An Ad Age news video from the National Retail Federation Convention made me realize how segment marketing is becoming even more crucial to marketers, and that the Hispanic consumer is now seeming to really rise in importance. I saw the convergence of three factors.
1. Post Recession Consumer Spending May Not Fully Recover: According to Mark Zandi, Chief Economist for Moody’s Economy.com, we are right at the beginning of a 15 to 20 year period of lower consumer spending in general across the United States. No doubt, there will be sectors with aggressive growth and surely the Hispanic consumer segment will probably be one of them. Hispanics tend to be younger and more dynamic in spending, especially in categories like retail and food shopping. So, targeting marketing efforts to reach this segment will jump to the front of the line. To see the video click here.
2. Hispanics account for over 50% of annual US population growth: Of the over 4 million or so people born in the U.S. every year over 50% are of Hispanic origin. This robustness in population growth will continue to increase their importance with marketers and retailers. This holiday season Walmart had a Three Kings Day celebration at over 480 locations specifically targeting the Hispanic consumer base. To check stats or download the report from the Pew Hispanic Center click here.
3. More and More Hispanics are Online: According to Horowitz Associates “State of Broadband Urban Markets 2008″ 48% of U.S. Hispanics have a broadband connection, this is still 9% lower than the overall market, but it’s become a large enough segment to make it economically feasible to market to. Today top brands such as Walmart and Bank of America spend between 5 and 20% of their Hispanic marketing budget on Hispanic geared online marketing efforts.
Conclusion: As the retail environment shrinks U.S. Hispanic consumers will become more important to marketers and retailers. Especially as the Hispanic population segment continues to drive total U.S. population growth. And now a large swath of Hispanics are online making it feasible to develop more accountable web based marketing efforts. In 2009 many companies will be taking a second, more thoughtful look, at U.S. Hispanic consumers.
Entry contributed by Richard Phillips.
Copyright 2009, Carlos Arámbula. All rights reserved.
