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Center for Hispanic Leadership


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What Top-Tier Industries Are Telling Us About Building Relationships Through Social Media, Mobile Solutions, Big Data, Interactive Technology and Online Marketing.

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Center for Hispanic Leadership

  1. 1. U l kn te i a i no ig h H s nc c p S pr o sme O p r nt u e- nu r p ot i C u y Wh t o -i Id s i A e eig s b u B i ig a T pTe n ut e r Tln U A o t ul n r rs l dR l i sis ho g S c l daMo i S lt n, i e t nhp T ru h oi Mei ao a , bl o i sBg e uo D t,neat e eh o g a dO l e re n aaIt c v Tcn l y n ni Makt g r i o n iB Gen l i y l Lo s n pMa h 02 r 21 c C n ro HsaiL ae h et fr i n edr i e p c sp
  2. 2. UNLOCKING THE HISPANIC “SUPER CONSUMER” OPPORTUNITY: What Top-Tier Industries Are Telling Us About Building RelationshipsThrough Social Media, Mobile Solutions, Big Data, Interactive Technology and Online Marketing Prepared by Center for Hispanic Leadership 8 Corporate Park, 300 Irvine CA, 92606 Copyright © 2012 Center for Hispanic Leadership 0
  3. 3. UNLOCKING THE HISPANIC “SUPER CONSUMER” OPPORTUNITY: What Top-Tier Industries Are Telling Us About Building Relationships Through Social Media, Mobile Solutions, Big Data, Interactive Technology and Online MarketingExecutive SummaryThe Hispanic community is one of the greatest untapped markets we have ever seen. Already thelargest minority in the U.S., their numbers continue to grow faster than any other group.Between 2000 and 2010, the Hispanic population grew by 43 percent, or four times the nations9.7 percent growth rate. In real numbers, this was an increase of 15.2 million people of Hispanicdescent and accounted for more than half of the total U.S. population increase of 27.3 million.The total number of Hispanics in the United States today is 50.5 million people strong – andclimbing.Hispanics are also one of the most optimistic groups: most believe the struggling economy hashit them the hardest, yet conversely, they have the highest hopes for the future. According to aPew Research survey conducted in January, two-thirds of Hispanics expect to improve theirfinancial status in 2012, while just over half can say the same in the general population.Their optimism is tempered with a good deal of skepticism, however. Ideas such as financialplanning and insurance coverage can be foreign concepts to those from families or homecountries where it was not common. The institutions that offer these services are just beginningto broach this skepticism by getting past their own preconceived notions to truly understand theHispanic consumer.The emergence of Hispanics as a consumer force is growing rapidly, with a purchasing powerexpected to reach $1.5 trillion dollars in 2015. Dubbed “super consumers,” Latinos in the U.S.are blowing past the mainstream and other minority groups in this regard. In fact, the U.S. isseeing an increase in buying power not happening in other countries, and that is because ofHispanic growth here.This growth is not confined to the Hispanic consumer either. According to a recent article, the recovery is being spearheaded by Latino – and Latina – business owners andsuppliers. These businesses are growing at twice the national average. Over the last measuredfive-year period, Latino-owned business revenue grew 55% and reached nearly $350 billion. Copyright © 2012 Center for Hispanic Leadership 1
  4. 4. Such businesses, with their built-in connection to the Hispanic consumer, are seriouscompetition to many industries looking for a toehold into the market. But if you recognize themas more than competitors – for example, by partnering with Latino business owners and forgingrelationships with Latino suppliers – you will be building an important base from which todevelop your cultural intelligence.As Hispanics rise as consumers and business owners, we also have to acknowledge the growingpains, or “tension points” between the community and major industries in the U.S. Hispanicsexpect companies they do business with to understand and address their unique and diverseneeds, and research indicates common themes across industries looking to build relationshipswith Hispanic consumers. Many of these themes tie into the growing prevalence of social media,mobile solutions, big data, and interactive technology – and the spotlight all of thesedevelopments put on the importance of relationship building.Hispanic online and mobile usage is among the highest of any group and continues to increasefaster than the general marketplace. This makes them an important, if not the most importantcategory of consumers for retailers and other industries. What’s behind all of this usage andconsumption? Consider these statistics:  Hispanics account for more than half of U.S. population growth over the past ten years. In one state, Illinois, 90% of the growth was Hispanic.  