NEW YORK Multicultural agency GlobalHue said it would divide its business operations into four separate shops devoted to its expertise in the areas of Hispanic, African American, Asian and the emerging general market that is increasingly influenced by multiethnic trends.
The agencies will operate under the holding company GlobalHue, which will coordinate shared resources and operate as GlobalHue Latino, GlobalHue African American, GlobalHue Asian Pacific Islander and GlobalHue Next, the company said in a statement.
The restructuring is intended to reposition each of the four entities "to stay ahead of the curve and continue to effectively reach the nation's fastest-growing markets now and in the future," the company stated.
From a client perspective, the company said the restructured agency offerings would help to "better direct how their current and future clients connect with multicultural audiences."
No significant changes in operations are expected and the transition to the four companies should be seamless for clients, according to the company.
"The restructuring of GlobalHue into separate companies will further strengthen our position in the industry as the premier strategic solution for our clients' understanding of multicultural markets," GlobalHue chairman and CEO Don Coleman said in a statement.
As separate companies, each will offer customized services catering to the specific markets they serve with the Latino, African American and Asian Pacific Islander Group concentrating on market trends, consumer insights and attitudes and behaviors relevant to the culture.
GlobalHue Next will target what the company describes as "the new general market led by multicultural influences."
According to the Selig Center for Economic Growth, the Hispanic, African American and Asian populations in the United States are expected to grow dramatically in the next decade, increasing their multiethnic buying power to $3 trillion by 2011.
Additionally, the youth market, ages 13-30, for these groups wields economic clout totaling $211 billion, according to a 2006 Harris YouthPulse study.
"When you add the buying power of these key markets with the increasing influence they have on the general population, every company's general market and multicultural budgets should be reevaluated," Coleman said.