Recently, more companies than ever have begun using social media to reach multicultural consumers. If you’re wondering what’s behind the trend, it stems (in part) from a recognition of the size and economic clout of multicultural groups — now about 34% of the U.S. population, with an estimated spending power of over $2 trillion.
“I think companies are turning to social media specifically to target ‘multicultural’ consumers because they’re beginning to recognize this audience’s large influence in the social media sphere,” said Christine Huang, Head of Cultural Trends at GlobalHue, a top multicultural advertising agency. She notes that recent research from Pew Internet and Mintel confirm this emerging influence.
For companies, multicultural social media campaigns provide other benefits. They are less expensive than traditional marketing efforts and allow for relative ease in updating and adjusting strategies. They also allow for the micro-targeting of specific co-cultures within diverse communities, so that companies can move beyond strategies targeting Blacks, Asians, Latinos, or Native Americans generally, and specifically engage the co-communities that exist within these groups, such as Africans, Brazilians, South Koreans, Indians, Puerto Ricans, or indigenous peoples.
Companies looking for new sources of revenue might consider that multicultural markets are part of the The Long Tail — the sizeable number of diverse and profitable niche markets often untapped by companies. Nichelle Stephens, editor of PepsiWeInspire.com, a social networking site for African-American women, sees it this way: “Reaching out to diverse groups is like a remix of the Long Tail Theory… it’s about big brands marketing to niche groups.”
For companies and organizations looking for ways to connect with multicultural consumers, below are eight strategies for engagement that can help you develop and deploy an effective multicultural — or other niche — social media campaign.
1. Include Multicultural in Your Larger Marketing Strategy
Instead of developing multicultural social media campaigns on a one-off basis, make them part of your larger marketing strategy. American Airlines’ launch of BlackAtlas.com, a travel site geared toward Black travelers, is an example of this kind of effort. The decision to launch the site “was directly aligned with our social media and diverse segment marketing strategies,” said Stacey F. Frantz, Director, Corporate Communications for American Airlines.
“At American, we market not only to business passengers, frequent travelers, [and] leisure travelers, but also to what we call diverse segments, which have unique cultural or group dynamics,” explained Frantz. “This DSM [diverse segment marketing] approach includes the African-American, U.S. Hispanic, LGBT and women segments. BlackAtlas was a bold play into the African-American segment, and one we’re really pleased to have made based on customer feedback.”
An added benefit of adopting this kind of approach is that your company can share niche social media marketing practices across demographics, so that instead of reinventing the wheel for each new targeted campaign, you can adapt existing best practices from your previous efforts and apply them to new campaigns.
2. Engage Across the Cultural Landscape
It’s a good idea to expand your understanding of other cultures beyond language, music, and cuisine. Develop your niche cultural campaign knowing that there is a full cultural landscape from which you can draw inspiration and material for your social media site. Saskia Sorrosa, Senior Director of Marketing at the NBA, described the importance of understanding the cultural groups themselves.
“Cultural relevancy goes beyond language,” noted Sorrosa. “To be effective in reaching your target, you need to first understand who you are trying to reach, their wants and needs, their social environment, and their consumption patterns. Understanding the cultural landscape will allow you to better define what your brand or product needs to look like to appeal to your target.”
Companies should also be aware that consumers often have a certain comfort level toggling between different cultures. As Lynne d Johnson, Senior Vice President of Social Media at The Advertising Research Foundation observed, “Today’s multicultural consumer code- and culture-switches, and brands need to understand that. You can’t speak with consumers in just one voice, or expect to reach groups at various life stages with the same messages,” said Johnson, also noting that generational differences impact how marketing messages are received.
3. Celebrate Culture!
The celebration of the culture and diversity of multicultural communities should be central to your social media campaign. Don’t be afraid to highlight aspects of a particular group’s culture. Honda engages the culture of historically black colleges and universities with its Battle of the Bands site, for example, while State Farm celebrated Bollywood entertainment with its BollyStar competition, sending the two winners to star in a Bollywood movie.
