FH Hispania Plaza

Cha-cha-changes

This week's lead story on Advertising Age is a good read for any marketer. Written by the editor of American Demographics (part of the trade pub), the story provides a good summary of what is going on with consumer demographics and the data paints a very interesting picture for any brand seeking to forge a lasting relationship with today's changing consumer landscape. While it is no secret that the U.S. is increasingly diverse, the piece examines just how by even comparing population metrics among regions. From this, two big statements emerge for those of us who work in and with multicultural and/or Hispanic markets: the Latina mom, as covered on this blog before, is young and part of a very influential segment and teens (particularly in the South) show the greatest ethnic diversity. Also, the piece talks about the challenges of reaching the new consumers by traditional research means since many are now connected by cellphones and very adept at screening calls and protecting themselves from intrusions. (It goes to far as to suggest the CMO may soon have a new team member solely focused on consumer segmentation.)  This is more pronounced among Hispanics who largely rely on cellphones as their #1 communication tool, making it an even more elusive group.

At the end of the piece, writer Peter Francese makes five conclusions about what is a 'must know' for the top 5 segments he covers and two pertain to our day to day work: immigration and new faces. His counsel is brief and in summary encourages brands to engage on the immigration debate and embrace new cultures. This is really at the heart of success, paired with cultural sensitivity, the desire and ability to adapt to changing tastes, and an understanding that consumers have changed and are continuing to change FAST and only those brands that remain relevant will thrive.  What do you think? 

Feeling The Crunch

After a brief and non-intended hiatus from blogging, I have been meaning to comment on recent news about how Hispanics are being affected by the current economic situation.  A story in the Miami Herald caught my eye recently because Hispanics leaving the country due to economic prospects became news-- a departure from the news that continually document the reasons why Hispanics continue to reach U.S. soil.  Previously, a USA Today story from mid May stated that Hispanics are being among the hardest hit by the downturn due to the housing slump and how it affects them on two fronts: less construction jobs, less houses to put as collateral to fund a business.  Then, last week, the Pew Hispanic Center came out with its own report that points to the weakened construction industry as the lead culprit of the 6.5% unemployment rate among Hispanics-- almost 2% more than the national rate at this stage.  The report also shows a decline in wages, and a contrast between Latino men and women in the workforce-- the latter's overall participation has declined sharply. Now, keeping in mind that the Hispanic buying power is the equivalent to the Mexican economy, these stats should be considered as a metric of the health of the consumer pocketbook and more importantly, the purse.  Women continue to make most of the buying decisions in the U.S. Hispanic household, and if they are feeling the pressure more than other groups, their cautious shopping habits will be increasingly pronounced. 

Mom: La Reina de la Casa

With just a couple of days before Mother's Day, marketers are intensifying their efforts to connect with the most influential person in the household. More so, in the Latino household.  You see, moms are the gatekeepers of the family budget in most homes across the nation, but in Latino households, they are also the cultural beacon-- the one who normally decides and supports which traditions to keep, which foods will make it to the table, which brands will make it through the door.  Last week, the Census came out with the most recent figures about the growth of multicultural youth in the U.S. and Hispanics under 18 are again the fastest rising segment of the population-- and almost 34% of the total Hispanic population now estimated at 45.5 million.  What's more, Hispanic youth under 5 is a growing segment-- specially those born in the U.S.  But before these kids can make their own consumer decisions, and perhaps long after they can, moms will continue to influence them based on the cultural value system of the Hispanic household. And considering that there are more than 20 million Latinas in the U.S., it is wise to pay attention to the segment.

Taking a look at Univision.com and many of the Hispanic media this week will reveal different approaches to connecting with the Latina mom.  Some go so far as to reference the 'abuelitas'. The truth is moms are reigning queens, and the effects of it go so far as to make Mother's Day the #1 remittance transaction day for Hispanics in the U.S..

For all the Latina moms out there, felicidades en su dia!

Latino Population To Triple in Next 40 Years

Official Census figures are not due for another couple of years, but a new study from the Pew Hispanic Center released yesterday made projections about what the face of America will look like by 2050 and it's plenty diverse.  According to the research powerhouse, Hispanics will continue to be the fastest-growing demographic group and will make up almost 30 percent of the total population-- a change from the current 15 percent.  Still the youngest group in the nation, still with younger, larger families, the Hispanic boom will not cease. In fact, the study predicts that if current population trends are to continue, the Hispanic demographic will triple in size.  Also, the study predicts white, non-Hispanics will make up 47% of the population, effectively becoming a minority group.  Among its predictions, Pew also states that one in five in the nation will be an immigrant. 

Fastest Growing Hispanic Markets

Many marketers have come to learn by heart the leading Hispanic clusters in the nation-- those with burgeoning established communities, growing spending and political power. But the Hispanic population continues to spread across the entire nation, with used-to-be emerging markets such as Atlanta now making it to the top 10 lists among some researchers. A couple of weeks ago I read an interesting piece in Hispanic Market Weekly that cited recent Arbitron data on the 20 fastest growing Hispanic markets in the nation. At the top of the list: Charlotte, with a 20% population growth in just a year.