The number of U.S.-born Hispanics has reached more than a million a year, for the first time surpassing immigration as the leading cause of growth.  Many Hispanic groups have doubled their population in the U.S. in the last ten years.The objective now is to improve relationships and communication with Hispanic consumers,influence their buying behaviors online, and leave a targeted value impression that createscustomer conversions.Increasing conversions means building brand loyalty and bolstering the Hispanic communitywith reassurances that their needs are being understood and addressed. This can be as simple asadding a targeted Hispanic value-added message and impression to an existing web page inorder to establish an association between a company, their products or services, and theHispanic community. Research shows that the Hispanic consumer in particular is influenced byvalue-added impressions that target them specifically. Copyright © 2012 Center for Hispanic Leadership 2
  5. 5. These consumers are also more likely to make spontaneous, “impulse” decisions. This opens upmore opportunities for businesses in the Hispanic marketplace, and those capitalizing on thepower and scope of digital technologies will have a competitive edge. One example: creating arich user experience that is easy to navigate and transferable to mobile devices. Another isenabling your Hispanic customers to engage with your brand through social media; inparticular, young Hispanics want to join the conversation, but they also want to change it andmake good on the progress made from previous generations. Hispanics want to engage in anexperience that empowers them and gives meaning to their voice, opinions and attitudes.Data integration and management strategies are also needed to measure Hispanic buying powerand trends in their behavior as consumers so that companies can allocate resources properlyand measure their return on investment. Several examples have clear connections to the Retailindustry, but can also be applied across the board to other industries, including Healthcare,Insurance, Banking & Finance, Media & Entertainment, and more.These industries are already looking to one retail giant online, Amazon, as they retoolthemselves to become more consumer-focused. Taking it to the next level – to zero in on andserve the largest and fastest-growing minority consumer group - is a natural progression.Whatever the industry, the common themes that emerge with regards to the Hispaniccommunity include: The Hispanic community is underrepresented (in the media), “unbanked” (in finance), and underserved by all industries. Companies need to do a better job of reaching out to the Hispanic community, targeting them with culturally-appropriate messages and language, providing education, showing care for the community beyond just selling to them, and understanding their diversity (i.e., not treating them as a single bloc of consumers). Hispanic consumers are fast and furious adopters of new technology, providing myriad opportunities to reach them online, via mobile devices, and through social media. Companies must get past preconceptions about the Hispanic consumer; those who strategize now to understand and capture this large and fast-growing market will be gaining a huge competitive advantage. Copyright © 2012 Center for Hispanic Leadership 3
  6. 6. The important take-away fact to remember is: success will come to those who embrace theimmigrant perspective. Companies must not force the Hispanic consumer to see through theirlens, but rather, they must adapt and seize new opportunities by looking through the lens of theHispanic consumer.Herewith, a gathering of relevant articles, events and advocacy group websites listed by vertical,along with relevant tension points that we can help to alleviate. As a prelude, please watch thefollowing video, The Shift: Hispanics in America, at HEALTHCARE INDUSTRYHispanics and Healthcare in the United States: Access, Information andKnowledge (Pew Hispanic Center Report) point: The Hispanic community is not getting the information they need, targeted tothem.Most of those without a usual healthcare provider don’t perceive themselves as getting sick orneeding healthcare. It is true that Hispanic adults have a lower prevalence of some chronichealth conditions, but there are exceptions, the most notable being diabetes. Yet even those withhealth insurance or a usual healthcare provider score low on the diabetes knowledge index. Thisshows that the Hispanic community is not being served with appropriate content, i.e. theimportance of preventive medicine and check-ups, not just healthcare for the sick, andespecially in regards to diabetes knowledge and prevention.Tension point: The medical community is not reaching out directly to Hispanics.More than eight in 10 receive their health information not from medical personnel but fromalternative sources, such as television and radio (non-medical sources). More than half heardthe message in Spanish or a mix of Spanish and English. When coming from these sources,almost 80% acted upon it. The medical community needs to become more active in reaching outto this audience instead of letting healthcare information be passively delivered and consumed.The growing prevalence of social media and mobile devices (since this report was published in2008) offers unprecedented opportunities for reaching out to specific consumers, in this casethe Spanish-speaking and bilingual Hispanic community. Copyright © 2012 Center for Hispanic Leadership 4