Take your cue from the NBA, which combines its entertainment offerings with a celebration of culture on one of its newest sites geared toward Hispanic and Latino fans: éne•bé•a (the Spanish pronunciation of NBA). According to Sorrosa, “Éne•bé•a further allows [the NBA] to deliver the excitement of the world’s most dynamic game in a way that celebrates our fans’ cultural identity and the diversity of our players and fans.”
4. Just Say “No” to Stereotyping
It’s common practice to “fill in the blanks” when you have an incomplete understanding of a subject, but when dealing with cultural issues, a lack of understanding can be disastrous. Avoid relying on stereotypes when developing your campaign. Instead, base your understanding of cultural matters on consumer research (see #6 below), focus groups (see #7 below), and your internal marketing resources.
Avoiding stereotypes can be difficult. “Online as well as off, all brands speaking to diverse audiences face the challenge of developing culture-based strategies that aren’t rooted in stereotypes or staid notions of ‘general’ vs ‘multicultural marketing’,” observed Huang. “They’re charged with the none-too-easy task of creating messaging that is relevant to their disparate and evolving audiences — which requires more than a cursory understanding of their generalized heritages and identities.” Understanding multicultural consumers takes work, and there is no shortcut for gaining a thorough understanding of the diverse groups your company is trying to reach. Your efforts in this area will increase consumer appreciation and raise the level of trust in your organization.
5. Second That Emotion
Finding an emotional connection with multicultural consumers is essential to the success of your social media efforts. The NBA understands this, and supports this kind of connection on their éne•bé•a site. Said Sorrosa: “We know, for example, that our Hispanic fans have a strong emotional connection with our Latino NBA players. That said, our content across our éne•bé•a digital assets has a special focus on these players, including interviews, online chats, statistics, photo galleries… more so than you would find on our general NBA content pages.”
Along the same lines, if your company has a track record of involvement with the community you are trying to reach, highlight that relationship somewhere on the site. It’s a great way to build trust while demonstrating your commitment to the community, particularly if your engagement has spanned a lengthy period of time. Communities appreciate organizations that have invested in them over the years. Why not tap into the reservoir of goodwill that you’ve already developed?
6. Research Your Audience
Because culture is often a sensitive issue with people, it is important to do your homework on the audience you want to connect with. When developing their BlackAtlas.com site, American Airlines put considerable effort into research. “Our consumer research indicated that a digital offering like BlackAtlas.com would fill a void for African-American travelers who were searching for relevant travel tips, destinations and insights from experts and people just like them,” said Frantz.
And whatever you do, don’t assume. “It’s important to conduct research before just going out on a limb and assuming you know who your customer is,” said Johnson.
7. Test Your Assumptions
As you’re developing ideas for the site, test them out on employee and consumer focus groups. Frantz notes that American Airlines conducted extensive testing on its BlackAtlas.com site. “The concept of the site was tested in focus groups, at several stages,” said Frantz. She also mentioned that it was “previewed by employees of American Airlines who provided a strong endorsement for its relevance among African-Americans.”
It can be easy for companies to get caught up in “groupthink” and rely on the opinions of marketing experts when developing culturally-relevant campaigns. Frantz advises companies to trust their audience: “[C]hallenge your organization to trust people who live as minorities, value their input into the site and don’t try to make it appeal to everyone. Delivering culturally-relevant, fresh content is central to your success.”
8. Work the Networks
To get a better understanding of the communities you are trying to reach, visit social networking sites, microsites, or blogs geared toward multicultural groups. Spend time on larger sites like TheGrio and MySpace Latino, as well as emerging sites such as QuePasa.com or CitySaheli, a social networking site for South Asian women. These sites will give you a sense of the range of viewpoints, communication styles, popular topics, and current issues facing members of the various communities. You may also find these sites to be fertile advertising ground when the time comes to promote your new campaign.
