Purchase Power and the Coveted Hispanic Shopper: Why They Should Rank #1 on Every Retailer’s Holiday Wish List

As Hispanic consumers continue to grow in spending power, affluence and digital centricity, it will not come as a surprise if the retailers who jingle all the way to the bank this season will be the ones wished and worked for the most Hispanics. The anticipated 2010 census has spearheaded major hype in terms of minorities becoming the new majority, causing the rapidly growing Hispanic consumer to become quite the hot commodity.  Coined by Nielsen research as “one of the more remarkable marketing opportunities in history,” the average retailer may not have the happiest of holidays if they overlook the purchase power and increasing prosperity of the nation’s 44.3 million Hispanics. Research by Hispanic Business recently reported that “U.S. Hispanic purchasing power surged to nearly $870 billion in 2008 and is projected to reach as much as $1.3 trillion by 2015. During the past decade, the rate of growth was more than two times the overall national rate.” And studies show there is no better time than the holidays to capitalize on this movement, considering Hispanic’s shopping habits shift even more during the holidays with their family-oriented nature. The focus strays away from price and onto purchasing exactly what family members want. So where are they? Retailers looking to snag the Hispanic shopper should look no further than following the rules of engagement, literally. Research by The San Jose Group, an integrated multicultural marketing communications agency, showed that Hispanics spend more time on social networks (2.4 hours per week over 1.7 hours per week), more time blogging (1 hour per week over 0.7 hours per week), and more time accessing the internet through mobile phones (1.1 hours per week over 0.4 hours per week) than Non-Hispanics. George L. San Jose, President and COO of The San Jose Group, advises how retailers can turn these engagement efforts into profits: “Retailers have the opportunity to intertwine disciplines to effectively engage these consumers and transform them into brand ambassadors. It is essential for them to incorporate interactive...

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The San Jose Group’s Fact & Trend Report: Household Income

The landscape of the population growth and household income in the United States has taken an immeasurable frontward leap over the last 10 years.  The San Jose Group delves deeper into what this could potentially mean for the transformation of the existing landscape in this country between the Hispanic and General market.  Over the last 10 years, according to the U.S. Census Bureau, the population growth has become augmented by 25.5 million people.  Today, the total population in this country is 310 million.  Research studies demonstrate that the population today has significantly increased to contain a larger Hispanic population. It’s remarkable to personally reflect upon the Hispanic population growth representation of 51.1 percent or 13 million of the total population increase.  It is quite evident by statistics alone to recognize that the Hispanic population has consistently grown and will exponentially escalate to an even larger percentage in the foreseeable future. When thinking about the transformation in the household income in the U.S. across the General market and Hispanic market, the median income levels in 2000 are divergent from one another.  In 2000, the median household income of 45.3 percent of the General market was $55,000, whereas 31 percent of the median household income of the Hispanic market was significantly less at about $50,000. You may ask yourself, why are the income levels so different?  The answer is simple—educational attainment is a major factor in determining an individual’s economic disposition.  Thus, an individual’s educational credentials are in fact aligned to the household income the individual will acquire for his or her family. Presently, about 40 percent of Hispanic households now earn a median income of $50,000 or more compared to the 54 percent of the General market’s median income level of $50,000.  As a result of this improvement, consumers will notice that the Hispanic market is in fact closing the gap between them and the General market in spending habits of their disposable income.  It is important to notice that the spending habits & living...

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Q & A with The San Jose Group’s EVP Jim Legg: Livin’ La Vida Loca at the Latin Grammys

