Multicultural marketing needs more than a tokenistic approach
On UN International Migrants Day, Sheba Nandkeolyar, co-founder and CEO of MultiConnexions, questions if multicultural marketing is simply a blip on the radar, or something more permanent.
It’s the end of the year, and I have worked really hard. It’s time to reward myself with a little gift – a Google Home from Kogan.
I head to the mall to buy my Christmas presents for my family and friends. Chatswood Westfield has an amazing range of shops to choose my gifts from, and it’s packed. It’s almost lunchtime, and I meet a couple of friends. One of them suggests a quick lunch at Oporto. After more shopping, we decide to meet a friend for dinner that evening at his swanky Meriton apartment.
Just a day in my life, but it gets me thinking about how inextricably the Australian lifestyle has become integrated with the migrant story.
My favourite online shopping site was founded by Ruslan Kogan. He was born to Belarusian parents, and moved to Australia in 1989. Kogan had a frugal upbringing living in a housing commission flat, but soon found his entrepreneurial stride and started his first business at the age of ten by finding lost golf balls. His passion for technology and entrepreneurship led him to found Kogan – one of the most popular e-commerce sites in Australia.
My favourite mall was founded by Frank Lowy of Westfield Group. Lowy was born in Czechoslovakia and lived in a ghetto in Hungary during World War II. During Australia’s European immigration boom in the ’50s, Lowy met fellow immigrant John Saunders and the pair founded Westfield Development Corporation.
My favourite chicken place was founded by Antonio Cerqueira, a migrant who left Portugal at the age of 18, and never left his roots. In fact, it was his background that encouraged him to start up his own business. In 1986, he opened his first Oporto in Bondi selling Portuguese chicken with peri-peri– a rarity in Australia at the time, which has since come to be a most sought-after flavouring.
My friend’s apartment was built by Harry Triguboff, the son of Russian Jews who fled to China after the rise of Lenin. He migrated to Australia in 1947 where he ran a taxi fleet among other humble jobs. He bought a piece of land in Roseville to build a house and hired a builder who let him down. Unperturbed, he rolled up his sleeves and built it himself. This year, Triguboff was listed by the Financial Review Rich List, as having a personal net worth of AUD$11.4bn.
These are just a few examples of migrant successes in Australia – migrants whose contributions have changed the landscape of Australia forever.
It is certainly worth remembering and celebrating such successes this UN International Migrants Day.
Indeed, the stupid arguments raised over and over again questioning the validity and contribution of migrants are ringing hollow.
Pope Francis may have unknowingly used marketing jargon when he recently declared: “Immigration is not a threat, but an opportunity.” Although he is not an acknowledged marketer, I think his insight is razor-sharp.
Migration has changed the landscape of Australia from what we eat, to what we read, to where we live, to how we dress, to our purchasing habits and more.
The alarm bell is ringing. Marketers need to wake up to the fact that today one in three Australians were actually born overseas. When you consider that in 2016, nearly half of all Australians were either born overseas or had at least one parent who was born overseas, the true extent our unique and truly remarkable multiculturalism becomes even more impressive.
New migrants bring new ideas, new ways of thinking and unheard-of skills to this great southern land. They bring their unique cuisines, rich culture, art, music, fashion and creative ideas. They bring experiences, hopes, dreams, commitment and passion.
They bring waves of opportunity for Australians.
The question marketers need to ask themselves is: are they still living in an insulated world, pre 1940s where the majority of Australians were Anglo-Saxon? Or are they really in tune with the changing profile of Australia, and the reality of international migration?
For a marketer, this day of international migration holds immense potential and possibilities if they just open their minds to fully understand the marketing implications, potential and possibilities that international migration represents.
With 50 percent of Australia being of a multicultural background, do they question what percentage of their marketing budget is targeted to multicultural Australians?
And what percentage of budget is allocated to grab a piece of the $100bn+ pie that these multicultural audiences command?