  7. 7. National Alliance for Hispanic Health point: Disproportionate burden of preventable disease, death, and injury amongHispanics.There is a need to promote health and quality of life by providing cultural proficiency trainingand technical assistance to local and state health agencies that serve Hispanic communities. Alsoneed programs to deliver culturally and linguistically-appropriate public health services,including updates to The National Hispanic Family Health Helpline database of providers, withan emphasis on cultural and language appropriateness of available services.Tension point: Hispanic consumers need to receive health information in a more timelymanner.Actions that can help: Adapt current materials for use in the Hispanic community. Develop aSpanish language web presence with special health topics for the Hispanic community. Quicklyadapt and disseminate crucial consumer health information, such as food and drug warningsand recalls, to Hispanic communities. Media dissemination should include wide placement onwire services serving Spanish language media and community newspapers.National Hispanic Medical Association point: Efforts to protect Hispanic adults from preventable diseases are falling shortbecause they have low vaccination rates.Low vaccination rates leave Hispanic adults vulnerable to influenza, pneumococcal disease andother illnesses. Health care reform efforts should prioritize wellness and prevention services,including vaccinations, within the Hispanic community. A doctor’s recommendation forvaccination is a leading motivator, and this is especially true for Hispanic medical professionalswho share common cultural experiences, language and values with their Hispanic patients.Approaches to promote vaccination need to be integrated across practices, and efforts also needto be extended beyond clinic walls to engage the larger Hispanic community. Copyright © 2012 Center for Hispanic Leadership 5
  8. 8. Hispanic Health Information Portal point: The obesity epidemic hit the Hispanic population fast and hard, fueled by theirassimilation into the modern American diet and lifestyle.Pursuing the American Dream can have detrimental effects on physical health, as it can lead to afast food diet and sedentary lifestyle. This must be addressed in the Hispanic community, as theobesity epidemic is leading to increased rates of diabetes and other diseases. Healthcareprofessionals serving the Hispanic community must put a strong emphasis on promotingnutrition, physical activity, and healthy habits in children as well as adults.THE RETAIL INDUSTRYHispanic Retail 360 Summit point: The Hispanic consumer market represents a significant growth opportunityfor retailers and suppliers, but it is a complex market for researchers, marketers, buyers andsales professionals to understand.Selling to Latino shoppers in the U.S. and maximizing their business requires retailers toeffectively target, segment, and execute merchandising and marketing plans aimed at thecomplex Hispanic market. Retailers and suppliers marketing to this population have to addressHispanic consumer interests, trends and other topics across multiple channels, including foodmerchandising, department store merchandising, specialty retailers, and more.Reach Hispanic (What Retailers Should Know About Hispanics) point: Only some retailers, such as WalMart, are aware of the need to focus on theHispanic consumer, limiting where this important and diverse market shops. Copyright © 2012 Center for Hispanic Leadership 6
