As brand and retailers awaken to the importance of the increasing purchasing power of the Hispanic consumers of Latin origin, which is estimated to reach US $ 1.5 trillion by 2015, they realize that more success would be achieved by those who sketch out business models targeting this potential population.
The Hispanic community in the US is the fastest growing population, representing 17% of Americans and among them Mexican Americans also called Latinos currently constitute 63% of the 50.4 million Hispanics. Today, any brand targeting the Hispanic consumers must make an effort to reach Mexicans as they are the largest Hispanic group in the country and they love to shop. Favouring high-end brands, they outspend general market consumers on technology, personal care, beauty and baby products, proving to be major purchasers of kidswear. What is shaping the Latino consumers as the economic powerhouse includes factors such as higher education, increased workforce presence and higher earnings.
[bleft]The study by AHAA: The Voice of Hispanic Marketing, in partnership with Nielsen and Santiago Solutions, reveals that with a median age of 28 years old, the Latino consumer is nearly 10 years younger than the total market age of 37 years and with an average household earnings of US $ 71,000 puts the US Hispanic market amongst the top 20 economies in the world.[/bleft]
In the wake of the growing Hispanic consumer, retailers have recognized the importance of their rising numbers and made Hispanic marketing an imperative strategy to their business models. Mass retailers such as Macy’s, Walmart, Dillard’s, JCPenney, Kohl’s, Kmart and Sears have been aggressively courting them. Perry Ellis International has several men’s brands specifically targeted to the Hispanic consumer, also having a dedicated Hispanic business model. When JCPenney opened its first store in Manhattan in 2009, it aggressively promoted the event via local Spanish-language media in New York. Also Kohl’s has developed apparel and home lines targeting to the Hispanic consumers and run TV ads aimed at Latino consumers on programs including Univision primetime novellas, Despierta America and El Gordoy la Flaca. In addition, Macy’s has also been pursuing Hispanic shoppers as part of its My Macy’s campaign, which caters to the needs of local markets.
[bleft]Though generally Hispanic and Latinos are used as interchangeable terms, Hispanic community includes persons from Spain and Spanish-speaking Latin Americans excluding Brazilians (who speak Portuguese) while Latino excludes persons from Spain but includes both Spanish-speaking and Portuguese-speaking Latin Americans.[/bleft]
The most influential segment of the Hispanic population known as ‘Upscale Hispanics’ is predicted to make up 40% of Hispanic spending power by the end of 2013. Technology-savvy upscale Latinos believe in brand loyalty, favour luxury brands and are mostly concentrated in urban areas such as Los Angeles, New York, Houston and Miami. With Upscale Hispanics controlling US $ 4 out of every US $ 10 Hispanic spends; this growing segment will be an essential component not only for Hispanic marketers but also for successful luxury brands.
This segment does not want to be sold to, rather they want to connect with brands that embrace their culture and commit themselves to earning long-term and trustworthy relationships. Taking into consideration the above factor, brands seem to be leaving no opportunity unturned, leading to cultural marketing for Hispanics being now more than a US $ 5 billion industry. With their numbers predicted to soar another 167% by 2050, Hispanics want to align themselves with brands that strengthen their identity.
According to Luis Alvarado, strategic advisor to REVOLVIS and an expert on Latino issues, “If you are going to communicate with the Latino community, you have to be respectful, you have to be thorough and you have to ensure that it is actually reaching the community in a very respectful way.” This proves that the Hispanic consumers are looking for brands to create greater cultural affinity and they want brands to listen to their needs more carefully. Embracing cultural sensitivity has become critically important for brands to base their business strategies while targeting the Hispanic consumers so as to earn their trust.
Meanwhile, it becomes vital for brands to understand how culture defines the identity of the Latinos that result in them purchasing and being loyal to certain brands. Culture being the new universal language in America, The impact and influence of the Hispanic shopper has all but completely renewed the way companies market and sell their brands.
Luxury brand Ralph Lauren already features a Latino as their worldwide ambassador – Nacho Figueras – in an effort to elevate the awareness of Ralph Lauren Fragrances amongst Latinos. With television advertising in Spain, print advertising in magazines such as Vanidades, People en Español and Latina, partnership with Macy’s, participation in exclusive Hispanic events and celebrity gifting for Hispanics, Ralph Lauren Fragrances signifies its commitment through an integrated business approach. “Hispanics are an important consumer for the Ralph Lauren brand. They already represent an important part of our consumer base and with their growing buying power and influence in the US, we think it is important to have a more intimate dialogue with this group,” says André Branch, VP Marketing at Ralph Lauren Fragrances, L’Oreal Luxe Division.
The consumption growth forecasts point to the Hispanic share being significant in the future, placing them in a pivotal role in the country’s future. Just imagine the purchasing power of the Hispanics by 2050, when their percentage of the US population will have nearly doubled to 30%.
Bharat Tex Special Report 2026 