The San Jose Group’s executive vice president of leadership and innovation Jim Legg recently had the honor of attending the 11th Annual Latin Grammy Awards, held at the Mandalay Bay Events Center in Las Vegas on November 11th. Hosted by Comedian Eugenio Derbez and Actress-Singer Lucero, the night was packed with star-studded performances from Camila, Pedro Fernández, Juan Luis Guerra, Enrique Iglesias, Rosario, and Wisin y Yandel. Legg expresses his tales and takeaways of his night of as a Las Vegas socialite in the below Q & A with SJGPR. SJGPR: Anyone you were especially excited to see? JL: J. Lo and Marc Anthony were pretty cool. SJGRP: Who came out with best performance? JL: The best vibes of the night came from Enrique Iglesias. He came out with 4 rows of drummers and by far the biggest energy. It embodied the cultural crossover that’s happening. SJGPR: Tell us more about that. JL: It’s happening in the Grammys and mainstream music from Pitbull to J. Lo. Kids listening to music like this are growing up with the refreshing experience of embracing diversity. And the influx of crossover talent like this amplifies the fusion of cultures. SJGPR: So young people are growing up with the multiculturalism as the norm? JL: Absolutely – the growth of this community can be seen through the youth. I look at my kids and their diverse background of friends, music and interests. There is much more open-mindedness to diversity in their day-to-day lives and in their mindset in general. Look at the phenomenal growth of Hispanic youth – the younger you are the more opportunity there is to experience this synthesis. If marketers don’t jump on this crossover they’re going to miss the boat. SJGPR: Any other takeaways from the experience? JL: The energy and overall sense of community was incredible, particularly during the Enrique Iglesias performance. He brought fervor into the room, and it was an amazing feeling. Did You Know? • The Latin Grammys broadcast was distributed internationally...

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SJG Facts & Trends: Purchasing Power

POWER IN NUMBERS The portrait of America is more of an ever-evolving landscape now than ever before. The 2010 census statistics are expected to demonstrate the colossal population increase among African-Americans and Hispanics, and now research backs up the growth in affluence and spending power of these populations as well. The Selig Center indicated that in 2009 African American buying power was $910 billion. That same year Hispanic buying power hit $978 billion. These numbers mark the milestone that the above-mentioned markets possess buying power larger than the entire economies of all but fourteen countries in the world (based on the 2008 GDP measured in U.S. dollars). The San Jose Group, an integrated multicultural marketing communications agency, interprets this research to mean that now with the minority being the majority, allocating more marketing dollars to the African American and Hispanic markets is no longer a trend, but a necessity for success. The multicultural market has officially transpired into the new general market. The Selig Center’s further research exhibits astronomical growth and demonstrates that African Americans and Hispanics are about to invigorate the consumer market with their spending power. African American buying power has risen from $318 billion (1990) to $590 billion (2000), then $913 billion (2008) and is expected to hit $1.2 trillion in 2013. The Hispanic market leapt from $212 billion in 1990 to $490 billion (2000), then $951 billion (2008), and is paced to reach $1.4 trillion in 2013. As these populations experience record-breaking surges of growth from a population and a fiscal perspective, it has never been more evident that reaching out to these budding multicultural communities is not only a tremendous opportunity, but a crucial business decision. For more information about this topic please email sjgpr@sjadv.com. For more information about the San Jose Group please visit...

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Multicultural Impact of the 2010 Healthcare Reform Act on the Pharmaceutical Industry: Where will the 33 million insured population derive from?

by Martha Rivera, Director of Insight & Planning The San Jose Group is strategically leading the conversations on this topic. With a background of more than 25 years of strategic marketing and communications for the pharmaceutical industry, with a phenomenal combined experience of providing counsel to more than 50 pharmaceutical and healthcare brands, the team at The San Jose Group gives their perspective on the potential implications of the multicultural market on this national healthcare act. After several months of intense political battle, in March 2010, President Barack Obama signed the Patient Protection and Affordable Care Act – a healthcare insurance coverage for approximately 33 million new consumers in the United States. The San Jose Group asks:  What is the impact of their expected massive influx into the pharmaceutical market? How is it going to affect the marketing and communications platforms within the industry? The San Jose Group’s first question to consider how the 33 million newly insured people break down by ethnicity. Statistics strongly suggest that the newly insured will make up more than 43 percent from the multicultural marketplace.  Currently, the top-12 pharmaceutical companies are investing less than 1 percent of their total advertising dollars toward multicultural segments at the present time. After 2014, approximately one in four insured people would come from a multicultural background. Not only is there a lack of multicultural marketing investment within the category or few with real future plans to ramp up initiatives, but there also seems to be gap in knowledge regarding how there is a new and growing majority in key U.S. markets. According to 2009 U.S. Census Bureau data, 52 percent of the 18-44 population within the largest top-20 U.S. markets is from a multicultural background. This new majority is critical to embrace as most pharmaceutical brands do not have national budgets and are required to focus their DTC, HCP and DTP efforts into key markets. “Healthcare reform combined with the new majority will create a paradox shift in pharmaceutical marketing.  Agencies without...

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