Conclusion
Multicultural social media is more than just a passing fad — it’s an opportunity for companies and multicultural consumers to connect around ideas, products, and services. Companies are using niche cultural campaigns to increase their brand awareness among multicultural consumers — many of whom enjoy participating in these culturally relevant online experiences.
Isn’t that what social media is all about? As Huang notes: “Companies who have the capacity to truly understand the cultural nuances of their audience and use that insight to seed their messages in the right places to effectively speak with — not just to — them, are the ones that are using social media the way it is meant to be used; as a tool for organic conversation, not scattershot blasting.”
Jessica Faye Carter is an award-winning author and columnist. Her company, Nette Media develops social media technologies for women and multicultural communities, and she blogs at Technicultr.
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1. Hispanics are destination-shopping
Hispanics see shopping as entertainment and opportunity for family / friends time, "me time" and even date time with spouses. Different trips call for different experiences and companionship. Many stores have taken advantage of this opportunity to be a destination for social activity by adding cafes, lounges and bars.
When targeting Hispanics, the competitive set is not just other retailers and stores, but also destinations. By developing the overall store experience, retailers have an opportunity to increase time spent in store as well as store loyalty.
2. Variety is the spice of Hispanic shopping
Hispanics are not motivated to simplify their shopping routine. In grocery shopping, a minimum of five channels are used by shoppers.
Understanding what category associations the Hispanic shopper has with different stores creates new opportunities in distribution.
3. Personal map replaces "near my home"
For Hispanics, shopping is not an isolated event but rather a part of their busy daily routine. Knowledge and preference of stores are based more on proximity to daily activities than proximity to home.
The challenge is to evolve beyond zip codes and understand the Hispanic footprint and where they live their daily lives. This "personal map" opens the door to discovering and expanding the base of Hispanic targeted stores.
4. One shopper, four lists
Hispanics are making lists and any one shopper most likely has a number of different types of lists in their arsenal.
The four types of lists:
For brands, understanding trip mission and category helps understand which list you want to "get on" or "make" and where to start the conversation within the buying cycle.
5. Brands battle it out at the shelf
While-list making is important, the store shelf, where 70% of Hispanic purchasing decisions are made, is the last stand for swaying the brand purchase decision.
Key attributes, packaging and promotions are factors that influence the final decision. Being relevant to the Hispanic consumers' needs and preferences can win that battle from the shelf to the basket.
6. The emergence of digital in retail
The perfect storm is forming from the overwhelming numbers of Hispanics participating in the digital world and new digital retail activities. And while Hispanics under-index in coupon clipping, they are over-indexing in online and mobile application redemption.
Leveraging these opportunities with online, mobile and in-store applications is the next phase in connecting with Hispanic shoppers.
7. "Shopping" is limited to only planned trips
Hispanics have been under-reported in frequency of shopping trips, despite their high number of channel choices, enjoyment of experience and larger basket sizes. This disparity is because Hispanic shoppers define "shopping" differently. Shopping involves only the planned/routine trips, and doesn't include spontaneous trips, which are frequently made.
Understanding this small but important difference opens the door for creating moments of interception that encourage and recognize spontaneous shopping trips.
8. Private labels take the stage
Where 37% of Hispanic shoppers purchased more private label products in 2009, 25% plan to buy more this year. Private brands account for 31% of Hispanic household grocery basket; averaging $89 every two weeks out of a total of $267.
To the general market, private labels are seen as generic and recognized for their price benefits. For Hispanics, however, private labels are seen as store brands, placing a higher importance on the value they carry as a product from a trusted store. To take advantage, stores must leverage their store loyalty in promoting private labels.
9. Product attributes drive brand choice
The number one reason that Hispanics try out new brands/products is the quality of their ingredients. Hispanics are moved by attributes of "well-being" like real, natural and fresh. Additionally, Hispanics are becoming more aware and increasingly more educated on health issues, taking steps to manage these issues by looking for low-fat, low-sugar and low-calorie options.
