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. [Read more…]