Hispanic consumers in the United States are becoming increasingly more important. With over 55 million people and purchasing power of $1.7 trillion, this population is impacting all sectors of daily life in the country.
If companies and brands hope to grow in the future, they need to take a deeper look at Latinos.
According to Eva Gonzalez, executive director of consumer trends and multicultural marketing for Nielsen, Hispanic consumers are the key to success for businesses in the future.
According to Nielsen, Hispanic consumers typically spend more on food, clothing, mobile services and cars.
According to Nielsen, Hispanic consumers typically spend more on food, clothing, mobile services and cars. Hispanics are also the drive for growth in other key sectors such as real estate, education, financial services, entertainment, and media industry.
Regarding consumer products in the food category, Hispanics consume more vegetables and beans, baby food, cooking oil, flour, fresh eggs, prepared meals, bottled water and juices.
As for non-food categories, this group consumes more fragrances/perfumes, hair care products, disposable diapers, personal care products for men, cosmetics, deodorants, and detergents, compared to other ethnic groups.
“These categories reflect young families, the taste for cooking at home and personal care,” said Gonzalez.
She also indicated that the consumption of Hispanic products is unique in many ways. It does not necessarily reflect the consumption patterns of other population segments in the United States.
“It is well known throughout all the retail channels that Hispanics tend to visit stores less often but spend more per trip and are less likely to purchase products on sale, “Gonzalez said.
Strategies for Reaching US Hispanic Consumers
For this reason, the specialist explained, the challenge for brands and businesses is to learn how to participate in this emerging market. By doing so, they will grow as this particular segment of Hispanic consumers grows. And they will also benefit from the growth of multicultural consumers in general.
“Despite the opportunity that these consumers represent, there is still a lack of products developed specifically for them, and spending on advertising directed at this segment is still lagging,” said the specialist in Hispanic markets.
She explained that Hispanic consumers are attracted by brands, products, and activities that reinforce their cultural roots and enable them to explore their ambicultural identity. The emotional connection resulting from cultural roots is a factor that influences attitudes and behaviors of multicultural consumers linked to categories of food, entertainment, health, beauty, family life, children, technology, and media. She said manufacturers have explored this ambicultural factor, which allows these consumers to simultaneously maintain their heritage and still feel like Americans.
Both manufacturers and retailers are increasingly aware of the importance of the Latino community. Some of them have done a wonderful job.
Hispanic consumers perform various activities at the same time using multiple devices.
Hispanics and Technology Consumption
According to Nielsen, another noteworthy factor is the use of technology. Hispanic consumers perform various activities at the same time using multiple devices.
For example, 82% of Latinos use a smartphone, compared to 76% of non-Hispanics. Hispanic consumers are also more habitual social network users than their non-Hispanic counterparts.
Similarly, some of the businesses, aware of the growing number of households that speak English and Spanish (only 22 percent of Hispanic households speak only one language ) have customer service and web pages in Spanish.
For example, retail chains place signage in both languages in their stores. Furthermore, some major manufacturers of consumer products have developed successful campaigns in Spanish.
“While much of the Hispanic population is bilingual, having packaging, commercials, or signage in Spanish makes them feel valued by businesses or brands, “said Gonzalez.
“The Hispanic community in the US is large and continues to grow. Companies must take action in order to understand and attract these consumers. Because of the predominance of young people in this segment, its orientation to family, its deep-seated cultural roots, and prevalent use of the English language, Hispanic consumers are impacting all areas of work and entertainment. In this way, they are actually helping redefine American culture,” concluded the specialist.