Sunday, July 19, 2009

The Hispanic Difference

A bits and pieces about the Hispanic community. (Along with the radio station advertising options I offer, I also have a local Hispanic newspaper that I can offer).

This is from

Hispanic consumers weather economic storm differently

Almost all Americans are cutting back because of the recession, but in Hispanic households across the country, these cutbacks have a unique tone. New information from market research firm Mintel shows US Hispanics skirting some of the major lifestyle shifts being endured by non-Hispanics.

“Because of the recession, many people are scaling back—dining out less, entertaining at home more, and spending less on their credit cards,” states Leylha Ahuile, senior multicultural analyst at Mintel. “Because Hispanic consumers live simpler, more home-spun lifestyles, they don’t have to make many of these cutbacks. This drastically changes their experience of the recession.”

•Dining in, not out – While 52% of the general population is dining out less because of the economy, Mintel finds Hispanics already dined in more frequently. Hispanics spend the most on groceries of any ethnic group (averaging $115 weekly), and their spending is almost identical across income levels (not so for non-Hispanics who spend more if they earn more).

•Entertainment at home – In both 2007 and 2008, despite economic declines, Hispanics increased their entertainment spend, likely due to the fact that many US Hispanics are young and starting families. Mintel found Hispanics are also more likely than the general population to subscribe to movie-at-home services.

•Credit card debt – The financial crisis is riddling people’s confidence, but because many Hispanics don’t participate in the banking system, they aren’t as affected. Mintel found Hispanics are twice as likely (40%) as non-Hispanics (21%) to have no type of account with a bank. Furthermore, less than half of Hispanics have or use credit cards.

Though Hispanics aren’t experiencing the complete societal overhaul of non-Hispanics, they’re still suffering from the recession. Three in four (76%) told Mintel their personal finances are in fair or poor shape, while less than one in three (31%) said they feel secure financially.

And this is from Target Latino:

U.S. Hispanic Purchasing Power

U.S. Hispanics Purchasing Power

U.S. Hispanics Purchasing Power

The nation’s largest minority group controlled $686 billion in spending in 2004, the University of Georgia’s Selig Center for Economic Growth concluded, and the community’s purchasing power comprises the world’s ninth biggest economy. It’s larger than the GNP of Brazil, Spain or Mexico, reported the Hispanic Association on Corporate Responsibility. Hispanic purchasing power is projected to reach as much as $1 trillion by next year (2010).

The main drivers of the surge in Hispanic consumer influence are education levels, labor force composition, household characteristics and accumulation of wealth.

Advertising expenditures aimed at U.S. Hispanics have grown while the overall ad market has slowed down. From 2000-2004, Latino-directed budgets from the top 50 advertisers rose from $658 million to $1.23 billion, or 87%. Major players such as Procter & Gamble, General Motors, McDonald’s and Coca-Cola have continually increased the amount they spend to reach this coveted market, which is becoming more desirable in terms of sheer numbers and economic clout.

• U.S. Hispanic purchasing power posted a compound annual growth rate of 7.7%

• Higher paying managerial and professional jobs are the fastest-growing occupational categories for Hispanics

• California and Texas account for more than 34 percent of all Hispanic purchasing power and nearly half of the entire U.S. Hispanic population

Source: TIA

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