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On the Rise: The Growing Influence of the Hispanic Shopper

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The Hispanic market is a bright spot in the U.S. grocery shopping landscape. The fastest growing ethnic segment in the U.S. has massive buying power and broad influence that extends well beyond its own …

The Hispanic market is a bright spot in the U.S. grocery shopping landscape. The fastest growing ethnic segment in the U.S. has massive buying power and broad influence that extends well beyond its own ethnic group.

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  • 1. On the Rise: The Growing Influenceof the Hispanic Shopper
  • 2. On the Rise: The Growing Influence of the Hispanic Shopper Foreword from Univision There are currently 52 million Hispanics in the United “Univision is proud to share these States representing nearly 17% of the total population and growing fast. Hispanics will account for 60% of timely and actionable shopper the country’s population growth over the next five insights created in collaboration years. This group is younger than the general U.S. population, with over 60% of Hispanics under the with AMG Strategic Advisors. By age of 35.* coming together, we produced Because of their younger demographic skew, many Hispanic consumers are going through important life something exponentially more events. They are moving out of their parents’ homes valuable for our shared retail and into their first apartments, they are getting married, and they are becoming parents. They are in their peak CPG clients.” purchasing years. Roberto Ruiz, The Hispanic population has reached a point where its Senior Vice President, Brand Solutions, sheer size and shopping dollars can be a differentiating Univision Communications growth engine for manufacturers and retailers that successfully address the Hispanic consumer and these shoppers’ unique needs and shopping preferences. Going forward it is not a question as to whether or not manufacturers and retailers will have a Hispanic marketing strategy, it is a question of how much they will be willing to spend and how they will best engage this dynamic and powerful segment of the U.S. population. Smart marketers are quickly learning Hispanics have their own distinct product consumption patterns, purchase decision influencers and technology usage habits. Success will come for the CPG companies and retailers that understand the similarities between Hispanics and the general market and can authentically celebrate the differences. With the goal of driving this understanding, AMG Strategic Advisors, a leading growth strategy consultancy, partnered with Univision Communications, the leading media company serving Hispanic America, to create a special Hispanic-specific edition of the bi-annual research report The Why? Behind The Buy. *Source: Nielsen State of the Hispanic Consumer: The Hispanic Market Imperative Quarter 2, 2012.2 The Why? Behind The Buy HISPANIC
  • 3. On the Rise: The Growing Influence of the Hispanic ShopperT he Hispanic market is a bright spot in the U.S. grocery shopping landscape. The fastest growingethnic segment in the U.S. has massive buying power Hispanics spend more on foodand broad influence that extends well beyond its own with a higher average monthlyethnic group. This is a group on the rise in numbers, food budget and bigger spendseducation, buying power, social media use, mobiletechnology use, healthy eating, and cultural influence. on both routine and stock-upAcosta Sales & Marketing’s AMG Strategic Advisors and grocery trips.Univision collaborated on this first-ever Hispanic versionof the influential The Why? Behind The Buy report to Hispanics’ buying power ofgive consumer packaged goods (CPG) manufacturers $1 trillion in 2010 will growand retailers valuable, actionable insights into one ofthe most important U.S. consumer segments. to $1.5 trillion by 2015. The Why? Behind The Buy HISPANIC 3
  • 4. On the Rise: The Growing Influence of the Hispanic ShopperKey Findings Hispanic family mealtime is a priority. Whether The Spanish language helps U.S. Hispanics stay for cultural or economic reasons or a combination of connected to their cultural roots. U.S. Hispanics both, U.S. Hispanic shoppers cook more frequently at relate to two identities — American culture and their home than the general population. Many make an Hispanic roots. Language is a strong connector for effort to eat healthy foods, including organic foods, preserving culture and generational traditions. Most despite the extra expense. They plan meals at least of those we surveyed preferred to speak at least two days in advance and are more likely to prepare some Spanish at home, and that preference was true meals requested by family members. across generations. Young shoppers also indicated a preference for Spanish language media, from Hispanics lead the way in use