Which shopper segment spends nearly 8 percent more on consumer packaged goods (CPG) than any other population and has particularly strong spending in the mass merchandise and club channels? It’s the Hispanic market segment, which accounts for more than 16 percent of the total U.S. population, and grew by 43 percent during the past decade. This rapidly-growing group is expected to hold $1.3 trillion in purchasing power in 2012. Hispanics also have a higher average CPG spend overall versus their non-Hispanic counterparts. The latest SymphonyIRI Group Point of View, “Diverse and Distinct: The Hispanic Population Delivers Numerous Segments and Opportunities—and an Exceptionally Fast-Growing Market,” provides valuable insight into this critical market.
“With serious spending power and impressive growth, the Hispanic consumer segment presents a tremendous opportunity for CPG manufacturers and retailers,” says Staci Covkin, author of the Point of View and principal of Consumer & Shopper Insights, SymphonyIRI. “But, CPG players would be remiss to approach this essential market with a one-size-fits-all strategy. To connect with Hispanic shoppers and develop meaningful, lasting relationships, it is critical that marketers approach Hispanic shoppers with unique, targeted marketing strategies that celebrate the many micro-segments that exist within the Hispanic marketplace.”
Findings in this Point of View are based on SymphonyIRI Group’s HispanicLink 2012 analysis, which provides in-depth insight into this key consumer segment. HispanicLink is a detailed set of reports which empower CPG marketers to compare the shopping and purchase habits and attitudes of unacculturated and bicultural Hispanics to those of more acculturated Hispanic households, as well as to the non-Hispanic population.
Manufacturers and retailers eager to stimulate growth and build relationships in the Hispanic market should consider the following factors:
– Channel preference: Hispanics spend 20 percent and 36 percent more in club and mass merchandise outlets, respectively, than then general population. In the supercenter channel, however, Hispanics and non-Hispanic spending per trip is about the same. Hispanics spend less per trip in other CPG outlets than non-Hispanic shoppers.
– Significant Diversity: With multiple geographic, demographic and psychographic traits and varying levels of acculturation, the Hispanic population is incredibly diverse. The group’s many segments have distinct methods of engaging with, reacting to and building relationships with CPG products and brands. CPGs need to recognize and respond to this diversity by accounting for factors, such as country of origin, age and lifestage.
– Engagement Opportunities: CPG manufacturers and retailers can attract and influence Hispanic consumers by focusing on their specific needs and values. For example, the Hispanic market places a strong emphasis on family and nutrition. Hispanics often prefer to cook from scratch, and it is also common for entire families to shop together, meaning children are strong purchase influencers.
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