Every cloud has a silver lining. And when it comes to the current status of the retail industry, which ranges from "bleak to promising, according to Business.com, that silver lining consists of Hispanic millennials. In fact, regardless of the state of retail at large, Hispanic millennials — especially Latinas — are the new now of retail, and their impact on your bottom line may be more than you realize.
Whether you sell products online, through brick and mortar or through a hybrid model, Hispanic millennials are essential to your success. Here we’ll share key factors behind why and how to reach them and gain their loyalty.
The power of the Hispanic retail purse: $3.3 billion and counting
At first glance, this may not be so obvious, given that “Hispanic incomes are often lower than those of non-Hispanics,” per Multicultural Retail 360. However, a different picture emerges beneath the surface and it’s definitely favorable to all types of retailers and indicative of Hispanic spending trends:
But the dollars are just one part of the story: By 2060, Hispanic women will make up around 30% of the total female population of the United States, indicates Latina Power Shift.
How and where Hispanics shop: from mall to mobile
The habits of Hispanics complement their purchasing power and retailers need to take note! Similar to meals and special occasions, shopping for clothes is more than taking a trip to the department store; it’s a family affair. And when they do take that trip to the store or mall, where are they going? Multicultural Retail 360 reports that:
What makes these numbers compelling is that in all cases (except American Eagle), the Hispanic preference is greater than in the non-Hispanic population.
The consumer journey for the Hispanic shopper goes beyond the physical boundaries of the mall or local store. As we’ve reported before, Hispanics over-index on mobile and are early adopters of technology, and the retail environment is no exception. Thus, the Internet is a vital source of information in the consumer journey:
When it comes to digital ads, Google reports that 66% of online Hispanics pay attention to them — that’s 20 points more than general market. This statistic alone is more than enough to justify a comprehensive strategy aimed at Hispanics, and abandon the “we’ll just translate the content into Spanish” approach.
Cultural relevance drives sales and loyalty
We’ve said it before, and we’ll say it again: language communicates, culture connects. So put aside any plans to translate your content from English to Spanish, and begin with Hispanic culture in mind. To make a meaningful and lasting connection with Hispanics, consider these tactics: