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 content that can naturally be implemented and executed in their day-to-day social life.”