Yankelovich Inc., a leading marketing research and consulting firm, emphasizes in its predictions for 2006 that the Hispanic market is "a main driving force" and "catalyst for growth" in the American economy, destined to receive heightened attention from marketers this year and beyond.
Hispanic Business asked Sonya Suarez-Hammond, Yankelovich's director of Multicultural Marketing, to expand on these predictions. Her response cites research-based findings and statistics reported in the 2005 Yankelovich MONITOR® Multicultural Marketing Study.
Prediction: Greater outreach by marketers from a broader array of industries will be seen due to more affluence and higher rates of entrepreneurship.
Ms. Suarez-Hammond: The freedom and independence that entrepreneurship affords has given rise to more part-time employment, self-employment, and business ownership goals among Hispanic consumers. Currently there are an estimated 2 million Hispanic businesses in the U.S.
Our data suggest that changing gender roles in the Hispanic family will continue to fuel the creation of more Hispanic women-owned businesses. Hispanic women today are more capable, and living in the U.S. provides new opportunities. For example, consider that:
•"91 percent of Hispanic women, versus 83 percent of non-Hispanic white women, agree 'women have as much financial responsibility to support a family as men do.'"
•Our 2005 Multicultural Marketing Study also indicates that "68 percent of Hispanic women, versus 34 percent of non-Hispanic white women, say they really would like to start their own business.
•"And 18 percent of Hispanic women, versus only 1 percent of Non-Hispanic White women, are actually saving to start a business."
It has been our experience at Yankelovich that some novice marketers venturing into the Hispanic marketplace initially want to reach out to the more educated/more affluent Hispanics because it is easier to do so. Often, they want to make an immediate impact on their brand's bottom line, and budgets are a factor when addressing the marketing complexities of dual-lanugage strategies and tactics.
However, as we work with both the new and seasoned marketers who are either just developing and/or enhancing their Hispanic marketing outreach, we do see a growing number of industries – led by the financial services sector – developing dual Hispanic marketing outreach strategies. These include both the education platform necessary to reach "Hispanic Dominant" consumers and the newer Hispanic immigrants; and targeted efforts aimed at the more acculturated and affluent Hispanics.
Included among several hypotheses for the coming year, we believe Hispanic consumer aspirations will change based on increased affluence and entrepreneuriship.
Exactly how aspirations will change is an area we will be further exploring with the 2006 Multicultural Marketing Study. Also, we believe affordable luxuries for both the affluent and less affluent will have new meaning, and we will be further exploring this area as well.
Prediction: Hispanics are a main driving force in the American economy and will continue to be a catalyst for growth in the U.S.
Ms. Suarez-Hammond: Life and consumerism in the U.S. is a dynamic phenomenon of constant change. And the multicultural segments are absolutely leading the way. … The U.S. Hispanic community today recognizes its heightened social standing and the consumer power it wields. There is a new cachet associated with being Hispanic today. Consider that:
•"88 percent of Hispanics believe it is cool to be Hispanic."
•"80 percent of Hispanics, versus 67 percent of non-Hispanic whites, agree that 'as a shopper, I feel more in charge today than I used to.'"
•And "42 percent of Hispanics, versus 27 percent of non-Hispanic whites, believe they will become rich in their lifetime."
But marketers need to support this Hispanic consumer power with consumer empowerment.
Prediction: In 2006 Yankelovich will also be further exploring areas like the impact of more and more Hispanics becoming local, state, and federal government leaders.
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