Cheskin Market Insights: Hispanic Trends
With a market size of 43 million[1] people and a buying power of $750 billion[2], it seems obvious to give serious consideration to the Hispanic market in the U.S. Hispanics have garnered great interest since their recognition as the fastest growing minority; a population that now accounts for 14.7% of the total U.S. population[3]. Similarly, Hispanic purchasing power has increased 156% over the last seven years. As this market continues to experience growth, so will its purchasing power. Focusing on this segment of the population can present a tremendous marketing opportunity, one that has not yet been fully explored.
Yet, marketing to U.S. Hispanics has its challenges. Many companies are trying to understand the nuances of this market – its segments and its cohesion.
Hispanic purchasing power has increased 156% over the last seven years.
Demographically, U.S. Hispanics represent a range of countries, socio-cultural and economic levels. They come from different backgrounds and differ in their motivations to immigrate to the U.S. Many immigrate to look for a better economic opportunity, but there is an increasing, significant percentage of professional Hispanics that come to the U.S. for different reasons. Such reasons include the pursuit of education, the development of a business, or the desire to live near other family members. All these factors, as well as others, generate this market’s diversity.
Nonetheless, Hispanic cultural cohesion is solid. The Hispanic market’s cultural cohesion is found in the role of the Spanish language, as well as in values and beliefs that determine attitudes and behaviors. For most Hispanics in the U.S., Spanish is their native language or at least a meaningful second language.[4] Even when Hispanics incorporate English into their daily lives, Spanish remains the language to which they have the greatest emotional attachment. Even fully bilingual or English-dominant Hispanics have strong cultural and social ties to the Spanish language. This is not surprising since 88% of U.S. Hispanics learn Spanish as their first language.[5]
However, the acculturation process should also be considered in the equation. Acculturation is understood as a learning and adaptation process into a second culture, and during which options are evaluated, habits change, and perceptions continually evolve.
History has shown that marketing and communication efforts targeted to Hispanics – at the right place, at the right time, and with relevant communication – result in significant penetration and brand equity. The Hispanic market is an important, growing market that offers great opportunities. By analyzing and understanding attitudinal and behavioral trends shaping the U.S. Hispanic market, Cheskin seeks to provide strategic business leaders the insight to create products and communications that resonate with this market. We not only expect to highlight opportunities for companies beginning their forays into the U.S. Hispanic market, but to paint a more meaningful and accurate picture of the U.S. Hispanic consumer by exploring the trends that influence them.
These trends have been revealed through years of working closely with remarkable and open-minded clients, and through conducting marketing and communication research in a variety of Latin American countries and with U.S.-based Hispanics. This identification of trends has been developed further by secondary research and consulting engagements.
[1] 2006 Census Bureau
[2] Selig Center for Economic Growth: Terry College of Business, University of Georgia, 2006
[3] This is probably a low estimate due to the large number of undocumented Hispanics that are estimated to be about 10 million additional people.
[4] Yankelovich Hispanic Monitor 2006
© 2007 Cheskin Added Value