EURO RSCG – Hispanic Americans Feel ‘Accepted but not equals’.

Hispanics currently comprise 12.5 percent of the population of the United States, according to Census 2000. By 2020, they will account for one in five Americans.

Their spending power is growing, too, with current estimates ranging from $400 billion to $542 billion per year. Yet nearly half of Hispanic Americans who responded to a nationwide survey by Euro RSCG MVBMS Partners said Hispanics do not receive equal treatment compared with other population segments in America. InsightExpress conducted the study among 317 online households in August 2002. The survey was augmented by in-home ethnographic interviews in New York City, photo diaries, and interviews with retail experts nationwide.

Among the findings:

— Language Counts: Whereas 47% of the total sample completely agreed, “I do not believe Hispanics are treated equally well in America,” 54% of Spanish speakers within the sample agreed. (These are people who primarily speak Spanish at home.) Similarly, whereas 68% of the total sample indicated, “I feel very comfortable and accepted in America,” only 55% of Spanish speakers said the same.

— The Dream Is Alive: Nearly two-thirds of the sample (61%) “Believe in the American Dream,” and 82% agree that “education is the ticket to success in the U.S.” Only 8% of the sample and 18% of Spanish speakers completely agreed with the statement, “As soon as I can, I want to move back to my native country.” Eighty percent of the sample and 63% of Spanish speakers completely disagreed with that statement.

— Latin Pride: Sixty-eight percent of the sample and 81% of Spanish speakers completely agreed, “My Hispanic roots are an important part of who I am.”

“The Latino market is only going to grow more powerful over the coming decades,” says Ira Matathia, Director of Strategy, Euro RSCG MVBMS Partners. “It is essential that manufacturers, retailers, and service providers come to grips with what this means for advertising, for product design, and for distribution channels. We know from our research that a significant proportion of Latino shoppers are dissatisfied with the status quo. As one respondent in our in-home study told us: ‘If you go to the supermarket–and there are supermarkets that are enormous–you will only see a small notice that says “Hispanic Products.” And what do you find? Three or four products. We have to go to Colombian stores that are far away to get our products because they aren’t at the supermarkets.'”

Language is the biggest barrier Hispanics face when shopping in the U.S. While many stores feature bilingual signage, including Target and Longs Drugs, they are unable to alleviate the stress primary Spanish speakers feel when trying to interpret product labels.

The retailers with whom we spoke repeatedly cited live infomercial-type “performances” and in-store promotions and demonstrations as the number one way to attract Hispanics to stores. Language barriers consistently affect the way Hispanics feel about their retail experiences and may well be one reason this audience has earned a reputation for being brand loyal.

Comments Douglas Patricio, General Manager, Euro RSCG Worldwide Latin America Regional HQ: “Each of the retail experts with whom we spoke over the course of this study talked about the burgeoning Latino population and how important that market is becoming to retailers. To our surprise, not one of these retailers had a well-thought-out plan or strategy on how to take advantage of this growth in spending power. Retailers and marketers that settle for creating a segregated Hispanic section in a store or translating an English-language campaign into Spanish are missing out on a segment of the consumer population that deserves enormous respect and attention.”