The American population has been shifting over time demographically to a much larger percentage of Hispanics. The Latino community in the United States is segmented culturally, but has definitely been assimilating into the American mindset albeit somewhat slowly over the recent years.
One of the major paradigm shifts that corporations and businesses have been embracing is how to market to Hispanics. Although resistant for a number of years, the demands in the market place by this culture has mandated the facts of this wedge of population growth in the population pie be addressed head on.
The question is: Are you running away from or full ahead toward doing business with the Hispanic community?
The Hispanic population grew from 35.3 million in the year 2000 to more than 50 million people in 2011. Given current projections of population growth, Hispanics will make up 30 percent of the U.S. population by 2050, according to projections by the U.S. Census. This means Hispanics will account for 89 percent of the total population growth for adults in their entry-level career stage.
This makes Hispanics the fastest growing segment in the nation. If you aren’t tapping into the Hispanic market, you are missing a huge opportunity to gain loyalty from this segment of the economy.
The Hispanic population is widely known for maintaining their brand loyalty despite economic downturns. But marketing to the Hispanic segment isn’t as simple as translating copy into Spanish. As a multicultural myself, I notice that many marketers make the mistake of thinking that simply incorporating language to their already existing “general market” slogans will resonate. Like many multicultural segments, the Hispanic segment has to feel that the brand is speaking to them, and truly “gets” them," says Louisa Manalastas.
A LifeHealthPro article “How to Reach the Hispanic Market,” written by a Hispanic insurance professional, says that there are two key components to a successful benefits enrollment with Hispanics: Understand their culture and communicate accordingly.
This means, that in order for a campaign to have successful Hispanic outreach, it must take into consideration the level of assimilation, their origin and their cultural values and then reinforce this insight with a genuine level of relativity to these consumers. The majority of this demographic is young and increasingly focused on education.
According to the Pew Hispanic Center, from 2009 to 2010, the Hispanic collegiate demographic grew by 349,000. Acento, a full service marketing agency, says that the sophistication of this segment “should not be overlooked.”
From 2009 to 2010, Hispanic populations between the ages of 18 and 24 rose by 7 percent, while the numbers of Hispanic college students increased nearly 3.5 times that amount. And of all the students accepted into Harvard University, 12.1 percent were Latino. As higher education demographics shift along with the growth of HA populations, the buying power of Hispanics is growing exceptionally fast.
IBISWorld, a market research firm, reports that the buying power of the general market from 2011 to 2016 is only expected to grow 27.5 percent, but the U.S. Hispanic buying power is projected to grow 48.1 percent (to $1.6 trillion). Spanishmatters.com, a translation company, posted an article detailing some statistics comparing Hispanic buying power to the buying power of the general. Although the site does not list full statistical details, it provides a great leveraging point prior to approaching the Hispanic market because it takes into consideration not only insights, but also consumer habits.
Huge money is at stake for commerce with Hispanics. Marketing, sales and offering services to the Hispanic market is not as easy as it seems. Due to the cultural differences, there is often reluctance by that community to purchase or take advantage of products that are commonly accepted by the rest of the population.
Systemic to the Latino way of life, a distrust of all things non-Hispanic is difficult for the average business to overcome or understand. Businesses pay huge dollars to crack the code; but unless there is a connection established within the Hispanic community, the pursuit of Latino buyers may be challenging for marketers to overcome.