Written by Corina Martinez Chaudhry
The reports are out and they point to one thing – huge buying power! According to the 2012 Nielsen and Selig Center for Economic Growth Reports, Latinos/Hispanics constitute a population group having a large share of purchasing power in the US. This equates to 16.7% or about 52 million Latinos/Hispanics living in the United States. From a marketing perspective, this is quite an influential group.
A company wanting to grow and expand should most definitely have this group on its radar. This is not a group to be disregarded. As more of the US population is retiring and leaving the work force, a younger generation is taking on those jobs being left behind. With the Latino/Hispanic population quickly growing and more Latino/Hispanics starting to move up the career ladder with educational attainment, it’s only natural that this group is quickly becoming influential in almost every business market arena. It would be advisable for businesses to take heed and get to know this market better; especially if they want to increase their bottom line.
The Selig Center for Economic Growth Report indicates that this market growth will be about $1 trillion dollars in 2015; whereas, African Americans, Asians, and Native Americans collectively will be about $2.1 trillion dollars. This indicates that the Latino/Hispanic market is bigger than many global economies around the world. This should also be an eye opener for business markets in the US and around the globe.
Another item this report mentions is that even though many Latinos/Hispanics are geographically concentrated along the Border States or port of entry cities, their buying power is still reaching into many other states. I presume this increase is likely due to more Latinos/Hispanics moving or relocating to other areas within the United States.
The Nielson Report found that most adult Latinos/Hispanics prefer to see ads in Spanish even though they are fluent in English as well, which makes a shift from generations past that found Spanish as belittling. This could be a strategic market modification for businesses that are serious about capturing this market.
Other areas to note are that Latinos/Hispanics are very fundamental to business successes and that this group is sustaining their culture rather than just strictly blending into the overall American melting pot. In addition, it was found that this group also has distinct product consumer patterns as well as technology and media usage which doesn’t necessarily follow that of the overall general market. It is being aware of this information that will help businesses succeed in capturing the Latino/Hispanic market. Some networks such as ABC News and Univision News are quickly getting on board and will begin launching 24-hour channels that target this specific audience.
For Latino/Hispanic households earning over $50,000, the Nielson report also projected that these would increase at a faster rate than the overall total number of households. In other words, this Latino/Hispanic group is quickly becoming wealthier and increasing their overall buying power which can shift into other arenas as well. Just look at the influence this particular group had in electing the President of the United States in November 2012.
If you’re a business and you reside in one of the states listed below, I would speculate to say that you will most likely experience business growth if you’re catering to the Latino/Hispanic market. The ten states with notable Latino/Hispanic buying power are California, Texas, Florida, New York, Illinois, New Jersey, Arizona, Colorado, New Mexico, and Georgia.
What it all boils down to is simply this – Latinos/Hispanics have a lot of buying power in the United States and will continue to grow even stronger as they expand to other regions of the country. This is definitely a force to be reckoned with as Latinos/Hispanics continue to make a huge impact on businesses around the country and world.
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