Oct. 29 - The economy these past years has been very hard for
everyone, especially the Hispanic culture. Hispanics around the United
States say that they have the “worst of a bad economy” and see
themselves in the dark side of this recession more than any other
ethnicity.
Although Hispanics are struggling they still have a positive attitude
towards their future, more than any other ethnicity in fact. According
to studies, two-thirds (67%) of Hispanics say they expect their
financial situation to improve over the next year compared to 58% of the
general population. Also two thirds also expect their children to enjoy
the standard living that surpasses their living today. This is a
dramatic difference compared to 48% of the general public.
Not only is the Hispanic culture the largest minority group in the
country but they are now the youngest. According to the 2006 American
Community Survey, 33.8 percent of the Hispanic population is under age
18 compared to 21.3 percent of non-Hispanic whites. Young generation
Hispanics are the population that is choosing the television shows,
music, sports, and products that the general public is exposed to. These
young generation consumers, much like the majority of the population
now are online and focused on the new trends. Hispanics are always seen
to be “ahead of the game” when it comes to the technological trend.
Studies have shown that 44% Hispanics own a smart phone compared to 34%
of other ethnicities and 81% of them use video sharing sites such as
YouTube and Facebook. All this buying power that they have has grown
dramatically in the last decade. It is estimated that the Hispanics
market is worth 1.2 trillion dollars, which is the biggest than all
thirteen countries in the world. It is also expected to rise to 1.6
trillion by the year 2015.
Hispanics have not only grown by population but through businesses as
well. Minority owned businesses have also increased dramatically over
the last ten years. According to the U.S Minority Business Development
Agency reports that between 2002 and 2007, Hispanics owned businesses
grew faster than the national average of 44% in 28 states.
If this growth is so, then why do we see so many small businesses close
down? Studies have shown that minority businesses have a great idea and
knowledge for what they sell but many do not have a great “capability
statement” which is similar to a snapshot of the business when a
consumer first looks, or learns about the company. A capability
statement is used to market or promote a business to current and future
consumers. Without this or an appealing one, most minority companies
cannot hold up against competitors.
According to Llopis another reason why minority businesses are not
ahead compare to its competitors is because of their lack of leadership
and successful business operator. Leadership styles he found that were
common upon minority businesses and unsuccessful were:
• Leadership was transactional only
• There is no exit strategy
• Unable to power up their team
• No successor was ever identified
• Poor communication
All these factors effect whether a business succeeds or fails in the business market.
So what does one need to know in order to market to the Hispanics and
help minority businesses create brand recognition? First thing any
marketer must know is that Hispanics are not homogenous. Studies have
shown that Hispanics themselves are one of the most diverse ethnic
groups within the United States. Secondly, the Hispanic population is
urban and can be found everywhere. The states with the fastest growing
population of Hispanics are South Carolina, Alabama, Tennessee, and
Kentucky. Third, upscale brands should market to the Hispanics culture
as well. Many businesses think that because they sell high priced items
that the Hispanic culture does not matter. This myth is false, studies
have shown that upscale Hispanic households had grown rapidly in the
past years and their buying power increases to 680 billion. Next, a
business must realize that Spanish campaigns are not enough to target to
the Hispanic culture. The majority of Spanish dominant Hispanics agree
that when they see a Spanish advertisement they feel a relationship
towards that company or product. But English dominant Hispanics think
otherwise. Some English dominant Hispanics actually feel insulted when
they see a certain campaign demonstrating Hispanics a certain way.
Lastly, Hispanics are brand loyal to several companies but they are also
most likely to try new brands than non-Hispanics. According to the
Experian Simmons, 26% of Hispanics adults “like to change brands often
for the sake of variety” compare to 16% of non-Hispanics.
There are seven sectors of business that can gain revenue for minority businesses. These include:
• Food: Hispanics spend about 7.7% of their income eating at home
compare to 6% for non-Hispanics. They also spend .9% more than
non-Hispanics on food for the home.
• Retail: Many retailers today try to interact with the Hispanics
market through English and Spanish medians such as using an artist for
both language advertisements. They also try to attract through brand
loyalty and building relationships with their consumers.
• Education: According to the Pew Research Center, Hispanics are the
mains source of the higher education sector. This sector has grown
rapidly is the past five years. Community schools and trade schools are
the most popular because although tuitions increase, these schools offer
a high degree at lower costs.
• Real Estate: With the amount of Hispanics entering the work force
because of a higher education, there dream of owning a house is still in
mind and staying at a neutral level.
• Financial Services: Studies have shown that in the next five years
the Hispanics contribution to commercial banking and money transferring
industries will grow faster by 7.3%.
• Transportation: Studies have shown that Hispanics will contribute
7.4% more growth to the automobile manufacturing industry, which means
14 billion more than in 2011. The top five brands among Hispanics
between the ages of 18 and 34 are; Mitsubishi, Nissan, Toyota, Honda,
and Suzuki.
• Entertainment and Media: Because most Hispanics are second generation
they are younger and for tech-savvy. The most successful way of
reaching out them is through mobile and internet channels. After 2009
recession, the Hispanic media grew 1.9% with the largest success being
in television, magazines, and especially the Internet.
Hispanics are the fastest growing population in the market and their
opinions and ideas are taking over businesses everywhere. It is
important, as a business owner, to know everything it is about your
target market and focus on what their needs and wants are. These facts
and knowledge are a key step to understanding one of the biggest
minority groups in the United States.
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