Guest Column
The Hispanic Market: Promise and Pitfalls
- By Marcela Miguel Berland
- January 24, 2005
The New Year is well underway, and headlines will soon report about the growth and promise of the Hispanic market. In fact, an early 2005 figure of $735 billion in Hispanic purchasing power had already been mentioned in expert circles late last year. And forecasts as recently as 2003 of a $1 trillion market by 2010 have been changed – it will happen by 2008, or maybe sooner!
Get ready. These seemingly annual reports about the “promise” of the market will serve as a “wake up call” to corporations that want to reach this burgeoning population. Pioneering firms that have been active in Latino affairs for decades (Anheuser-Busch, Coca-Cola, Ford, General Motors, Miller, Verizon and others) will fine-tune their strategies and continue to reap the dividends of their investments, their acquired wisdom and strong relationships.
For many others, however, it will mean proceeding cautiously and avoiding the pitfalls in the path toward success. Having worked in the market for many years, I would like to share some “insights” for those who began to target Hispanics only recently, and those who are preparing to take their first steps. Recognizing the pitfalls and taking advantage of key realities are at the heart of success in this promising arena.
Some Important Realities
Hispanics are not monolithic. As the 2004 election proved, Latinos are independent-minded and increasingly vote more on issues than by party affiliation;
Latinos are diverse. While some groups may predominate in parts of the country, most communities increasingly reflect great diversity and great societal mobility;
Hispanics know who knows them. The old saying “to know me is to sell me” applies. One reason John Kerry fared less well with Latinos is that he had never been “out there” for them. They didn’t know him;
Advertising and community relations can have a great impact. Hispanics do not like merely to be sold to. They respond to and respect companies that “give back” in some way.
It takes time. Hiring a few young Latinos for outreach is good; but forging valuable relationships with thought leaders, the media and organizations requires time, great understanding of Hispanics, and tangible demonstrations of interest;
Language is tricky. Surveys show that Hispanics like to be courted in Spanish (more than 54% rely for most of their news and information on Spanish language media). This is certainly true with older Latinos. Consumers say that translating a general market ad doesn’t cut it. An ad should sound like it was created originally for the target population. And it should be in correct Spanish. Regional variations may be advised;
Age, not language, may be the key factor in understanding an audience. Generations are different. Recent immigrants have different values from those who immigrated two decades ago. And older Latinos have different attitudes and habits from those of younger generations. Advertising approaches must take these into consideration;
Show that you know them and care. Communications, including marketing, media and advertising, should reflect the company’s interest and commitment to the community. Hispanics, like any other group, like to be charmed, but they want to develop a long term relationship;
Generate loyalty early on. Do not let time and the competition pass you by. Act today. Get involved in Latino organizations. Understand their lifestyles, needs and dreams. Pursue them and show them that you understand them.
Know Your Customer
More than anything else, I advise companies wishing to succeed in this market to take the time to understand Latino aspirations, values, traditions, purchasing motivations, buying habits and other factors that impact their relationship with the brand and the product they are trying to market. They should be wary of the many misunderstandings and myths about Hispanics. We still find corporate representatives who still insist, for example, on defining Hispanics by whether they speak primarily Spanish. Language is important, but it is not the sole defining factor. Latino means being part of a culture, enjoying a way of life, possessing a set of values and relationships.
Questions have been raised, moreover, as to whether Hispanics can really be “captured” since they come from so many different backgrounds. When trying to reach the Hispanic consumer, we need to be aware of the distinctions among them; but more importantly, we must focus primarily on the similarities. This is particularly true for younger generations of consumers. More so than their elders, they tend to regard themselves as part of a pan-Hispanic community for which national origin is less important. They feel part of the new Latin culture in the United States which transcends specific countries.
Finally, I advise my clients to view younger Latinos not as something distinct and apart from the mainstream culture. Increasingly, Hispanics recognize and are proud of their bicultural and bilingual attributes. They are able to navigate readily between the mainstream and Latino cultures and between English and Spanish. Acculturation no longer means surrendering language and culture; it now means acquiring and gaining new values while retaining a set of older values, a bicultural way of life, and an outlook. As an immigrant myself, I have experienced this process, and I strive to instill in my children the values of my homeland along with those of the United States.
A soon-to-be trillion-dollar market is hard to ignore. The burgeoning Latino population and its growing influence on our society will be in the news again and will attract both momentary and sustained interest. Companies that invest in understanding it and that commit the resources to reach it will be able to avoid the pitfalls and participate in the promise.
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Marcela Miguel Berland is founder and President of New York-based LatinInsights, a research and strategic communications company specializing in the Hispanic market. She can be reached at mberland@latininsights.com .