Changing US racial demographics are creating untapped consumer groups. Here is how startups can take advantage of this market opportunity and find upside in these insights. Slides from LAUNCH Scale 2017.
2. Twitter 💕@MoniqueWoodard @500Startups
That this is an increasingly brown generation.
Birth of an Ecosystem: Understanding the Market for Black and Latino Tech Consumers
Many investors talk about the lasting impact of
Millennials and post-Millennials on technology.
But we almost never hear them tell the whole story:
4. Twitter 💕@MoniqueWoodard @500Startups
2044
People of color will become the majority and
the US will become a majority-minority country
Projections of the Size and Composition of the U.S. Population 2014 - 2060 (U.S. Census Bureau)
5. Twitter 💕@MoniqueWoodard @500Startups
37%
Of the US population will be African
American or Latino
Source: New Projections Point to a Majority Minority Nation in 2044 (Brookings)
6. Twitter 💕@MoniqueWoodard @500Startups
The US is the #2 Spanish-speaking nation in the world
and will be #1 by the year 2050
138M Spanish speakers 2050
El español: una lengua viva (Cervantes Institute [Spanish]; The Guardian [English])
7. Twitter 💕@MoniqueWoodard @500StartupsSource: Median Age in Years , by Sex, Race, and Ethnicity: 2013 (Pew Hispanic)
LATINO 28
BLACK 33
ASIAN 36
WHITE 42
Black and Latino consumers are younger and have
more years of spending time ahead of them
10. Twitter 💕@MoniqueWoodard @500Startups
Daily time spent streaming video (18-35 age group)
0
12
24
36
48
Black Latino Overall
Monthly time spent on mobile phones
0
15
30
45
60
Black Latino Overall
Black and Latino consumers are technology super users
Source: The Cross-Platform Report (Nielsen)
48
mins
35
mins
35
mins
55
hours
49
hours
43
hours
12. Twitter 💕@MoniqueWoodard
1. Solve a major problem impacting large
numbers of Black and/or Latino consumers
2. Where Latino culture and/or Spanish
language use matters
3. Where the cultural influence of these users
can be used to spread activity and adoption
to other user groups.
19. Twitter 💕@MoniqueWoodard @500Startups
US-born 1st generation
Mexican-American
Uses an Android smartphone
as her primary device
22 years old
(post-Millennial/Generation Z)
First job out of college (Arizona State
University; Business major)
makes $50K/year as a Marketing Assistant
Lives in Phoenix, Arizona
with her parents , 1 younger sibling and
one extended family member
Speaks Spanish at home, English at work, and a
mix of both with her friends. When it comes to
marketing and content, English is her preferred
language
Saving to move into her own apartment
(extremely price conscious)
Spends over 20 hours/week on
mobile, apps, and social media.
Crafty and entrepreneurial.
Runs an Etsy shop part-time
(makes $2,000/mo)
She spends 2.5 hours/day streaming
video. Most commonly used apps
are SnapChat, IG, and FaceTime
She wants to pay down student loans,
get her first credit card, move into an
apartment, and eventually start her own
business
On a scale of 1-5, she rates the
importance of ‘personal finance
management’ a 5. But she doesn’t
have a lot of money or a lot of time
to spend managing her money.
Gets most of her financial advice
from her parents and friends
When it comes to marketing and content,
English is her preferred language
20. Twitter 💕@MoniqueWoodard @500Startups
34 year old African-American male
Recently married and ready to start a family
Very active in his local church and
makes regular charitable donations
(tithes)
iPhone and laptop are his
most commonly used devices
Doesn’t like to talk to friends and family
about personal finance and gets most of his
information from blogs and financial
improvement listservs
Makes $85K as a Sales Manager and
with his wife, has a combined
household income of $160K/year
Currently renting in Atlanta, GA and
considering purchasing a first home
Still has $20K in student loans that he
would like to pay off in the next year
Has a 401K but has never used a
financial advisor. Perceives 1:1
financial advisory services as “very
expensive”.
Spends 3 hours/day on social media.
Most commonly used apps are
Twitter, Instagram, and Facebook
Plans to buy a house in the next 9
months, but is nervous about
qualifying for a loan