By Staci Covkin
Hispanics are now one sixth of the U.S. population and represent $1.3 trillion in purchasing power. That purchasing power is projected to surpass $1.7 trillion by 2017, presenting a tremendous opportunity for CPG growth. For example, a CPG manufacturer with $1 billion in sales can earn an additional $71 million in incremental revenue by effectively marketing to Hispanic consumers.
To help CPG marketers and retailers grow their Hispanic portfolios, IRI has just released HispanicLink 2014, a new report that offers critical insights on how to best target, engage and activate the nation’s largest multicultural group. HispanicLink breaks down the complex and diverse Hispanic population, comparing the purchasing and shopping habits of three distinct consumer segments: “Acculturated Hispanics,” “Bicultural Hispanics” and “Unacculturated Hispanics.”
With HispanicLink, marketers and retailers can compare the purchasing, shopping habits, and attitudes of unacculturated Hispanics to those of more acculturated Hispanic households, as well as to the non-Hispanic population.
For example, while some Hispanics speak mostly Spanish and prefer Spanish-language media, others have completely integrated into American culture. Given the diversity of attitudes within the U.S. Hispanic population, CPG companies must better align their marketing and product offerings with the wants and needs of specific Hispanic shopper groups.
Recent IRI research shows that improving Hispanic targeting can generate significant sales and increased market share. Here’s more info on the three groups:
- Acculturated Hispanics – With a median income of $62,000, this group’s members are assimilated to American culture and tend to be digitally savvy. These shoppers generally want the best price, and are willing to compromise on product quality to some extent in order to get a deal.
- Bicultural Hispanics – This segment is bilingual, and is more likely to follow Hispanic traditions and purchase products that are directly marketed to Hispanics. These shoppers are more digitally savvy than the other Hispanic groups, and are heavy consumers of both English and Spanish media.
- Unacculturated Hispanics – Given this group’s more limited knowledge of English, products specifically marketed to Hispanics are most attractive to them. These shoppers often rely on Spanish translations on packaging, and are most likely to be influenced by advertising before buying a product. While money is often tight for unacculturated Hispanics, they enjoy cooking traditional meals and value healthy eating.
With the U.S. population becoming increasingly more multicultural, IRI HispanicLink offers a deep look at Hispanic consumers’ attitudes and behaviors, from path to purchase to health and nutrition. Armed with these shopper insights, CPG retailers and marketers can better understand and engage with Hispanic consumers.
For more insights on creating a cultural connection with Hispanic shoppers, refer to IRI’s “Winning with the Hispanic Consumer Today” Point of View, published in September 2014 and/or contact me at Staci.Covkin@iriworldwide.com.