  9. 9. Retailers have been slow to realize and act on some interesting statistics regarding the Hispanicconsumer: U.S. Hispanic spending power is growing faster than non-Hispanics. Food plays an important role in Hispanic culture, and that is reflected in their purchasing of consumer packaged goods (13% greater than the general population). Hispanics are more likely to spread out their food purchases, typically frequenting grocery stores several times per week; marketing programs can be tweaked or designed around this predictable buying pattern. Advertising works: Hispanics remember advertised products while shopping and actively seek new and improved products. Hispanics enjoy shopping more than non-Hispanics, and the experience is extending to online shopping, which is growing faster than the general market; 62% of Hispanic Internet users make online purchases.Social Media Spanish (US Retailers’ Outreach to the Online Hispanic RetailConsumer) point: As the fastest growing ethnic group in the U.S., many retailers oversimplify theHispanic community as a large homogenous bloc instead of a diverse group with deep roots inLatin traditions.Hispanics want and expect greater understanding when they are the target of retail marketing.They are strong proponents of online interactions and actively engage with their favorite retailbrands through social media. The retail industry can see this as an opportunity to build ongoingrelationships with the Hispanic community and gain greater insight into their unique anddiverse needs. For example, some consumers may prefer their content in Spanish; retailers cancater to this audience by launching versions of their websites in Spanish, at the same timerewriting/redesigning them to resonate with Hispanic cultural values and alleviate industrytension points. Copyright © 2012 Center for Hispanic Leadership 7
  10. 10. Also see:Latino-Owned Businesses: Leading the RecoveryLatino businesses are growing at twice the national average; over a five-year period, theirrevenue grew 55% and reached nearly $350 billion. INSURANCE INDUSTRYTrends in Marketing Insurance to HispanicsApril 2006- Trends in Marketing Insurance to Hispanics.pdfTension point: Hispanics represent the group most underserved by the insurance industry.Hispanics are the fastest growing minority in the United States, with the increasing buyingpower to match. Hispanics are using this buying power to purchase cars and homes at recordrates, which has caught the attention of the insurance industry. Hispanics as a group havesignificantly lower insurance rates than non-Hispanic whites and other minority groups. Likethe auto and real estate industries, the insurance industry needs to target the Hispanicconsumer with culturally-specific marketing and websites, training programs for employees, andHispanic-specific services.Tension point: There are many cultural and educational hurdles that insurance companiesmust leap as they target the Hispanic community.Because insurance is not mandatory or necessarily needed in most Latin American countries, itsimportant role in U.S. society is not widely understood across the Hispanic population. Therecan be the perception that it is “a waste of money” or “something you can live without.”Insurance terminology is another problem, with financial terms that are difficult to explain ortranslate because they have no Spanish equivalent. Insurance companies must work to alleviateconfusion through terminology that clearly explains how insurance works and why it isimportant to the U.S. Hispanic community. These consumers must be addressed uniquelybecause their backgrounds and motivations may be different from the mainstream. Insurance Copyright © 2012 Center for Hispanic Leadership 8
  11. 11. messages need to be tailored with respect to Hispanic cultural beliefs, e.g., the unpredictabilityof life and “live for today” mentality, as these can contradict the value in planning for the future.Understanding Hispanic and Latino Health and Life Insurance Buying Patterns point: Learning about insurance can cause high levels of anxiety in the Hispaniccommunity, especially among those without coverage.Even after learning about the need for insurance, most don’t act on it. The main reasons areinsurance costs, the need for more knowledge about insurance coverage, or simplyprocrastination. Education is key to influencing Latino buying patterns in the insurance arena,and the Internet offers the greatest opportunity when it comes to providing insurance coverageto the Hispanic market. Health and life insurance providers must develop website tools inSpanish and English for small business owners and individuals, with the goal of developing acaring partner relationship that not only educates and understands the Hispanic community,but adds value to their personal dreams. Issues to consider when talking about insurance to theU.S. Hispanic population include: socioeconomic status, citizenship status, migrationexperience, length of time in the U.S., and the number of generations living in the U.S. Alsoimportant is the diverse nature of the Latino market, which includes many different racialbackgrounds with different life experiences that will impact insurance decisions.Latinos for National Health Insurance point: The Hispanic community suffers disproportionately because of lagginginsurance coverage, which contributes to health disparities and mounting medical bills.Lack of health insurance is the biggest barrier to adequate healthcare in the Hispaniccommunity, even more so than culture, language, and the absence of workforce diversity.Addressing the plight of the uninsured is the most important step in eliminating the healthdisparities and financial consequences found among Hispanics. The elimination of segregationunder our current healthcare system is important to the Hispanic community, as it currentlyprovides unequal access and imposes additional hurdles to acquire and maintain insurance Copyright © 2012 Center for Hispanic Leadership 9
