Hispanics are the fastest growing consumer market in the USA. According to Nielsen, by 2021 their buying power is expected to reach $1.8 trillion and their population growth will be over 50%. Hispanics also make up a large percentage of U.S. Millennials (1 in 4) and 51% of the U.S. Hispanic population is below the age of 30.
Taking just these few statistics into consideration, it is fair to say the Hispanic market is the biggest business opportunity any brand can have. Read that sentence again. Let it sink in because if you don’t, you are missing out on something significant. I am constantly surprised at how many companies are still not carving out the right resources and budget to properly engage with this influential and profitable consumer market.
The mainstream is becoming multicultural, driven by Hispanic growth. Last year alone, Latin music’s popularity increased so much that it surpassed country music in album and consumption numbers, according to Buzzangle, a data company that measures music consumption. Also, 42% of interracial marriages have been between a Hispanic and a white person, according to Pew Research Center. This transformation and crossover from U.S. Hispanics to mainstream is something brands can’t neglect anymore if they really want to assure sustainable growth and survive in this hyper-competitive market moving forward.
Here are 3 strong reasons why you should consider targeting Hispanics:
- Huge business opportunity: Sometimes executives ask me, “How much is this going to cost me?” I always tell them that instead, they should be asking themselves, “What is the cost of the opportunity they are missing out on? How many millions of dollars of additional revenue and sales are they walking away from by not engaging with Hispanics?”
- Eager new influential audience: Hispanic consumers actively engage with brands online. They over-index in smartphone ownership, access to the Internet through mobile devices, and they also turn to social media to research, review and advocate for brands. They are considered the early adopters to new technology. All of this makes them a great market opportunity for you to introduce new concepts.
- Community focused: Hispanics are more likely to buy into a product if another family member already has a favorable opinion of it. Brand experience is key to convey your message—from the moment they walk inside your store, buy from your site, or call your customer service line. They are big believers in word-of-mouth, which is the best advertising you can have for your brand.
In the coming years, the Hispanic market will continue to grow. So if you haven’t had conversations with your marketing executives or shareholders, it is time to do so. It is not about when or why you should be reaching out to them. This is a vital step you should take because they are transforming mainstream and they will be impacting your company’s bottom line. Be aware of the different cultural differences within this market. Culture is more important than language. Be certain your messaging will genuinely resonate with them. Start today if you want to be ahead of your brand’s future.
President-CEO of The Group Advertising Hernan Tagliani is a leading Hispanic Communications Expert, Business Speaker and Author of the book: The Hispanic market for corporate America. How to make your brand culturally relevant. He is also a National and International Contributor to The Business Journals, Houston Chronicle, Entrepreneur Magazine and to Forbes Magazine. As President of The Group Advertising, Hernan is helping national brands tap into one of the fastest growing and financially influential consumer segments in the United States—Hispanics. Their spending power is already over $1.7 trillion. Through seminars, training workshops, or one-on-one marketing consultations, Hernan can show you exactly what you need to do in order to connect with and activate this market to significantly increase sales, revenue and assure a sustainable growth in the years to come.