Upscale Latinos represent one of the most important consumer demographics, according to a new study from AHAA: The Voice of Hispanic Marketing and Nielsen.
Among other things, the study suggested that upscale Latinos lead the overall upscale demographic in optimism, purchase behaviors, and plans to further increase spending.
Hispanic marketing has seen a significant increase in recent years; trends in the current report may further inspire companies efforts to appeal to this demographic.
The study, titled Upscale Latinos 2.0: A Renewed Outlook for High-End Marketers, was released today at AHAAs Thinking Under the Influence: The Next Five Years conference in Miami.
Who Are Upscale Latinos?
An Upscale consumer is one whose household income is between $50-100K, according to the report.
Latinos in this demographic tend to have other common characteristics, as well: theyre often bi-cultural, young, dual income earners and may have large families. Theyre also likely to have healthy lifestyles and to purchase health insurance for their families.
Additionally, when compared to non-Hispanic Upscale consumers, Upscale Latinos buy more entertainment electronics, designer shoes and clothing, and home improvement items.
Hispanic and non-Hispanic consumers in this demographic invest in their childrens education and plan for retirement at equal levels, while Upscale Latinos are more likely to provide financial support for elderly parents.
The AHAA report includes some important statistics for marketers.
First, it points out that this population segment is worth $500 billion, which is no small change to companies looking to gain an economic edge.
More specific data shows that within the last 12 months, Upscale Latinos spent $3.7 billion on online purchases.
Many of those purchases were clothing and accessories, airline tickets, health and beauty items, and home accessories.
Additionally, 40 percent of this demographic purchased home furnishings and appliances over the last year.
Finally, Upscale Latinos are twice as likely as non-Hispanic Upscales to increase their spending in department stores and twice as likely to shop high-end department store brands that allow them to project success, even at a premium price.
For those in Hispanic marketing, these statistics may help direct energy for the next few years.
The report further broke down this demographic group into Luxury Seekers, Sensible Seekers and Social Seekers, providing additional clues as to effective Hispanic marketing strategies.
Luxury Seekers, who make up 42 percent of the Upscales, look for high-end products for individual rewards, and feeling good about themselves.” This segment ranks highest in discretionary spending.
Sensible Seekers, making up another 40 percent of the group, spend slightly less and make high-end decisions more functionally.
Social Seekers, the last 18 percent, view those types of goods as a means of gaining recognition and social status.
Because of these trends, Upscale Latinos are becoming more and more attractive to a broad set of brands, according to AHAA Education Chair Gaby Alcantara Diaz.
The report suggests that Upscale Latinos have a nuanced set of needs and desires that focus on mid-market and high-end retailers, prestige cosmetics, and core casual restaurants.
Marketers in those categories, according to AHAA, should complement a larger brand strategy with strategies specific to Latinos.