Hispanics are becoming a significant influence in mainstream culture in the U.S. Not only are they the largest minority group, but also the fastest growing segment. It is estimated that 1 in 5 people are Hispanic in the U.S., and that number will increase to 1 in 3 by 2050. Just about every business needs to pay attention to this market.
Hispanics are a young and vibrant community. Within that community, the average age is 27 years old, which is 10 years younger than the general market. The Hispanic Millennial group is drawing a lot of attention from corporate America.
Millennials, also known as Generation Y, refers to anyone born in the U.S. between the early 1980s to the early 2000s (approximately ages 13 to 35). This young group contains the marketing “sweet spot” of 18-25 year olds, which is a very lucrative market for many industries.
According to a study from PNC bank, Hispanics between the ages of 20 and 29 carry about $10,000 less debt than other Millennials. The average debt of this particular age bracket is $18,000, versus $27,800 for their peers. This age group of Hispanics is also more likely to be saving on rent by living with their parents (45%) compared to their counterparts (39%).
Based on the 2013 Hispanic Retail 360 study from Nielsen, there has been an 89% increase in Hispanic Millennial-led households earning between $50,000 and $100,000 a year in the last decade alone. As a matter of fact, in 2003 11% of American homes with a Hispanic twenty-something at the helm made over $75,000 a year. In 2013, that number increased to 21%.
If you really want to capture this booming market, here are 4 helpful tips that can substantially impact your business future:
Understand who they are: Hispanic Millennials represent 21% of the entire Millennial population in the U.S. They continue to be more optimistic about the future, carry less debt, and have more children at a younger age than their mainstream counterparts.
Know where they live: They are growing rapidly in non-traditional markets like Atlanta, Indianapolis, and Charlotte, N.C. They continue to drive increases in multi-generational households, with 45% living with their parents. Also in key markets like Los Angeles, Miami, Houston, New York and Chicago, they represent 25 to 50% of all Millennials.
Learn how to connect with them: Hispanic Millennials are different from other U.S. Hispanics in some fundamental ways: two-thirds are U.S. born and 40% are bilingual. They shop less in-store, but spend more. They are smartphone shoppers. They are closing the educational gap, as more are attending college, and are marrying much later.
Speak their language: They might speak more Spanish at home and more English with friends, at school, and at work. So stay away from translations. Those approaches are half-hearted efforts that can waste your money and possibly offend your intended audience. Make sure that your message is culturally relevant to them even when you use English.
As of today, Hispanics are the nation’s second-largest consumer market in the U.S. That’s a lot of buying power that can significantly impact your business future. So take the right steps and you will find that sweet spot and a very loyal following.
