Attracting Hispanic Shoppers in Arizona

Dear M & M:

I am hearing from other merchants the importance the Hispanic consumer has become in Arizona. What are some things I need to know to attract Hispanic shoppers to use in my marketing planning?

– John

Dear John:

According to a recent report by the Arizona and Tucson Hispanic Chamber of Commerce, 1 of 10 dollars spent on consumer goods is spent by Hispanic shoppers.1 of 10 dollars in charitable contributions are made by Hispanics, and 25 percent of those donations are made through their religious institutions. Average Hispanic household income in the United States is expected to more than double from about $55,000 per year to $117,000 per year by 2032. One-third of Arizona Hispanic households earn $50,000-$100,000 annually.

92.7 percent of Hispanic children in the United States are U.S. citizens. There were an estimated 67,300 Hispanic-owned businesses in Arizona generating more than about $10.2 billion in gross receipts in 2013. The report, now in its fifth year, states that Hispanic consumers will spend an estimated $46 billion in Arizona in 2014, reaching $50 billion by 2015.

Nationally, Hispanic purchasing power will reach $1.5 trillion in 2015 — greater than Mexico’s gross domestic product — and could top $2 trillion by 2020, according to the report. Hispanics are now 1 of 4 public school students in the nation, and a majority of K-8 students in Arizona. Nine of 10 U.S. Hispanics 18 to 34 years old say it’s important to have some college to get ahead in life.

“In Arizona, 8 percent of all registered Republican voters are Hispanic, 27 percent of all registered Democrats are Hispanic, and 22 percent of all independents are Hispanic” – Arizona Hispanic Chamber of Commerce. According to a Nielson study, “given the total market’s dependence on Hispanics for future growth, tapping Hispanic preferences and purchasing behaviors is essential for any strategy or marketing plan to be successful.

Between 2000 and 2011, Hispanics accounted for more than half of the U.S. population increase with slightly greater growth than that of all other non-Hispanics combined. Mexican ancestry is bigger than Irish, English or Italian ancestry in the U.S… Hispanics will contribute an even greater share (60 percent or higher) of all population growth over the next five years.

Even though immigration is down sharply, Hispanics continue to experience dynamic growth. In fact, Hispanics are the fastest growing ethnic segment expected to grow 167 percent from 2010 to 2050, compared to 42 percent for the total population.  Media use and shopping trends; Hispanics spend 68% more time watching video on the internet and 20% more time watching video on their mobile phones compared to non-Hispanic Whites.

Hispanics outpace all ethnic groups in mobile data and service consumption. Hispanics are three times more likely to have Internet access via a mobile device. Hispanics are 28% more likely to own a smartphone than non-Hispanic Whites. Hispanics have different consumption patterns, fewer shopping trips and generally spend more dollars per trip. Status, name brand and loyalty to the brand are relevant and important to the Hispanic shopper.

They are less likely to buy the generic or store brand. Commercials using Spanish language increases recall by as much as 30%. Useful tools to reach the Hispanic consumer include language, media and the latest in technology consumption”. –Nielson

 

-M&M

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