Why marketing to the Hispanic market is so important
By Louisa Manalastas
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 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 census.gov). 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.
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:
1. Understand their culture
2. Communicate accordingly
So who is the Hispanic American (HA) consumer?
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 market’s in an article titled, “Marketing to US Hispanics Equals Increased Sales.”
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.