Upscale Latinos Becoming Influential Demographic – Hispanic Retail 360

June 2013.- Hispanic Retail 360. It is no surprise to anyone in the retail and marketing world that U.S. Hispanics are an integral part to any business plan. However, when broken down further, a new study finds that upscale Latinos are wielding more power than ever before.

Speaking during AHAA's webcast, "The Upscale Latino Segment," Carlos Santiago explained the upscale Latino segment will generate 37 percent of the Hispanic spending power in 2013, or $500 billion of the $1.3-trillion Hispanic buying power.

The AHAA study, in conjunction with Nielsen, took a closer look at U.S. Hispanics earning between $50,000 and $100,000 a year and found that the segment accounted for 15 million households. That figure makes up 29 percent of all U.S. Hispanics households, according to Carlos Santiago, president and CEO of Santiago ROI.

June 2013.- Hispanic Retail 360

It is no surprise to anyone in the retail and marketing world that U.S. Hispanics are an integral part to any business plan. However, when broken down further, a new study finds that upscale Latinos are wielding more power than ever before.

AHAA: The Voice of Hispanic Marketing explored the growing segment in a recent two-part study “America’s New Upscale Segment: Latinos!” The study, in conjunction with Nielsen, took a closer look at U.S. Hispanics earning between $50,000 and $100,000 a year and found that the segment accounted for 15 million households. That figure — an increase of two million since 2010 — makes up 29 percent of all U.S. Hispanics households, according to Carlos Santiago, president and CEO of Santiago ROI.

Speaking during AHAA’s webcast, “The Upscale Latino Segment,” Santiago explained the upscale Latino segment will generate 37 percent of the Hispanic spending power in 2013, or $500 billion of the $1.3-trillion Hispanic buying power.

“This is the most influential segment since the Baby Boomers,” he said.

And this will only get stronger. Based on conservative estimates this demographic will double by 2050 to reach 35 million households, he added.

“The accelerated growth of the segment will influence the identity of U.S. Latinos,” Santiago said. “This is the new boom.”

But who exactly is this Latino? According to the study, the segment’s median income is $71,000. In addition:

  • 75 percent are under 45 years old versus 59 percent of upscale non-Hispanics
  • 77 percent have households with four or more members
  • 68 percent live in the Southwest and Pacific regions of the United States
  • 39 percent are employed in white collar positions

Diving deeper into the upscale Hispanic segment the study identified four sub-segments: young achievers, urban uptowners, young accumulators, and the affluentials, according to Reny Diaz, director of client engagement at Nielsen.

He also explained that upscale Hispanics are 31 percent more likely than the overall U.S. Hispanic population to invest financially and almost twice as likely to establish college funds compared to upscale non-Hispanics.

Geographically speaking, upscale Latinos are evenly distributed across all major Hispanic markets in the United States. According to Santiago, 28 percent live in New York, 28 percent in Houston, 26 percent in Miami and 32 percent in Los Angeles.

However, the paths they took to the upscale segment are different, he said. For example, in Florida 75 percent of the segment owns a home and 79 percent have some college or graduated college. In Southern California, 56 percent own a home and 43 percent have some college or graduated college.

“Both geographies have about three in 10 [Hispanic] households in the upscale segment but how they got there differs,” Santiago said.

Upscale Latinos also have a significant presence in many secondary Latino markets like Washington, D.C.; Salt Lake City; Honolulu; and Jacksonville, Fla. In addition, the segment is fueling emerging Latino markets in Baltimore; Raleigh, N.C.; Oklahoma City; and Yakima, Wash, he added.

Overall, the study found that the upscale Latino market is viable and sophisticated; younger with larger households; a force behind new businesses with higher educational and professional attainment; and has one foot in each culture.

“The market is here, it will continue to grow and it is not a new phenomenon,” said Gabriela Alacantara-Diaz, president of G ADMarketing Communications.

No comments yet.

Leave a Reply

PLEASE RESOLVE THE MATH PROBLEM BELOW:

seven − = 0

Segmented Approaches May Go The Extra Mile For Wellness Opportunities in CPGs [INFOGRAPHIC]

“Healthier-outlook” consumers of different cultures differ in shopping preferences –their perceptions of “healthy” brands are so different that there are no commonalities among the top 5 breakfast Brands across segments. They also choose to shop in different retailers beyond Whole Foods & Trader Joe’s.
Segmenting by Wellness Segments & Scores based on healthy attitudes & good behaviors is a valuable growth planning tool, as Brands with higher Wellness Scores experience higher growth rates than brands with lower Wellness Scores.

Multicultural Millennial Digital Decision Journey [INFOGRAPHIC]

Millennials are intense users of digital & mobile in their Path-To-Purchase journey. Hispanics over-index Total Market in digital Evaluation actions but lag a little In-Store while African Americans especially over-index in the Experience phase.

Hispanic AdSpend Allocation Soars

The top 500 U.S. advertisers increased Hispanic media spend by $3Bn or 63% since 2010 jumping from $4.3B to $7.1B vs. only a 3% increase in English media Ad Spend. Consequently, the share of ad spend allocated to Hispanic dedicated efforts increased to an all-time high of 8.4% of U.S. top 500 marketers’ expenditures in TV, Radio, Print and FSIs vs. 5.5% in 2010.

Exploding Growth in Food: “Healthier With Tasty Hispanic Flair”

Brands that innovate by combining “Better for You” alternatives combined with some ethnic flair tend to achieve 3 to 5 times faster buyer growth than the mere Total Market (TM) 0.3% average. In other words, Healthy-minded consumers want to join in on the fun, and innovative brands are helping them bake the cake and eat it too…literally! The three big high buyer growth, high wellness score winners for Total Market are: Organic everything, Ready-to-serve dips, and Ethnic Ready to Eat. What this means is that growth will not come from just adding a jalapeño flavor to your product, but it MUST also be good for you (Organic Spicy Nachos Chips….please!).