Ahaa nielsen upscale_2 0 webinar_5-20_w_appendix_final

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  • 1. + A RENEWED OUTLOOK FOR HIGH-END MARKETERS UPSCALE LATINOS 2.0 Long version May, 2014
  • 2. Copyright©2014TheNielsenCompany.Confidentialandproprietary. 2 + Horacio Gavilan Monica Gil Stacie de Armas Lara Colton Juan Carlos Davila Maria Monistere Ron Mulder Scott Willoth Carlos Santiago Gabriela A. Diaz ACKNOWLEDGEMENTS We appreciate the vision and dedication of the study working group, thank you:
  • 3. 3 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + MARKET SIZING, UPSCALE LATINOS 1.0 Source: America’s new upscale segment, LATINOS © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Nielsen People Meter Universe Estimate, P2+ Hispanic, Q4 2012. 29% 15 Million within Upscale homes SIZEABLE SEGMENT WITH RESOURCEFUL POCKETS 37% 2015 20502010 BUILDING LOYALTIES $500 Billion annual spent out of $1.3 Trillion 35 Million strong by 2050
  • 4. + UPSCALE LATINOS 2.0 2014
  • 5. 5 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + UPSCALE LATINOS 2.0 The objective of AHAA’s Upscale Latino 2.0 study, co-authored by Nielsen, is to further understand the Latino Upscale Household behaviors, what drives them towards upscale-luxury purchases in mid-to-high-end brands/formats, and what drivers & detractors they share, or not, with Non-Hispanic Upscale households UPSCALE PURCHASE BEHAVIOR OPTIMISM PAST PURCHASES FUTURE PLANS LUXURY VALUES & REWARDS SEGMENTS DRIVERS & DETRACTORS COMMON & NUANCED DEPT STORES PRESTIGE COSMETICS CASUAL DINING MEDIA HABITS SCARBOROUGH NIELSEN MOBILE MARKETSIGHT NIELSEN NPOWER
  • 6. 6 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + HIGHER EDUCATION & PROFESSIONAL ATTAINMENT Upscale Hispanics © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 32% some college 20% college graduate 44% white collar 17% sales/office 56% 1 or more child vs. 36% Upscale non-Hispanic
  • 7. + UPSCALE LUXURY SEGMENTS
  • 8. 8 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + LUXURY SEGMENTS INFLUENCING SHOPPING Bernard Dobois, “Attitudes towards the Concept of Luxury” in Asia Pacific Advances in Consumer Research, 1994. © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 LUXURY SEEKERS Feel strongly drawn to luxury, feeling good about themselves, individual rewards • In my opinion, luxury is pleasant • One buys luxury goods primarily for one’s pleasure • In my opinion, luxury is good taste • The luxury products we buy reveal a little bit about who we are SOCIAL SEEKERS See luxury as refined, seek recognition and social status • In my opinion, luxury is old fashioned • I could talk about luxury for hours • Those who buy luxury are refined people SENSIBLE SEEKERS Pragmatic about luxury, making high-end decisions as it makes sense • I would not feel at ease in a luxury shop • In my opinion, luxury is flashy • People who buy luxury products try to differentiate themselves from others • I don’t know about the luxury of the world • Luxury does not make me dream 3 KEY UPSCALE SEGMENTS FOR TOTAL UPSCALE ADULTS AGES 18+ ($50-99K) 35% 18% 47%
  • 9. 9 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + 40% 18% 42% UPSCALE HISPANICS, LUXURY AND SENSIBLE SEEKERS Upscale – Luxury Attitudinal segments: © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 48% 18% 34% 47% 18% 35% UPSCALE ADULTS UPSCALE NON HISPANICS UPSCALE HISPANICS SENSIBLE SEEKERS 83 SOCIAL SEEKERS 100 LUXURY SEEKER 124 INDICES VS. UPSCALE NON-HISPANICS
