Currently, it is estimated that US Hispanics boast $1.7 trillion in purchasing power and that number is on the rise. Retailers that must continually push for new ways to attract customers and build loyalty should take notice of the trends shaping the Hispanic market and strategize ways to connect with this growing population.
US Population Growth Is Fueled By Hispanics
Hispanics make up nearly 20 percent of the US population and have been the main driver of population growth since the year 2000. Despite recent news coverage about Hispanic immigration to the US, over 2.3 of Latinos were born in the United States. Despite record growth, however, immigration to the US from countries like Mexico is declining, and this could have an impact on the way retailers and brands market to Latinos in the future.
It is also important to note that more than 50 percent of the Hispanic population in the US is under the age of 29 and nearly 30% of all children in the US under the age of nine are Hispanic. As these children age, retailers and brands should keep this statistic in mind when attempting to build bridges with younger customers.
Hispanic Consumers Are Loyal to Spanish-Speaking Brands
Nearly 45% of Latinos who speak both English and Spanish only consume online content written in English. However, 56% of bilingual Hispanics say they are much more loyal to brands and stores that advertise in Spanish, highlighting a real need to focus on bilingual ad campaigns. When Hispanic consumers feel that brands and stores are making an effort to understand their cultural background, they take notice and reward those companies with their dollars.
Hispanic Users Spend More Time Online
Smartphone ownership among the US Hispanics is proportionate to that of the total population, but they spend much more time on those phones. While the overall average is 8.4 hours of smartphone use per week, the average among the Latino population is 10.5 hours, two hours more per week. While online, they consume more video content than other users and they are more likely to subscribe to streaming video services.
Latinas Are The New Majority
By 2060, Hispanic women will make up 30% of the female population of the US, but their purchasing power and clout are already on the rise. According to some reports, Hispanic women spend $3.3 billion per year in footwear alone. This subset of the Hispanic market is the new majority customer, and they are driving higher sales in consumer packaged goods and food, as well. In many Hispanic homes, women are the majority breadwinner and they drive purchasing decisions in much higher proportion than females of other ethnic backgrounds.
Cultural Relevance Is the Key To the Hispanic Market
Connecting with the Hispanic market requires more than just translating ads into Spanish. To form real connections, it is important to develop strategies to communicate authenticity. Communication – as it is with any target audience segment – must be relevant.
Remember that the “Hispanic market” is made up of a wide variety of cultures, so when attempting to build connections, you must understand the cultural heritage of the audience you’re trying to reach. It’s not enough to know that 25% of your customer base is Hispanic, you must dig deeper into things like age, income, cultural background, family size and more.
The way you’d connect with a 50-year-old married woman from a Puerto Rican background who earns $100,000 per year is markedly different than the way you’d communicate with a single, 30-year-old man of Mexican descent who earns $50,000 per year. A commitment to honesty and authenticity, and a strategy driven by data are the foundations of any attempt to grow your Hispanic customer base.