Although advertising campaigns in the United States are quickly becoming tailored to different ethnic groups, marketers must take it one step further in the case of the Chinese market, which is comprised of multiple subcultures and dialects.

Cynthia Chan, research manager at Cheskin, a research and consulting firm based in Redwood Shores, Calif., notes that several factors impact the consumer habits of recent Chinese immigrants.

"What is the person's dialect? What is the level of acculturation? How close are they with their home country?  These factors create ties and affect spending habits here in the United States, because it determines where they get their information, and what type of information they receive," Chan said.

Other factors include length of time in the United States, immigration patterns, and country of origin - which can vary from countries as radically different as China and Hong Kong.

So how does corporate America reach this diverse group?

The Internet and magazines are good for reaching younger audiences, while traditional media such as in-language print work well for older generations, Chan said. According to a survey by KTSF, Chinese Americans also read a newspaper or magazine in their own language almost five times a week, with Sing Tao as the leading Cantonese paper and World Journal as the leading Mandarin newspaper. TV programming works well in selected areas; for example, KTSF has large reach in the Bay Area.

One uniting trait among Chinese Americans across the board is a high level of PC penetration and online access at home. This makes the Internet a great way of reaching out to this demographic cash cow.

Aside from U.S. campaigns, Chan said successful companies "often tap into websites and online radio from their home countries, and even magazines from home."

"Grassroots marketing also works very well, because Chinese Americans rely highly on word-of-mouth advertising and recommendations.  If they find something wrong with what they are currently using or consuming, they will ask around before they switch," Chan said.

Branding through such outlets is critical since many recent immigrants are in the dark about which products to support. A consumer survey conducted by KTSF, a Chinese Bay Area TV station, showed that Chinese Americans tend to buy popular, recognizable brand names. However, this may be simply because many Chinese Americans don’t know what else to buy. 

“Name brands, especially for recent immigrants, are perceived as credible in their home country. Thus, if they don’t have a lot of information, the big brand names are what is in their minds as something they know and trust,” Chan said.

A failure to reach out to Chinese Americans--which is still the largest Asian ethnic group in the country - could mean the loss of valuable revenue. This is particularly true for the financial services industry; a consumer survey conducted by Hispanic & Asian Marketing Communication Research revealed that 31 percent of Chinese Americans indicated that they did not know the best way to invest and make money.

With a median household income of $51,444 (compared to $44,687 for whites, $33,676 for Hispanics, and $29,423 for African-Americans), Chinese Americans clearly have a need for financial services. Their heavy concentration in metropolitan cities such as San Francisco, Los Angeles and New York also put them in targeted market areas. And with one of the highest growth rates in buying power since 1990, it won’t be long before marketers start rushing to this gold mine.