  • 10. 10 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + HISPANIC UPSCALE CONSUMERS, YOUNG & BICULTURAL Across all luxury segments, About 60% have strong ties to the Latino Culture; 30% - 40% voice a strong cultural duality Upscale Hispanic Luxury Seekers are more likely to be Millennials and Bicultural, they are twice as likely to be Gen Y than Upscale non- Hispanics Luxury Seekers Upscale Hispanics Social Seekers tend to be Gen X Upscale Hispanics Sensible Seekers are Gen Y and X and more likely to be Latino Culture Oriented © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 1 2 3 4
  • 11. + OPTIMISM AMONG UPSCALE CONSUMERS
  • 12. 12 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + CONFIDENCE IN FAMILY FINANCES, PAYING OFF DEBT % by Upscale Hispanic segment & Indices vs. Upscale non-Hispanic © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 47% to pay my rent/mortgage vs. 44% Upscale non-Hispanics 18% Qualify for a mortgage vs. 13% Upscale non-Hispanics 33% pay off credit card debt vs. 26% Upscale non-Hispanics (127 index) % of Upscale Hispanics that have sufficient resources in next 12 months to… 55% 40% 41% 20% 19% 15% 37% 27% 32% Luxury Seekers Social Seekers Sensible Seekers Luxury Seekers Social Seekers Sensible Seekers Luxury Seekers Social Seekers Sensible Seekers Indices vs. Upscale non- Hispanic 112 108 98 167 136 115 132 100 128
  • 13. 13 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 PLANNING FOR A BRIGHTER TOMORROW… % of Upscale Hispanics that will definitely save in the next 12 months for… 43% retirement, pension fund vs. 45% Upscale non-Hispanic 24% children’s college fund vs. 15% Upscale non-Hispanic 23% investing in life insurance/annuities vs. 16% upscale non-Hispanic Savings allocation prioritized differently based on upscale segment % by Upscale Hispanic segment & Indices vs. Upscale non-Hispanic 51% 32% 41% 24% 15% 29% 33% 15% 16% Luxury Seekers Social Seekers Sensible Seekers Luxury Seekers Social Seekers Sensible Seekers Luxury Seekers Social Seekers Sensible Seekers Indices vs. Upscale non- Hispanic 93 94 95 141 115 207 183 107 107
  • 14. 14 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + FAMILY FIRST, INCLUDING ELDER PARENTS % of Upscale Hispanics that have enough money in next 12 months… 13% to provide share of support elderly parents require vs. 7% Upscale non-Hispanic 38% for my entire family’s health coverage vs. 34% Upscale non-Hispanic 47% to eat healthy vs. 42% Upscale non-Hispanic % by Upscale Hispanic segment & Indices vs. Upscale non-Hispanic 12% 18% 13% 44% 37% 33% 52% 38% 45% Luxury Seekers Social Seekers Sensible Seekers Luxury Seekers Social Seekers Sensible Seekers Luxury Seekers Social Seekers Sensible Seekers Indices vs. Upscale non- Hispanic 171 200 217 110 137 100 104 123 115
  • 15. + KEY UPSCALE PURCHASE BEHAVIOR
  • 16. 16 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + CHILDREN & ADULT FASHION TOP OF MIND Luxury Seekers leading the way with highest incidence of purchasing… © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 57% CHILDREN’S CLOTHING DESIGNER SHOES, CLOTHING, ACCESSORIES 43% 65% 52% 51% 56% 47% 26% 39% 35% 32% 33% 24% 9% Luxury Seekers Social Seekers Sensible Seekers Luxury Seekers Social Seekers Sensible Seekers Upscale non-Hispanic Upscale Hispanic % of Upscale Hispanics making select purchases in past 12 months & Index against Upscale non-Hispanic 163 215 288 index!
