The primary trend in multicultural shopper marketing is toward a general or “total market” view, weaving in multicultural considerations. Some cultural behaviors and preferences must be acknowledged but basic marketing principles do not change.
However, the way we adapt these marketing principles needs to change. The impact the U.S. Hispanic market has already had is no more evident than your local grocery store. According to Reportlinker.com’s new market research report, Hispanic Foods and Beverages in the U.S., one need look no further than their local grocery store aisle, where tortillas, taco kits and salsa outperform hamburgers, hotdog buns, and ketchup sales.
According to Forbes, many of America’s corporations cling to preconceived stereotypes instead of becoming informed about Hispanic culture and how it shapes the identity of Hispanic consumers and their community at-large. This disconnect with U.S. Hispanics makes it difficult for companies to authentically engage with, build trust, and begin to value Hispanics in America as a viable, business model worthy consumer – one that currently represents 16.7% of the United States population with a purchasing power estimated to reach $1.5 trillion by 2015.
So what are the U.S. Hispanic Market buying trends that marketers need to adapt to?
Ca-Ching! Grocery Stores Win Big
Retailleader.com finds that U.S. Hispanics tend to make more frequent trips to the grocery store and spend more per month on food than the general population. Frito-Lay’s Crunchy Flamin’ Hot Cheetos and Kraft’s Sandwich Shop Chipotle Mayo represent what experts say could be the next big trend: Products targeting the growing U.S. Hispanic population. San Diego-based MexGrocer.com serves Hispanics and others who can’t find the ingredients they want in mainstream supermarkets. Its revenue rose 20 percent to 35 percent annually from 2008 to 2012, while other retailers saw their sales dip due to the difficult economy, says Nacho Hernandez, founder and vice president.
Walmart targets Hispanic shoppers with layouts designed to make them feel welcome, such as a display of mangos or Hispanic heritage products at the entrance to the grocery department, says Liz Sanderson, vice president of brand solutions at Univision Communications.
Move Over, Boys! Ladies Are in Charge.
According to the findings in the new Nielsen report, U.S. Hispanic women are making strides by way of their strong drives to improve their education and cultivate strong careers. In fact, U.S. Hispanic women are outpacing their male counterparts in both areas, and are overwhelmingly the decision-makers in household spending.
Fast Fashion Cashes In
Hispanic Retail 360 reports that on average, Hispanics spend $1,998 annually on apparel and services compared to $1,659 for non-Latinos, said CT Latino News. Shopping for clothes is often regarded as a recreational family activity. But average income among Hispanics is lower than the national average of $50,000: $42,400 among U.S.-born Hispanics and $35,900 for those who were native born.
Despite their higher spending, however, Hispanics pay close attention to price, with 79 percent citing low cost as a “major factor” in purchasing decisions. This was followed by the need for “a distinctive look that expresses who I am” (77 percent) and “a brand I Iike, even if others don’t (74 percent). At the same time, 76 percent rated comfort as the top criteria.
But First, Let’s Watch a Movie
Hispanic Retail 360 also finds that U.S. Hispanic females ages 25-plus visit movie theatres more than any other group in the U.S. They are also more likely to see the current top 10 movies, indicated The Wrap, an entertainment and media business publication.