While Upscale Latinos are generally defined by their income ranging from anywhere between $50k-$100k annually,* Affluent US Hispanics are generally considered to be a step above in terms of their income and account for more than 12% of US Hispanic households.** As their buying power is expected to reach $680 billion by 2016*** and continued growth further expected to follow, advertisers have already started to recognize the potential marketing opportunities in reaching the demo. However, developing a successful marketing campaign often requires more than just expecting that English ad campaigns will be able to resonate with a largely bilingual Hispanic demo.
CHANGES IN AFFLUENT HISPANIC PURCHASING PREFERENCES WITH WEALTH
In many cases, as the Hispanic market has found greater amounts of financial success, their shopping behaviors have reflected those of their Anglo counterparts, with desires to be able to convey their success and status through the purchases they make.**** Particularly, with alcohol, businesses have noted that while the Latino American community has mainly consumed beer and tequila along with other liquors such as rum and vodka, that now wine purchases have started picking up with increased revenues coming from Millennials and Affluent Hispanics. One Director of Marketing even noted that while Hispanic Millennials were driving the increase in wine consumption, that many Hispanics in the $75,000 household income bracket were likely to buy wine.***** However, in the case of changing their shopping behavior with wine, affluent Hispanics showed a lower magic price point than other demographics.*****
IMPROVING PRICE POINTS THROUGH THE CULTURE OF THE AFFLUENT HISPANIC
Particularly in fashion, luxury brands have seen increases in their revenue due to growth in purchases made by Affluent Hispanics. Gucci, as an example, has seen growth in their Southern California and Southern Florida stores and to help further improve their total sales has ensured that they have Spanish-speaking sales assistants in each of their store locations and has also opened stores that will cater to the Latin American community almost exclusively, including in San Diego.****
Estee Lauder even saw their second highest sales results for their ultraluxury day and night cremes coming from a Saks Fifth Avenue store in South Florida. Together, the cremes retailed for $900 and had been marketed in Latina magazines such as Vanidades, Selecta, and more.****
So what does this mean for companies looking to market their high price pointed products to Affluent US Hispanics? To start, a company needs to look at its overall positioning. As was the case with increased purchases of wine by the wealthy Latino market, the status that this particular demo was looking for was coming mainly from what was being purchased—the wine—as opposed to any particular brand. In the case of Gucci, the brand itself had already been identified as a stature symbol among the general market and Affluent US Hispanics who were looking display the financial success they had achieved also recognized that owning Gucci products would help convey their stature to others.
Secondly, companies will need to identify how to further position themselves as the brands associated with luxury while also connecting culturally with the Affluent Latinos. In the case of Estee Lauder, where it is competing against other top luxury cosmetics lines such as Chanel, Lancome, and Dior, the company was able to reach their greater market share through advertising in regional publications that already had a steady Affluent Hispanic audience. Furthermore, in the case of Gucci, the high-end retailer was able to not only provide a unique experience through bilingual sales assistants, but this experience also was able to further their own sales initiatives by helping to connect culturally with the on-site shoppers.
So how does your brand plan on capturing the Affluent US Hispanic market? Have you made sure that you’re able to associate your brand with high-end products and services? Furthermore, have you also developed a plan that culturally positions your products to resonate with the cultures of the wealthy Latino communities?