  • 17. 17 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + OUT-PURCHASING TECHNOLOGY Across all computer, laptop, tablet and home entertainment within all sub-segments © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 56% 39% 52% 52% 38% 32% 39% 34% 31% 36% 31% 28% Luxury Seekers Social Seekers Sensible Seekers Luxury Seekers Social Seekers Sensible Seekers Upscale Hispanic Upscale non-Hispanic % of Upscale Hispanics making select purchases in past 12 months & Index against Upscale non-Hispanic COMPUTER, LAPTOP, TABLET HOME THEATRE, FLAT SCREEN TV, GAME CONSOLE 51% 150 42% 135
  • 18. 18 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + AND ACTIVELY ENGAGING IN E-COMMERCE Upscale Hispanics spent $3.7BB in online purchases in the past 12 months © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Source: Nielsen Mobile Marketsight Q2 2013, Hispanic Latinas A18-54 Indexes based on NON Hispanic Latinas A18-54; Scarborough Hispanic Multimarket PLUS, 2013 Release 1 151 155 91 CLOTHING/ACCESSORIES 31% AIRLINE TICKETS 24% HOTELS/CAR RENTALS 16% HEALTH & BEAUTY 11% HOME ACCESSORIES 10% Items purchased past 12 months online: Index vs. Upscale non-Hispanics 65% ONLINE SHOPPING 51% MOBILE BANKING 42% MOBILE SHOPPING
  • 19. 19 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + HOME FURNISHING & DURABLES OPPORTUNITY For Hispanic Luxury and Social Seekers 40% of Upscale Hispanics purchased home furnishings/appliances in past 12 months; 18% more likely vs. Upscale non-Hispanics (34%) 48% 41% 32% 39% 31% 32% Upscale Hispanic Upscale non-Hispanic LUXURY SEEKERS SOCIAL SEEKERS SENSIBLE SEEKERS © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
  • 20. + RESTAURANT DINING
  • 21. 21 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + RESTAURANTS MEASURED IN STUDY © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 Applebee’s Black Angus BJ’s California Pizza Kitchen Chili’s Olive Garden Ruby Tuesday’s Outback Chevy’s Coco’s El Torito Fuddruckers TGIF Hooter’s Houlihan’s Macaroni & Grill Red Lobster Red Robin Tony Roma’s CORE CASUAL DINING
  • 22. 22 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + MORE LIKELY TO HAVE DINED AT CASUAL RESTAURANT © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 UPSCALE HISPANICS UPSCALE NON-HISPANICS 90% DINED 82% DINED DINED AT ONE OR MORE OF THE RESTAURANTS LISTED PAST 12 MONTHS
  • 23. 23 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + WITH HIGHER INTENT TO CONTINUE DINING OUT Hispanic Social Seekers have greater intent to dine out vs. their non-Hispanic counterparts © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 91% 100% 84% 99 111 90 % OF UPSCALE HISPANICS THAT INTEND TO DINE AT CORE CASUAL RESTAURANTS IN NEXT 12 MONTHS LUXURY SEEKERS SOCIAL SEEKERS SENSIBLE SEEKERS Indices vs. Upscale non-Hispanic
  • 24. 24 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + INFLUENCED BY NEW & IN STYLE RESTAURANTS While Upscale non-Hispanics are driven by locations that make them feel better Regression Beta Coefficient, BASE: Dined at restaurant past 12 months and intends to dine at a restaurant next 12 months © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 • Makes me feel better about myself • Makes me feel better about myself • Aesthetics are important • Aesthetics are important • Represents what’s new & in style • Represent what’s new & in style • Effect my self-confidence • Effect my self-confidence UPSCALE HISPANIC UPSCALE NON-HISPANIC KEY DRIVERS THAT LEAD UPSCALE HISPANICS TO EAT OUT AT CORE CASUAL RESTAURANTS… DRIVERS INDIFFERENT DETRACTORS
  • 25. + DEPARTMENT STORES MIDDLE-MARKET AND HIGH-END
  • 26. 26 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + DEPARTMENT STORE CATEGORIES © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 HIGH-END Barney’s Bergdorff Goodman Bloomingdales Lord & Taylor Neiman Marcus Nordstrom Saks Fifth Avenue PRICE DEPARTMENT STORES Sears JC Penney Kohl’s MIDDLE MARKET Dillard’s Macy’s
  • 27. 27 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + UPSCALE HISPANICS, HIGHER PURCHASING INCIDENCES © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 UPSCALE HISPANICS UPSCALE NON-HISPANICS 78% PURCHASED 71% PURCHASED PURCHASED AT ONE OR MORE OF THE DEPARTMENT STORES LISTED PAST 12 MONTHS
  • 28. 28 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + WITH INTENT TO CONTINUE PURCHASING Indices of Upscale Hispanics that intend to purchase at the following store types vs. Upscale non-Hispanics BASE: Purchased at Department Store past 12 months and Intends to purchase at Department Store next 12 months © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 HIGH-END 200 PRICE DEPT. STORES 105MIDDLE-MARKET 165 Indices of intent for key upscale Hispanic sub-segments vs. non-Hispanic Upscale sub-segments 146 241 128 201 106 103 Luxury Seekers Sensible Seekers
