Hispanic market data 2013

HISPANIC MARKET

Presented by Brisa Communications, LLC.

May 2013

With 50 million+ Hispanics in the United States, up by 46.3% from the last decade, many businesses are realizing that it would be in their best interest not to ignore them in their advertising campaigns.

1/6 adults in the United States are now Hispanic and in 2013, the buying power will be $1.3 trillion.

There are now 3 million Hispanic-owned businesses, and they are growing 3 times faster than the general market.

Source: Report created by Hispanicize and published by Social Mediadd,March 30, 2012 Report

HISPANIC MARKET

U.S. Hispanics are early adopters of mobile

technology, with 74% of mobile users in the age range of 18-44 and 20+ hours being spent per week on social networking sites.

Spanish has become the third most-used language on the web and by 2014 there will be 39 million U.S. Hispanics online.

Out of 52% of Hispanics that are online, 70% prefer to surf the web in English, 17% prefer Spanish, and 13 % do not have any language preferences.

Source: Report created by Hispanicize and published by Social Mediadd,March 30, 2012 Report

HISPANIC MARKET

Source: Report created by Hispanicize

and published by Social Mediadd,

March 30, 2012 Report

The Latino population in the U.S. is growing—

and in places many people might not be looking. While historically Hispanic-designated market areas (DMAs) like Miami and New York still have the largest shares of the Latino population, new research from Nielsen highlights how the pace of growth is soaring in a range of areas outside of these concentrated immigrant gateways.

HISPANIC POPULATION GROWING FASTEST, WHERE WE

AREN’T LOOKING

Source: Nielsen, May 2013

For example, Charlotte, N.C., isn’t traditionally thought

of as a Latino market, but its Hispanic population is growing faster than any other region in the country. Additionally, dramatic Latino growth in a range of cities across the U.S. since 2000 has created a bevy of opportunity beyond the more traditional Hispanic markets, as noted in the country’s 15 largest Hispanic DMAs. The high growth in the mid-market DMAs mirrors the growth in Los Angeles and New York just a couple of decades ago. So it’s only a matter of time before one of these DMAs becomes the next Latino population center.


AREN’T LOOKING


The Latino boom has expanded beyond traditionally Hispanic markets and continues to fragment. It’s imperative that brands’ messages speak to these new Hispanic segments--the young bilinguals, the suburban and upscale households--that are driving a new U.S. reality alongside more established segments of the U.S. Hispanic population.

New immigration gateways like Washington, D.C. have formed for new U.S. Latino populations, while cities like Orlando have become suburban destinations for Latinos who previously resided in Miami or New York. These shifts have put markets that weren’t previously part of the Hispanic marketer’s strategy on the radar.


AREN’T LOOKING


ANNUAL LATINO PURCHASING POWER

$9.7 BILLION

If we combine the Hispanic purchasing power of Houston, San Antonio, Dallas/Ft. Worth & Austin, the Hispanic purchasing power is over $180 Billion per year. (Source: Hispanic Marketing Council, 2012)

Over 10.4 million Hispanic family households in the United States in 2010.

U.S. Hispanic population ranked 2nd worldwide in size in 2010. Only Mexico (112 million) had a larger Hispanic population than the United States (50.5 million)

132.8 million projected size of the Hispanic population of the United States on July 1, 2050. (Source: U.S. Census Data)

Every month 50,000 Latinos turn 18 (600,000 per year)

HISPANIC MARKET

Hispanic per capita income is from Census in 2010: Hispanic per capita income is second to Russia, but above Brazil, China and India.

Hesitation and resistance to proactively target this segment of the U.S. market can be attributed to one or more of the following reasons: Lack of corporate commitment to the strategic decision to target

the U.S. Hispanic market. Lack of adequate and long-term budget commitment to undertake

the marketing and build the necessary customer service infrastructure.

Resistance due to the sheer magnitude of the undertaking. There are a multitude of components that comprise your Hispanic marketing and servicing platform—e.g., culturally relevant products/services, Spanish language marketing collateral, customer communication, Spanish language website, bilingual call center and customer service personnel bilingual IVR, etc.

Fear of unknown.

HISPANIC MARKET

How have companies that have faced these and similar issues overcome them? Research, research, and more research! In addition to undertaking primary

research specific to your company and its products/services, there is an abundance of secondary research available. Information is power and will enable you to make informed decisions about the direction you should take.

Assign a U.S. Hispanic market champion within the senior executive team to nurture the idea within the senior management team. In our experience, U.S. Hispanic projects are one of the first to be cut when departments are looking to cut costs and trim budgets. Having a U.S. Hispanic champion on board will help to raise the profile of what you are doing and help build momentum. Once you have built momentum and raised the profile internally, it becomes a little harder and more political to cut.

Build a compelling business case that clearly shows the potential of this market today and over the next 5, 10, and 15 years. There is plenty of data available to help support your business case—a few examples are the U.S. Census Bureau and the Selig Center’s U.S. Hispanic Purchasing Power dataset.

HISPANIC MARKET

How have companies that have faced these and similar issues overcome them? Take the time to do the research and fully understand who the U.S. Hispanic

market is. There is a common misconception that it is one market. The term U.S. Hispanic is a name to refer to people living in the U.S. from any Spanish-speaking Country, for example. Therefore, U.S. Hispanics herald from around 20 different countries, and while there are similarities that exist between the various sub-groups, there are also distinct differences marketers and customer service agents must be sensitive to in order to best serve the interests of specific consumer groups.

Test your product or concept before launching to the market. Time and dollars spent wisely here could save you millions down the road.

Be realistic and up-front about the magnitude of the undertaking. Not only is there substantial cost in marketing to this segment, but having the infrastructure in place to service this segment should not be underestimated. Before you go out and proactively target the U.S. Hispanic market, make sure that your bilingual customer service infrastructure is in place. Companies that practice

“Best Practice” U.S. Hispanic customer care do the following:

HISPANIC MARKET

How have companies that have faced these and similar issues overcome them? Test the Spanish/English language proficiency of bilingual staff

before they pay a bilingual differential. Undertake training for bilingual staff in Spanish. Many companies

provide training in English, and then tell training course participants to “now go and say the same in Spanish to Spanish-speaking customers.”

Utilize the services of Hispanic market experts. Companies specializing in one or more of the following fields: research, advertising, marketing, training and recruitment can be an invaluable resource in helping you to “get it right the first time.” Professionals in these fields also have a wealth of knowledge about what has been attempted in the past and has not worked.

HISPANIC MARKET

In summary, there is no doubt that there is a large and potentially lucrative market opportunity for those companies prepared to invest in developing a U.S. Hispanic market strategy. With the impact of the Great Recession making consumers cautious to spend and companies in a fierce battle for their available disposable income, there is no better time than now for those companies prepared to put forth the effort in a new customer acquisition strategy targeting the U.S. Hispanic market. Companies prepared to invest up front and develop their U.S. Hispanic market strategy and customer service infrastructure will be well-positioned to reap the rewards, while competitors continue to struggle in an economy barely limping along.

HISPANIC MARKET

Documents

Hispanic market data 2013