1. Hispanics are destination-shoppingHispanics see shopping as entertainment and opportunity for family / friends time, "me time" and even date time with spouses. Different trips call for different experiences and companionship. Many stores have taken advantage of this opportunity to be a destination for social activity by adding cafes, lounges and bars.
When targeting Hispanics, the competitive set is not just other retailers and stores, but also destinations. By developing the overall store experience, retailers have an opportunity to increase time spent in store as well as store loyalty.
2. Variety is the spice of Hispanic shopping
Hispanics are not motivated to simplify their shopping routine. In grocery shopping, a minimum of five channels are used by shoppers.
Understanding what category associations the Hispanic shopper has with different stores creates new opportunities in distribution.
3. Personal map replaces "near my home"
For Hispanics, shopping is not an isolated event but rather a part of their busy daily routine. Knowledge and preference of stores are based more on proximity to daily activities than proximity to home.
The challenge is to evolve beyond zip codes and understand the Hispanic footprint and where they live their daily lives. This "personal map" opens the door to discovering and expanding the base of Hispanic targeted stores.
4. One shopper, four lists
Hispanics are making lists and any one shopper most likely has a number of different types of lists in their arsenal.
The four types of lists:
- Complete: family staples and add-ons, such as cereal and kids needs for school projects.
- Mental: routine shopping needs kept mentally, not written down, such as bread, eggs and milk.
- Recipe: created around the specifics for a recipe/occasion; usually complement a mental list.
- Eternal: the ever-evolving list of the things needed or wanted sometime, somewhere, depending on the availability, price, etc. Such as fresh nopales or other hard-to-find imports.
For brands, understanding trip mission and category helps understand which list you want to "get on" or "make" and where to start the conversation within the buying cycle.
5. Brands battle it out at the shelf
While-list making is important, the store shelf, where 70% of Hispanic purchasing decisions are made, is the last stand for swaying the brand purchase decision.
Key attributes, packaging and promotions are factors that influence the final decision. Being relevant to the Hispanic consumers' needs and preferences can win that battle from the shelf to the basket.
6. The emergence of digital in retail
The perfect storm is forming from the overwhelming numbers of Hispanics participating in the digital world and new digital retail activities. And while Hispanics under-index in coupon clipping, they are over-indexing in online and mobile application redemption.
Leveraging these opportunities with online, mobile and in-store applications is the next phase in connecting with Hispanic shoppers.
7. "Shopping" is limited to only planned trips
Hispanics have been under-reported in frequency of shopping trips, despite their high number of channel choices, enjoyment of experience and larger basket sizes. This disparity is because Hispanic shoppers define "shopping" differently. Shopping involves only the planned/routine trips, and doesn't include spontaneous trips, which are frequently made.
Understanding this small but important difference opens the door for creating moments of interception that encourage and recognize spontaneous shopping trips.
8. Private labels take the stage
Where 37% of Hispanic shoppers purchased more private label products in 2009, 25% plan to buy more this year. Private brands account for 31% of Hispanic household grocery basket; averaging $89 every two weeks out of a total of $267.
To the general market, private labels are seen as generic and recognized for their price benefits. For Hispanics, however, private labels are seen as store brands, placing a higher importance on the value they carry as a product from a trusted store. To take advantage, stores must leverage their store loyalty in promoting private labels.
9. Product attributes drive brand choice
The number one reason that Hispanics try out new brands/products is the quality of their ingredients. Hispanics are moved by attributes of "well-being" like real, natural and fresh. Additionally, Hispanics are becoming more aware and increasingly more educated on health issues, taking steps to manage these issues by looking for low-fat, low-sugar and low-calorie options.
Besides packaging, product cross-promotions and communications, highlighting well-being could make the difference in choosing one store or product over another.
10. Different definition for convenience
The convenience and drug store category is important for the Hispanic market; however, the Hispanic shopper defines the quick-trip benefit of convenience differently.
For the general market, convenience is based on the speed of the experience from location to transaction. For Hispanic consumers, it's about a good experience even at the c-store and drug store level. "Location convenience" is about how quickly they can get to the store so they have the time to find what they are looking for.
These fundamental differences change how we talk to consumers about the store experiences and product offers to better reach the Hispanic consumers' need for convenience.