Hispanic Shoppers Walking on Fertile Ground

Jacksonville, Fla. — Given what we know and are learning about Hispanic shoppers, this segment of the U.S. population is "a dream consumer," according to Elena Etcharren, senior vice president at AMG Strategic Advisors.Hispanic shoppers tend to plan trips in advance, shop in groups, be plugged into mobile and social, appreciate references to their language and culture, and be brand loyal, according to the Hispanic "The Why? Behind the Buy" report released jointly by AMG and Univision Communications Inc.Additionally, the report found, Hispanics are more optimistic about the future than the average consumer: 25% expect a positive change in employment for their household's main breadwinner in the coming year (compared to 14% of the general population), while 32% forecasted a positive change in income (vs. 22% of the total sample)."We're talking about really valuable consumers who love to shop," says Etcharren. "They find it entertaining. They shop more often and spend more per trip [than the average consumer]. They are a dream consumer. They love to try new things. They're a bright light in a flat environment."Citing prognostications that Hispanics in the next decade will account for 95% of the population growth among Millennials and 100% of the growth among women aged 18 to 49, Liz Sanderson, vice president, brand solutions at Univision, says that "if you layer on top of that the fact that they are overdeveloped in terms of use of digital and interactive, that becomes a perfect marriage for new initiatives.""The Why? Behind the Buy" provides several key findings:Hispanics plan family meals in advance. Sixty percent of Hispanics surveyed plan their meals at least two days ahead of time, and compared with the general population, Hispanics cook more frequently at home (62% vs. 52%), prepare specific meals requested by family members (24% vs. 14%) and eat more natural (38% vs. 27%) and organic foods (31% vs. 22%).The pre-planning means marketers can have an impact earlier on the path to purchase, Sanderson says, which in turn means less "pressure to break through in-store." Etcharren says that children and other family members have greater influence on the shopping process, which could call for a wider array of promotional tactics.Hispanics over-index on mobile and social. It's imperative to target Hispanics early on the path to purchase, as they are more likely to use a smartphone (51% vs. 41%), regularly text (47% vs. 42%) and regularly use mobile apps (19% vs. 14%) than the general population.Previous research has shown that Hispanics used social media more often, but this report found they use high-tech devices for routine functional purposes like entering online product sweepstakes and comparing product attributes, Sanderson says. "This is an opportunity for manufacturers to experiment and see whether they can reach Hispanics in other ways, not through traditional media," says Etcharren.Hispanics shop in groups. Nearly half of the total population (46%) typically shops alone, but less than one-quarter (22%) of Hispanics do so. They also spend 20% more on routine shopper trips and 55% more on stock-up trips.Group shopping "allows for plenty of opportunity to not only influence the mom but also the companions – the children, other adults," Sanderson says. "Shopping with your children always leads to larger baskets."Hispanics engage with language and culture. A substantial chunk of older and younger Hispanics say they prefer to consume Spanish-language media – 34% of those over 65, and 39% of those ages 18 to 34 – and say they speak Spanish at home, 38% of those over 65 and 40% of those 18 to 34.When consuming media along the path to purchase, "Hispanics get that same sense of joy, like an unexpected treasure in their shopping experience, when they are recognized by the retailer," Sanderson says. "This will definitely generate an emotional engagement, as opposed to a functional engagement – like reduced price."Hispanics remain loyal to national brands. As a group, they have a strong sense that you get what you pay for, Sanderson says. "What starts cheap ends up being expensive," she says. "You might get a good deal on detergent, but then will have to wash your clothes three times. Hispanics are very aware of that."Even when they make compromises and trade down to a cheaper brand because their family has hit hard times, Etcharren says, it's often only temporary. "Over 40% expect to go back to the national brand," she says.In sum, Sanderson says Hispanics are less jaded than the average consumer and more willing to admit they're being influenced by messaging. "It's more of a fertile ground for marketing messaging," she says. "My take is they'll engage in a more open way from a marketing standpoint."

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