How Well Do You Know the Hispanic/Latino Market?

By Maria Nieves posted 23 days ago

The United States is changing. Fast. Nearly 38% of Americans are multiculturalthere are, according to Forbes, 131 multicultural groups in the U.S.
By far, the largest ethnic group in the United States is the Hispanic/Latino population. With nearly 60 million people identifying as Hispanic, Latinos account for 18.3 percent of the population according to the U.S. Census Bureau. Here in Hudson County, the number of Hispanics/Latinos is more than 290,000 residents; that represents a whopping 42.9 percent of the County's population!

While the pace of growth in the U.S. among Hispanics has slowed to 2.0 percent/year since 2010, Latinos are still the fastest-growing ethnic group in the country according to Pew Research Center. It is projected that they will represent 25 percent of the overall U.S. population by 2065.
The purchasing power of this fast-growing group is, unfortunately, often overlooked, especially by local and small businesses. According to various sources, Hispanics Latinos will control the purchasing power of $1.7T, trillion with a T, by next year if they don't already!
How well do you understand the Hispanic consumer market? It's time to learn about this powerful and diverse consumer group because your competitors are definitely taking notice and as they learn more, your company will increasingly be at a competitive disdadvantage.

Here are some facts to get you started. Also please join us on September 26 as we take an in-depth look at this consumer market at our HOLA New Jersey Conference & Business Expo!

  1. Hispanics/Latinos are the youngest of the major ethnic and racial groups in the U.S. According to Pew Research Center, at 28 years, the median age of Hispanics is nearly a full decade lower than that of the U.S. overall (37 years). Among Hispanics, there is a big difference in median age between those born in the U.S. (19 years) and those who are foreign-born (41 years). In 2014, about a quarter of Hispanics, or 14.6 million, were Millennials (ages 18 to 33).
  2. According to a PwC report (U.S. Hispanics dominate mobile, entertainment and beyond), Hispanics are very much connected in this digital age: "The vast majority of Hispanic consumers—90 percent—stream video on either a smartphone or tablet, 10 percent more than non-Hispanic consumers. Across all segments, Hispanic consumers are also far more likely to view video on mobile device(s) more often than their non-Hispanic counterparts...The average Hispanic consumer spends more than 26 hours per month watching video online/on their smartphone—seven hours more than the U.S. average."
  3. It's important to understand the diversity within the Latino community and that's because iversity among Hispanic origin groups varies between major metropolitan areas. Accodring to a PwC report Mexicans make up 79 percent of Hispanics in the Los Angeles metro area. But the New York City area is less dominated by one group, with Puerto Ricans (27%) and Dominicans (21%) being the most populous. The same is true in the Washington, D.C., metro area, where Salvadorans (33%) are most numerous, and in the Miami area, where Cubans (43%) are the largest group; in these areas, the largest share of Hispanics by origin doesn’t constitute a majority of the Hispanic population. Whether your business is local or global, understanding this diversity is critical.
  4. Hispanic consumers are extremely loyal to brands and businesses that they patronize are more likely to be loyal to companies that communicate in Spanish. According to the Experian Simmons Summer 2011 National Hispanic Consumer Study, about 56 percent of Spanish-dominant Hispanics agree with the statement: “When I hear a company advertise in Spanish, it makes me feel like they respect my heritage and want my business.”  And 54 percent of Spanish-dominant Hispanics feel “much more loyal to companies that show appreciation of our culture by advertising in Spanish.” If your business can communicate a value proposition in Spanish, you can potentially acquire a large, and loyal, set of new consumers. Find a professional language services companies to help your business translate its message.
  5. Speaking of language, the share of Latinos in the U.S. who speak English proficiently is growing. According to research by Pew Research Center, in 2013, 68 percent of Latinos ages 5 and older spoke English proficiently, up from 59 percent in 2000. U.S.-born Latinos are driving this growth. By comparison, 34 percent of Latino immigrants spoke English proficiently in 2013, a percentage little changed since 1980. While speaking Spanish remains an important part of Latino culture, 71 percent of Latino adults say it is not necessary to speak Spanish to be considered Latino.