Adding Value

Earlier this month, GM announced that it was shifting multicultural work for five brands to general market shops.  At the recent Association of Hispanic Advertising Agencies conference, there was a strong focus on where Hispanic advertising is going and the blurring lines between Hispanic and general market work.

I mention this because as our clients look to maximize investments, they are looking for ways to create programs that can be effective with both general market and diverse audiences, programs that add value by attracting more consumers.

As an example, I am working on a project where a client is dispatching street teams for product demos.  Part of the selection criteria for the street team staff is bilingual capability.  Even though this is what would be considered a general market program, the brand team recognizes the importance of having bilingual staff available because Hispanics make up a large population of major metro areas and because of our spending power.

Too often, organizations begin to think about a Hispanic marketing program only after they’ve completed their general market planning, missing opportunities for maximizing their investments or creating much more innovate programs.  This piecemeal approach is not the most effective way to work.  Instead, a strategy and plan for reaching Hispanics consumers and influencers should be developed in tandem with overall planning.

This does not necessarily mean the consolidation approach is the right answer either, because you have to have a strong understanding of the market, including opportunities and sensitivities, in order to be effective.

As noted here last week, Hispanic marketing spend is increasing.  The companies that get it right – and make their dollars work harder - integrate Hispanic marketing from the planning phase, and not as an add-on.

Latino Entrepreneurs and Professionals

RedEye, a Chicago Tribune publication, earlier this week published a cover story titled “This is Latino Chicago,” a thorough, by-the-numbers snapshot of the impact Latinos have made on our city.  “Latinos have driven Chicago’s population growth, stirred changes in the city’s neighborhoods, redirected marketing campaigns and changed the face of the city's schools,” stated the article.

As a lifelong Chicagoan, I have witnessed these changes myself and seen the impact in different facets of my own life, including the workplace.

When I started out in PR, I was often the only Latino account person.  Today, in our Chicago office, we have grown to five Latino account staff members - all young, highly-educated Latinas.  This is important to acknowledge because as more Latinos enter the workforce they will increasingly make their mark on the workplace and the economy.

For example, the number of Latinos in management and professional occupations is increasing.  In addition, Hispanic business ownership is growing three times as fast as the national average.  Given the example of my own office, it should come as no surprise that more and more Hispanic business owners are women.

Research shows that diversity is good for the economy.  A survey by the Society for Human Resource Management and Fortune magazine showed that 79 percent of HR professionals at Fortune 1,000 companies believe that diversity improves corporate culture and 52 percent believe it improves client relations.

Statistics aside, one of the most exciting things for me about the rise of Latinos entrepreneurs and professionals is the collaborative way we help each other to achieve success.

Arturo Rico, a construction company owner in North Carolina, told CNN that he encourages his employees to learn what they can from him, so that they can one day go into business for themselves.  And here in Chicago, the Chicago Latino Network connects Hispanic professionals for networking and social events.  Stories like this exist across the country and additional proof is the growing number of local Hispanic business chambers in the US Hispanic Chamber of Commerce network.

Marketers interested in reaching Hispanic influencers should pay close attention to the millions of business owners and professionals among us.

A Special Report: Hispanic LGBT Community

This post was authored by Ivette Lopez of FH Hispania and FH Out Front, and was first posted on the FH Out Front blog:

La semana pasada, Logo presentó un programa sobre las personas gay y lésbicas en Estados Unidos de origen latinoamericano. El reportaje se enfocó en los retos de la comunidad debido a la cultura tradicional y estatus de inmigración.  Les invito a que presenten sus opiniones.

Last week, Logo aired “Los Otros,” a special news report on U.S. Gay and Lesbian Hispanics raising awareness on the challenges of being out in the Hispanic community. Several of the people interviewed did not reveal their names and one individual went on camera and talked about being gay with the safety net that his family would not be watching.

The majority of Hispanic gays in hiding or the ones that have been persecuted for their sexuality tend to be first generation Hispanics. As families and communities evolve in the United States, they are surrounded by diversity and a democracy that actually works. I have heard this “transition” or evolution often times referred to as the “demoralizing” effect that takes place in the United States, but really, is it just that people are learning there are other cultures aside from their own and are becoming more educated?

It would be interesting to see additional special reports on los otros (the others) that focus on second and even third generation Hispanics. The differences are apparent and one can almost break down their marketing campaign to reach each sub-group differently. In my opinion, the tactics would cater specific needs:

First Generation:Their parents (or themselves) are the first to have migrated to the United States. Speak and understand basic English. Have a challenging period of transition and acculturation. Culture differences arise when the person tries to integrate their new American upbringing with their family and culture and receives a lot of push back from the family.
Where to find them: They watch Univision and Telemundo with their families, go to Hispanic Heritage month events and church. Approaching this group is difficult as you don’t want to push them away.Grassroots tactics work best. 

