Latino Marketing- Trending and Unique, The Hispanic Market
Within the next eighteen months, Latino markets will represent $1.5 trillion in buying power and will be 30% of the U.S. population in a mere, 36.5 years. According to Nielsen, the largest minority segment, is the U.S. Hispanic population and they are becoming the biggest drivers of growth and indeed, trendsetters in the marketplace. Per Nielson, “The future U.S. economy will depend on Hispanics by virtue of demographic change and the social and cultural shifts expected to accompany their continued growth.”
It is without question that the explosions within Latino market s are vital to business success and drive today’s economic development engine. Hispanic marketing trends point to Hispanics as representing the new workforce, the new client and the new consumer. Latino market research shows that there will continue to be rapid and significant population growth within this segment due to their youth (median age 27-ten years younger than the national medium), higher graduation rates and increased spending-ability. This is in contrast to that of non-Hispanics. The Latino markets provide tremendous buying power and Hispanics are true to their culture, living with extended family members, etc. while also acculturating to ways, American.
There is dramatic increase and change in where Latino market s are popping up. 62% reside in California, Florida and Texas. And eleven of the fifteen largest designated market areas of the Hispanic population have experienced over a 39% growth from 2000-2013. These include Houston, Miami, Chicago, Dallas, Phoenix, San Antonio, Harlingen, Sacramento, Fresno, San Diego, D.C. and Denver. And there are fifteen Latino market cities deemed to have the fastest-growing Hispanic populations (growth ranging from 168% to 84.5%- 2000-2013). These include Charlotte, Raleigh, Atlanta, Orlando, Ft. Myers, Oklahoma City, Tampa, W. Palm Beach, Seattle, D.C., Las Vegas, Minneapolis, Kansas City, Salt Lake City and Austin. Hispanic market research reveals that more Hispanics are moving to the suburbs—such as in Houston, a 227% growth-rate over the past decade, accounting for 39% of that market’s overall expansion. Affluent Latino households earning $100,000+ have contributed most to Houston’s wealthy communities. Yet, wealthy Hispanic people are also living in Houston city, proper.
We may count on a future American culture with a stronger Hispanic flair. Media and technology portray distinct patterns of use within the Hispanic marketplace with regard to culture, language, etc.. There are higher rates of mobile device adoption (than non-Latino). And Hispanic engagement outpaces all ethnic groups for mobile downloads of music and video.
A hurdle for marketers has been the rapid change and tremendous diversity within this market which cannot be ‘targeted’ as part of a multicultural initiative. The numbers and predictors for significant growth give validation to a return on investment within this demographic, yet, I believe that ultimate success is predicated on a complete shift of attitude.
In marketing to Hispanics, marketing agencies have to be culturally relevant, intelligent, and authentic and embody the cultural nuances, coming from a point of view of compassion and respect. It is not about taking an English message and translating it to Spanish to just ‘get a response’ (only 23% of young Hispanics now prefer Spanish to English, anyway). It is a trust issue and trust can be earned when the message is culturally relevant and a holistic approach is espoused. Brands such as Budweiser, AT&T, McDonald’s, PepsiCo, Wal-Mart and Beechnut are successful examples of businesses that have made the shift to communicate with respect and relevance. Yet the vast majority of brands have not.
What is important to Hispanic markets, as within any target market, is to note their distinctive demographic patterns, to understand the cultural values, their tastes and what motivates them in order to best serve them. And the opportunity and future promise within this unique segment underscore how vital it is to do just that.