Besides packaging, product cross-promotions and communications, highlighting well-being could make the difference in choosing one store or product over another.
10. Different definition for convenience
The convenience and drug store category is important for the Hispanic market; however, the Hispanic shopper defines the quick-trip benefit of convenience differently.
For the general market, convenience is based on the speed of the experience from location to transaction. For Hispanic consumers, it's about a good experience even at the c-store and drug store level. "Location convenience" is about how quickly they can get to the store so they have the time to find what they are looking for.
These fundamental differences change how we talk to consumers about the store experiences and product offers to better reach the Hispanic consumers' need for convenience.
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From emarketer.com
]]>The 2010 Census is expected to show that the Latino population is almost 50 million strong (15.5% of the total U.S. population), up from 35 million in 2000. By 2050, Hispanics are projected to number almost 103 million, says the U.S. Census Bureau.
In terms of spending, Rockville, Md.-based Packaged Facts reports that the Latino community's buying power is expected to reach $1.3 trillion in 2013, up from $984 billion in 2008 (a cumulative growth rate of 31%). According to a November Adweek article, Hispanics have about $863 billion in discretionary annual income, more than any other minority group in the U.S.
In short, for many well-established brands and retailers, the Hispanic market represents a potentially huge growth opportunity.
The Association of Hispanic Advertising Agencies (AHAA) reported that the top 500 advertisers allocated 5.4% of ad dollars "during last year's recession to reach and connect with Hispanic consumers, up from 5.1% in 2008." But as brand managers realize the need to allocate more money to attract Latino consumers, expect to see more arm wrestling for marketing dollars, says Michael Olguin, president of New York-based Formulatin (a national Hispanic public relations agency).
"There will be a greater play for Hispanic marketers who really understand that space," he says.
The key word being "understand." Rolling out true Hispanic shopper marketing programs requires more than using Spanish copy on a header card. It's knowing the Hispanic shoppers' purchase behaviors, origins and passions.
Characteristics of the Hispanic Shopper
"Marketers know that Hispanic shoppers represent a huge and growing customer base, and that this group is critical to the future success of their brands," says Donald Longo, editorial director for Stagnito Media Food Group, New York (producers of the Hispanic Retail 360 Summit). "The difficulty with reaching them effectively stems from the many different types of Hispanics -- it's not a homogenous group." Those individuals who trace their origin or descent to Mexico, Puerto Rico, Cuba, El Salvador and other Central and South America countries all fall under the Hispanic label, and within the demographic there are varying degrees of acculturation.
Less-acculturated shoppers tend to retain more of their habits from their home country, essentially living a lifestyle in the States as they would back home, Olguin says. They tend to choose stores that offer products from their home country and appreciate bilingual signage and Spanish-speaking employees, adds Mark Bacon, U.S brand director for Casa Herradura Tequilas (a division of Brown-Forman), Louisville, Ky.
"For those who rely on Spanish as their primary language, it sends a message that those shoppers are welcome," says Gisela Girard, AHAA chair and president and COO of Creative Civilization, a San Antonio-based agency. "For more acculturated Hispanics, the use of bilingual messaging is still an important way to create a sense of engagement and respect. Even though the Hispanic consumer in this case may not be fluent, or even Spanish-capable, they still feel acknowledged and important."
"The Hispanic shopper today is much more savvy and sophisticated than before," adds John Echeveste, principal at VPE Public Relations, a firm dedicated to the Hispanic market with clients like McDonald's and Nestlé in South Pasadena, Calif. "We know that they shop more often, make larger purchases and over-index in many key categories, especially baby products. We also know that moms are the primary decision-makers in the household, but that kids are strong influencers."
"Hispanic shoppers are looking for value, whether it be a cost value or entertainment value in terms of their in-store experience," adds Liz Arreaga, partner of Austin, Texas-based agency Mercury Mambo. "As seen in our own shopper study among Spanish-speaking shoppers, shoppers are paying more attention to promotions. Both retailers and Hispanic shoppers alike told us that discounts, BOGOs and store events were appealing. Shoppers are using store circulars as shopping guides and actively searching for promotions and deals, rather than passively purchasing the same brands."