While some marketers will certainly be celebrating International Migration Day, for others it will remain a tiny blip on their radar or – at best – a tokenistic approach.
“Just add in a few Asians to your mainstream television ad, and it should take care of your marketing.” Will it really?
Sheba Nandkeolyar is co-founder and CEO of multicultural marketing agency MultiConnexions.
Very true.
My mechanic is from England. The bloke playing guitar and singing in the pub is originally from Ireland.
How bloody multicultural can you get!
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Um, seriously,
Again, no robust support except anecdotal evidence that migrants (people born overseas) have been successful in Australia.
ABS data is publicly available so it would be nice to hear some sophistication and science from experts…or maybe people just don’t know where to look.
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It is an interesting article but I would contend that the other areas marketers are ignoring altogether is the disability community especially in the areas of leisure and travel. The ageing population is fuelling enormous growth in accessible tourism and accessible leisure but it is ignored altogether in the marketing community. Given that in some areas it represents more than 20% of the total spend it is an opportunity lost.
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Sheba,
Sorry, gonna be a long comment; as I have been researching into opportunities in this segment at a personal level. Only cos I’m an immigrant and I believe there is stro g opportunity in this demographic.
I do have some question, as an Asian immigrant (not migrant, clear distinction here, and very different definitions despite incorrect conventional usage).
I am keen to know the sources in quantifying this 100B economy. It’s very hard to find reliable data to put a number on their economic output; considering the vast cash economy that exists (not just from a business PoV, but also individual incomes etc). Also, considering that large parts of this economy would arguably be of little value to Aussie brands, what would be a reasonably adjusted figure? (Ie. Chinese businesses set up to cater for Chinese specific needs, with Goods sourced from China, and consumers paying for this from Chinese derived income; think Chinese international students for example).
Now, I do agree that the potential number here would be substantial nonetheless considering the large immigrant population. Although the question remains. Why should brands carve up more of their budgets to invest in channels that provide sub-standard quality metrics on basic figures like audience, UB’s, PVs, circulation amongst others? (Outright fake in some instances I’ve seen)
My guess is that brands could want to invest more in this space if the multicultural channels come up to speed on at least the basics. Currently I would say that the risks out-weigh the opportunity cost hence being a barrier to investment? I think brands definitely see opportunity here, but the lack of data etc are putting brakes on quantifying the opportunity value.
Perhaps the multicultural vendors should be demanded a minimum level of industry standard transparency with their reporting if they want to play with the big fish? Should they not up their game first if they want a bigger slice of the pie? What sort of developments are happening in this space?
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Hi JOHN
I am glad you read my opinion piece and shared your observations.
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Each of those business successes represent hard stats / facts of profits and employment generated for Australia. Nothing anecdotal about these successes.
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Agree these are all Niche segments representing immense potential. Infact the older generation have the maximum spend segment but unfortunately the ads and marketing strategy are not created by an age group that reflect this audience.
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I agree with your views, there is a lot to be done in this area. As a thought leader in this space our agency has been pushing the boundaries. The spend figures are easily calculated based on consumption basket patterns of these audiences. Be it housing, education, groceries, travel, Health etc. family size including longstay visitors VFR all add to these numbers. Infact my calculatio s exceed the $ quoted. These do not include Daigou Marketing Billings.
On another note my company has been pushing Media to get themselves accredited if they want business from us. ROI calculations are getting smarter with more sophisticated independent software usage as a double check on all figures provided by our industry partners.
As I say Multicultural Marketing is an art as you need detailed insights about these audiences but is also a science. And we should never lose sight of this. Very heartening to read your observations.
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With 50 percent of Australia being of a multicultural background, do they question what percentage of their marketing budget is targeted to multicultural Australians?
A basic question that should be but is not asked at the beginning of any strategy.A glaring example are the Ads we see/hear on Australian TV and Radio channels. you could could the number of migrant models/faces you see(if any). A poor reflection of your market out there not only in metros but regional ares too.
Good piece.
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Well said!
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