Lapiz, the marketing agency for emerging cultures that is part of Leo Burnett, released a new consumer research study, LatinoShop. According to the study, Latinos view shopping much differently than their non-Latino counterparts. For Latinos, shopping is not a process or a chore; it’s an experience – a multisource, multisensorial and multigenerational experience that provides retailers and marketers with a wide range of opportunities to engage. The study is part of a landmark global research initiative, PeopleShop, focused on illuminating cultural, geographical and economical influences that impact how and why people shop around the world.
It’s no secret that the U.S. Latino population is growing. In fact, it is the fastest-growing population group today, expected to increase 22 percent from 2010 to 2020, resulting in 337 million Latinos . Furthermore, Latino buying power is projected to grow from $1 trillion in 2010 to $1.5 trillion in 2015, and the median age of the Latino population is 28 years old, nearly 10 years younger than the total market age of 37 years . Lastly, and most important, by 2015, 1 in 3 babies will be Latino .
As such, the Latino population is consuming and spending faster than ever before. With a younger, more impressionable demographic dominating the masses, it’s predicted that this trend will continue.
According to Gustavo Razzetti, EVP, Managing Director of Lapiz, this shift provides retailers and marketers with a unique opportunity to reinvigorate their marketing strategies.
“Emerging cultures are reshaping America, and Latinos are leading the way,” said Razzetti. “Future growth depends on understanding Latinos and the cultural underpinnings that drive their shopping behavior.”
Cultural roots and a strong heritage influence the way Latinos eat, clean, cook and ultimately how they buy and consume goods. For instance, Latinos’ shopping experience is inherently social, leveraging other people’s opinions, advice and feedback through a variety of channels and networks when they shop.
“Latinos are masters of social shopping,” said Razzetti. “They leverage mobile, social media and friends and family to share their shopping experience before, during and after. For them, shopping is a journey that combines both a physical, multisensorial experience with a digital multisourced one too.”
Below is a glimpse into the mindset of today’s Latino shopper:
Touch, see, smell, try and buy: Latinos shop with their senses.
To Latinos, shopping is a sensory experience. They love to touch, see and smell a product to make sure what they are buying is the right choice. In fact, 55 percent of Latino shoppers like to touch a product before buying it and nearly three times as many Latinos than non-Latinos think it’s fun to immerse themselves in a store environment while shopping. Swept along by the experience, Latinos are more than twice as likely to be spontaneous shoppers. What’s more, 26 percent of Latino shoppers will buy a product on the spot if they feel the product is a right fit.
Consider the kid-fluencer: Nearly half of all Latinos enjoy shopping with children.
For Latinos, shopping is a family affair. In fact, 45 percent of Latinos enjoy shopping with their children. They are more than three times as likely to do this as non-Latinos. Shopping as a family provides a learning environment where it’s not uncommon for young family members to introduce elders to new products and brands, ultimately influencing purchasing decisions.
Not so forgotten media: Radio, billboards and infomercials still rank high with Latinos. Some industry experts have deemed broad-reaching media as “dead.” To Latinos it is very much alive as many Latinos still rely on traditional media to influence shopping decisions. For instance, 72 percent of Latinos say they use radio as part of their shopping journey. Other media such as billboards and infomercials also rank high with Latino shoppers.
Fast and first: When it comes to trendsetting, Latinos are number one. To Latinos, image is everything and being “ahead of the curve” is very important when it comes to fashion, technology, food and entertainment. In fact, more than 40 percent of Latinos pay close attention to the latest trends, and Latinos are more than twice as likely than non-Latinos to be the first to share trend news. In addition, Latinos are three times as likely to use shopping to “make a statement,” and they like to be the first to try new products.
Social networks on steroids: In person and online, Latinos rely heavily on the opinions of friends and family when they shop. Latinos are more than twice as likely as non-Latinos to reach out to family members for information before purchasing a product. They also look to see what social media connections are saying about a specific brand or product. Case in point, 48 percent of Latino shoppers use social media during the shopping process. Moreover, 46 percent of Latino shoppers use online videos to support their shopping journey and 36 percent share opinions and post product reviews online.
Gadgets on the go: Latinos lead the way when it comes to shopping with mobile and tablets. Latinos continue to pave the way for digital consumers in the U.S. as trendsetters and early adopters of new technology. They understand the power of mobile and tablets and embrace the shopping tools to connect socially and to shop smarter. Outpacing non-Latinos by nearly 20 percentage points in each instance, more than half of Latinos shop with a mobile device, 43 percent shop with a tablet and 47 percent use geolocation during the shopping process.
“With Latinos, the consumer is not boss, culture is boss,” said Enrique Marquez, SVP, Director of Strategy of Lapiz. “For brands and marketers to succeed with Latinos, we must fully understand and embrace their unique mindset during the shopping process and pay close attention to the cultural relationship they have with categories and brands.”
To learn more about LatinoShop CLICK HERE.
Leo Burnett, Arc Worldwide and Lapiz conducted a global quantitative and qualitative research study interviewing more than 13,500 shoppers in seven different North American and European market segments. The study was completed in September 2012.