¡Salud!: Why brands should understand and get to know the affluent Hispanic consumer
By now we’ve established the current and future growth in size and influence of the US Hispanic Market. But what does that say about its current purchasing power? This article will help your brand in getting to know the finer-points of today’s affluent Hispanic consumer and why your brand should consider starting product conversations with this segment.
According to a study conducted by Nielsen, 40% of the US Hispanic Market have an income of $50,000 or more. In addition to these findings, the current economic climate has served to increase the financial confidence of the Hispanic Market. This in turn has produced a well-spring in Hispanic consumers spending more on products and services because they can afford to. This is especially true of the lucrative affluent segment of Hispanic consumers in the US.
So who are these affluent Hispanic consumers? You might be pleasantly surprised to find out that you may already be well-acquainted with this segment: it’s Hispanic Millennials.The study indicated that 59% of Hispanic Millennials fall into this affluent segment of Hispanic consumers. This segment also outranks and outspends the very same segment across all demographics (59% of Hispanic Millennials earning $50K+ vs 31% of Millennials in the total market earning $50K+).
Due to their financial optimism, the average Hispanic consumer already outspends consumers in the general market by $10 for everyday products and retail items during a routine trip to the store. This holds true for affluent Hispanic consumers and especially the Hispanic Millennial portion of this segment. As you may or may not know by now: Millennials live for and love one-of-a-kind experiences and this includes celebrations; Even though they are budget-concious, if there is anything or any products that can make these events a unique experience for not only themselves but their guests, Millennials will find reason to warrant spending extra. Once again this can be seen in Hispanic Millennials.
Affluent Hispanic Millennials spend on these experiences because they view this display of financial confidence as a reward for their hard work and they want everyone to recognize their accomplishment as well as benefit from it. These consumers as the study found look for products and brands that lead to or create recognition of their aspirational values and concept of luxury. So what do their hearts desire? The finer things in life: Hispanic Milllennials have been spending more and more on experiences like their general Millennial counterparts, usually on fine-dining, travel, luxury goods, high-end vehicles, and specifically premium spirits such as tequila.
Oddly enough this financial confidence has also produced benefits for the products themselves in tequila’s case. Thanks to purchases and spending on the premium spirit by not just Hispanic Millennials but Millennials in general it has seen an increase in purchase by 9%+ since 2015 and is causing the beverage to become practically synonymous with not just celebrations but American celebrations like the 4th of July because they view the product as an affordable premium luxury and appreciate the authentic nature of the process that goes behind producing the spirit. Truly this is an American success story in itself, brands can produce even more success by using agencies that understand this segment to help shape their marketing efforts in starting product conversations and engaging Hispanic Millennials.
We at VRTC hope this information motivates your brand to begin starting product conversations with the affluent Hispanic consumer segment and especially Hispanic Millennials. Is there anything you would like to add to the conversation? If so, leave a comment and share your experience. If you enjoyed the article, share it! For further insights and discussion simply #AskVRTC.