You are here
CHICAGO — Hispanic consumers now make up one-sixth of the total U.S. population, or 53 million people, and have increased their spending more than 200 percent since 2000. Their purchasing power is projected to surpass $1.7 trillion by 2017, according to Information Resources Inc. (IRI).
To help consumer packaged goods (CPG) marketers and retailers engage and activate this shopper segment, IRI launched a new HispanicLink 2014 segmentation that links shopper attitudes directly to their purchase behaviors.
Although Hispanic consumer demographics vary a great deal in terms of income, age, country of origin, lifestyle and the use of digital, social and mobile communication platforms — plus how this impacts their path-to-purchase — what's unique to the Hispanic population is variation based on level of acculturation.
Some prefer Spanish-language media, speak mostly Spanish and live in tight-knit Hispanic communities, while others are completely integrated into American culture and lifestyles, according to IRI.
HispanicLink identifies three distinct shopper segments within the Hispanic population and draws comparisons among members of these segments and non-Hispanic consumers:
- Acculturated Hispanics — They have a median income of $62,000, are familiar with American culture and language and tend to be more optimistic about the future. When shopping, they frequently want the best price or deal and are willing to compromise on product quality to some extent. They also tend to be more digitally savvy and concerned with their physical appearance than non-Hispanics.
- Bicultural Hispanics — Shoppers in this segment are bilingual, but they choose to follow Hispanic traditions and are more inclined to buy products that are specifically marketed to Hispanics. As shoppers, they are the most digitally savvy of all groups, are most likely to try new things, and are heavy consumers of both English- and Spanish-language media.
- Unacculturated Hispanics — With more limited knowledge of English, shoppers in this segment rely on Spanish translations on packaging and buy products specifically marketed to them. Money is often tight for shoppers in this segment, but they are passionate about eating healthy foods and cooking fresh and traditional meals. They are also most likely to listen and be influenced by advertising before buying a product.
"Aligning a service and market offering with the needs of Hispanic shoppers is rapidly becoming a critical success factor for sustained CPG and retail growth," said Staci Covkin, principal, IRI. "Recent IRI research has demonstrated that improved insights and activation of these shoppers can result in significant sales and market share uplift."
The HispanicLink report additionally provides an in-depth view of Hispanic shoppers across a wide variety of behaviors, such as their shopping habits, the emphasis they place on health and nutrition, and their cooking and eating trends.