" The Hispanic population reached 38.5 million, or 13.4% of the US total,
and is projected to grow 2.8% a year (compared to 0.8% for the total US population).

" By 2020, the Hispanics are expected to encompass 18.9% of the US total.

" Only 2 million of the 15 million new Hispanics projected over the next
20 years or so will be the result of migration. The rest will be US born persons
educated in the US school system.

"Total consumer spending by Hispanics reached $531 Billion, or $51,208
per household, which is 81% of the US average.

" Hispanic consumer spending is forecast to grow 9.1% a year for the next 18 years, surpassing the US average estimated to be 6%.

What is even more interesting than the national trend is the changing US landscape in terms of where Hispanics choose to live. This ongoing transformation is remarkable, and is affecting places such as Atlanta that until now have witnessed only a negligible influx of Spanish-speaking people. Figures reflecting changes over the last 20 years:

" The Hispanic population has grown by 300% in 50 metropolitan markets, but even more so in select cities such as:

" Raleigh, North Carolina - 1,180%

" Atlanta, Georgia - 995%

" Greensboro South Carolina - 962%

" Charlotte, North Carolina - 859%

" Orlando, Florida - 859%

" Much of the growth is in the suburbs where the jobs are located. As new generations are born in the US, this will lead to more Hispanics buying more of their own homes than ever before. This trend is in the numbers:

" 39% of the Hispanic population came here as adults. Their home ownership is 34%.

" 28% are the offspring of immigrant parents. About 48% are home owners.

" 33% are third-generation family members who have been in the US at least 60 years. Home ownership in this group is at 57%.

Thus not only are Hispanics wielding their increasingly powerful influence across a broader cross-section of the US, they are going to impact retail spending in a significant way because nothing gobbles up more money than owning your own home. From floor coverings to furniture, and home accessories to kitchen gadgets, there will be a veritable insatiable need in the Hispanic community
for the foreseeable future and they will have the money to spend. One more statistic drives this point home:

" Employment of Hispanics has continued to grow during the current economic downturn, with employment standing 3% higher than at the beginning of the 2001 recession.

Strangely, though, the general public at large has not appeared to grasp the significance of all the above cited numbers. Hispanic-focused advertising and marketing is spotty at best, and still, for the most part, narrowly confined to specific Spanish-language media. And, for many companies jumping into the Hispanic target market for the first time, their efforts are less than committed.

For example, simply translating English copy into Spanish. Or putting sombreros and cacti as decoration on the one Spanish-language page on a multi-page website. Or, as one fast food chain that serves Mexican fare did for a while only recently have as its TV spokesperson an annoying talking Chihuahua dog that spoke English in an offensively stereotypical Mexican accent. And even that ad campaign ran on for entirely too long before the company finally paid attention to the increasingly vocal Hispanic opinion and pulled it from the air.

Surveys have shown that while using Spanish is important, the real issue is cultural sensitivity. Thus smart companies develop their Spanish copy fresh in Spanish. They make sure to treat the Spanish reader with respect and as a sophisticated consumer. And while the majority of Hispanics claim to be bi-lingual, and thus easily able to digest messages in English, they prefer to see ad copy in culturally sensitive Spanish and English. Only then do they trust the message-giver as committed and sincere.

So, selling into the US will increasingly require Hispanic-directed marketing. I'll leave you with one more set of interesting figures about a small US territory called Puerto Rico that even fewer people on the US mainland think about, but should:

" Puerto Ricans (3.9 million people) command the same economic power ($42 Billion) as the combined Central American population (37 million people).

" Average households wield a buying power of $32,000 which is more than double Mexico, the next highest, and more than triple the Latin American average.

" The highest sales per square foot rates achieved by US national retailers such as JC Penney's and Sears are in their respective stores in Puerto Rico.

Sounds to me like Puerto Rico could be an excellent place to test your Hispanic marketing endeavors before jumping into the US mainland.

George Lancaster

International Business Development - AmericasMart

Email : glancaster@americasmart.com

September/October 2010
issue 61
available now