Unlocking the Asian diversity dividend
We only need to open our doors and walk down the streets to see how New Zealand is changing. I am an ethnic Chinese, educated in New Zealand, married to a Japanese woman who has a degree in Chinese, and we both independently have business interests between here and Asia.
Confusing? Complicated? Perhaps so in the past, but globalisation, modernisation and interracial relationships mean this example is becoming more and more common – and there is a social and commercial incentive for New Zealand to embrace this change.
In the world we live in, fortunately or unfortunately, money does talk and there is a bigger role for business to play in displaying tolerance, acceptance and celebration of migrant groups.
The descriptions of ‘‘the pink dollar’’ and in the UK the ‘‘brown pound’’ revolve around unlocking a diversity dividend, although much of the conversation in the past has been specifically focused on gender, with little attention paid to ethnicity.
The depth of cultural understanding needs to improve to unlock this dividend for New Zealand companies.
Local businesses shouldn’t forget about the significant human capital, spend and incremental revenue that the local NZ Asian community offers.
The 2013 census recorded the population as 74 per cent NZ European; Maori at 14.9 per cent and Asian as being the third-largest ethnic group at 11.8 per cent. However, within Auckland, the Asian population over- indexes – at 23.1 per cent – surely a significant underserved carrot for any commercial enterprise?
Interestingly, Auckland is also seen as being the most desirable location for the Asian demographic with almost twothirds (65.1 per cent) of people who identified with at least one Asian ethnic group living in the region.
Communities do follow the old adage that ’birds of a feather flock together’ as immigrants seek familiarity of not just countrymen, but language, food and culture.
We have seen cultural clustering or ‘ethno-burbs’ emerge from the 1990s with the significant numbers of migrants from Asia.
Ethno-burbs such as Botany Downs and Dannemora of East Auckland (where 60-80 per cent of their populations are classified as Asian) to India-born clusters in Papatoetoe and Manurewa, and Filipino clusters in Glenfield on the North Shore.
The development of such ethno-burbs makes it much easier for organisations to make targeted strategic decisions around marketing and category mix within Auckland to attract that new incremental spend.
As an outcome of the changing mix, the Asian birth rate in New Zealand has climbed ahead of the European rate for the first time.
The Asian rate reached 62 per 1000 women aged 15 to 44 in 2012, ahead of the European and other group on 57. Births to Asian women were 14 per cent of all births, compared with 6 per cent in 1999; European births were 48 per cent in 2012, down from 59 per cent.
Much can be attributed to the maturing of the NZ Asian population age structure, and the temporary visa population – particularly as the student visa population become permanent migrants.
The consequences for health, childcare manufacturers and retailers in this space should be closely watched.
For example, Plunket saw a 47 per cent increase in Asian new baby cases between 2006 and 2012, and in recognition of this growth set a goal for the organisation to ‘‘explore and define an Asian strategy and Asian models of care’’ in the organisation.
New Zealand’s Asian population, and specifically Auckland’s, is only projected to rise, with an estimated Asian population of 525,000 in 2026, comprising about 28 per cent of the population.
Organisations serious about growth need to recognise the importance of cultural diversity, acknowledge that cultural goods and services can be significantly different from other products. They should focus on cultural festivals and working closely with the Asian community and their marketing channels to build engagement, and to create access and awareness within the community.
They need to develop pathways to growth for the Asian opportunity that can also lead to further export opportunities.
This opportunity is real and the time is now, making it a transformational growth opportunity for those bold enough to consider the statistics to unlock a well-defined and thought-out Asian domestic strategy.
Nick Siu is the director of The Agency 88, a specialist agency working exclusively on creating and delivering commercial success between New Zealand and Asian markets. He can be contacted on nick@theagency88.com