It was thought that 2020 was going to be the year of the Hispanic consumer, but with COVID-19 getting to us, it feels like it’s mostly going to be 2021 the year of the Hispanics. But, why did we think 2020 was the year of the Hispanics? Because of the following data:
Hispanic consumers in the U.S. are controlling a total of $1.5 trillion in buying power, up 212% this decade, according to the Selig Center for Economic Growth at the University of Georgia. That’s expected to grow to $1.8 trillion by 2021. Hispanics in the U.S. also have the highest population growth rate. For that matter, the population is expected to double over the next 40 years.
Right now, Hispanics account for one out of every six Americans and their aggregate buying power is larger than the GDP of Australia. Impressive, right? And this doesn’t end here.
The following facts are determined by a CNBC’s article full of reliable data called Latinos may be the key to future US economic growth:
- GDP (Gross Domestic Product) among U.S. Latinos increased to $2.3 trillion in 2017, up from $1.7 trillion in 2010.
- If the U.S. Latino population was a country, GDP growth rate of the Latino market would be the third-highest growth rate among all global economies.
- Relative to the overall U.S. market, Latinos have a high labor-force participation, faster population growth and increasing consumer spending.
- Between 2010 and 2017, product and services consumption among U.S. Latinos increased by 42% – that’s 72% faster vs. non-U.S. Latinos.
In the Hispanic consumption matter, Alpha-Wise data in a report from Morgan Stanley, “How the Gen Y+Z Boom Rolls Through the US Economy”, suggest that over-sized growth in the Hispanic population will be supportive of above-average spending (consumption) growth on basic necessities like cell phones, food at home, apparel, and housing.
All marketers who invest in the Hispanic opportunity for the long shot, get along with multicultural marketing experts to develop and execute smart strategies to connect and reach U.S. Hispanic consumers which, in the mid-and-long run will be rewarded with real growth.
The Hispanic community is one of the largest, most dynamic consumer bases in the U.S. marketing landscape right now and that’s something to truly give an applause, clap-clap.
Even knowing this, many companies still don’t strive for the resources and budget to approach the Hispanic market which, by the way, reaching this demographic is so much more than simply speaking the language – Hispanics also have sub-cultural differences depending on their heritage and place of origin – it’s about understanding their very unique language.
Here are some reasons why we should strongly consider targeting Hispanics:
Hispanics tend to actively engage with brands online
A research by Viant confirms that Hispanic shoppers are active within their communities online and turn to social media to research, review and advocate for brands. Nearly 50% of survey participants report they have participated in an online discussion involving a brand or have used a brand’s hashtag, compared to 17% of non-Hispanic shoppers.
They are early adopters of technology
Hispanics are highly receptive to exploring new ideas and consuming all types of media because, as early adopters of new technology, Hispanics are a great market to target to introduce new concepts.
The Hispanic market is community-focused and highly values word-of-mouth recommendations. They listen to the opinions of others in their community, whether it be in person or online. These interactions also create chances for discussions and an opportunity to get feedback on your efforts.
They have (buying) power in numbers
The Hispanic population is the fastest-growing segment and accounts for almost half of the U.S. population’s growth. Hispanics are heavy media consumers, and Hispanic millennials are even more connected to the media.
In the coming years, the Hispanic market will only continue to grow. Definitely, Hispanic’s year will be 2021.
At 90 Degree Branding, we want to be part of your success, bringing to life what you have in mind for your business, and the way you want everyone else to see it.
Let us help you, let us do the work. While you stick to your daily business activities, we’ll make your website and brand identity always be up to date, with the spark that your company deserves.
Contact us now! We are 90 Degree Branding, we are here to help you.