Hispanic market data 2013
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Hispanic market data 2013 Hispanic market data 2013 Presentation Transcript

  • Presented by Brisa Communications, LLC.May 2013
  •  With 50 million+ Hispanics in the United States, upby 46.3% from the last decade, many businesses arerealizing that it would be in their best interest not toignore them in their advertising campaigns. 1/6 adults in the United States are now Hispanicand in 2013, the buying power will be $1.3 trillion. There are now 3 million Hispanic-ownedbusinesses, and they are growing 3 times faster thanthe general market.Source: Report created by Hispanicize and published by Social Mediadd,March 30, 2012 ReportHISPANIC MARKET
  •  U.S. Hispanics are early adopters of mobiletechnology, with 74% of mobile users in the agerange of 18-44 and 20+ hours being spent per weekon social networking sites. Spanish has become the third most-used languageon the web and by 2014 there will be 39 millionU.S. Hispanics online. Out of 52% of Hispanics that are online, 70% preferto surf the web in English, 17% prefer Spanish, and13 % do not have any language preferences.Source: Report created by Hispanicize and published by Social Mediadd,March 30, 2012 ReportHISPANIC MARKET
  • Source: Report created byHispanicize and publishedby Social Mediadd,March 30, 2012 Report
  • The Latino population in the U.S. is growing—and inplaces many people might not be looking. Whilehistorically Hispanic-designated market areas(DMAs) like Miami and New York still have thelargest shares of the Latino population, new researchfrom Nielsen highlights how the pace of growth issoaring in a range of areas outside of theseconcentrated immigrant gateways.HISPANIC POPULATIONGROWING FASTEST, WHERE WEAREN’T LOOKINGSource: Nielsen, May 2013
  •  For example, Charlotte, N.C., isn’t traditionally thought ofas a Latino market, but its Hispanic population is growingfaster 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 themore traditional Hispanic markets, as noted in thecountry’s 15 largest Hispanic DMAs. The high growth inthe mid-market DMAs mirrors the growth in Los Angelesand New York just a couple of decades ago. So it’s only amatter of time before one of these DMAs becomes the nextLatino population center.HISPANIC POPULATIONGROWING FASTEST, WHERE WEAREN’T LOOKINGSource: Nielsen, May 2013
  •  The Latino boom has expanded beyond traditionally Hispanicmarkets and continues to fragment. It’s imperative that brands’messages speak to these new Hispanic segments--the youngbilinguals, the suburban and upscale households--that are driving anew U.S. reality alongside more established segments of the U.S.Hispanic population. New immigration gateways like Washington, D.C. have formed fornew U.S. Latino populations, while cities like Orlando have becomesuburban destinations for Latinos who previously resided in Miamior New York. These shifts have put markets that weren’t previouslypart of the Hispanic marketer’s strategy on the radar.HISPANIC POPULATIONGROWING FASTEST, WHERE WEAREN’T LOOKINGSource: Nielsen, May 2013
  • LATINOS IN AUSTIN ARE…Ranked #20Largest HispanicPopulation in U.S.502,000Population31% Share ofPopulationAverage MedianAge2629% ForeignBorn1“Foreign born” includes those bornoutside the U.S., Puerto Rico or other U.S.territories and neither of whose parents areU.S. citizens.75%Citizen2Citizens include U.S. citizens by birth ornaturalization.Over 20 LatinoSubculturesMexican, Puerto Rican,Cuban, Dominican,Central, South American,Other42%HomeownersMedianHouseholdIncome $39,000Source:Characteristics of the 60 Largest Metropolitan Areas by Hispanic Population, Sept 2012 Pew Hispanic CenterANNUAL LATINO PURCHASING POWER$9.7 BILLION
  •  If we combine the Hispanic purchasing power of Houston,San Antonio, Dallas/Ft. Worth & Austin, the Hispanicpurchasing power is over $180 Billion per year. (Source:Hispanic Marketing Council, 2012) Over 10.4 million Hispanic family households in theUnited States in 2010. U.S. Hispanic population ranked 2nd worldwide in size in2010. Only Mexico (112 million) had a larger Hispanicpopulation than the United States (50.5 million) 132.8 million projected size of the Hispanic population ofthe 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 fromCensus in 2010: Hispanic per capitaincome is second to Russia, but aboveBrazil, 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 themarketing and build the necessary customer service infrastructure. Resistance due to the sheer magnitude of the undertaking. There are amultitude of components that comprise your Hispanic marketing andservicing platform—e.g., culturally relevant products/services, Spanishlanguage marketing collateral, customer communication, Spanishlanguage website, bilingual call center and customer service personnelbilingual 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 primaryresearch specific to your company and its products/services, there is anabundance of secondary research available. Information is power and will enableyou to make informed decisions about the direction you should take. Assign a U.S. Hispanic market champion within the senior executive team tonurture 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 cutcosts and trim budgets. Having a U.S. Hispanic champion on board will help toraise the profile of what you are doing and help build momentum. Once you havebuilt momentum and raised the profile internally, it becomes a little harder andmore political to cut. Build a compelling business case that clearly shows the potential of this markettoday and over the next 5, 10, and 15 years. There is plenty of data available tohelp support your business case—a few examples are the U.S. Census Bureau andthe 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 marketis. There is a common misconception that it is one market. The term U.S. Hispanic isa name to refer to people living in the U.S. from any Spanish-speaking Country, forexample. Therefore, U.S. Hispanics herald from around 20 different countries, andwhile there are similarities that exist between the various sub-groups, there are alsodistinct differences marketers and customer service agents must be sensitive to inorder to best serve the interests of specific consumer groups. Test your product or concept before launching to the market. Time and dollars spentwisely here could save you millions down the road. Be realistic and up-front about the magnitude of the undertaking. Not only is theresubstantial cost in marketing to this segment, but having the infrastructure in placeto service this segment should not be underestimated. Before you go out andproactively target the U.S. Hispanic market, make sure that your bilingual customerservice 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 overcomethem? Test the Spanish/English language proficiency of bilingual staff beforethey pay a bilingual differential. Undertake training for bilingual staff in Spanish. Many companiesprovide 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 specializingin one or more of the following fields: research, advertising, marketing,training and recruitment can be an invaluable resource in helping youto “get it right the first time.” Professionals in these fields also have awealth of knowledge about what has been attempted in the past andhas not worked.HISPANIC MARKET
  • In summary, there is no doubt that there is a large and potentiallylucrative market opportunity for those companies prepared toinvest in developing a U.S. Hispanic market strategy. With theimpact of the Great Recession making consumers cautious to spendand companies in a fierce battle for their available disposableincome, there is no better time than now for those companiesprepared to put forth the effort in a new customer acquisitionstrategy targeting the U.S. Hispanic market. Companies prepared toinvest up front and develop their U.S. Hispanic market strategy andcustomer service infrastructure will be well-positioned to reap therewards, while competitors continue to struggle in an economybarely limping along.HISPANIC MARKET