This article was originally published online by the Orlando Business Journal.
It’s only a matter of time.
Minorities will hold a 56 percent majority in America by 2060, according to the U.S. Census Bureau. Yes, you read it right. Whites will comprise just 44 percent of U.S. population within 45 years. By 2060, the non-Hispanic white population, currently the majority group, is projected to drop from 198 million in 2014 to 182 million.
Meanwhile, Hispanics will account for more than 40 percent of employment growth in the next five years and more than 75 percent between 2020 and 2034, according to a new study from HIS.inc (NYSE:HIS). This population is projected to increase from 55 million in 2014 to 119 million in 2060. That’s a 115 percent increase, meaning more than one quarter of our nation (29 percent) will be Hispanic.
So, what does mean to you? It’s a big opportunity to grow your business. Employment growth translates to more sales and more people buying your products or services. Hispanics are known for working hard and spending more. Since their families are bigger, they have more needs, which your firm can fill.
New statistics require new strategies. It’s time to re-evaluate your current marketing plan.The future of your company depends on how fast you embrace minorities, market changes and media consumption trends.
For example, the number of Hispanics who speak Spanish will rise from 36.9 million in 2014 to 55.4 million in 2034. And by 2044, the U.S. is projected to become a plurality nation, meaning more than half of all Americans will belong to a minority group.
In light of these facts, you should think about adjusting your marketing approach.
However, some CEOs, marketing executives and multicultural marketing directors still don’t see the need to reach out to minorities, especially Hispanics, even though these usually are companies seeing a decline in sales. But even if your sales weren’t down, why wouldn’t you do everything you could to find new revenue streams for your company?
After all, as Henry Ford, founder of the Ford Motor Co., once said: “Coming together is a beginning; keeping together is progress; working together is success.”
Here are three tips that will set you apart from the competition:
• Invest in diversity: Some marketing directors say when sales are down, one of the first things companies cut is their marketing budget. Multicultural marketing drops from the agenda. Executives think the general market is still the majority for now, so pumping more money into it may solve their sales problem. To assure a return on your investment, it’s crucial to invest in emerging markets that project a strong, steady growth moving forward. Hispanics is definitely one of them.
• Become a pioneer: Sometimes executives are so focused on what the competition is doing instead of what they should be doing. “If my competition is not investing in multicultural marketing, why should I do so?” But this is one of the main reasons you should do it and become the best at it. You’re looking for an edge to set you apart.
• Understand the demographics: Due to high level of immigration, the number of foreign-born Hispanics will grow from 22 million in 2014 to more than 29 million in 2034, according to the U.S. Census Bureau. Between 2014-2060, the native population is expected to increase 22 percent (62 million). The foreign-born population is expected to grow 85 percent (from 42 million to 78 million). The Hispanic market is savvy. You must understand their diversity; consider their linguistic, cultural and social differences. It’s the only way to create messaging that resonates uniquely to them and the only way you will turn them into loyal customers.
Remember, Hispanics don’t want to be sold; they want brands to embrace their cultural relevancy. Instead of forcing Hispanics to assimilate, brands must integrate the U.S. Hispanic consumer mindset into their multicultural marketing. Get to know them. Create ads and experiences that resonate with them. Build a genuine relationship. And then you will tap into a flourishing new profit stream.
Start today and become the brand that still is succeeding tomorrow.
