La Oportunidad Latinx – Cultural Currency and the Consumer Journey [REPORT]

In the U.S. today, Latinx consumers are melding the physical and digital worlds to create personalized, culturally relevant shopping experiences on their own terms. These consumers’ paths-to-purchase, or consumer journeys, are social and circular. Purchase decisions can be frequently traced to the recommendation of a friend, family member or consumer review website. And, because Latinx consumers are so digitally connected—97% of Latinx households own a smartphone, and Latinx consumers spend over 27 weekly hours using apps and the web on smartphones—the consumer journey plays out in real-time. Brands that are not attuned to Latinx values and habits stand to miss out on this powerful market, which is reshaping the U.S. mainstream.

Just how big is the Latinx opportunity for brands? U.S. Hispanic consumers wield $1.5 trillion in annual buying power, which is higher than the gross domestic product of countries like Australia, Mexico and Spain. This economic power is only projected to increase. Between 2018 and 2058, according to the U.S. Census Bureau, the Hispanic population is projected to grow by 82%, compared to only 9% for the non-Hispanic population. Brand marketers that get Latinx outreach right now stand to benefit for decades to come.

KEY REPORT HIGHLIGHTS:

U.S. Hispanics are vital to commercial and viral success, uniquely combining the digital and physical shopping experience.

1.     The highly social nature of the Latinx community and their love of technology and specific media channels can provide marketers with a fast track to making their product “go viral’ if those marketers seek insights and develop solid Latinx strategies.
2.     57% of Hispanics enjoy wandering throughout the store looking for new and interesting products, which is 10% higher than the general population.
3.     Almost half (48%) of Hispanics find shopping to be a great way to relax, which is 15% higher than the general population.
4.     Validating the social connection Latinx consumers have with shopping, the second most stated reason for visiting a social networking website by Latinx consumers is to receive exclusive offers, coupons, or other discounts (over-indexing by 22%).
5.     With a big number of brick-and-mortar locations dwindling in many cities, connecting with Latinx consumers as a source of growth in the categories they are passionate about can be vital for the survival for brick-and-mortar retailers. Creating an authentic in-store experience could be a competitive advantage for brick-and-mortar retailers in the race against online purveyors.
6.     Merging the physical and digital worlds, Latinx consumers are front-runners in digital coupon use, with text being reported as their number one way to receive coupons.

U.S. Hispanics have mastered the art of blending old and new, leading a new wave of culturally relevant trendsetters. The Latinx community keeps up with the latest trends by being constantly connected to their inner circles, asking for advice, recommendations, and approval from those who mean the most to them.

•     They are more likely than the general population to use social networking sites to find out about products and services, and they are also more likely to share their product/services experience on a social networking site. They, in fact, are likely to both offer and seek out recommendations.
•     Almost 40% of Hispanics state that their friends or neighbors seek advice from them before making a purchase, over-indexing the general population by 10%.
•     73% of U.S. Hispanics agree that it’s important for them that their children continue their family’s cultural traditions, and that their ethnic cultural heritage is an important part of who they are, which means that language, culture, and familial ties are a foundation in understanding the unique Latinx path to purchase.

As the youngest ethnic group in the country, U.S. Hispanics are coming of age in a digital world. They have strong opinions and are masters at making them heard in the social channels.  

•     The U.S. Census projects that the Latino population in the United States will nearly double to 109 million in the 40 years between 2018 and 2058, a projected percentage change of 82% vs. only 9% over the same period for the non-Hispanic population.
•     Latinx consumers love navigating life with their mobile devices, as evidenced by the fact that 98% aged 2+ own a smartphone, versus 95% of the total U.S.
•     Unprecedented issues affecting the U.S. Latino community have risen in American politics in the last several years, having a proud effect on the American electorate. Latino voter turnout reached 11.7 million in 2018, up from 6.8 million in 2014 – the single largest increase on record from one midterm election to another.

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