Atlanta (May 2, 2011) – There is a $2 trillion marketplace that is up for grabs, and according to the 2010 US Census results, this market can only be defined as multicultural. The question is whether US businesses are ready and willing to make the changes necessary to take advantage of this critical demographic shift. From an aging white population to a growing youthful multicultural market where women have become key players, businesses that can adapt to this “New World Marketplace” will find themselves leading the way, while those holding onto traditional prejudices will falter.
“In about 30 years, the majority of the US population will be nonwhite, especially in the metro areas, and one of three children born in the country today has a parent who is an immigrant,” says multicultural globalization expert and corporate advisor Farnaz Wallace, founder of Farnaz Global. “The major shifts we are seeing within the US population have already begun to give us a New World Markeplace that is multicultural in the mindset and lifestyle, not just skin color, that is young and non-traditional and that places women in decision-making positions.”
Wallace emphasizes the importance of businesses learning and being willing to cater to the breadth of this New World Marketplace. “Most companies still define ‘multicultural branding’ as token sponsorships to African American and Latino holiday events. Until brands are ready to re-define ‘General Market,’ they won’t be able to generate profitable growth in the next three to five years,” she says.
Although large corporations may be able to strategically budget and market to each segment of the New World Marketplace, mid-size and smaller companies will need to build a holistic and multicultural campaign that is able to emotionally connect and attract the New World Marketplace customers.
“A good differentiating Value Proposition should bridge the cultural gaps,” explains Wallace. “A brand’s leverageable opportunities lie within harmony of values, causes and beliefs, it’s all about emotional and cultural frameworks.” Bridging cultural gaps allows business leaders to connect through commonalities rather than coercing through power differentiation. This means aligning brand values with those of your New World customers. “Organizations must forsake past myths, biases, prejudices and orthodoxies to ensure future profitability,” says Wallace. “and be willing to become their own future rival.”
The demographic transformation necessitating these new business practices is most apparent among the youth. Already, fewer than half of the nation’s toddlers are white. Hispanics, Asian and multiracial children accounted for all of the net growth of the nationa’s under-18 population. “Think about how aging of this new emerging population will redefine America,” says Wallace.
At present, the multicultural youth market (20/20) has no brand loyalty and does not trust Corporate America. They are acutely sensitive and hostile toward Wall Street and any sort of negative attacks by politicians and products. “To address this market, you have to understand that they want what they want,” says Wallace, “embrace a multicultural mindset, freedom, creativity, adventure and inspiration in your messaging, and this market will relate.”
While the ability to appeal to youth will be a deciding factor of brand success in the near future, attracting women is already necessary today. Women currently control 65 percent of global spending and 80 percent of US spending and start 70 percent of new businesses in this country. However, women still represent a small percentage of C-executives and board seats where important economic decisions are being made. “Why do most banks and financial institutions continue to heavily target men?” asks Wallace.
Embracing the New World Marketplace is more than a possible business model – it is the only choice for long-term success.
“The New World Marketplace must be the foundation of all future corporate strategies,” asserts Wallace. And with an eye to the 2010 US Census data, it is apparent that the “future” is already here.
About Farnaz Wallace
Farnaz Wallace is a thought-leader and trusted advisor on multiculturalism and social and cultural trend shifts. Wallace has experience in the trenches at Fortune 500 companies including serving as EVP and Chief Marketing Officer with Church’s Chicken where she led the brand through five consecutive years of sales growth. She is the go-to expert on developing revenue models for the multicultural markets. She also understands multiculturalism from a personal standpoint. A woman of Iranian background, Wallace immigrated to the United States at the age of 15, and her whole life has been a multicultural experience. She uses the lessons learned by facing and overcoming issues of class, caste, gender roles, ethnicity, religion and political differences to shape her vision and keep it alive.
Today, Wallace is the principal of Farnaz Global as well as a keynote speaker, consultant and author, assisting companies of all sizes position themselves properly in the New World Marketplace. Wallace can be reached at 404-827-9341 or firstname.lastname@example.org and visited at www.farnazglobal.com.