  12. 12. coverage. This is an opportunity for providers to address the insurance crisis in the Hispaniccommunity with a comprehensive approach to health insurance coverage that meets theirunique needs.THE BANKING & FINANCE INDUSTRYLatino Branding Power (Taking Latinos to the Bank) point: Latino populations have a general mistrust of banks, and financial institutionsare missing tremendous opportunities until they find a way to better connect with Hispanicclients.The money transfer business is a prime example of the missed opportunities in the lucrativeHispanic market. Many Hispanics in the U.S. send the fruits of their hard labor to families intheir home countries, a transfer of funds that could be handled by banks and credit unions.Financial institutions could capture billions of dollars by connecting to “unbanked” Latinohouseholds in the U.S. There is $53 billion attributed to unbanked Latino households, accordingto “Lost in Translation: The Opportunity in Financial Services for Latinos,” a report based on ayear-long study conducted by a research arm of the University of Virginia’s Darden School ofBusiness. Capturing these Latino customers means: considering alternative locations for branchoffices; providing education, especially for recent arrivals who may not have experiencemanaging their money with a bank; offering culturally relevant services in Spanish withbilingual/bicultural staff to build trust and credibility; and providing mobile banking to supportthe growing numbers of Hispanics connecting to the web via mobile devices.Hispanic Business (The Hispanic Wealthy: The Next Big Wave in FinancialServices) Copyright © 2012 Center for Hispanic Leadership 10
  13. 13. Tension point: The misconception persists that only Hispanic celebrities and sports stars likeJ-Lo and A-Rod have money, and that most Hispanics are in service occupations with no needfor financial planning.Hispanic High Net Worth Individuals (HHNWI) are one of the fastest-growing groups in theU.S., but only one-third have a financial plan or plan for retirement. This presents a greatopportunity for financial organizations to educate and advise Hispanics about the risks andrewards of their products and services. Hispanic business owners and companies are anotherfast-growing group with a host of financial needs. Financial services companies are competingheavily for this market, but Merrill Lynch is doing it best with active involvement in localcorporate communities, strategies to penetrate specific geographies, and sponsorship of LatinAmerican events that attract affluent Hispanic clients.Latin Business Blog (Servicing unbanked Hispanics begins with financial literacy) point: There are multiple barriers between Hispanics and their use of conventionalbanking services, and financial institutions are not making enough of an effort to serve themwith specialized outreach.There is a clear disconnect between Hispanics excluded from the banking system and thefinancial institutions that should be serving them. Few banks have made it a strategic priorityand too many assume that doing business with this group will not be profitable; they also cite“regulatory impediments” and “fraud concerns.” On the flip side, Hispanics aren’t reaching outto financial institutions either, mainly because of a lack of financial literacy. Efforts to remedythe disconnect on both sides should focus on financial education as the primary outreachstrategy.THE MEDIA & ENTERTAINMENT INDUSTRYNew Generation Latino Consortium Copyright © 2012 Center for Hispanic Leadership 11
  14. 14. Tension point: Media & Entertainment focuses on Spanish-dominant Hispanics, largelyignoring the uncharted territory of the bilingual/bicultural majority.In the world of media and entertainment, New Generation Latinos (NGLs) are the underservedmajority of U.S. Hispanics. This market represents a huge opportunity for entertainment andcontent creators. As part of the fabric of mainstream America, this trendsetting group is ripe tobe portrayed in the mainstream media. And because they’re more assimilated than previousgenerations, they’re more open to embracing their heritage and seeing it reflected in theirentertainment choices. Attracting NGL viewers depends on casting choices, show themes, andother lifestyle connections. True and balanced content trumps trying too hard to single out theHispanic demographic or being overtly Latino. A subtle, nuanced approach that’s