Study: Minorities’ buying power soaring in Nevada

Alana Roberts

Wednesday, Aug. 4, 2004 | 10:52 a.m.

Ten years ago Samuel Kim, a dentist of Korean descent, was drawn to Las Vegas from Anaheim, Calif., because the area was burgeoning with opportunities for dentists -- something Anaheim lacked.

"I heard Las Vegas was very good for dentists at the time," Kim said. He said the area has attracted many dentists, including Asian ones such as himself.

Kim said buying power for Nevada's Asians has grown as the population has.

"Asians are coming for the opportunities. As far as professionals are concerned, there are more Asian professionals now than before," Kim said.

Buying power for Nevada's Asians grew 531 percent between 1990 and 2004, second only to Hispanics, whose buying power grew 558 percent, according a University of Georgia study. Those numbers compare with 209 percent growth in buying power for Hispanics between 1990 and 2004 nationally and a 207 percent increase for Asians nationally.

Nevada's Asians were ranked first in the nation for growth in buying power, along with all of Nevada's residents and whites. Blacks were ranked second in the nation for growth in buying power, and Nevada's Hispanics were ranked fifth in the nation. In 2004, Nevada's Hispanics had $9.1 billion in buying power, Blacks had $3.6 billion, Asians had $3.5 billion, American Indians had almost $6 million and whites had $55.4 billion.

Nevadans overall saw their buying power increase 208 percent between 1990 and 2004, while the amount of buying power for the nation grew by 101 percent. That kind of growth is outpacing the rest of the country, Jeff Humphreys, who performed the study, said. Nevada's total buying power for 2004 is $67.9 billion.

"You've got the top spot in (growth in) total buying power. That's probably a story in itself. It must be a retail paradise out there," Humphreys said.

Humphreys is director of the Selig Center for Economy Growth at the University of Georgia. He defines buying power as the amount of money a person has to spend after taxes.

Humphreys said population growth within the Hispanic and Asian populations contributed to their growth in buying power. He also said Hispanics have a young population with a median age of 26, which means the Hispanic population has more potential to move up the career ladder and thus increase their buying power in the future.

"Another factor is the increased number of Hispanics starting and opening their own businesses," Humphreys said.

He said Asians have the added benefit of better education than other racial and ethnic groups.

James Yu, president of the Asian Chamber of Commerce, said Las Vegas' Asian business community has seen a lot of growth over the past 10 years.

"One good example would be if you go to Spring Mountain Road, starting from Valley View all the way to Jones, look at what's going on. So many things are happening, there are all kinds of businesses. I think Las Vegas is getting a great deal of attention throughout the country," Yu said.

Tony Sanchez, immediate past president and spokesman for the Latin Chamber of Commerce, said it's no surprise to him that Hispanics have had the greatest amount of growth in buying power.

"It's something we're hoping to foster more and more as our Latino community becomes more integrated into our professional work force, our educational system and into living the American dream," Sanchez said.

He said with the increased buying power of Hispanics, many large companies are starting to reach out to the Hispanic community through marketing efforts, and are seeking to employ more minorities. Sanchez also said large companies are trying to do more business with Hispanic suppliers.

"The smart corporations should reach out directly to the Latino market. Whether it be in Spanish or English or both. The fact (is) that you need not only do a translation, but you need to understand the specific needs of the Latino community," Sanchez said.

Merrell Virgen, president and creative director of Virgen Advertising Corp., can attest to the growth in Nevada and its impact on his business. Virgen, who is Hispanic, has seen his small advertising agency grow from three employees five years ago to nearly 30 now. He said larger companies such as casinos have reached out to him.

"When a larger casino utilizes our company, oftentimes to fill a certain percentage of their spending, they would like it to go through a minority-owned business," Virgen said.

Carol Mayorga, a district manager at Wells Fargo Bank, said because 2000 U.S. Census statistics say Hispanics make up 22 percent of Clark County's population, the company is marketing its services to that segment of the population, along with other minorities.

"(At) Wells Fargo, we definitely focus on markets with diversity in mind. We focus on Latinos, African Americans, Asians and women," Mayorga said.

However she said the bulk of the company's marketing in Southern Nevada is focused on Latinos. She said those efforts include basic banking classes the company offers along with allowing customers to use matricula consular cards, a form of identification for Mexican nationals, and hiring more blacks and Hispanics at Wells Fargo branches located near greater concentrations of blacks and Hispanics.

"What I've done is hire workers that mirror our community. It helps the community. They (customers) embrace us. They enjoy entering a store seeing people who look like themselves," Mayorga said.

Mayorga said the company also markets its products and services to Hispanics through Hispanic news outlets. Leaders at other local companies such as the Palms and Station Casinos said they also market to the Hispanic community by advertising in Hispanic media. Station Casinos also uses Spanish-speaking workers at its properties to help customers become more comfortable there.

Sanchez said as Hispanics' buying power grows, the group will have a major impact politically as well.

"Education, politics and business all go hand in hand," Sanchez said.