Hispanic Buyers: Upscale Latinos Provide Opportunity
At the 2013 AHAA (Association of Hispanic Advertising Agencies) Conference, they released a study in partnership with Nielsen and Santiago Solutions: AMERICA’S NEW UPSCALE SEGMENT: LATINOS! This is a 2-part Study and later in the year we will cover the second part. AHAA is trying to educate marketers to not treat the vast Hispanic market as one size fits all with these series of studies. This also applies to our industry – real estate.
Here are some interesting points revealed in the study that we can analyze and then determine what impact this can have on our business.
Why is the upscale Hispanic important for us?
Upscale Hispanics will generate 37% of the Hispanic spending power in 2013.
A segment they expect will double again by 2050
The question is who are the $50K + Latinos? The study covers this:
75% are under the age of 45
77% have households with 4 or more people
60% live in the southwest and pacific region
They are here and are realizing the American dream
11% higher than overall Hispanics in the white collar segment
½ million upscale Hispanic homes have a member in their households that own their own business.
There is a dramatic growth from 2010 to 2011 in the college enrollment among Hispanics an increase of +15%
They are young, urban and connected
Young accumulators 26.9%
The affluentials 17.7%
Young achievers 16.7%
Where to find them? Upscale Latinos live in top Latino markets:
Los Angeles 625K (32%)
New York 400K (28%)
Houston 200K (28%)
Miami 200K (26%)
They are also core to many secondary Latino markets
Washington, DC 36%
Salt Lake City 30%
Jacksonville, FL 30%
Smaller DMAs experiencing impressive growth from 2000 to 2013
Oklahoma city, OK +191%
Baltimore, MD +178%
Raleigh, NC +175%
Yakima, WA +166%
What language do they speak?
75% of upscale Hispanics Speak some Spanish
Spanish dominance is growing +18%
VIVIMOS EN DOS MUNDOS: THE BICULTURALS
The most influential segment since the baby boomers, Upscale Hispanics will drive shifts in category consideration, purchasing behavior and brand relationship.
Viable and sophisticated market of enormous proportion ?? $500 Million annually
Younger in age and larger households provide lifetime value and upside opportunities for many high-end & luxury brands
A force behind new businesses with higher educational and professional attainment
Latino identity with one foot in each culture ?their fully BILINGUAL tendencies are reflected in their pervasive use of language and media consumption
In conclusion, the study reports that the fast growing Latino Upscale segment represents nearly 40% of Hispanic Spending Power. This is a great opportunity for us to help fulfill their housing needs and not allow stereotypes to limit our chance to help this segment of the Hispanic community.