culturally intune with the NGL lifestyle and mindset will be more effective.The Digital Behavior of Latinos in Entertainment Consumption point: Media and Entertainment companies need to acknowledge that Hispanics areat the forefront of the digital consumer revolution, and act accordingly.Hispanics use mobile and online technologies at higher levels than the general public. Inentertainment, they are more likely to experience videos and music on their mobile phones, andare the biggest wireless group in the U.S. Latinos engage in dynamic behavior while using newtechnologies for entertainment consumption. For example, nearly one-third of heavy moviegoers in the U.S. are Latinos; as the youngest ethnic group in the country, they rely on smartphones and other digital mobile devices to choose films and theaters. Latinos also are quick toshare opinions by text and social media, and are more open to mobile ads, banners and searchresults than the average consumer.Media Coverage of Hispanics (Pew Research Center Publications) Copyright © 2012 Center for Hispanic Leadership 12
  15. 15. Tension point: The general public’s knowledge of Hispanics is primarily colored by event-driven news stories and stereotypical portrayals instead of a more accurate and focused coverageof the community that portrays real individuals, their lives and experiences.Considering that Hispanics are the largest minority group in the U.S. – and growing every day –it is perplexing that their portrayal in mainstream media has such a limited range, from nearlyinvisible to clearly stereotypical. Whether for entertainment or in the news, stories rarelymention Hispanics, much less focus on their lives and experiences beyond the stereotypicalmold of preconceived notions. More than a third of all recent Hispanic-related coverage dealtwith Supreme Court Justice Sonia Sotomayor, a big news event but one that left the rest of theHispanic community largely ignored. Even coverage of the immigration issue has been droppedor curtailed by the media. There is great potential here for media and entertainment companiesto provide a more thorough and focused portrayal, to both service the Hispanic community andenlighten the general population.Also see:Univision and Disney in Talks for an English-Language News Channel broadcaster Univision is in talks with The Walt Disney Company to combinenews division resources and start an English-language cable news channel. As the first channelspecifically for English-speaking Hispanics in the U.S. – and one expected to compete with thelikes of CNN, MSNBC and Fox News – this development acknowledges the growing numbersand influence of the Hispanic audience.Univision: The Hispanic Consumer Hispanic Media Coalition AUTOMOTIVE INDUSTRY Copyright © 2012 Center for Hispanic Leadership 13
  16. 16. Growing Hispanic Demographic Urges Bi-Lingual Marketing in AutomotiveIndustry (Tier 10 News) point: The Hispanic attitude toward purchasing a vehicle must be treated with moreunderstanding and respect; more so than with non-Hispanics, it is “an event, a proudcelebration” that elicits strong emotion.Companies marketing to Hispanics must understand what it means to them when they buy anautomobile, the second largest purchase most of us make in our lifetime. It’s part of theAmerican dream, but it’s more than that, too, as it reflects Hispanic values, the importance offamily and providing for them. And this in turn is a reflection of their desire to not assimilatebut “acculturate,” i.e. hold on to their culture, language, customs and traditions as they take partin what it means to be an American. Companies can show that they understand these emotional,cultural and traditional values in their marketing and advertising, but also by investing in thecommunity and aligning themselves with non-profits and other groups that serve the Hispanicpopulation.Hispanics and the U.S. Auto Market (Polk View) point: Domestic automakers are not connecting with Hispanic consumers, while theirforeign counterparts are making greater efforts and winning market share.At #1 with Hispanic consumers, Toyota recognizes the diversity of the Latino market and gearsmillions in advertising, its Spanish-language online content, and event sponsorships to differentsegments of the community. #2 Honda also has a Spanish-language website as well as integratedadvertising campaigns focusing on the Hispanic values of tradition and reliability. #3 Nissancourts Hispanic customers, especially the growing numbers of Hispanic youth, throughadvertising, sports related sponsorships and scholarship funds. Meanwhile, domesticautomakers are seeing a decline in Hispanic market share and would do well to follow thesuccessful lead of their foreign counterparts in reaching this important demographic. Domesticautomakers will begin to see a turnaround when they embrace the immigrant perspective thatforeign automakers already have. Copyright © 2012 Center for Hispanic Leadership 14