  • 29. 29 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + AND INCREASED SPENDING Upscale Hispanics twice as likely to plan to spend more, led by Luxury Seekers 23% 61% 16% 230 82 100 26% 58% 16% 17% 69% 14%14% 72% 14% 6% 77% 17% More* About the same Less** More* About the same Less** More* About the same Less** Luxury Seekers Sensible Seekers Compared to the last 12 months, % of Upscale Hispanics that plan to spend in next 12 months at department stores… Index vs. non- Hispanic
  • 30. 30 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + A DESIRE TO DIFFERENTIATE THEMSELVES …and a willingness to pay more Regression Beta Coefficient, BASE: Purchased at Department Store past 12 months and Intends to purchase at Department Store next 12 months © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 UPSCALE HISPANIC UPSCALE NON-HISPANIC KEY DRIVERS THAT LEAD UPSCALE HISPANICS TO SHOP AT HIGH-END DEPARTMENT STORES • Willing to pay more for best quality • Willing to pay more for best quality • Purchase because of quality • Purchase because of quality • Sign of social standing • Sign of social standing • Aesthetics important • Aesthetics important • Differentiate myself • Differentiate myself • Feel better about myself • Feel better about myself • Represent what’s new & in-style • Represent what’s new in style • Increase my quality of life • Increase my quality of Life DRIVERS INDIFFERENT DETRACTORS
  • 31. 31 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + IMAGE AND QUALITY APPEAL TO HISPANICS Regression Beta Coefficient, BASE: Purchased at Department Store past 12 months and Intends to purchase at Department Store next 12 months © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 • Connotes degrees of success • Connotes degrees of success • Purchase because of quality • Purchase because of quality • Willing to pay more for best quality • Willing to pay more for best quality • Makes my life better • Makes my life better • Aesthetics are important • Aesthetics are important • Makes me feel more valuable • Makes me feel more valuable UPSCALE HISPANIC UPSCALE NON-HISPANIC KEY DRIVERS THAT LEAD UPSCALE HISPANICS TO SHOP AT MIDDLE MARKET DEPT. STORES DRIVERS INDIFFERENT DETRACTORS
  • 32. + MID-HIGH END COSMETICS 2014
  • 33. 33 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + MID-HIGH END COSMETIC BRANDS IN STUDY © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 100% Pure Anastasia Beverly Hills Bare Minerals Benefit Cosmetics Biotherm Bobbi Brown Buxon Channel Clinique Dior Elizabeth Arden Estee Lauder Fashion Fair Glo Professional Guerlain Hourglass IT Cosmetics Josie Maran Lancome Kat Von D Korres Laura Mercier Lotus Base-Mineral M.A.C. Make up Forever Merle Norman NARS Origins Sephora Shiseido Smashbox Stila Tarte Yves Saint Lauren
  • 34. 34 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + HISPANICS KEY TO PRESTIGE COSMETIC SALES © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 UPSCALE HISPANICS UPSCALE NON-HISPANICS 38% Purchased 1+ cosmetics brand 16% Purchased 1+ cosmetics brand PURCHASED 1+ OF THE COSMETICS BRANDS IN THE PAST 12 MONTHS 137% more likely to have purchased high-end cosmetics vs. Upscale non-Hispanic
  • 35. 35 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + TWICE AS LIKELY TO SPEND MORE ON PRESTIGE BRANDS Compared to the last 12 months, do you plan to spend more, less, or the same in the next 12 months on premium cosmetics/make-up? *Much or somewhat more, **Much or somewhat less BASE: Purchased 1+ brands of cosmetics past 12 months, Intends to purchase 1+ brands of cosmetics next 12 months © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 33% 51% 16% 207 74 106 Less**About the sameMore* Indices vs. Upscale non-Hispanic
  • 36. 36 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + 35% 34% 22% 22% 9% 10% 8% 12% These brands make me feel better about myself These brands represent what is new and in style These brands have an effect on my self-confidence These brands match with my personal ideas Upscale Hispanics Upscale non-Hispanics INNER BEAUTY DRIVERS WITH STYLE APPEAL % of Upscale Hispanics and Upscale non-Hispanics that strongly agree on key drivers that lead them to purchasing mid-High end Cosmetic brands BASE: Purchased 1+ brands of cosmetics past 12 months, Intends to purchase 1+ brands of cosmetics next 12 months © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 3.8X 3.4X 2.8X
