Endless Opportunities from a Fast-Growing Market: The Hispanic Population
By Staci Covkin
The Hispanic population, comprising 16 percent of the U.S. population, grew at a faster rate than other ethnic populations within the country and will continue to grow rapidly in upcoming years.
With this information, smart CPG companies recognize that there are not only endless opportunities to expand their marketing programs and reach new shoppers, but to ignore these opportunities will likely hinder company growth.
We recently released a Point of View, “Diverse and Distinct: The Hispanic Population Delivers Numerous Segments and Opportunities—and an Exceptionally Fast-Growing Market,” that found as a whole, the Hispanic population will deliver a purchasing power of approximately $1.3 trillion in 2012. If retailers choose to market to the Hispanic population as they to do general population, they choose to limit the growth of their own companies.
Our research also found that a side by side comparison of the shopping basket of a Hispanic shopper and a non-Hispanic shopper reveals significant differences, demonstrating the importance of understanding what different shopper groups purchase—and want to purchase. Hispanic shoppers tend to remain loyal to a brand, once a brand relationship has been established. By tailoring the shopping experience to consumers within this segment, retailers can expect a long-lasting return.
However, simply marketing to the general Hispanic population is not enough; it is essential to identify differentiators within the population rather than act as though it is a homogenous group. Key segment differentiators include acculturation, economy, community, exposure to marketing/advertising and country of origin.
Some of the highlights of the SymphonyIRI Group HispanicLink 2012 report include shopping behaviors as a result of culture. Hispanics, particularly unacculturated Hispanics, place a lot of focus on family, health and nutrition. Generally, these families have more members and value the experience of cooking and eating together, so grocery purchases are focused on making large meals from fresh ingredients.
It is evident there are several factors to be aware of when attempting to tap into the Hispanic population as a consumer segment. Understanding and interpreting Hispanic consumers’ shopping behaviors demographically is only an initial step.
To develop a roadmap that will lead to the successful execution of marketing to the Hispanic population, SymphonyIRI Group created a detailed segmentation, DigitaLink, of Hispanic shoppers, based on ownership of digital devices, attitudes about and usage of digital media, and how quickly media are being adopted.
The Hispanic population continues to modify the composition of the U.S. population and significantly impacts the country’s trends and the CPG and retail markets. With this continued growth and change, marketers will see more diversity and complex behaviors. If retailers pay attention to the specific needs of the subsets of the Hispanic market, they will be able to connect with and influence these shoppers more efficiently and effectively.
For more information you can refer to SymphonyIRI’s “Diverse and Distinct” point of view.