  17. 17. Engage:Hispanics – Automotive Moms point: The industry doesn’t always get that women – and Hispanic moms inparticular – have a vested interest in automobile purchases and a big say in vehicle selection.Research shows that Hispanic moms have great influence in automobile selection and purchasefor their families. More than any other industry, communications can influence and shouldtarget the Hispanic Mom, even to the point of building marketing plans around her. Inparticular, messaging should convey an understanding of her unique needs and reflect theimportance of family and children; clearly show features and functions and how they will benefither; and be spread across as many different media outlets as possible to reach these busy andon-the-go moms. Building trust is especially important with this market segment, as she willshare her brand loyalty with family, friends, and through social media.Also see:Hispanics Accelerating Auto Industry Growth (Brand Solutions, Automotive atUnivision Communications Inc.) PR Wire: Hyundai Motor America Launches…Traffic Safety Campaign“Motor vehicle related crashes are the leading cause of death among Hispanics ages 1-34.” Español Twitter FeedCompanies like Nissan are extending their brands in Spanish via Twitter to gauge theirconnection with the Hispanic audience. Copyright © 2012 Center for Hispanic Leadership 15
  18. 18. THE TELECOMMUNICATIONS INDUSTRYHispanic Technology & Telecommunications Partnership (Latino Innovation andthe President’s State of the Union) point: Though Hispanic Americans are leading users of mobile technology, only 1/3use the Internet capabilities; they are not making up for it at home either, as less than half ofmobile users have alternate sources of Internet broadband access.In the modern world, access to and usage of the latest technology is crucial to fulfilling theAmerican dream. Hispanics must take advantage of the full range of broadband and wirelesscapabilities as they strive toward their economic and social goals. Broadband in particular is theplatform that will enable the Hispanic community to connect to valuable resources andparticipate in important areas that affect their lives, such as healthcare, education, andemployment opportunities.Broadband & Social Justice (‘Don’t Go to the Ghetto?’ Some Consider NewApplication a Digital Divider) point: Broadband technology can enable change and create opportunities for theHispanic community, but companies need to be wary of creating a divisive environment.As the telecommunications industry targets the Hispanic community for more inclusion, it couldleave them vulnerable to more unfair treatment by those who would use the information againstthem. Less than forward-thinking companies have been known to engage in questionablepractices, such as pulling advertising and availability of products and services in minoritycommunities or communities considered “high risk.” We’ve seen so called redlining in housing,banking, and insurance; now it is threatening the availability of broadband Internet service toHispanic consumers. Incredibly, the FCC recently had to take action against a “No Urban/NoSpanish” policy some companies tried to pull with their refusal to advertise on broadcaststations for Latinos and other minorities. Copyright © 2012 Center for Hispanic Leadership 16
  19. 19. The Americano: Hispanics Will Spend the Most on Telecommunication Services point: Hispanic usage of telecommunications is growing faster than other groups,and with it they are demanding more services for their unique, diverse, and quickly evolvingneeds.Telecommunications providers are under the gun to understand and address the HispanicAmerican consumer and their rising purchasing power and influence. They must differentiatetheir spending patterns, usage habits for wire lines and cellular, calling cards and internationalservices, as compared to the general population and other minority groups. For example, theHispanic market spends double what the average household spends on wire line services, butthey are also a greater consumer of mobile content, more connected than other groups withonline usage growing faster, and a heavier user of social networks.THE DIRECT SALES INDUSTRY (MULTI-LEVEL MARKETING)Direct Selling News: How to Effectively Reach the U.S. Hispanic Market point: Companies can’t just jump on the bandwagon and start pushing sales onHispanic consumers, they need a long-term strategy, starting with their top leaders, that showsthey support the community and care about their issues.Companies looking to attract Hispanic business must be prepared to advocate for their issuesand make investments accordingly. Support from the highest levels of the company is key, andthe management team would do well to add bilingual/bicultural leaders and staff to show theircommitment to the community. Communications should not just be translated, but“transcreated,” i.e., adapted with culturally relevant words and tailored messages that conveyawareness and caring about Hispanic lives and traditions – for example, the importance offamily in Hispanic culture. Also important is promoting Hispanic leaders as mentors, rolemodels, and a voice for the community. Copyright © 2012 Center for Hispanic Leadership 17