  • 37. 37 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + SOCIAL DRIVERS UNFAVORABLY SEEN BY HISPANICS % of Upscale Hispanics who strongly disagree with drivers below... People who buy these brands are more respected by others In my opinion, these brands are a sign of social standing These brands show society the degree of success in my life I think my life would be better by buying these brands These brands allow me to differentiate myself from others -40% -38% -35% -31% -30%-31% -25% -26% -18% -16% Upscale Hispanics Upscale non-hispanics BASE: Purchased 1+ brands of cosmetics past 12 months, Intends to purchase 1+ brands of cosmetics next 12 months © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 1.7X 1.8X
  • 38. + KEY FINDINGS
  • 39. 39 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + UPSCALE LATINO 2.0, KEY FINDINGS Marketers have an opportunity with Upscale Hispanics spending $500BB annually Cultural duality is strong and generational differences must be recognized Have resources, are optimistic about their financial opportunities along with a willingness to spend more It is not all about the kids or family – opportunity in leisure and entertainment industries: hotel vacations personal designer brands digital/entertainment technology home amenities Source: Nielsen Latina Power Shift Report August 2013 1 2 3 4
  • 40. 40 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + UPSCALE LATINO 2.0, KEY FINDINGS More likely to be Luxury Seekers, compared to Upscale non-Hispanics, Sensible Seekers are second largest Purchase mid-to-high end brands Share similarities with Upscale non-Hispanics, yet maintain their uniqueness in important luxury product and retail drivers Have acquired an affinity toward mid-market & high-end retailers, prestige cosmetics and core casual restaurants • that fit their emotional and functional needs • drivers that attract them are very different from Upscale non- Hispanics © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 5 6 7 8
  • 41. 41 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + UPSCALE LATINO MEDIA SUMMARY Radio and digital video displays key platforms to reach Upscale Hispanics • 34% listening to radio online, driven by smartphones and computers • The internet, OOH and newspaper performs well compared to total Hispanics Readership of newspaper grows with increased income • 22% of Upscale Hispanics reading via their mobile devices, more likely compared to Upscale non-Hispanics Paid and premium TV among the preferred services Nearly 40% stream TV content, sports or movies • PC still primary device used but smart phone more likely compared to Upscale non-Hispanics and total Hispanics Greater out of home opportunity as commutes are longer Smartphones have become indispensible © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 1 2 3 4 5 6
  • 42. + Q & A
  • 43. For the Conference. Webinar or full reports decks, go to www.ahaa.org
  • 44. + APPENDIX
  • 45. 45 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + STUDY METHODOLOGY © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 • Interviews were conducted with 9,736 respondents on a wide variety of shopping behavior and attitudes Total Hispanic 2,814 Total Non-Hispanic 6,922 • Study results presented herein are exclusively from the upscale portion of the market defined as those earning between $50,000 and $99,000 annually • Interviews were conducted from respondents participating in Nielsen’s HomeScan panel • This survey reflects attitudes of the primary shopper within the household and data has been adjusted to reflect correct proportions within census regions, age, language spoken in the home, and household income • Based on Bernard Dobois’s “Attitudes towards the Concept of Luxury” in Asia Pacific Advances in Consumer Research, 1994
  • 46. Copyright©2014TheNielsenCompany.Confidentialandproprietary. 46 + APPENDIX: DETAILED METHODOLOGY • The survey was fielded on the Nielsen Homescan panel, which is a longitudinal panel representative of total US households. • All active Hispanic households were invited to participate and a representative sample of 10K non-Hispanic HHs were invited. • Methodology was online and paper survey. • Survey Dates: • Online survey: November 27, 2013 – December 26, 2013 • Paper survey: December 27, 2013 – February 4, 2014 • Sample sizes • Invited: Online 17,383 • Invited: Paper 1,635 • Total Respondents: Online 8,872 • Total Respondents: Paper 865 • Total Hispanic 2814 • Total Non-Hispanic 6922 • Total English: 9,076 • Total Spanish: 660 • Selected Homescan purchasing data was appended to the respondents as well. © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.
