Article originally published on Orlando Business Journal
The U.S Hispanic community has become a key contributor in our economic growth, labor force and electorate impact, more than any other population segment, and will continue to strengthen.
The question is: How will you recuperate financially post pandemic if you cut your advertising budget and neglect this audience that now is driving sales and market growth?
If you had a profitable year during the pandemic, how will you keep the momentum going? How will you assure sustainable growth if you neglect the fact that mainstream is becoming multicultural? The same tactics you have been using will not resonate culturally to your new audiences.
Here are some facts to help get you on track for a stronger 2021 and beyond:
- Minority is becoming the majority: According to a Nielsen report titled “Cultural connectivity transformed. How Latinos are connecting while social distancing,” there are more than 62.3 million Hispanics in the U.S., representing 19% of the nation’s population. Their median age is 28, so they are approaching their peak earning years. From 2010-2019, Hispanics’ buying power increased 69%, compared with 41% of non-Hispanics. Over the past six years, Hispanics accounted for 75% of all U.S. labor force growth. Their purchasing power is expected to reach $1.9 trillion by 2023, which is higher than the GDP of countries such as Australia, Spain and Mexico.
- U.S.- and foreign-born Hispanics are not exactly the same: Just as British and American people are not the same, even though they share one language, it doesn’t mean their cultures and reactions are alike. The same is true for the Hispanic community. Even though Hispanics share the Spanish language, there are still certain preferences in the way different generations consume media and interact with brands. This is important to address during your strategy development and marketing approach. The fact they were born in the U.S. doesn’t mean they think and act like Americans on a cultural or purchasing standpoint.
- Higher payoffs come from more loyal consumers: It takes time to earn Hispanics’ loyalty and trust, but they will help you secure greater sales. How much depends on how committed and consistent you are in your marketing approach. Let’s put it this way: Would you develop a strong friendship with someone who only contacts you once every six months to ask you for a favor?
The actual purchase is just one step in the process. Hispanics will share their satisfaction or dissatisfaction with their circle, influencing others on whether to engage or not with specific brands. Hispanics are 40% more likely to live in multigenerational households, so imagine how many people your brand could influence by making one person happy in that household.
Hispanics will contribute more growth than any other population segment, according to Nielsen. For the next 40 years, Hispanics will be the primary contributors to the total U.S. population growth, comprising 53% of growth in the next five years and 68% for 2060. Start adjusting your strategy today to assure a profitable and sustainable future, whatever it may look like.