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So, who are these New Consumers we're talking about? What characteristics do they share which move us to unite them in such a way? Unfortunately, besides age, most of us are blinded by two attributes—their population size and purchasing power. Dazzled by this consumer force, it is easy for those in the design, advertising and marketing fields to overlook important differences among them. The body-pierced coffee shop hipster, the snowboarder with wide-leg pants and DJ bag, the girls in tight-fitting shirts who cruise the malls, the raver driving a low-rider, the bookish kid with thick-rimmed glasses and the breakdancer with pomaded hair, when looked at as a group, defy some of our best attempts to unite them.

Subcultures formed by interests and fashion alone demonstrate a vivid diversity. Now imagine that the snowboarder is African-American, the girls at the mall are Hispanic, the raver, Asian, and the breakdancer, white. With more than 37% of Americans projected to be non-white by 2025 (up from 28% today), most of whom will be young, is it possible to develop an appeal that goes beyond the factions, ethnic or otherwise? As suggested above, cultural heritage is only one of many points of differentiation among this generation of youth. However, unlike issues of taste, such as music, sports, or body art, ethnicity plays a singularly defining role in the identity of an increasing proportion of teens, and it is for this reason we must understand the role of ethnicity in the lives of non-white youth and white youth alike.

AN EMERGING PLURALITY

Consider some facts about America's emerging ethnic plurality. By 2025, Caucasians will account for only 62% of the population, down from 72% today, according to projections by the U.S. Census Bureau. Increasing in numbers, Hispanics will comprise 17.6% of the populace, blacks, 13%, Asians, 6.2%, and American Indians, .8%.

Significantly, this growth will be primarily concentrated among youth, with the median age of minority groups remaining much younger than that of the aging white population. While the number of whites between the ages of 12 and 18 will decline 2.7% between 2001 and 2010, and those between the ages of 19 and 24 will increase by a modest 6.4%, the Hispanic youth population (12 to 24) will grow at an astounding rate of 32%. This expansion shows no immediate signs of slowing—by 2001, 18% of babies born in the U.S. will be of Hispanic origin.

Other ethnic groups are showing marked increases in their youth populations as well. The population of Asian youth 12 to 18 will grow 7.8%, while the number of Asian youth 19 to 24 will increase a remarkable 34%. Although increasing at more moderate rates, the black 12 to 18 population will grow about 8% while the black 19 to 24 group will grow about 14%.

ETHNIC CHIC

Highlighting ethnic and cultural dissimilarities can be useful for both your design and communication strategy. Although seemingly contradictory, broad appeal is attainable by highlighting racial and cultural differences in everything from products, to packaging, to media. Rather than alienating the mainstream, such an approach is likely to enhance brand allure.

As trend watchers have noted for decades, there is an odd reversal of the historical power pyramid among style arbiters. Street and urban fashion is often driven by the influence of racial minorities who suggest or adopt looks that subsequently gain popular acceptance. Examples of such ethnic authority are increasingly more common. This phenomenon (described by some as the "trickle-up theory") rarely, if ever, occurs in the opposite direction. In these days of increasing ethnic diversity and ethnic pride, Caucasian is frequently associated with the uncool, and examples of such ethnic authority in fashion, food, music and even religion, are increasingly more common.

Most notable in the past decade in the appropriation of rap/hip-hop style by white kids, this axiom is again apparent in the growing force of Hispanic youth as we begin the new millennium. Street trends among young Latinos are gaining in popularity with other youth. In fact, one recent report noted that kids in California are now seeking Latino mentors to teach "Hispanic cool"—from Latin break dancing and DJing (once the exclusive province of America's other major ethnic minority) to clothes and food.

But, like African-Americans, Hispanic teens haven't felt the urge to embrace the style of their white peers. Hispanic populations in America have reached a critical point—now forming a significant minority in most cities, and a near-majority in others, assimilation is both unnecessary and unappealing. Proud of their heritage, young Latinos are no longer likely to disguise it. It is not only acceptable, but cool, for Hispanic kids to flaunt their cultural heritage. Puerto Rican-American kids can be seen wearing baseball shirts emblazoned with the number 77 (the area code for Puerto Rico), and speaking Spanish is no longer a liability in many American cities. In fact, it may get you further than English in New York, Miami and Los Angeles, where the Hispanic populations are 30, 60, and 40 percent respectively.

This sense of cultural pride keeps minority communities from wholly embracing white culture, making room to celebrate their own. As ethnic populations continue to grow, so will this attitude. On the contrary, many white tweens and teens feel their roots are distant and ambiguous. In response, they are exploring and sharing in the traditions of their non-white peers, many of which are based on experiences missing in their own lives. There is an acceptance of multi-cultural plurality among this generation of youth which has encouraged borrowing, and through it the evolution of style—be it in music, fashion, or sports. Products and campaigns that accent ethnic heritage can therefore speak to a wide cross-section of kids.

STILL FRAGMENTED

Despite this cross-cultural exchange, the youth population is still fragmented along regional, ideological, class, and racial lines to a fair degree. Rural youth are no more likely to adopt the purchasing habits of extreme sports enthusiasts than black youth are to listen to Country-Western music. Obviously, certain brands and products will never attain universal appeal. When appropriate, however, brands should strive to show these divergent strains of young consumers that they all indeed enjoy particular items or experiences. For instance, a recent series of TV spots for Dr. Pepper pans from African-Americans in urban streetscapes to mod, pierced white kids to gospel singing country kids, all drinking the spicy soda. They have attempted to show the differences among these youth, along with a shared taste.

This mass-appeal approach is definitely not a sure thing. It's risky—you hazard alienating some while failing to reach any. In fact, niche-targeting may have a higher success rate, but it is also often more expensive and almost guarantees smaller returns. But, depending on your product or service, it may be the best communication solution. In the emerging youth market, it is no longer imperative to use white people and references to white culture in design and advertising in order to sell to the white youth market. By doing so, you will most likely estrange the growing ethnic minority populations.

For New Consumers, it is more important for a brand or product to be age-appropriate, rather than race-appropriate. They want products that are consistently fresh and innovative—qualities often associated with youth itself.

Companies must continually revitalize their image to engage young consumers of all backgrounds who are looking to define themselves in new ways. Though cultural heritage plays a major role in the self-image of many New Consumers, being on top of what's hot and expressing one's individuality are equally important. It is critical to pay attention to America's emerging ethnic plurality—it is a significant feature of the youth market—but also to be mindful that above all, kids are looking for innovation.

SOURCES:
Maria Puente and Martin Kasindorf. "The New Face of America," USA Today, September 7, 1999.
Ira Schneiderman. "Target Marketing to Teens Should Increase in Next Decade," DNR, September 27, 1999.