  • 47. Copyright©2014TheNielsenCompany.Confidentialandproprietary. 47 + APPENDIX: DETAILED METHODOLOGY (CON’T) • Respondents to this survey were calibrated to match overall population of United States residents using Scarborough estimates of population. Because this survey reflects “primary shoppers”, the gender balance was left at 30%:%70% male:female ratio • Luxury segments were developed using Sawtooth Softwares, Convergent Cluster Analysis program with a K-means solution • Drivers of department stores and restaurants were estimated with logistic regression with specific drivers of shopping/restaurant dining used as predictors of choosing a particular brand location as one of their “favorites” • Hispanic media slides are from Scarborough’s Hispanic Multi-market Plus, 2013 Release 1 and Release 1 Current data © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.
  • 48. 48 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + UPSCALE LATINO 1.0, KEY TAKEAWAYS Contribute to nearly 40% of Hispanic spending power! © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen/Nielsen America’s New Upscale Segment: ¡Latinos! 2013 Conference Webinar Viable and sophisticated market of enormous proportion- $500 Billion spent annually A force behind new businesses with higher educational and professional attainment Young with larger households, providing a higher lifetime value and upside opportunities for many high-end & luxury brands Over-index compared to total Hispanics in Investments and Personal Care categories 1 2 3 4
  • 49. 49 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + UPSCALE LATINO 1.0, KEY TAKEAWAYS Shaping technology trends and leading usage of key mobile apps © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen/Nielsen America’s New Upscale Segment: ¡Latinos! 2013 Conference Webinar Expenditures in-line with Upscale non-Hispanics across two-thirds of food sub-categories, exceeding in one quarter of sub-categories Shaping technology trends, leading usage of mobile devices for key services like financial services Latino identity with one foot in each culture - their fully BILINGUAL tendencies are reflected in their pervasive use of language, and media consumption 6 7 8
  • 50. 50 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + CONCLUSIONS Upscale Latinos will drive shifts in category consideration, purchasing behavior and brand relationship MARKETERS HAVE A UNIQUE OPPORTUNITY TO IDENTIFY THE NEEDS OF AN EVOLVING UPSCALE HISPANIC HOUSEHOLD: © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen/Nielsen America’s New Upscale Segment: ¡Latinos! 2013 Conference Webinar 50 • With an interest in building net worth • Simplifying their lives • While benefiting from a bicultural lifestyle • Streamlining their multi-generational responsibilities • Enriching their American Dream
  • 51. 51 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + 59% Of Upscale Hispanic Luxury Seekers are Hispanic Millennials Source: Ethnifacts Latino + Identity Project , 2013, The term , Latino eco-niches is attributed to Ethnifacts, LLC 2013 At least 60% of each upscale segment is U.S. born YOUNG, U.S. BORN AND BICULTURAL © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 60% of each segment has strong ties to Latino culture 30%-40% voice a strong cultural duality WITHIN ALL 3 KEY UPSCALE HISPANIC SEGMENTS: vs. 31% of Upscale non-Hispanics Luxury seekers
  • 52. + OPTIMISM AMONG UPSCALE CONSUMERS
  • 53. 53 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + UPSCALE HISPANICS BEAMING WITH OPTIMISM © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 13% 18% 33% 38% 39% 47% 47% % of Upscale Hispanics that say that in the next 12 months they have sufficient resources to…. 112 107 106 112 126 139 186 Index to Upscale non-Hispanic …to eat healthy …to pay rent/mortgage …to live in safe neighborhood w good public schools …for my entire family health coverage …to pay off credit card debt …to qualify for a mortgage …to provide the share of support that my elderly parents require
