AHAA, as part of its Thought Leadership strategy, conducted an in-depth study exploring the ‘Upscale Latino’ market. In 2012, Upscale Latinos accounted for 29 percent of the U.S. Hispanic population, but account for nearly half of the US Hispanic market’s spending power–over $500 billion! While they reside across the country, they are mostly concentrated in urban areas, such as Los Angeles, New York, Houston, and Miami, and the surrounding communities. They also are boosting the Hispanic populations of secondary markets, like Jacksonville, Honolulu and Washington D.C., and smaller communities, such as Salt Lake City, Raleigh, and Oklahoma City, which has seen its Hispanic populations jump by 191 percent.
The study, conducted in partnership with Nielsen, looks at Hispanic households earning $50-100K annual income, dissecting demographics, lifestyle, financial and investment behavior, purchasing habits, media consumption and technological adoption. It revealed that this viable and sophisticated market boasts 40 percent of overall Hispanic spending power, lives in a world of cultural duality, and provides lifetime value and upside opportunities for many high-end and luxury brands.
The study is eye opening, and should prompt advertisers to re-evaluate their marketing strategies and how to reach this community. Here are some interesting findings.
Are more likely to use smartphones, own iPads and subscribe to one of the top four U.S. mobile providers.
Tend to be homeowners and are very financially savvy, with half having investments and 86 percent using savings accounts. Mutual funds and stocks are the most commonly used investment opportunities.
Live in two cultures with three-quarters speaking both English and Spanish., watching content in both languages, with English-language comedies, documentary-style programming and children’s weekly programming, and switch to Spanish-language television for cultural events, concerts and sports.
- Have the disposable income to pamper their image, with health and beauty products comprising the overwhelming majority of categories. Men’s toiletries, women’s fragrances, hair care and cosmetics dominate, with an emphasis on brand choices, while alcohol and baby care categories skew to store labels. In addition, Upscale Hispanics over-index on fresh ingredients, as feeding their growing families healthy and nutritious food is a priority.
This post is also available in: Spanish