of technology, broadcast to print. digital and social media. They are early adopters of new technologies, and Hispanic shoppers show more heavy users of digital and social Family loyalty for national brands. larger average media, including streaming family size National CPG brands are video, music sitessocial l more likely to show up on m Media networking and blogs. Spanish language Technology the shopping lists of U.S. A main driver of their for social Hispanics by specific is cultural technology use is to connection brand name. Also, connection stay better connected wi th f a m i l y an d His Hispanics are more U.S. Hispanics say they are likely friends. More than half Family & Food to switch back to of the U.S. Hispanic Meal Time Centric national brands from shoppers surveyed Shopping store brands when use technology for more celebrations more trips & their financial situation & family meals more spend grocery shopping. They improves. are also more likely thanan Cooking from scratch U.S. Hispanics are the general U.S. population with healthy optimistic despite economic to use digital channels for pre- ingredients challenges. Compared to the shop planning, such as shopping general U.S. population, more Hispanic lists and recipes. shoppers we surveyed suffered job losses and Shopping is a social experience for Hispanics. experienced difficulty finding employment over the Across the board, Hispanics are more likely to go last year. Yet, they are decidedly optimistic about grocery shopping with a companion, even “en masse” the future, with more expecting positive changes in with several family members. They shop with spouses, household employment and income in the coming young children, sometimes with adult children, and year versus the total U.S. population. rarely shop alone. They are also more likely to shop for fun or entertainment.4 The Why? Behind The Buy HISPANIC
  • 5. On the Rise: The Growing Influence of the Hispanic ShopperHispanics Optimistic About the Future Despite job and income challenges, many Hispanics believe the coming year will be better. Overall there is a positive and hopeful view among U.S. Hispanics as they focus on building better futures for their families. Do you expect any change in employment Do you expect any change in total household for your household’s main breadwinner in income in the coming year? the coming year? 78% 64% 57% 50% 32% 25% 22% 19% 19% 14% 13% 8% Positive Change No Change Negative Change Positive Change No Change Negative Change Hispanics Total U.S. There’s reason for CPG manufacturers to be optimistic Hispanics are more loyal to too. About three out of four Hispanics create shopping lists and these lists are twice as likely to national brands. They are more include a brand name. What’s more, Hispanics appear than twice as likely as the general to be significantly less committed to store brands with 39% indicating they would likely resume buying more population to switch back to national brands than store brands when the economy national brands when their or their financial situation improves. financial situation improves. When the shopping list is created in your household, how are items typically listed? 55% 44% 35% 29% 24% 19% 14% 13% 7% 3% Don’t typically By type By brand name By brand name A combo of the use a list of product of product and its specific above, depends variety on product Hispanics Total U.S. The Why? Behind The Buy HISPANIC 5
  • 6. On the Rise: The Growing Influence of the Hispanic ShopperShopping Together and More Often When the U.S. Hispanic shopper goes grocery shopping, she usually has company. More U.S. Hispanic shoppers do their grocery shopping with family. Hispanics also make more stock-up and routine shopping trips and spend more on those trips on average than the general population. You mentioned making routine, regular shopping trips. Who typically goes with you on these trips? Hispanics shop with 22% No one else goes with me 46% company on nearly 40% Spouse/partner 16% 32% 80% of their shopping Kids 5 years of age and younger 10% 15% trips. More than half Kids 6-12 years of age 8% Parent(s) 14% of Hispanics with 7% Kids 13-17 years of age 10% children are taking them 6% Adult children 5% 12% shopping. Other relatives 6% 3% Friend(s) 6% 2% Roommate(s) 3% 1% Someone else 1% 1% Hispanics Total U.S. During the last year, Hispanic shoppers frequented dollar stores, mass merchandisers and grocery stores more than the general U.S. population. Meanwhile, both Hispanics and total U.S. shoppers reported a decline in trips to drug, limited assortment, convenience, and natural/organic stores. Compared to last year, how often do you shop at each type of store for any reason? 19% Dollar stores 5% 18% Mass merchandisers 1% 14% Supermarkets 3% 5% Warehouse clubs -2% Hispanics Total U.S.6 The Why? Behind The Buy HISPANIC
