According to statistics from numerous sources, such as Pew Research Center and the US Census Bureau, by the year 2020 Latinos will reach approximately 66 million people in The United States. Over the next four decades the Latino population will expand faster than any other ethnic group in the U.S.
In order to understand the impact Latinos have when it comes to their purchasing power I want to give a little more information that was discovered during the research for this article. Latinos in the U.S will account for more than 20% of the labor force by 2020. For those Latinos looking for higher paying jobs, education is critical, so that is why Latinos are steadily increasing their education achievements with each generation, closing the educational gap with non-Latinos. In addition to increasing in number of potential customers, Latinos are also growing in purchasing power.
Latino consumers spend more on groceries, used cars and phone service than any other ethnic group in the U.S. Latinos contribute economically over $1.3 trillion in the U.S. The average Latinos are younger and have larger household compared to other ethnicities. American Latinos are expected to use the same brand of toilet paper, toothpaste, and cleaning solutions for the home for an entire lifetime. This kind of loyalty usually carries over to the next generations of Latino shoppers.
The next generation of Latinos feel a connection with the previous generation who bought the same product, because they believe that brand engaged with the previous generation and will be the same with them. An assessment that was conducted by Think Now Research has found Latinos stated they always purchase the same brand when it comes to bottled water, laundry detergent, toilet paper, dishwashing soap and toothpaste, among other products. Latinos are so loyal they are 50% more likely than other ethnicities to go to another store if the item they are looking for is out of stock.
Corporations need to wake up, take note and really engage the Latino consumer, particularly since they will be growing and reaching over 66 million by 2020. In this segment, if a product engages and embraces their culture, Latinos will show the appreciation by purchasing the product, often for generations to come. When it comes to word of mouth marketing, Latinos are known to be big advocates of this type of promoting products they trust, believe and are loyal to.
Loyalty still exists among certain segments of the markets besides Latinos. Getting to know these segments and the loyalty they have for a brand that can embrace them is critical. In today’s current market, brands can get lost in the mix, and it is so important for a brand to engage, especially through social media, to reach out and not take a loyal segment for granted. Latino Loyalty rewards the brands that successfully understand the drive to purchase products in the first place.Latinos believe in products and in the brands that engage with them on a meaningful campaign that is current with the consumer. This is the way a brand can create loyalty among its Latino consumers: by showing they believe and care about Latinos.
References:
“Hispanic Brand Loyalty” CSP Daily News. 2016. Retrieved from http://www.cspdailynews.com/category-data/snacks-candy-data/report/hispanic-brand-loyalty
“Hispanic Market & Its Buying Power.” Greater Austin Hispanic Chamber of Commerce. 2015. Retrieved from http://www.gahcc.org/Hispanic-Market-Its-Buying-Power.hispanicmarketitsbuyingpo.0.html
Kokoyachuk, Roy. “Brand Loyalty Among U.S. Hispanic Consumers – Separating Truth from Fiction.” Think Now Research. 2016. Retrieved from http://www.thinknowresearch.com/blog/brand-loyalty-among-us-hispanic-consumers/
Tagliani, H. “Hispanics and brand Loyalty: myth or fact? The Group Advertising. 2016. Retrieved from http://www.blog.thegroupadvertising.com/hispanics-and-brand-loyalty-myth-or-fact/
Thompson, N. “Hispanic Consumers To Spend $1.3 trillion in 2015, Prompting National Economic Growth.” Latin Post. 2015. Retrieved from http://www.latinpost.com/articles/82555/20150928/hispanic-consumers-will-spend-1-3-trillion-in-2015-prompting-overall-economic-growth.htm
Thompson, N. “Brand Loyalty Among U.S. Hispanics: the Myth vs the Reality.” Latin Post. 2014. Retrieved from http://www.latinpost.com/articles/20878/20140908/brand-loyalty-u-s-hispanics-myth-vs-reality.htm
Pew Research Center. 2016. Retrieved from http://www.pewhispanic.org/2008/02/11/us-population-projections-2005-2050/#key-projections (Census Projections)
U.S. Census. 2015. Retrieved from https://www.census.gov/content/dam/Census/library/publications/2015/demo/p25-1143.pdf
9 Responses to Latino Loyalty to a Brand