Article originally published on Orlando Business Journal
Hispanics are the fastest-growing consumer market in the U.S., and upscale Hispanics are the most influential segment since the baby boomers, so it’s important to know how to market to this powerhouse group.
This segment contributes close to 40 percent of Hispanics’ overall $1.5 trillion spending power, according to an AHAA and Nielsen report, “Upscale Latinos 2.0: A Renewed Outlook for High-End Marketers.” So, the misconception that “Hispanics are just a group of people who speak Spanish and can’t afford my products” is just plain wrong.
Upscale Hispanics have household earnings of $50,000-$100,000, and tend to be bicultural, younger with large families and most likely dual income. They also are tech-savvy with more college completion than overall Hispanics.
Corporate America usually assumes that since affluent Latinos are bilingual, an English advertising campaign will engage and resonate better with them because they are more Americanized. However, even though this group feels comfortable speaking English, that doesn’t mean the message is culturally relevant to them or that it will make them feel emotionally connected to a brand.
Acculturation — learning a new culture while maintaining the values of the original culture — plays an important role in upscale Hispanics, and the Spanish language remains a strong connection to their heritage. Although many U.S. Hispanics now speak English at work, most speak Spanish at home.
Another important characteristic of upscale Hispanics: Buying a luxury item is a sign of achievement and fulfilling the American dream. It is not a simple transaction. It makes them feel good and proud.
To enrich your brand with this target audience, keep these three tips to keep in mind:
- Be client-focused: Upscale or affluent Hispanics will buy from you, not because of who you are, but because of what you mean to them and how you make them feel special from the moment they walk inside your store or buy your product.
- Be multilingual: Have bilingual or multilingual people on your staff. Louis Vuitton is a great example of diverse personnel at their stores who are always willing to help, no matter what language you prefer to speak.
- Be geo-targeted: There’s a wide range of high-end publications, online sites, elite clubs and events you can sponsor to reach this specific audience. Remember, you must spend money to make money.
Success not only requires an understanding of the Hispanic culture and behaviors, but also business strategies that truly address Hispanic needs. After all, marketing strategies are failing because American businesses expect Hispanics to adapt to their standards and practices instead of the other way around.