An industry that won’t go out of fashion.
Hispanics are a young, vibrant, and rapidly growing community in the USA. It is estimated that their average age is 27 years old, which is 10 years younger than non-Hispanics. They also have an average of 3.6 people per household verses 2.4 in the Anglo market.
There are many industries that can benefit from this booming demographic. The retail sector is definitely one of them. According to “Think with Google’s US Hispanic Retail Consumers study,” clothing is the most popular retail item purchased by Hispanics (89% for Hispanics vs 86% for the general population). Also, Mintel, a global and award-winning provider of Market Research, reports that in the footwear category alone Hispanic spending is at approximately $475.78 annually compared to $280.01 for non-Hispanics.
Based on a 2013 survey “Prosper Insight & Analytics,” Hispanics tend to purchase clothing when it is on sale (60.5% of males and 69.7% of females). Additionally, 15.4% Hispanic males and 17.8% Hispanic females buy clothing only when it’s on sale. So, it may be difficult to sell full price clothing to this target audience, but retailers will do very well if they consider a pricing strategy that “walks up” their pricing. With careful planning and an excellent retail business plan, the “red tag sales” and “20% off sales” can continue all day long.
Hispanic women are usually the ones who manage the finances in their households so price and value are key factors in every purchase. Those are important factors to consider for any retail store, but especially if you want to lure in this growing market. A loyalty program is very attractive to this target audience because it allows them to receive early notice of sales opportunities, bounce-back offers for loyalty, etc. It also communicates to the consumer that the retailer is listening to them and appreciates their business.
Good appearance is an important tool in the road to success for Hispanics, especially men. Mintel reports that bilingual Hispanics agree in the belief that “if you look good, you will be more successful in life.” Therefore, they will spend more on looking good even if they have lower income compare to Anglos. According to the U.S. Bureau of Labor Statistics, Hispanics spend an average of $1,998 on apparel and services verses $1,659 for non-Hispanics.
Hispanics tend to use the Internet to obtain retail information. Based on the report, “Think with Google’s US Hispanic Retail Consumers study,” 53% of Hispanics use search engines to find sales and product reviews. Also, more than 40% of them compare prices and locate retailers through their mobile devices.
Another important characteristic to highlight is that Hispanics make purchases both at retail stores and online. However, 51% visit retail stores and purchase at the stores, while 21% will first go online to research products and then visit the stores to make their purchases. Going to the store is an important social activity, this is why we see more Hispanics making their purchases in-store.
If you really want to grow your brand and business, it is extremely important to target this young and vibrant community. They have many needs to cover. So you must go beyond simply having a mobile friendly site and culturally relevant advertising campaigns. Make sure you have the right tools to execute your strategy. Provide an unforgettable experience when they walk inside your stores. As shopping is an important social activity for them, you need to also capitalize your efforts with your bilingual employees. Train them well and give them the right resources they can share with their counterparts in Spanish. At the end of the day, a happy customer means more money in your register and the best word of mouth advertising you could achieve.