And breaking the notion that they don't use coupons, Kim Finnerty, vice president, consumer/shopper insights at PanaVista, a Hispanic marketing promotions agency in Dallas, says that in its most recent 'NVista Hispanic Shopper Tracker, 45% of Latinos said they are using more coupons due to the economy.
Other characteristics that industry experts say define this segment include: They consider shopping to be a family outing; they are disciplined shoppers who plan their shopping trips and are more likely to stick to a budget; word of mouth is important; they tend to prepare more meals at home; they are influenced by celebrities for purchases; less-acculturated Hispanics may still prefer independent retailers, while the more acculturated are more likely to visit chains; and radio, Spanish-language TV (especially novellas) and the Internet are good ways to reach them.
In-store, they claim to be more heavily influenced by all types of merchandising than general market shoppers, says Finnerty, citing the 'NVista Shopper Tracker. "In-store sampling is cited by 57% as significantly influencing purchase," she explains, compared to 52% of the general market. "Hispanic shoppers are also drawn to shelf coupons and special displays (both 47%)," Finnerty adds.
CPG companies and retailers are employing a number of methods to learn how they can penetrate this segment. More than 20 major brands such as Clorox, Kraft Foods, McDonald's, Nestlé and Subway have joined the Latinum Network, a business network devoted exclusively to helping corporations tap into the Hispanic market. The organization provides peer-to-peer collaboration, strategic analytics and research.
"One of the challenges of the Hispanic shopper marketing experience," adds Noemi Ricalo, president of PanaVista, "is the lack of sales data to support program expansion. Nielsen panel data is not always available and typically under-represents Hispanic results." She cites regional chain Jewel-Osco as one retailer with a comprehensive Hispanic marketing program: "They not only partner with their manufacturers, but more importantly, provide metrics at the end of the promotional period."
Dallas-based 7-Eleven, a member of the Latinum Network, created a senior director of Hispanic marketing position about 18 months ago to better understand this consumer. The senior director, Irene Sibaja, says the retailer uses its major market study -- conducted every two to three years -- for a sense of what percentage of customers are Hispanic, what they tend to buy and how much they spend. Proprietary research also elicits insights.
"Last year we conducted focus groups among Hispanic male shoppers, and parts of our current strategy are based on what we learned," says Sibaja. Industry and CPG studies are also used, although she notes that they'd like to see more studies that differentiate Spanish-language-dominant from non-Spanish-dominant consumers.
At White Plains, N.Y.-based Tecate, vice president of marketing Felix Palau says they employ several approaches to analyze and test campaigns with Latinos. These include demographic analysis, psychographic research and direct market information.
Multicultural shopping studies across categories and channels have been done at The Clorox Co., Oakland, Calif. And more recently, the company has embarked on deeper path-to-purchase studies for its key categories, says Jennifer Reiner, multicultural team lead -- specialty.
To attract this coveted target, some retailers have opened "Hispanic" stores. Last year, Walmart opened two Supermercado de Walmarts -- one in Houston and one in Phoenix -- and a Mas Club discount warehouse club in Houston. Walmart declined to be interviewed, but a June 2009 company press release says the Phoenix Supermercado de Walmart "features a new layout and product assortment designed to make it more relevant to local Hispanic customers." The 39,000-square-foot store carries fresh tropical fruits and vegetables; fresh corn tortillas; meats such as milanesa; and an in-store cocina serving such items as tacos and tortas.
Yet, PanaVista's Ricalo finds these large-scale type formats to be knockoffs of the Hispanic supermarket chain, Pro's Ranch Markets, that she says "set the standard for 'authentic' formats." Ricalo says retailers would succeed by enhancing their variety offering to suit their neighborhoods. "Providing what your shoppers need," she explains, "is more important than trying to convey a sense of Hispanic authenticity that doesn't quite meet real standards."
Providing what the neighborhood needs is the goal of the recently opened HIT Mobile in Cudahy, Calif. In partnership with T-Mobile and the first of the company's T-Mobile Premium Retailer Latino program, it features a wide variety of wireless products and services. Mauro Martinez Jr., HIT Mobile's president and CEO, says wireless can be pretty confusing and there's a need for customers to feel comfortable. He says that the list of the top 10 handsets in the general market and top 10 in the Hispanic market are radically different.
While HIT Mobile has the same look and feel of a T-Mobile store, all materials and signage are bilingual, as are all employees. "I have spent years working in the Latino community. I fully understand and appreciate its shopping habits, buying patterns and much more," says Martinez, himself a second-generation Hispanic. "That includes hiring from the area, building a team reflective of the community and giving back to ensure success for everyone."
As one of T-Mobile's "playground" stores, it allows for lots of interactivity and includes a children's play area. Two more stores, also in Southern California, are currently under construction. Martinez says key to the stores' success is training employees on each generation. "A first-generation Latino speaks in Spanish, wants International plans and all literature in Spanish," he explains, "while a third generation might be labeled Hispanic but is more similar to the general market. Yet they feel comfortable in the store because of their upbringing and the cultural connection."
Formulatin's Olguin, a third-generation Mexican American, says it's about finding a cultural connection. "For Hispanics, the four passion points are family, music, food and fashion/beauty. When building a community or marketing platform, utilize one or more of the passion points."
To tap into the importance of family, Greenwich, Conn.-based Nestlé Waters' Nestlé Pure Life brand launched its "Better habits for a better life" campaign in June that encourages Latina moms to get their families to drink more water. The campaign uses Hispanic TV host Cristina Saralegui as its spokesperson -- "Oprah for the Hispanic community," says Carolina Rodriguez, marketing manager, Nestlé Pure Life. National TV, regional radio, in-store promotions, grassroots events and sweepstakes are all part of the effort.
A variety of targeted approaches as well as inclusion in broader campaigns is the key to success for The Coca-Cola Co., says Diane Wallace, vice president, shopper marketing. "Our efforts are a combination of 'depth' and 'breadth.' The depth programs allow us to connect with Hispanics' specific needs and passions; the breadth programs leverage universal communication and properties that are relevant to all consumers," she explains. "An example of this approach is the recent FIFA World Cup campaign, where we used the 'Join The Global Celebration' message across the market, but at the same time we added depth to this message among Mexican Hispanics with an association to the Mexican National Team." The Powerade campaign included TV, radio, print, out of home, digital and P-O-S materials.
Sponsorships and events are another way brands are making a Latin connection. Chicago's MillerCoors' Coors Light brand sponsored the National Puerto Rican Day Parade in Manhattan this past June. The brand made a $75,000 donation to the parade foundation and Diversity Foundation Scholarship Funds. Its "Emborícuate" campaign invited all to share in the pride of being Puerto Rican and included visuals in supermarkets, bodegas and bars.
Last fall, Clorox teamed up with the South Central Family Health Center in Los Angeles to offer a free flu clinic. "Pon el Virus de la Gripe Fuera de Acción" (Take the Flu Virus Out of Action) was part of the brand's national campaign and featured Dr. Aliza Lifshitz, internist at Cedars-Sinai Medical Center and editor of vidaysalud.com, a health website. In addition to being the keynote speaker, she answered participants' questions and provided advice.
"The Hispanic culture is rooted in the family and community," says Clorox's Reiner. "It's 'we' vs. 'I,' so finding a way to connect at the local level with consumers is an area that we're beginning to place more focus."
]]>Published by hispanicprwire.com
]]>Unlike their Anglo counterparts, Hispanics are in no hurry to get in and get out of a grocery store.
A recent study released by TNS entitled the Hispanic Shopper 360 Study confirmed what most retailers in Hispanic communities already know - for Hispanics, shopping is an experience, not a sport. Unlike their Anglo-counterparts, Hispanics are in no hurry to get in and get out. As a matter of fact, only 16 percent of Hispanics felt speed was important, compared to 39 percent of non-Hispanic shoppers.