Second Generation: Born in the United States. Some move away to the parents country of origin and return here at some point before being full adults. This group experiences difficulties similar to the first generation group. Second generation are  more acculturated, may or may not speak Spanish at home. Family still plays a very important role and will do so in the coming out process.
Where to find them: Those who are born and raised in the United States, when they are teenagers, they identify as a teen and not as a Hispanic teen. Meaning they can be targeted via mainstream initiatives. Coming out during this time, they may be involved in the likes of OutYouth organizations. Claiming their heritage often happens at a more mature time of their lives. This older group may be involved in Latino(a) queer organizations, such as allgo, Texas' statewide queer people of color organization, and be reaching out to the first generation Hispanic. Grassroots and mainstream initiative will work well with his group.

Reaching this community can be tricky but it is also easier than it may seem. Cultural sensitivity is not just a blanket practice for all Hispanics, there are many exceptions to the stereotype.

Thoughts? Please comment below.

A Loyalty to the Market

Years ago, it used to be that marketers pointed to a group of three recurring data points to substantiate a strategy to reach the Hispanic demographic: market size, economic growth/over indexing and brand loyalty.  The discussion has since evolved quite a bit, and today, we focus much more on acculturation, segmentation and other crucial characteristics that truly impact consumer and audience behavior. Good thing the approach has matured.  This week, Nielsen came out with consumer insight that brand loyalty shows a decline depending on acculturation.  Anyone who has visited the home of a Latino family can attest to that.  With acculturation, language, media, affluence and other influences penetrate a household at different levels.  And loyalty needs to be attained from each member of a household. Just last year, Yankelovich's annual multicultural marketing study* found that 58 percent of Hispanics thought it risky to buy a brand they did not know.   This is where segmentation becomes critical since the more acculturation comes into play, different members of a home have different brands to call their own.

If brand loyalty slips while the two other data sets of years before stay, perhaps one of the leading considerations for approaching the market is understanding the need for 'connectedness'. This remains to be true and spans all segments.  On the literal side, Hispanics do speak more on the phone, using both more long distance and wireless than their peers. The Nielsen research covers, that -- and for my peers who follow telecom --  a recent study from Florida State's Center for Hispanic Marketing Communication looked at Hispanic and other consumers use of old and new media and found that the Hispanic group that spends the most time on the phone is the 36-45 year old Spanish-dominant set (almost 11 hours per week for those who want to know).  Aside from the literal, 'connectedness' also relates to culture and the set of characteristics that 'feel' Hispanic.  Think music, food, softer traits such as ambiance, colors, cosmogony, life philosophy, values and language. In other words, a loyalty to roots still exists-- according the Yankelovich study, it's in an uptrend from 5 years ago.

We often get requests for data and research that size up the Hispanic market opportunity, and luckily, a lot of  such stats abound today.  But the truth is to effectively reach this segment, we need a deep understanding of the demographic so we are loyal to the reality of the market and the community.

(*The 2007 version of this annual study is scheduled to come out in October.)

A Sign of a Maturing Market

The announcement last week that Nielsen is doing away with its Hispanic sample and will now measure Hispanic TV viewership from its general market People Meter sample is a sign of the maturation of not only the Hispanic market but also of Hispanic viewers. It used to be that we needed a separate measuring sample for Hispanic viewers and separate Hispanic marketing departments to address that audience to ensure that corporate interests were paying attention to the segment. As Hispanics have become a larger part of the population and second and third generation members grow in importance, Hispanics are exerting a greater influence in general market trends and it is becoming critical to consider them in a more integrated fashion as opposed to a completely independent segment.

Under that scenario it only makes sense for Nielsen to start looking at the Hispanics with the same measuring stick as everyone else. I would not be surprised if the new sample shows the Hispanic audience displaying a broader variety of viewing choices than we have come to expect from the Hispanic-only sample, although the Spanish-dominant group will likely continue to graviate to the traditional choices. If that were the case, it will only serve to show that we cannot treat all Hispanics alike.

New Pew Hispanic report on foreign-born Latinos

A recurring theme at FH Hispania Plaza is the importance of understanding segmentation in the Hispanic market. A new report released today by Pew Hispanic further makes the case. The report focuses on wages for foreign-born Latinos and finds that wages have improved for these workers. According to the study, which compares 1995 to 2005 data, 42 percent of workers in 1995 earned less than $8.50 an hour, compared to 36 percent of workers in 2005. According to the report, some of the reasons for this change are that new arrivals are older, better educated and more likely to be employed in construction than agriculture.

The findings in the report highlight how programs for new immigrants might differ from what was done in the past because of where these immigrants are moving to and the trades that keep them employed. According to the Census, 16 percent of Hispanics work in construction, extraction, maintenance and repair occupations; and 19 percent in production, transportation and material moving occupations.