The UK Multicultural Communities

The UK Multicultural Communities

Why is this the fastest growing market niche?

The industry continues to respond towards this growing niche by assuming that generic solutions are communicating to all, a strategy that continues to fail in delivering messages to audiences and the desired results for many a client. An alarming occurrence, more so in light of the current economic crisis, which requires effective, intelligent and cost effective solutions that deliver top notch results. Multiculturalism in the UK, especially London, is not a new phenomenon – and for the past few decades we’ve had our reasons to celebrate this fact.

Multicultural advertising is what we, at Media Reach, have been doing for over 21 years. The agency is renowned by clients and marketers for developing strategies that deliver results, which often supersede mainstream campaigns and that at a quarter of the budget. Targeting of a multicultural community often constitutes several cultural or ethnic groups within a community – this includes the wider ‘mainstream/white’ population. We in the UK are fortunate that we are rich in multicultural communities, a fact that most marketers overlook either out of fear or ignorance.

Targeting a growing market niche

Marketing directors and innovation mavericks believe that multiculturalism is here to stay and have been highlighting the rise of this lucrative aspirational market with their huge disposable income. So what’s the reality behind this diverse marketplace? Are UK businesses tapping into this emerging affluent niche, or are they confused, misinformed and know very little about it? With more than 21% of the UK wealth will soon reside with people of diverse heritage including Asian, Chinese, Arabs, Russians and other diverse groups. In London alone, there are 66,000 Ethnic-­‐owned businesses, employing 560,000 and generating combined sales turnover of £90 billion compared to the turnover of all London businesses of £800 billion.

These figures do not include approximately 93,000 self-­‐employed Minority Ethnic people (LDA 2005). In 2008 alone, the multicultural communities generated more than 90 billion Pounds and have a disposable income in excess of 60 billion pounds. The number of BME groups is approaching 10% and in many cities they make up some 30-­‐40% of the population. Multicultural groups are younger, well educated and have money to spend, they like branded goods and wear and embrace luxury. House and car purchase is high within the ethnic communities. It becomes more and more evident that marketers and brand owners cannot overlook this niche, as it is the biggest and fastest growing market sector in the UK. And yet an alarming percentage of marketers do not see any value in targeting the ethnic and multicultural audiences or believe that their mainstream messages will reach them in the same desired ways. Marketers now need to learn to keep up with multicultural trends and how to communicate effectively with their target audiences.

Media Consumption and Growth under the Ethnic communities in the UK

It’s a well-­‐documented fact that cultural groups and migrants usually turn to their own media for information and entertainment when they are in foreign countries. Ethnic groups consumption of their own specialist media is high as it offers cultural familiarity, access to news and entertainment in their home language, extensive news from back home as well as discussions and coverage of relevant issues facing the community. On the other hand consumption of mainstream media is low due to lack of relevant programming coupled with language barriers facing any new group or community. (e.g. Asian, Polish, Chinese, Arab etc). The other point of contention between mainstream and ethnic media is that representation of ethnic people in mainstream media is low or in a secondary role.

Ethnic media in the UK has grown dramatically from 8 titles 20 years ago to more than 56 TV stations, 24 radio channels and more than 180 titles targeting both younger generations as well as the gate keepers and influencers. Multicultural groups early adopters of new technology and their Internet access is Higher than the mainstream average. In addition, cinema’s showing Bollywood movies are extremely popular and tend to attract the younger crowd. A recent Ofcom report into the ethnic communities found that in terms of usage and general competence, ethnic minority groups have higher levels of media literacy compared to the UK as a whole. So, in summary it becomes clear why multicultural marketing is the fastest growing and most significant niche market within the UK. Marketers must start to pay attention to the needs of these often hard to reach communities and this is where agencies with long established relationships and a deep understanding of these communities needs will come to the front and in the future quite possibly move to the forefront of campaign management of even the most well known big name brands.

Saad Saraf
CEO
Think Ethnic

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