  • 7. On the Rise: The Growing Influence of the Hispanic Shopper Hispanics spend 14% more on routine shopping trips and 10% more on stock-up trips and shop more frequently.About how much do you spend on each of the In a month, how often do you makefollowing types of shopping trips? these trips? $128.60 4.0 3.8 4.0 Stock-up trip 3.5 3.5 $117.20 3.1 2.4 2.1 2.5 $111.50 2.2 Routine trip $98.20 Occasion-based $79.20 trip $57.60 Stock-up Routine Occasion- Fill-in Specialty Fill-in trip $78.70 trip trip based trip trip trip $41.90 $69.90 Hispanics Total U.S. Specialty trip $51.30 Hispanics Total U.S.Cooking at Home and Eating With FamilyMealtime is a priority in the Hispanic household. When it comes to meals, 60% of Hispanic shoppers are planningmeals at least two days in advance. Family requests and healthy choices are stronger influencers for Hispanichouseholds’ mealtime choices than amongst the general population. U.S. General U.S. Hispanics Population Cooking more frequently at home 62% 52% Prepare specific meals requested by family members 24% 14% Agree with “we eat healthy foods even though they are more expensive” 47% 42% Eat more natural foods 38% 27% Eat more organic foods 31% 22% Hispanics keep social ties strong with celebratory meals. For which of the following types of significant dates or holidays do you typically prepare a special meal for your family? Special family days 55% Religious holidays 54% U.S. holidays 50% Hispanic holidays 25% Other 1% None of the above 14% The Why? Behind The Buy HISPANIC 7
  • 8. On the Rise: The Growing Influence of the Hispanic ShopperDriving Digital and Mobile Trends in Grocery As a group, Hispanics are heavier users of text messaging, mobile websites, tablets, smartphones, and mobile apps than the general population. Staying in touch with family, friends and extended family are key drivers of technology use for Hispanics, as well as the desire to share product information and tips. U.S. General U.S. Hispanic shoppers are more likely Hispanics Population Use a smartphone 51% 41% than the general population to Regularly text message 47% 42% use new technologies such as Stream music from 30% 24% smartphones and tablets to websites such as Pandora access the Internet, 50% vs. 34% Use video/TV streaming websites such as 29% 24% respectively. They also use more Hulu/YouTube grocery shopping apps and list Regularly use a mobile app 19% 14% functions on mobile devices.8 The Why? Behind The Buy HISPANIC
  • 9. On the Rise: The Growing Influence of the Hispanic ShopperWhen it comes to grocery shopping planning, once again Hispanics’ use of technology tends to be more cutting-edge and socially oriented. They are more likely to visit product review sites, local review sites and cooking orrecipe sharing sites. They are early adopters of new technologies, ahead of the general U.S. population, andsurpassing U.S. Millennial and U.S. Gen X shoppers in their use of sophisticated interactive tools and sites likesocial networking, group buying, online community websites, and mobile technology.What online or interactive tools do you use regularly? 47% Websites 55% 53% Social networking sites 46% 48% like Facebook or Twitter 46% 47% Text messaging 42% 36% Smartphones like Blackberry, 35% 29% iPhone & Android 19% Videos/TV streaming websites 29% 24% like Hulu, YouTube, etc. 22% Music streaming websites like 30% 24% Pandora, YouTube, etc. 18% 18% Group buying sites like Groupon 18% or Google offers 15% Online community websites 15% 13% for a specific interest 12% 15% Mobile websites 12% 8% Hispanics August ‘12 12% Total U.S. August ‘12 Blogs 11% Total U.S. July ‘11 8% Tablet computer like iPad, 14% 11% Samsung Galaxy, etc. 4% 3% None of these 5% 5% The Why? Behind The Buy HISPANIC 9
  • 10. On the Rise: The Growing Influence of the Hispanic ShopperSpanish Language KeepsCultural Roots Strong U.S. Hispanics relate to two identities — American culture and Hispanic culture. Language is a bridge used by many Hispanics to stay connected to their roots. Most of those we surveyed preferred to speak at least some Spanish at home, and that preference held strong across generations. Nonetheless, the majority of U.S. Hispanics understand English, with a slight drop among the 65 and older crowd. Also notable is a strong preference among the 18 to 34 year olds for Spanish language media. What language do you speak at home? 69% 63% 57% 49% 46% 40% 38% 28% 21% 20% 11% 15% 12% 16% 15% Spanish more than English Both Spanish and English English all the time Total Gen Y 18-34 Gen X 35-44 Boomers 45-64 Silents 65+ U.S. Hispanics ages 18 to 34 report a strong preference for Spanish language media. What language do you prefer to watch TV, read magazines and newspapers, and listen to radio? 65% 59% 52% 48% 43% 39% 34% 28% 23% 21% 20% 18% 21% 19% 12% Spanish more than English Both Spanish and English English all the time Total Gen Y 18-34 Gen X 35-44 Boomers 45-64 Silents 65+10 The Why? Behind The Buy HISPANIC
