Unilever's 'Winning the Hispanic Shopping Trip'

U.S. retailers who don't see a need to address the growing ranks of Hispanic residents today may be in for a rude awakening tomorrow.Although there currently are 41 million U.S residents of Hispanic origin, more than 70% of that total lives in just six states. (See "Hispanics & P-O-P" by Carlos Garcia in Lecture Hall.) But in just four years, those ranks are expected to grow to 48 million and will likely become more dispersed. "If a retailer isn't faced with a large Hispanic population today, it doesn't matter," says Mike Twitty, senior group research manager, shopper insight, Unilever U.S. As the Hispanic population grows -- to 60 million by 2020, according to Census Bureau forecasts -- "it's going to be important for all retailers everywhere" to address the Hispanic shopper, Twitty says. "Everyone has to be prepared to move forward."Unilever took a step in that direction this month by releasing "Winning the Hispanic Shopping Trip," an in-depth study of Hispanic shopping behavior that the packaged goods maker believes is the first of its kind. The study is a follow-up to 2005's "Trip Management: The Next Big Thing," which examined overall shopping behavior in the U.S. (See Related Articles.)Unilever's latest study finds some significant differences in shopping attitudes and behaviors among Hispanics in comparison with the general U.S. population. For one, Hispanic shoppers are much less satisfied with their shopping experiences than general consumers. The disparity is "much bigger than anyone could have anticipated," Twitty suggests, and is a major reason why all retailers should begin to examine the issue.While frequency of food shopping trips is consistent with the general population, the type of trip differs greatly: Routine trips account for 56% of all trips to the store, compared with 26% in the general market. Quick trips comprise just 44%, compared with 62% among mainstream shoppers. And only 2% of all trips are urgent, compared with 19% in the general market."They don't take un-economical trips. They are smart shoppers," says Twitty. And with pre-planning levels high, the level of impulse purchase is lower than it is among the overall population. "They're not an easy target," he says.Another key is the fact that Hispanics are far more value-driven than the general market, a trait that comes in large part out of necessity (the average income is $34,000, compared with $49,000 in the general market, Twitty notes.) Thus, they are more aware of specials before they visit the store and while they're shopping.Responses to the growing importance of Hispanic shoppers "run the gamut" from development of fully targeted stores (such as Publix's Sabor format) to more basic tactics such as the use of bilingual employees and signage, according to Eileen Kozin, director of consumer futures and new capabilities at Unilever U.S. Retailers "have to figure out to what level they need to address" the group, she says.When doing so, they should be aware that, the more comfortable the Hispanic shopper is in the store environment, the more money she'll spend there. For instance, a shopper might be willing to make quick trips to a less-accommodating location, but will seek a more comfortable store in which to conduct her routine trips (when 54% of her total grocery budget is spent), Twitty notes.For that purpose, bilingual signage is "necessary, but not sufficient," says Twitty. A stronger plan of attack would include Spanish-language advertising, special merchandising areas, unique in-store events, community tie-ins and even a shuttle service -- because 22% of Hispanic shoppers walk or take public transportation to the store, compared with just 3% of the general population.Below is Unilever's press release announcing the study. To view the study in its entirety, click the attachment at right.May 4, 2006 -- Viewed for the first time through a behavioral lens, the study entitled "Winning the Hispanic Shopping Trip," examined the actual Hispanic shopper's activities, reviewing more than 3,600 diaries and store receipts. This is a radical departure from the traditional methodology of "Q&A" techniques as the diaries and receipts serve to further verify consumer responses to questionnaires. This groundbreaking study provides retailers with real practical in-store solutions to meet the Hispanic shopper's needs and expectations. "Retailers have an important opportunity to build their business amongst Hispanic shoppers. The Unilever Hispanic Shopping Trip Study shows that the Hispanic consumer is less satisfied with their shopping experiences than is the general market consumer," stated Michael Polk, President, Unilever United States. "We're confident that the Hispanic shopper insights in this study will help retailers develop more specific actions as they look to build their strategies for reaching these increasingly important shoppers." To provide a new perspective on the needs and expectations of the nation's fastest-growing grocery market, the study applied retail growth lessons learned from the 2005 Unilever Trip Management Report, which examined general market consumer behavior. The new research focused on four of the largest Hispanic markets in the U.S.: Houston, Los Angeles, Miami and New York. 799 participants took part and nearly 9 out of every 10 respondents were born outside of the U.S., either in Mexico, Central or South America, or the Caribbean. The study also reveals that because food plays such a dominant role in a Hispanic woman's life, all shopping activities are highly planned. "From family to community, food for Hispanic Americans has an emotional and cultural significance that extends beyond eating. Hence, the Hispanic shopper thinks about every aspect of food shopping and preparation," added Mike Twitty, Sr. Group Research Manager, Shopper Insight, Unilever United States. "She plans her trips carefully -- apparently more so than the general market shopper -- and not only around what she has at home and what she needs, but around the value she can obtain." Although much has been said about how different Hispanic shoppers are from each other depending on their countries of origin, this study points out that while they may be different in the foods they want, they're the same in their shopping behavior. This includes the frequency and type of shopping trips they take. Routine trips are not characterized by any specific item; Hispanic shoppers have different routines for different product categories, but they happen where they find the convenience and service appealing. The study also warns that the Hispanic consumer is a highly food-involved, smart, efficient and value-oriented shopper; one that retailers ignore at their own peril. Additional key findings include: The Hispanic Shopper makes a higher number of bigger trips, Fill-In and Major Stock-Up, and far fewer Quick Trips than the general market consumer. Quick Trips are just 44% of all trips she makes vs. 62% for general market shoppers. Non-food items drive Quick Trips for the Hispanic Shopper. Hispanic women are significantly more aware (by a 48% to 36% margin) of "specials" before going to the store than are general market shoppers. Even within the store, Hispanics' awareness of specials is higher than the general markets. Nearly 1 in 4 Hispanic shoppers walk or take public transportation (22%) compared to just 1 in 33 of general market consumers. Geography is responsible for choice, as is value. She knows her needs beforehand, hence a full 56% of her trips are routine vs. 26% in the general market. The Hispanic Shopper may spend less per routine trip, but a full 54% of her total grocery spending occurs on routine trips vs. 22% in the general market. Even more dramatic, only 2% of her trips are urgent, vs. 19% for the general market -- that's 1 in 50 compared to 1 in 5. More than half surveyed use cash, one quarter used a debit card and 11% paid with a credit card. Only 2% paid by check. 35% of all Hispanic shopping trips occur after 6 p.m. compared to only 18% in the general market. Hispanic shoppers are shopping with someone else -- most frequently with kids -- on 29% of all trips, compared to 23% in the general market. They're nearly twice as likely to be shopping with a non-family member, such as a friend, than is the general market.

Unilever's 'Winning the Hispanic Shopping Trip'

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