  20. 20. Market America Creates Hispanic Direct Selling Program point: The entrepreneurial spirit of the Hispanic community and natural fit of theDirect Selling industry may entice them to resign prematurely from more traditional and securejobs.Hispanics are turning to the Direct Selling industry in pursuit of the American Dream. It is anatural fit, combining the Hispanic values of entrepreneurship and family. Hispanics also have atradition of turning to informal sales during times of high unemployment, e.g. selling streetwares or from home to make ends meet. Recognizing this, companies in the direct sellingindustry are gearing sales material, websites and even whole product lines toward Hispanicsellers and buyers. The Direct Selling Association even ran a 20-page insert in Latina magazineto entice the community. However, companies should practice restraint and not oversell thebenefits when pitching Direct Selling to the Hispanic community. Direct sales companies fit intothe culture in a way that other industries do not, and with that entry into the community comesthe responsibility to respect individuals and set realistic expectations so that people can makeinformed decisions about their futures.Feet in 2 Worlds: Telling the Stories of Today’s Immigrants (Latino ImmigrantsEmbrace Herbalife) point: The direct sales industry provides an alternative source of income to theunemployed/underemployed Hispanic, but reaps most of the reward from increased sales toHispanic consumers.Hispanic consumers may do business with direct sales companies they perceive as helpingHispanics. But in reality they may just be lining the pockets of the parent company. Somecompanies may take advantage of those from small towns, the uneducated, or those merelydesperate for work in the bad economy. Hispanics, with an employment rate of 11.5%nationwide according to the U.S. Bureau of Labor Statistics, will naturally gravitate toward anopportunity that looks promising. While low start-up costs and other advantages are attractive,the direct sales industry, so reliant on word-of-mouth, will also need to develop a fair long-termstrategy. Copyright © 2012 Center for Hispanic Leadership 18
  21. 21. Embracing a Solution and the Immigrant PerspectiveHispanic community pain points are felt across many vertical industries. To transcend thesetensions, the Hispanic consumer must live their cultural values and the natural characteristicsthat define their immigrant perspective. As mentioned in the introduction, industries reachingout to the Hispanic community – from their advertising to sales to customer care – must see thecommunity through the lens from which they see themselves.Providing a platform for Thought Leadership that speaks authentically to Hispanic users iscritical to engagement with, loyalty to and post impression value of your business. Hispanicswant to know that your organization has carefully invested in their needs and you candemonstrate this by associating with credible and reputable leaders in the Hispanic community.They also want to feel as if your brand is living and supporting the same cultural values that theythemselves are fighting to hold onto and proudly seeking to live more frequently.Hispanics battle the gulf between “too much” assimilation and “not enough” authenticity.Brands have a unique opportunity to earn this incredibly valuable consumer – one that has yetto be fully unlocked – by empowering Hispanics to recognize that their cultural roots are notbarriers to advancement, but deep sources of strength.Become a part of the solution by embracing the immigrant perspective, and you will win thehearts and minds, business and support, of the Hispanic community.Additional ReadingFor more on this opportunity, see “The Immigrant Perspective on Business Leadership” at This informative white paper furtherillustrates the changing face of America and how businesses can attract new consumer groups bycanvassing the multicultural landscape for new and exciting possibilities.“The Six Reasons Why Hispanic Leadership Will Save America’s Corporations” Copyright © 2012 Center for Hispanic Leadership 19
  22. 22. “Creating Cultural Relationships for Your Hispanic Business”“The Oscars Prove that Hollywood Must Place Diversity at the Center Stage to Survive LongTerm”“Dont Sell to Me! Hispanics Buy Brands that Empower Their Cultural Relevancy” the Center for Hispanic Leadership at: Copyright © 2012 Center for Hispanic Leadership 20