Do you know that the Hispanic purchasing power will increase to $1.5 trillion dollars by 2015? Do you also know that the Hispanic market is expected to grow 167% from 2010 to 2050?
These incredible numbers have been revealed in the latest Nielsen report. Latinos are no longer just a sub-segment of the economy. They are a big player in all aspects of the American life. As we all know, there are a lot of misconceptions about Latinos and its culture. Some people tend to think that they are just Mexicans who speak Spanish and they can not afford their products or services due to their low level income.
Despite the recession, U.S. Latino households that earn $50,000 or more are growing at a faster rate than the total U.S. household. Isn’t this some eye-catching news? Yes, it is and for some corporate America, it is time to start taking action if they want to succeed in the New America.
The Hispanic community is 10 years younger than the total market median age of 37 years. Their average age is 27 years old. Also, 1 in every 4 children who are born daily in this country are of Hispanic descent. That means, bigger houses, new transportation, more expenses, and greater demand. For example, Latinos will become a big force in residential purchasing over the next 10 years. Now, the question is: what is your company doing to reach out to this community?
I always tell our new clients that in order to be successful, you need to have a plan and be committed to it. Success is not going to happen overnight. Sometimes clients want to test the waters first, see a quick response and then decide if they are going to be committed or not. The problem is that if you haven’t reach out to them (Hispanics) in the past, why do you feel they will be anxious to buy from you? It is just common sense. I always tell clients that you need to treat the Hispanic market the same way as launching a new product in the market. It is going to take you over a year or may be less to see your return of investment. They need to know who you are, what you have to offer and build trust.
We live in a fast society and we expect fast results, the famous “instant gratification”. The issue is that not every culture is the same. For example, Italians work to live, not live to work. So, it is important to understand the dynamics behind the consumer’s perception and how we can creatively introduce the product/service to that specific lifestyle. For instance, Latinas begin dying their hair at an earlier age than any other market. Hair color is seen as an important and inexpensive path to self-expression and beauty. So we need to be flexible to adapt, not to change the way your company has been doing business in the past.
Another very important factor to keep in mind is to know how to reach out to them. It’s crucial to understand who your target audience is and also their language of preference even how assimilated or acculturated they are to the American society. Sometimes companies make the simple assumption that as they are trying to reach a younger U.S. Hispanic demographic, their Anglo campaign will resonate perfect with them. The truth is that is incorrect. Even though your campaign can be executed in English, the approach has to be different and the elements or stories you use have to be relevant to them. Half-hearted efforts will give you half-hearted results. Also, there is even more research that has shown that ad campaigns in Spanish that have been targeted to English-dominant Hispanics have a better ad recall. So, you need to make sure that your messages encompass the entire group not just one in specific. Having the right team of experts on your side, means profits for you in any language.
Based on the latest Nielsen report the Hispanic purchasing power is expected to grow 50% by 2015 ($1.5 trillion dollars). The U.S. Hispanic market is considered one of the top 20 economies in the world with a per capita income higher than Brazil, Russia, China and India.