  • 54. + DURABLE GOODS & UPSCALE PURCHASE BEHAVIOR
  • 55. 55 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + OPTIMISM PREVAILS WITH UPSCALE LATINOS … where both family and financial take center stage © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 • Afford to live in safe neighborhoods and lead healthier lifestyles • Provide health coverage for entire family • Obtain additional borrowing capacity is central • Determine to invest in their children’s advanced education • Likely to plan for retirement as Upscale non-Hispanic • Continue to support/care for elderly parents/grandparents UPSCALE HISPANICS OPTIMISTIC ABOUT SAFETY, FAMILY WELL-BEING AND WEALTH CREATION TO LIVING THEIR ASPIRATIONS
  • 56. 56 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + HIGHER PURCHASING FOR KEY CATEGORIES *(roof, flooring, landscape), home remodel of your kitchen or bath, or a room addition © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 % UPSCALE HISPANIC INDEX TO UPSCALE NON-HISPANIC SHOP AT CHILDREN'S STORE 57% 163 PURCHASE COMPUTER, LAPTOP AND/OR TABLET 51% 150 STAY IN A HOTEL WHILE ON VACATION 51% 113 PURCHASE DESIGNER SHOES, CLOTHING AND/OR ACCESSORIES 43% 215 PURCHASE ELECTRONICS SUCH AS FLAT SCREEN TV, HOME THEATER AND/OR GAME CONSOLE 42% 135 PURCHASE HOME FURNISHING AND/OR APPLIANCES 40% 118 MAJOR HOME IMPROVEMENT* 20% 125 PURCHASE A PRIMARY HOME 12% 171
  • 57. 57 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + THE UPSCALE HISPANIC OPPORTUNITY IS HIGHER For many key categories © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 • Hotel accommodations for family vacations • Convenient and modern home improvements • Upkeep children appearance • Designer everything for adults • Family digital and entertainment technology • Clothing/accessories top online category UPSCALE HISPANIC TOP DURABLE EXPENDITURES:
  • 58. + MEDIA OVERVIEW How do media behaviors across Upscale Hispanics compare to total Hispanics and Upscale Non – Hispanics? RADIO ONLINE NEWSPAPER OUT OF HOME DIGITAL DISPLAY TV Media heaviness for Upscale Hispanics
  • 59. 59 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + RADIO & DIGITAL DISPLAY KEY MEDIA PLATFORMS © Nielsen 2014. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release h 49% 48% 43% 43% 33% 35% 109 114 130 119 114 97 117 117 96 93 77 92 RADIO DIGITAL DISPLAY INTERNET OUT OF HOME NEWSPAPER TV Quintiles I & II by Media for Upscale Hispanics UPSCALE HISPANICS TOTAL HISPANICS UPSCALE NH Upscale Hispanic indices vs. total Hispanics and Upscale non-Hispanics
  • 60. 60 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + AT LEAST ONE THIRD TUNING TO RADIO VIA ONLINE Upscale Hispanics leveraging mobile devices to access online radio © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 *Current % of Upscale Hispanics accessing radio online, 39% more likely vs. Upscale non-Hispanics 53% 59% 14% Computer Smartphone Tablet Total Hispanics Upscale non Hispanic 88 85 125 132 97 98 % Upscale Hispanics listening by device 34%
  • 61. 61 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + SMARTPHONES INDISPENSABLE, TABLETS GROWING Download newspaper, TV, radio App Local or National News 9% 18% 14% 25% 19% more than Upscale non-Hispanics (70%) 80% growth from 2012 Upscale non-Hispanics (41%) © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Nielsen Mobile Marketsight Q2 2013, Smartphone Analytics, Hispanics A1834/ In NON Hispanic Men 18-54, Scarborough Hispanic Multimarket PLUS, 2013 Release 1 Current 83% 38%
