By Staci Covkin and Mike Belzile

Hispanics comprise 18 percent of the U.S. population and will account for more than half the population growth by 2020. By 2050, they will comprise 30 percent of the U.S. population. Hispanics’ spending power is already $1.5 trillion, and they are way ahead of the general population on the digital front. Understanding their needs and preferences is not optional for any business that wants to grow and thrive.

We were on a panel at the IRI Growth Summit recently with Hispanic industry experts Liz Sanderson, Vice President, Strategy and Insights, Univision and David E.J. Cardona, Director, Shopper Marketing, Category Advisory Services and Multicultural Capabilities, The Clorox Company to discuss how manufacturers and retailers can win with this important market.

According to IRI data, dollars spent per grocery shopping trip continue to be higher among Hispanics versus non-Hispanics and are growing faster. However, we are also seeing substantially less shopping trips among Hispanics, and this decline in trips is happening at a much faster rate. This means that CPG manufacturers and retailers need to find ways to make the most of every trip when targeting Hispanic shoppers.

As e-commerce continues its inevitable rise, including in grocery, Hispanics are a very desirable e-commerce group based on their size, youth, spending power and digital engagement. Currently, 42 percent of Hispanics are millennials, and they account for 80 percent of segment growth. Hispanics spend significantly more time online, they do more research online before shopping and make more buying decisions versus non-Hispanics. Also, Hispanics are more influenced by advertising and tend to shop online at retailers that have physical stores for click and collect. 

There are several categories that Hispanics are already significantly more likely to buy online versus the general population. This includes food and beverages; pet food; clothing; personal care products and OTC medications; household products and general merchandise; cosmetics, fragrances and beauty products; electronics (non-computer). For manufacturers and retailers in these categories, this represents a clear opportunity.

This comfort with purchasing products online is only going to increase. Over the next year, Hispanics say they plan to increase their purchase of grocery products online, especially at more mainstream online retailers, such as Amazon, Walmart.com and Target.com. However, with many major retailers currently either flat or declining with Hispanic shoppers, some retailers, such as Walmart, have been able to achieve significant growth with highly effective targeting and activation of Hispanic shoppers.     

CPG manufacturers and retailers need effective offline and online strategies for ensuring that their brands and categories succeed with Hispanics. This can be done with granular point-of-sale tracking in-store and e-commerce data, capturing new consumer insights on the Hispanic path to purchase, and then using this information to target the right media for shopper activation. It goes beyond translating advertisements into Spanish and requires a thorough understanding of the relevancy of the product messaging, the type of promotions that will be most appealing, as well as where and when they will be most effective . As with the general population, one size fits none when it comes to Hispanic marketing.   

If you need a strategy to win with Hispanic shoppers, ask us about IRI HispanicLink. In addition to uncovering insights to enable offline, online and in-store activation, it offers a comprehensive look at how key segments of Hispanics approach shopping, how they are influenced on their path to purchase, and which categories are more relevant to them. Email us at Staci.Covkin@IRIworldwide.com and Michael.Belzile@IRIworldwide.com to learn more.