Increase forecasted within $1.5 trillion Hispanic spending power
As voices of research continue to promote the allure of the Hispanic Millennial segment, recent conversations have also touted the enticement of the spending power of affluent Latinos. Yet, with so much buying power and optimism, it begs the question, “Why do companies struggle to determine which segments are relevant to their business goals?”
A recent report from Nielsen and AHAA shows the sophisticated $500 billion affluent Latino segment “controls $4 out of every $10 spend dollars.” Defined as Hispanic HH earning $50K - $100K in annual income, this sub-group is also a young (75% under 45 years old), vibrant audience, mostly concentrated in urban areas with an active, savvy lifestyle. A segment with higher education and professional achievements, they are often regarded as trendsetters by others, evidenced by their purchasing behavior and brand relationships.
English-speaking, Spanish-preferred, or bilingual, this group connects via print, broadcast, or digital and share via Twitter, Facebook, or Instagram; it should not surprise anyone that, like most Hispanics, the majority of this segment has strong ties to their Latino culture. 30-40 per cent expressed a strong cultural duality. A Simmons and Nielsen Mobile Media Marketplace study indicates “Hispanics are early adopters. When asked to respond to the phrase, ‘I’m the first of my friends to have new electronic equipment,’ Hispanics were 24 percent more likely than their non-Hispanic peers to be the first to buy a new smartphone, 8 percent more likely to be the first to purchase tablets, and 6 percent more likely to purchase 3-D TVs.”
Everywhere, we hear U.S. Hispanics are developing, evolving, and up-and-coming as an emerging market. Every day, we read, hear, and see content about the many ways in which Hispanics are living the promise of their heritage and culture and form a part of the American dream. Latinos want to be included and engaged with by industries that represent banking and insurance, health & beauty, entertainment, retail, technology, automobile, hospitality, food and beverage, wellness, and more.
While many companies are on the sidelines, contemplating the pros and cons of engaging with the Hispanic market, other companies have the confidence to invest in initiatives, programs, and corporate social responsibility efforts. One step at a time, and with practice, companies are scoring leaps and bounds on their return at the local and national level.
Connecting can begin slowly, because, to attain momentum, it is important to build the brand’s reputation and trust.
The marketing opportunities abound to connect with the Hispanic community. We encourage more corporate executives to learn, launch, and refine.
Comunicad has been leading the conversation on Hispanic PR for more than 25 years.
By Gloria Rodriguez, President & CEO Comunicad