iowa | 38,182 | 87% | 3% | 2% | 7% | 13% |
| Kansas | 39,493 | 74% | 7% | 3% | 14% | 26% |
| Kentucky | 55,281 | 86% | 9% | 2% | 4% | 14% |
| Louisiana | 65,298 | 55% | 40% | 2% | 3% | 45% |
| Maine | 13,861 | 95% | 1% | 2% | 1% | 5% |
| Maryland | 74,856 | 53% | 33% | 5% | 8% | 47% |
| Massachusetts | 80,250 | 72% | 11% | 7% | 12% 28% | |
| Michigan | 130,937 | 71% | 17% | 4% | 6% | 29% |
| Minnesota | 70,157 | 77% | 8% | 6% | 7% | 23% |
| Mississippi | 42,362 | 54% | 43% | 1% | 1% | 46% |
| Missouri | 77,079 | 78% | 14% | 2% | 5% | 22% |
| Montana | 11,416 | 81% | 0% | 1% | 3% | 19% |
| Nebraska | 25,924 | 75% | 6% | 2% | 13% | 25% |
| Nevada | 33,644 | 46% | 9% | 8% | 36% | 54% |
| New Hampshire | 14,393 | 87% | 2% | 3% | 4% | 13% |
| New Jersey | 116,269 | 53% | 17% | 9% | 23% | 47% |
| New Mexico | 27,845 | 31% | 2% | 1% | 53% | 69% |
| New York | 254,187 | 52% | 19% | 8% | 22% | 48% |
| North Carolina | 118,308 | 60% | 23% | 3% | 14% | 40% |
| North Dakota | 7,975 | 82% | 1% | 1% | 2% | 18% |
| Ohio | 151,983 | 79% | 15% | 2% | 4% | 21% |
| Oklahoma | 50,484 | 67% | 9% | 2% | 11% | 33% |
| Oregon | 45,975 | 72% 2% | 5% | 18% | 28% | |
| Pennsylvania | 140,660 | 75% | 15% | 4% | 7% | 25% |
| Rhode Island | 13,192 | 55% | 10% | 4% | 19% | 45% |
| South Carolina | 55,658 | 59% | 33% | 2% | 6% | 41% |
| South Dakota | 11,035 | 78% | 1% | 1% | 3% | 22% |
| Tennessee | 78,901 | 71% | 21% | 2% | 6% | 29% |
| Texas | 381,239 | 37% | 11% | 3% | 49% | 63% |
| Utah | 49,870 | 81% | 1% | 3% | 14% | 19% |
| Vermont | 6,591 | 96% | 1% | 2% | 1% | 4% |
| Virginia | 101,226 | 62% | 22% | 6% | 10% | 38% |
| Washington | 80,474 | 67% | 5% | 10% | 17% 33% | |
| West Virginia | 20,908 | 95% | 3% | 1% | 0% | 5% |
| Wisconsin | 70,053 | 78% | 9% | 3% | 8% | 22% |
| Wyoming | 6,708 | 84% | 1% | 1% | 10% | 16% |
| 1. Excludes data
for territories. Race and Hispanic designations are based on the race and
origin of the mother 2. Hispanics may be of any race, therefore data for persons of Hispanic origin are included in the data for each race group according to the mother's reported race 3. Includes all persons of Hispanic origin regardless of race 4. Includes all that are not classified as non-Hispanic white Source: National Center for Health Statistics, Preliminary data for 2003 |
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