  • 11. On the Rise: The Growing Influence of the Hispanic ShopperTaking Insights Into ActionLeveraging the enormous opportunity and potential of the Hispanic market will be key to the success of CPGmanufacturers and retailers. AMG Strategic Advisors can help companies design an effective Hispanic marketstrategy and answer key questions, such as: • How do Hispanic Millennials differ versus the • How should we measure ROI on Hispanic general population? marketing? • How should we think about segmenting the • What types of shopper marketing are most Hispanic shopper? effective? • How should we position our brand to grow with • How should we address Hispanic specialty Hispanic shoppers? retailers? • How do Hispanics perceive and define value? • How should we structure our organization to • What product or package innovation do we need maximize the opportunity with Hispanic to reach Hispanic shoppers? shoppers? • Which categories are Hispanic children • What are the differences in Hispanic male versus influencing most? female shoppers? For More Information For more information on The Why? Behind The Buy HISPANIC, including customizing the analysis, contact: Elena Etcharren Senior Vice President, AMG Strategic Advisors, eetcharren@acosta.com, or visit www.acosta.com/hispanic-why. The Why? Behind The Buy HISPANIC 11
  • 12. On the Rise: The Growing Influence of the Hispanic Shopper The Why? Behind The Buy HISPANIC is an exclusive survey produced by AMG Strategic Advisors and Univision that provides valuable insights into U.S. Hispanic shopper behavior. This research was fielded in August 2012 with a random sample of 1,012 Hispanic shoppers via Acosta’s proprietary ShopperF1st online and face-to- face survey, which was available to respondents in both Spanish and English translations. The Why? Behind The Buy survey and report on the total U.S. population has been produced bi-annually by Acosta Sales & Marketing since 2009.About Univision AMG Strategic AdvisorsCommunications Inc. AMG Strategic Advisors is the growth strategy consultingUnivision Communications Inc. (UCI) is the leading media unit of Acosta Sales & Marketing, assisting clients incompany serving Hispanic America. Its assets include Univision accelerating profitable growth through insight-drivenNetwork, one of the top five networks in the U.S. regardless strategies and advanced analytics. Comprised of consultantsof language and the most-watched Spanish-language with in-depth experience in marketing strategy, includingbroadcast television network in the country reaching 96% experience at leading CPG manufacturers, AMG Strategicof U.S. Hispanic households; TeleFutura Network, a general- Advisors provides best-in-class strategy consulting, brandinterest Spanish-language broadcast television network positioning, shopper & marketing insights, and data analysis.reaching 88% of U.S. Hispanic households; Univision Cable AMG Strategic Advisors collaborates with clients to driveNetworks, including Galavisión, the country’s leading Spanish- multicultural and multigenerational growth on an individuallanguage cable network, as well as Univision telenovelas, a project or on an outsourced services basis.new 24-hour cable network dedicated to novelas, Univision AMG Strategic Advisors offerings include:Deportes Network, a new 24-hour cable network dedicatedto sports, ForoTV, a new 24-hour Spanish-language cable • Strategic Planning & Consultingnetwork dedicated to news, and an additional suite of six • Growth Platform Identificationcable offerings - De Película, De Película Clásico, Bandamax,Ritmoson, Telehit and Clásico TV; Univision Studios, which • Demand Driven Innovation Strategiesproduces and co-produces reality shows, dramatic series and • Brand Positioning and Brand Strategiesother programming formats for the Company’s platforms; • Consumer Insight and SegmentationUnivision Television Group, which owns and/or operates 62television stations in major U.S. Hispanic markets and Puerto • Shopper Insights / Path-to-Purchase InsightsRico; Univision Radio, the leading Hispanic radio group which • Channel / Go-to-Market Strategiesowns and/or operates 69 radio stations in 16 of the top 25 • Shopper Marketing StrategiesU.S. Hispanic markets and Puerto Rico; Univision InteractiveMedia, a network of national and local online and mobile sites • ROI / Measurement Solutionsincluding Univision.com, which continues to be the #1 most- • Operational / Organizational andvisited Spanish-language website among U.S. online Hispanics, Supply Chain EffectivenessUnivision Móvil, a longstanding industry-leader with unique,relevant mobile products and services, and Univision PartnerGroup, a specialized advertising and publisher network.Headquartered in New York City, UCI has television networkoperations in Miami and television and radio stations andsales offices in major cities throughout the United States. Formore information, please visit Univision.net.12 The Why? Behind The Buy HISPANIC