Today’s business landscape has dramatically shifted from what it used to be 10 or even five years ago. These shifts are driven by demographic changes in the US population combined with dramatic developments in technology. At the center of those intersections is the Hispanic consumer.
Trying to navigate a new business environment with dated thinking and misperceptions can be a costly mistake. Let’s look at three facts that could avoid costly mistakes when it comes to your brand strategy and the Hispanic market.
1. Hispanics account for 60% of the population under 35 yr. old
You have probably heard how important Millennials are to the economy and the workforce. Hispanics make up 60% of the Millennial population. Born in the US and speaking English, their consumer behaviors does not mirror their Non-Hispanic Millennial counterparts and makes them equally viable brand prospects. Assuming they don’t, can be a costly mistake.
2. Latino household spending is on the rise
The trend is driven by two forces: business ownership and higher education attainment.
Business ownership has been on the rise during the last 20 years. In that period, Hispanic owned businesses grew 11%. Not only that, non-Hispanic business start-ups decreased by 16%.
According to the National Center for Education Statistics, “Hispanic enrollment more than doubled – from 1.4 million to 3.0 million students – over 4 years.
Latinos today account for $1.7 Trillion poured into the US economy. Latino consumers have become the greatest driver of growth in a wide range of categories such as financial services, restaurants, health care and apparel.
A misconception that Hispanics hold low-paying jobs is misleading and could cost your business money.
3. Hispanics increasingly choose Mobile
Hispanics over-index against other demographic groups in mobile device use. According to the Pew Research Center, Latinos are among the most likely to live in a household that does not have a landline phone and only have a cell phone available, which they use to access the internet.
Given this fact, it not surprising that they spend more time on social platforms than their non-Hispanic counterparts. Evidence shows 52% of Hispanics are on Facebook and Messenger and 54% of them purchase apparel via a digital device. They are also more willing to accept social selling compared to their non-Hispanic counterparts:27% vs. 23%.
Not optimizing your website for mobile or not having a brand presence on social platforms is no doubt a missed opportunity that could cost you money.
In this new business environment, many people will try to seize on these shifts, and that will create winners and losers. The ones who come out ahead from this will be those with a strategic, measured long-term approach and will have invested in the opportunity appropriately.
To be successful companies will need to have a clear understanding of the consumer and develop plans to provide value at each step of the path-to-purchase. Some will be tempted to translate content and hope that is enough. This approach will be very short-lived and likely fail.
Manuel Solis leads the Multicultural Practice as a Senior Partner at On Brand Media, providing solutions for clients navigating an increasingly diverse media landscape. On Brand’s Practices also include Brand Development, Marketing, Customer Experience, Media Buying, Creative & Technology and Restaurants. Learn more at www.onbrandmedia.com and contact Manuel at firstname.lastname@example.org.