The need to understand the demographics and values of Hispanic customers is more important than ever. A commitment today will result in generations of loyal brand customers. However, some companies are apprehensive to enter the Hispanic market, fearing brand missteps. Advice? Don't ignore the market opportunity of U.S. Hispanics; they are the country's largest minority group with $1.3 trillion in buying power. Experienced brands that are actively engaging with Hispanics prove that being authentic and culturally relevant with this audience delivers a strong return on investment.
By 2060, Hispanics are projected to comprise over 28% of the U.S. population. In 2017, U.S. Hispanic purchasing power could reach $1.7 trillion. What sounds like a marketer's nirvana may instead be a figurative dead-end, absent a clear understanding of this highly complex and diverse demographic.
Marketers and market researchers working in the multicultural and cross-cultural space have long known the shortcomings of utilizing acculturation models for segmentation. Our conflicted national identity and increasing demographic diversity have created a cultural Rubik's cube that resists classification. I've written on this topic several times and have proposed alternative segmentation tools but there has never been a viable replacement for the acculturation model so it has persisted, until now.
The Hispanic market has traditionally been defined by most marketers as the growing population of foreign-born immigrants in the U.S. who have emigrated from Spanish-speaking Latin American countries (mainly Mexico, Central America and the Caribbean).
Earlier this year, Snapchat went public in the biggest tech IPO since 2014, raising $3.4 billion to advance its vision to "empower people to express themselves, live in the moment, learn about the world and have fun together."
Last month, we opined on Amazon's rollout of their Spanish-language e-commerce site, and the massive opportunity it represents for brands trying to reach Hispanic consumers. A recent announcement by Facebook opens yet another opportunity for marketers to sell directly to the nation's largest minority via e-commerce.
Latinos are a people of faith and for centuries that faith was Catholic. But the number of Latino Catholics is shrinking, thanks in large part to inroads by Protestant denominations, according to figures from The Pew Center, Religion & Public Life.
By now, many marketers have heard of the tremendous opportunities the United States. Hispanic consumer represents in terms of numbers and purchasing power. However, in the age of hypersegmentation and targeting, Millennials and bi-cultural Hispanics have risen to the top of marketer's go-to Hispanic sub-segments. While most companies focus on this target, there is an untapped consumer segment that has serious growth potential, Hispanic business owners.
The last few years have seen an explosion in public discussion and thought leadership around best practices in Hispanic marketing. Forget the articles and white papers. And dispel the marketing myths.
As we near the most "archetypical" of Hispanic holidays, Cinco de Mayo, instead of getting into an exhausting explanation of why (or why not) the day is important, below are my "cinco" mega topics to keep in mind when activating Hispanic marketing.