For marketers and retailers alike, this is good to know since Hispanics visit their area retailers on average 26 times a month, that's 3 times more often than their general market counterparts!
Some general reasons for this shopping behavior include:
• Hispanics tend to shop larger numbers, in other words with family members in tow
• Although Hispanic shoppers are much more likely to know which brands of products they are going to buy before shopping, they are also more likely to be influenced by in-store price reductions and in-store ads. In other words, they are actively paying attention to what's happening in the store.
• Hispanics frequent stores they find trustworthy. Like all of us, Hispanic shoppers want to feel comfortable and welcome.
A few recommendations for brands:
• Make your merchandising efforts matter - to both your consumer and your retailer, help create a welcome and exciting environment through relevant and unique POP that pops!
• Use retailtainment events, sampling opportunities & in-store demos to initiate a conversation with Hispanic consumers. Make a personal connection. Give them something to talk about.
And finally, work with your retail partners to come up with new branding opportunities that actually encourage browsing and spending more time at retail. Maybe it's branded benches or tables, childcare areas, lost & found kiosks that double as displays. Be creative. Remember, it's an experience, not a sport.
Published by Mercury Mambo: www.mercurymambo.com
]]>1. U.S. Hispanic spending power growth has significantly outpaced non-Hispanic with an average of $5 more per basket.
On average, Hispanics spend 13% more than GM consumer in the CPG category. As food plays an important role in Latino culture and they tend to have higher monthly food expenditures than non-Hispanics.
Hispanics also spend more than the GM on clothing because of their higher proportion of children and their younger demographic more prone to keep up with the latest trends. The average Latina has 11 pairs of jeans, while the average Caucasian female has nine.
2. Hispanics are quickly becoming the savviest of shoppers.
Hispanic women are significantly more aware (by a 48% to 36% margin) of “sales” before going to the store than GM shoppers.
Hispanics have always been savvy consumers and yet, the economic downfall has forced Latina moms to add new tactics to their repertoire like usage of coupons and in-store communications.
Although the current crisis hasn’t affected Hispanics shopping patterns as drastically as the GM, Latinos are looking for partners that will help them navigate their current reality. Going forward, the key challenge for merchants is to redefine the consumer’s value equation from “value = price” to “value = price + something else” (e.g., customer service, product’s healthy attributes, designer exclusives).
3. Hispanic research and plan for each trip.
Hispanics plan their trips well — more so than the GM population — not only for what’s needed, but also for the value that can be attained.
For Hispanics, the planning phase is important in organizing the shopping trip and controlling impulse purchases and budgets, not eliminating additional fill-in shopping (the general market’s primary motivation is limiting the number of trips in a given time frame).
4. Hispanics are macro shopping.
Hispanic consumers are almost four times more likely than GM consumers to make their grocery shopping at mass merchandisers and mega stores.
Hispanic consumers travel significant distances to shop in these channels and spend considerable time and money in each visit, thus making large purchases and family-sized items a top priority for those shopping trips. Also, these mass merchandisers allow the consumers to shop for multiple-product categories.
5. Hispanics are not one-stop shoppers.
Hispanics significantly outpace the national spending averages across nearly every channel in CPG spending. The shopping experience plays a far more important role in their lives than for their non-Hispanic peers, making them a highly attractive segment for retailers. Hispanics are not only shopping to fulfill a list, but to fulfill different needs and experiences as well.
6. Hispanics enjoy the shopping experience.
37% of Hispanics “enjoy any kind of shopping” (vs. 25% of non-Hispanics).
No matter where, Hispanics report that shopping is a “feel good” experience. 53% of Hispanics evaluate their trip satisfaction on being “a fun place to shop.” While, 43% of Hispanics “enjoy shopping even when they are not buying,” vs. 37% of non-Hispanics. For retailers it is important to embrace the market by making store investments to become a FUN-shopping destination for Hispanics.
