CHICAGO — Products and services targeting the Hispanic market will realize much success in the coming years, noted a recently published SymphonyIRI Group “Point of View” report that outlined the growing opportunity in targeting that demographic.
And this rapidly growing group is expected to wield $1.3 trillion in purchasing power through the end of this year.
Hispanics, as a group, spend nearly 8% more on consumer packaged goods than any other population, and have particularly strong spending in the mass merchandise and club channels, the report noted.
Hispanics spend 20% and 36% more in club and mass merchandise outlets, respectively, than the general population. In the supercenter channel, however, Hispanic and non-Hispanic spending per trip is about the same. Hispanics spend less per trip in other CPG outlets than non-Hispanic shoppers.
Hispanic spending growth is strongest in dollar and club channels.
Hispanic shoppers, like any shopper in the current economic climate, are attracted to value and make channel decisions heavily based on price and proximity to their home. But Hispanic shoppers also are more brand-loyal than the overall population, and gravitate toward those retailers who actively engage them in their native dialect, such as through store signage or bilingual customer service representatives. Shelves stocked with products and brands from their countries of origin also are key store selection criteria.
“Establishing and building strong brand relationships with these shoppers early in the acculturation process is key,” the report noted. “With more than three-quarters of unacculturated Hispanics preferring to consistently purchase the same brands, investing the time, money and effort necessary to break into the Hispanic shopping basket ... often will provide long-standing rewards.”
Another factor to consider, according to the report: “Hispanic families often shop as families, and that means children tend to have a particularly strong influence on purchasing decisions.”