Based on the latest Nielsen report, The Latino community is getting more and more integrated into mainstream culture. Hispanic purchasing power is projected to increase 50% by 2015 ($1.5 trillion dollars). One in four kids born in the U.S. are of Hispanic decent. This huge increase will not only benefit the U.S. economy, but it will also force many American companies to embrace this market trend or face losing their market share. The Hispanic market is changing from an opportunity to a necessity for businesses today and is becoming daily talk on national news.
As the U.S. market is evolving, there are new ways to be successful by reaching out to minority groups. Besides traditional media, mobile marketing is starting to play an important role in Advertising. For example, mobile communications helped increase the traditionally low Hispanic voter turnout during the last presidential election. Hispanics are more than simple consumers. Many are active members of their community who desire recognition on a personal and political level and mobile communications play an important role in their lives.
A recent Nielsen study shows that 60% of Latino households own at least one smartphone, compared to 43% of non-Latinos. Moreover, 78% of Latinos reported using text messaging on a daily basis. Low-income Hispanic groups are the fastest adopters of the mobile web. Another important characteristic of this target audience is that for many of them having the latest mobile technology is a reflection of their social status. It’s part of “Living the American Dream.”
One of the most important values in the Hispanic culture is caring for and connecting with family. Hispanics not only use the cell phones to make calls but also to stay connected with friends and family. Now, when you look to shopping behaviors, mobile is becoming an important part of the brand process. The “convenience” factor is the major motivation for making online purchases, not only for Latinos but also for the general market.
Smartphones for many Latinos are becoming the beloved devices and those brands that are trying to engage with them should be aware of this. According to a research study by the Integer Group, 16% of Hispanics shoppers are using mobile devices to make purchases online compared to only 10% of Caucasians.
It is very important to embrace and adapt to this trend. Even though your mass-market strategy may have served you well for decades, the general market is becoming more and more fragmented and less economically powerful. So, understanding how to sell your products and services to the emerging minorities group (Black, Asian & Hispanic) is becoming a business necessity. Minorities already represent over 40% of all consumers in America. An important question to ask yourself now is: Are 40% of your sales are coming from these markets?
