Capitalizing On Market Growth By Avoiding These Mistakes

Delivering growth in a mature market like the U.S. is not easy. By focusing on the Hispanic market, companies can overcome the challenges involved in driving incremental business: 

  • Stealing Hispanic customers from competitors is easier, as half of U.S. companies do not have a Hispanic strategy.
  • No need to expand globally, as Hispanics control $1.3 billion in buying power which makes them a consumer market larger than the entire economies of all but 17 countries. 
  • If pursuing new category users, 21% of Millennials and 23.5% of Gen Zers are Hispanic.

Despite the attractiveness of the Hispanic market, many brands have yet to fully capitalize on it.

Below are some of the mistakes that prevent companies from leveraging Hispanics for growth and how they can be addressed.

1. Assuming most Hispanics are undocumented immigrants. Thus, some think the Hispanic opportunity will be greatly reduced with tighter border controls. 



Fact: Excluding U.S. citizen children with at least one undocumented parent, 80% of Hispanics or 45 million people, are U.S. citizens or legal residents. Moreover, births will drive 72% of U.S. Hispanic population growth from 2015 to 2030.

Action: Find out how your brand is doing in Hispanic vs. non-Hispanic zip codes before you decide it is not an important priority.

2. Believing in-Spanish messaging is the only unique Hispanic need. This causes some to dismiss the market, assuming U.S. born Hispanics will eventually speak only English. And others to miss opportunities to engage Hispanics through their mainstream messaging in English. 

Fact: Hispanics have unique needs that stem from having a different physique (complexion, hair color, body type), different beliefs about relationships (like those related to decision-making and responsibilities toward family) and different exposure to certain categories and brands (due to their immigrant heritage, being first to graduate from college, or perceived and real exclusion).

Action: Learn which of these needs provide your brand opportunities for personalization.

3. Thinking Hispanics primarily buy products and services specifically designed for them. 

Fact: The bulk of Hispanic purchases involve well-known brands. But, they might choose different mainstream brands or specific items inside a line vs. non-Hispanic shoppers. There is a role for targeted offerings but they are not the end-all, be-all for engaging Hispanics.

Action: Identify common best sellers among Hispanics and non-Hispanics, and feature them in planograms, displays, signage and website to minimize lost sales.

4. Developing a Hispanic plan based only on targeted tactics.

Fact: Hispanics do not think in silos and neither should you. They selectively pursue aspects of American and Hispanic life, depending on what suits their immediate needs and preferences.

Actions: Understand to what extent Hispanics are engaging with your mainstream tactics and supplement if necessary through in-culture tactics. Learn how affinity for a second culture impacts purchasing behavior and incorporate it into your look-alike targeting and predictive models.

5. Focusing only on Hispanic marketing and communications. 

Fact: You can tell the right story in the right channels to inspire Hispanics to buy your brand, but unless all the other elements of your value proposition (product or service features, customer support and channel presentation) are aligned with that message you will not close the sale.

Action: Consider Hispanics when you are mapping out your customer’s journey to evaluate whether you are delighting or alienating them at every touch point.

Key Takeaway: Focusing on U.S. Hispanics can deliver growth, if you find opportunities to engage them that go beyond language, targeted tactics and marketing outreach.

Are you fully capitalizing on Hispanic market growth? Why or why not? Comment below.

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