7. Shopping is not a chore.
“The store is a place where I can spend time with friends and family.” Department – 50% Hisp. vs. 28% GM; Grocery – Hisp. 48% vs. 19% GM; Mass – Hisp. 46% vs. 24% GM; Drugstore – Hisp. 41% vs. 25% GM.
For Hispanics, shopping is a destination for meeting with friends and family, an opportunity to catch up and spend time together. Offering a more interactive environment allows retailers to become a preferred destination.
8. Advertising impacts and attracts Hispanics
36% of Hispanics say that they remember advertised products while shopping. 31% say that ads help them pick products for their kids.
Hispanics tend to be more receptive to advertising and marketing efforts than GM. Another important aspect of advertising is retail promotions that in most cases will influence their decision to visit a particular store.
They are actively seeking choices that allow them to increase their brand selection with new and better products and advertising plays an important role in getting brands noticed and differentiated.
9. It is a myth that Hispanics, overall, are more loyal.
Only those Hispanics who are recent arrivals (fewer than four years in the US) display above average brand loyalty.
There is no conclusive proof to say, in general, that Hispanics are more loyal shoppers. Retailer loyalty is strong among Hispanics but it pertains mainly to the store of choice, based on the need. Continued loyalty relies on value offer, product quality, and experience consistency.
10. Hispanics are quickly adopting online shopping.
Nearly two-thirds (62%) of Hispanic Internet users are buying online.
Retail initiatives for Hispanics have been primarily focused on brick and mortar, but the time has come to expand initiatives to the virtual shopping world.
In 2007, Hispanic online purchases accounted for $12.8 billion, 11% of all online retail spending. Furthermore, Hispanics are more likely to provide online feedback: 34% vs. 27% of non-Hispanics.
Now it is imperative that brands and retailers offer the opportunity for online purchases. Additionally, this will open up a whole new avenue for building a brand relationship through online activations and promotions. It also multiplies the impact through digital word of mouth via consumer feedback.
Story courtesy MediaPost Engage:Hispanics
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As published in Hispanic PR Blog:
A new research from the Pew Hispanic Center shows that from 2006 to 2008, internet use among Latino adults rose by 10 percentage points, from 54% to 64%. In comparison, the rates for whites rose four percentage points, and the rates for blacks rose only two percentage points during that time period. Though Latinos continue to lag behind whites, the gap in internet use has shrunk considerably.
For Latinos, the increase in internet use has been fueled in large part by increases in internet use among groups that have typically had very low rates of internet use. In particular, foreign-born Latinos, Latinos with less than a high school education, and Latinos with household incomes of less than $30,000 experienced particularly large increases in internet use.
Whereas Latinos gained markedly in overall internet use, the pattern of home internet access changed very little. In 2006, 79% of Latinos who were online had internet access at home, while in 2008, this number was 81%. White and black internet users show a similar leveling off. In 2006, 92% of white internet users had a home connection, compared with 94% in 2008. In 2006, 84% of African American internet users had a home connection, compared with 87% in 2008.
While there was little increase in the likelihood of having a home connection among internet users from 2006 to 2008, rates of broadband connection increased dramatically for Hispanics, as well as for whites and blacks. In 2006, 63% of Hispanics with home internet access had a broadband connection; in 2008 this number was 76%. For whites, there was a 17 percentage point increase in broadband connection from 65% to 82%, and for blacks, the increase was from 63% in 2006 to 78% in 2008.
These results are derived from a compilation of eight landline telephone surveys conducted by the Pew Hispanic Center and the Pew Internet & American Life Project from February to October 2006, and from August to December 2008. In total, the Pew Hispanic Center surveys included 7,554 adults, and the Pew Internet & American Life Project surveys interviewed 13,687 adults.
Courtesy of Hispanic PR Blog Hispanic Market Facts/Research, Hispanic Social Marketing/Web Insights
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