Understanding the Hispanic-American consumer
With the steady accumulation of purchasing power attributed to the Hispanic-American community, marketers more and more are targeting Latinos. Here’s why: the Hispanic-American population numbers more than 54 million today, with a total buying power of $1 trillion — expected to reach $1.5 trillion in the next two years — and 1.8 million households generating incomes greater than $100,000. DSN called in Reny Diaz, director of client engagement for Nielsen, for additional perspective about the Hispanic-American opportunity.
Reaching this audience requires significant investment, but if a brand is large enough and/or it particularly resonates with the Latino shopper the return can be huge, Diaz told DSN.
For the full audio Q&A, click here.
‘Culture shop’: Targeting the Latino customer
The Hispanic opportunity represents a "new American reality," noted Roberto Ruiz, SVP strategy and insights for Univision Communications, last month at the Consumer Healthcare Products Association’s Annual Executive Conference. Hispanic-Americans aren’t assimilating into the American melting pot. "We’re hearing people say they are ‘200% individuals’ in our focus groups," Ruiz said. "100% American and 100% Latino."
By the end of 2012, approximately 54.5 million Hispanic-Americans were living in the United States — about 20% of the total U.S. population; in the next generation, that number will reach 30%.
Reaching this heterogenic population has become less about the language and more about addressing the culture "in a way that’s sincere and respectful," noted Doug Stukenborg, Target divisional merchandise manager for pharmacy, OTC and optical. "It can’t be done in some … corner office. A diverse marketplace needs to be embraced across an entire organization, from the boardroom to the sales floor."
In stores that target the Latino shopper, Target looks for a mix of brands familiar to customers from their country of origin, as well as U.S. brands that over-index among Hispanics. "It’s a balance of bringing in those key items that we need to have in order to be relevant [with the Hispanic consumer], but also really thinking about what does she care about as a consumer. Some of the unique items we bring in … may not be performing at levels that would normally keep them on the shelf, but … it creates the right impression that helps her understand we’re a store for her."
For CPG manufacturers, making sure their message breaks through may mean duplicating marketing efforts. "This is not only a valuable consumer … but also one very new to messaging," said Reny Diaz, Nielsen director client engagement. "Fifty-seven percent of viewers of a Spanish broadcast aren’t reached [with] English [messaging]."
Polaroid’s Fotobar blurs line between retail, entertainment
DELRAY BEACH, Fla. — Polaroid unveiled its new concept, Polaroid Fotobar, here, in February, with plans to open at least 10 locations this year. The 2,000-sq.-ft. store is positioned both as a place to shop and a center for recreation and entertainment, allowing customers to release "trapped" photos and display them as premium-quality art. Customers can select pictures taken with their phones and wirelessly transmit them to a bar-top workstation for ordering prints or instantly uploading them to Facebook, Instagram, Picasa and other platforms. A multipurpose room, The Studio will include photo classes, private parties and studio space. Other locations are planned for New York, Las Vegas and Boston.