Changing Demographics & How They Affect Your Business, Today & Tomorrow
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1 Changing Demographics & How They Affect Your Business, Today & Tomorrow
2
3 5 Key Findings Diversity Rural to Urban Shifts Bright Flight The Changing Suburbs Young People Postponing Marriage
4 1 in 3 is not White Source: 2010 U.S. Census
5 The Census Diversity Index Has Been Increasing Consistently The probability that two people chosen at random would be of a different race and ethnicity on a scale. The scale ranges from 0 (no diversity) to 100. Source: U.S.A Today, Minority births drive growth in U.S. diversity, 6/22/10
6 North Dakota s Diversity Index 21 In North Dakota, the probability that two people selected at random will be of different races or ethnicities is 21%
7 4 States &The District of Columbia have Minority Majority Populations Minorities account for more than 50% of the population in California, Hawaii, New Mexico, Texas and DC Source: New U.S. Census to Reveal Major Shift: No More Joe Consumer. AdAge, October 12, 2009.
8 States with Majority Minority Among Children In 10 states, the share of children who are minorities has already passed 50 percent, up from five states in 2000: Mississippi Georgia Maryland Florida Arizona Nevada Texas California New Mexico Hawaii
9 Not Just in Select Places Across every major market in the U.S. the majority of the child population is nonwhite
10 Non-Hispanic Whites Whites share of the total U.S. population dropped over the last decade from 69% to 64% Whites are aging fast: median age is now 41 (up from 38.6 in the 2000 Census) Will be minority by 2041
11 Multiracial Americans Multiracial Americans now number 8.7 million 3% of the population 25% increase in last decade
12 The Browning of America
13 A Country within a Country 50.5 million Latinos in U.S. Mexico U.S. Colombia Spain Argentina Peru Venezuela Chile MM 50.5 MM 44.4 MM 40.4 MM 40.3 MM 28.7 MM 26.0 MM 16.3 MM Source: Synovate 2010, CIA World Factbook, 2010 Census
14 50.5 Million Hispanics One in six U.S. residents is Latino Source: 2010 U.S. Census
15 Among Children, 1 in 4 is Hispanic
16 Every 30 seconds, a Latino turns 18 in America Source: NPR, Latino Mayor May Be A Glimpse Of Things To Come, December 12, 2010
17 Latino Growth from
18 Rural to Urban Shift
19 3 of 4 Live in Urban Counties In 2000, 17.3% lived in rural counties By 2010, that dropped to 16.4% Rural Midwest lost most Agricultural areas (and jobs) increasingly mechanized
20
21 Change in White Rural Population
22 Change in Rural Black Population
23 Change in Rural Hispanic Population
24 Bright Flight Young, educated people moving to cities The draw: Knowledge based jobs, public transportation and city ambiance
25 The Changing Suburbs
26 What s Happening Suburbs still tend to be majority White However, for the 1 st time, a majority of all racial and ethnic groups in large metro areas live outside the city
27 Other Suburbanites Vast majority of Baby Boomers Fastest-growing in the suburbs: People living alone Non-married couples / families
28 Young People Postpone Marriage Married yr olds dropped from 55% in 2000 to 45% in 2010 Lowest level since 1862 In the 1960 s, more than 80% were married
29 Reasons Why Focusing on their personal goals Finishing school Establishing a career Don t feel economically ready Skeptical Look how that turned out for my parents Yet they re not willing to wait to have a kid, so they have one
30 Marriage is ideal, but parenthood is a priority
31 Family Composition Is Changing "The iconic American family -- married couple with children accounts for a mere 22% of households." Source: New U.S. Census to Reveal Major Shift: No More Joe Consumer. AdAge, October 12, 2009.
32 Family Becomes Redefined A generation that was raised by blended or merged families Grandfamilies No stigma in having a baby outside of marriage Just because my boyfriend and I aren t married doesn t mean we re not a family
33 1 in 7 marriages is to a spouse of a different race or ethnicity
34 Implications for the Hospitality & Destination Marketing Business Changing customer base Recruiting & retention of young talent Marketing HR
35 Changing Customer Base More minority business execs may appreciate cultural nuances Local foods, events, history More women business owners high customer service standards vocal, will express pleasure or displeasure with you place strong trust in other women
36 Changing Customer Expectations The Impossible Triangle is history Low cost High Quality Fast An experience
37 Connectivity is King Not just utilizing it, the way it s utilized
38 Travel & Tourism Example Airlines adding social seat selection options to ticketing
39 Together and Not
40 Recruiting & Retention Your competition for young talent is fierce Not just other companies / organizations Large cities and progressive work environments
41 Recruiting & Retention Bilingual and multilingual staff will become a mandatory for survival Staff to reflect the community you serve Beware: do not hire the wrong person because they have a skill set you need
42 What Gen Y Wants & Expects A demonstrated commitment to diversity Women and minorities in senior positions Flexibility freedom is the best reward A progressive organization
43 Marketing Must Adapt Not just advertising efforts and messaging Product development Community involvement Mobile is hot
44 Ensure that You Can Walk the Walk
45 Human Resources Progressive views on family and benefits
46 Train for Cultural Sensitivity Law firm partner took young associate out to lunch as part of mentoring program. Partner is older White gentleman, associate is African-American. Where are your people from? Talking louder does not make me bilingual
47 Business Evolution Your communities are changing Your customers are changing Your workforce is changing
48 My Books Can Help!
49 Bestselling Business Books
50
51 For more information about consumer trends, contact Kelly McDonald at or 2014 McDonald Marketing 7820 Enchanted Hills Blvd. Ste. A-199 Rio Rancho, NM , Fax All rights reserved. No part of this material may be reproduced In any form without permission by the author.
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