  • 62. 62 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + TEXTING SOCIAL NETWORKING APP USAGE GPS VIDEO ENTHUSIASTIC MOBILE MEDIA USERS % OF USE FOR UPSCALE HISPANICS AND INDICES © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Nielsen Mobile Marketsight Q2 2013, Hispanic Latinas A18-54 Indexes based on NON Hispanic Latinas A18-54 Total Hispanics 105 111 120 124 118 Upscale non- Hispanic 109 138 129 139 177 indices vs. 84% 65% 59% 53% 34%
  • 63. 63 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + STREAMING TV CONTENT VIA ONLINE, GROWING 39% of Upscale Hispanics stream TV content online, 49% growth year over year © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 *Current 57% 24% 16%INDICES VS. % USED BY DEVICE FOR UPSCALE HISPANICS STREAMING TV CONTENT Total Hispanic 102 115 107 Upscale non- Hispanic 93 153 85
  • 64. 64 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + OUT OF HOME OPPORTUNITY © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 12% 20% 16% 25% 27% LESS 10MIN 10-19MIN 20-29MIN 30+MIN DON’T COMMUTE 14% more likely to travel 20-29 minutes than Upscale non-Hispanics 32% more likely to travel 30+ minutes than Upscale non-Hispanics TIME SPENT TRAVELING TO WORK ONE WAY 41% of Upscale Hispanics travel 20 minutes or more one way to work, this is more than both Upscale non-Hispanics and total Hispanics
  • 65. 65 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + PRINT NEWSPAPER POTENTIAL GROWS WITH INCOME Smartphones primary digital device for upscale Hispanics to access their newspaper © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 45% 52% 56% Hispanics < $50K Hispanics $50-$99K Hispanics $100k+ 73 81 84 Index vs. non-Hispanic 80% 33% 22% of Upscale Hispanics used a mobile device to read a newspaper NEWSPAPER READERSHIP VIA MOBILE DEVICESWEEKLY PRINT NEWSPAPER READERSHIP 23% more likely vs. Upscale non-Hispanics 28% more than total Hispanics
  • 66. 66 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + HIGHER PREFERENCE FOR SELECTIVE PROGRAMMING Children programming and music videos popular, and opportunity for advertisers via local news © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 1% 10% 20% 15% 23% 35% 21% 22% 23% 25% 32% 39% Novelas Music videos Science fiction Kids shows Local news - late Documentaries Upscale Hispanic Upscale Non-Hispanic Type of program typically watch (regardless of language) 137 index 164 index 218 index
  • 67. 67 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + PAY AND PREMIUM AMONGST FAVORITE SELECTIONS © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 40% PREMIUM CHANNELS 30% 1+ PAY PER VIEW 32% SATELLITE TV 28% ON DEMAND 10% 19% 27% MORE THAN UPSCALE NON-HISPANIC MORE THAN TOTAL HISPANICS -12% 50% SUBSCRIBE TO HDTV -5% 24% 8% 21% 35%33%
  • 68. 68 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + DRIVING GROWTH OF PRESTIGE COSMETIC BRANDS two times more likely to purchase mid-high end cosmetics vs. Upscale non-Hispanics 2-4 times more likely to use these brands based on ‘inner’ rewards and nearly 2x more likely to be deterred by status rewards 3x as likely to seek the latest style © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 UPSCALE HISPANICS ARE: 1 2 3
  • 69. 69 Copyright©2014TheNielsenCompany.Confidentialandproprietary. + OUT-PURCHASING AND PLANNING TO SPEND MORE With a slightly higher incidence to purchase at department stores they are twice as likely to plan to increase their immediate spending and spread their discretionary spending across all different classes of retailers. © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013 • Twice as likely to shop in high-end department store brands that allow them to differentiate, even at premium price • 50% more likely to shop in middle market stores like Macy’s and Dillard’s that help them project success • Just as likely to shop at price retailers as their Upscale non- Hispanic counterparts LED BY UPSCALE HISPANIC LUXURY SEEKERS