Upscale Latinos Seen As The New Boomers
Defined as Hispanic households earning $50K-$100K in annual income, upscale Latinos are the most influential segment since the baby boomers and will drive shifts in category consideration, purchasing behavior and brand relationship. This sophisticated market of upscale Latinos provides lifetime value and upside opportunities for many high-end and luxury brands, says the report.
While upscale Hispanics are mostly concentrated in urban areas such as Los Angeles, New York, Houston and Miami, although they show significant representation in secondary markets such as Honolulu and Washington, D.C. and Oklahoma City. A force behind new businesses with higher educational and professional attainment, upscale Latinos are technologically savvy and viewed as trendsetters among their peers.
Upscale Latinos are more likely to own businesses than upscale non-Hispanics, finds the study. Accordingly, the upscale Hispanic segment has a higher concentration of white collar professionals than total U.S. Hispanics, and place a greater emphasis on saving for education than upscale non-Hispanics.
Upscale Hispanics tends to own their own homes and are very financially savvy:
- Half have investments
- 86% maintain savings accounts
- 50% more likely to manage their financial accounts from their mobile device
- More likely to invest in the stock plans their employers provide them
- More invest in mutual funds more than the total U.S. Hispanic population (21% vs. 16%)
Upscale Hispanics live in two cultures, says the report. Three-quarters speak both English and Spanish. Though upscale Hispanics are slightly more English-dominant, their strong cultural duality and bicultural behavior is reflected in their media consumption.
- More than a third of upscale Hispanics watch content in both languages
- English-language comedies, documentary-style programming and children’s weekly programming are the most watched
- Upscale Latinos switch to Spanish-language television for cultural events, concerts and sports
Upscale Latinos outspend upscale non-Hispanic Whites and Hispanics overall on health and beauty products.
- Men’s toiletries, women’s fragrances, hair care and cosmetics dominate in the health and beauty aisle
- When shopping for alcohol and baby care products, this group steers toward store labels.
- Upscale Hispanics spend more on fresh ingredients than general U.S. Hispanic population. Healthy and nutritious food is a priority.
Marketers have a unique opportunity to identify the needs of an evolving upscale Hispanic household. With an interest in building net worth and simplifying their lives, upscale Latinos are fueling the growth of America’s middle class while maintaining a bicultural lifestyle—one that streamlines their multi-generational responsibilities and enriches their American Dream.
The report concludes that this growing segment an essential component for Hispanic marketers since upscale Hispanics control $4 out of every $10 Hispanic spend dollars. In summary, it suggest that the following are important marketing key touch points:
- Financial services that meet their specific needs.
- Support of small businesses.
- Expanded investment and retirement education
- Strengthened higher learning opportunities
- Alignment with the segment's interest in beautification and wellness
For more information from Nielsen, please visit here.