Retail Strategies for a Hispanic Customer Base
Retailers with stores in California, Florida and New York enjoy the greatest opportunity to capture a valuable share of the Hispanic market. But even though these metro areas feature high percentages of Hispanic consumers, they also are comprised of highly different groups of Hispanics.
To serve this ethnic community at the local retail level—or the direct marketing level, for that matter—marketers need to dig deeper into demographic and lifestyle data by country of origin for households in specific geographic targets, posits a recent whitepaper, Breakthrough Merchandising for the Growing Hispanic Community. The whitepaper was developed by several experts at data solutions firm Acxiom Corp., including: lead writer Michael J. Gold, a senior retail strategist in the retail and consumer markets industry vertical; Doug Hurst, product marketer, industry data solutions; and Marla Hutson, research analyst.
According to the paper, marketers should examine specific populations across various lifestyle and interest data points, comparing attitudes to a reference population of consumer households to gain more precise targeting insights; so in developing a targeting strategy for Hispanic consumers, a marketer might contrast Mexican-American households against all Hispanic households, or go for a deeper analysis of Mexican-origin households in San Diego, San Francisco and Los Angeles by comparing them to all Hispanic households in California.
“It is important for retailers to note that there are clear and distinct differences in the preferences of these groups even though they all fall under the Hispanic label. They are not homogenous and while some variation is attributable simply to the geography, there are many other factors at work,” the report’s authors emphasize.
For example, the Acxiom analysts discovered several defining characteristics for Mexican-origin households in the three metro areas noted above that would lead retailers in these locales to vary their merchandise mix to better appeal to subtle differences. In San Francisco, the whitepaper reports, the Mexican population tends to be older, single, professional, retired or self-employed, and has a higher income, no children, premium credit cards and the likelihood to travel. Mexican-origin households in San Diego, on the other hand, more often have a younger head of household, shorter time in residence, full range of income earnings and a travel/entertainment credit card, as well as feature individuals who are well-educated and professional. And Mexican households in Los Angeles tend to cross more age groups, as well as have longer times in residence, lower income ranges, less education but greater presence in white collar/clerical and student designations, and a wider range of credit cards.
What does this research mean to a retailer? The report’s authors suggest that an astute grocer could use this market insight to target premium Hispanic gourmet offerings to Mexicans in San Francisco, whereas a variety of lower-priced Hispanic food options might better appeal to those consumers in San Diego and Los Angeles.
To get the full whitepaper, visit http://tinyurl.com/26b8nq