6 Sure Fire Multicultural Insights to Optimize 2022 Marketing Planning
This year has been marked by unprecedented change in society, the economy, and the health of all Americans. In times like these, marketing planning based on a high level of certainty has advantages. Here are 6 U.S. Hispanic market insights that are certain to maximize your 2022 marketing plans.
1. According to the 2020 Census America is becoming more diverse, with Hispanic population growth leading the way.
Hispanics are younger. The Latino average age of about 29-years-old is approximately 14 years younger than the general population and is one of the most significant contributors to the strong growth across numerous consumer categories like CPG, Fashion, Health & Beauty, and more.
- The Hispanic population grew by 23% over the past decade, which is 3x the national growth rate average (7.4%).
- The Hispanic population of 62MM, representing 19% of the total population, was responsible for driving 51% of the nation’s entire population growth in the last 10 years.
- Not surprisingly, the cities with the most growth were large metro areas with significant Hispanic populations like Los Angeles, Phoenix and New York.
2. As in past recessions Hispanics employment has rebounded and will play a leading role in economic growth.
All population groups were hit with unemployment at the start of the pandemic. Hispanics were no exception, reaching an unemployment rate of 18.9% in April 2020, that said, Hispanic employment has rebounded to the single digits and is projected to improve over time.
3. Hispanics are the key to incremental volume opportunities for many categories.
Hispanic consumers are the ideal target across a myriad of categories. To illustrate the point consider these indicators:
- Hispanics are younger. The average age of a U.S. Hispanic is 29-years-old, 4 years younger than the general population. Young consumers mean growth opportunities across numerous consumer categories like CPG, Fashion, Health & Beauty and others.
- Hispanic home ownership continues rising. In 2020 50.1% of Hispanics owned their home compared to 45.4% in 2014. A study by the Urban Institute forecasts Hispanic home buyers will comprise 70% of home ownership growth from 2020-2040, serving as the growth engine across related sectors such as mortgage loans, home improvement, moving services and big ticket appliances, among others.
- Hispanics buy more cars. Vehicle sales to Hispanic grew 141% between 2010 and 2019, compared to only 51% for the total population. What’s more, through 2028 Hispanics auto sales are forecast to grow at twice the rate of the total population.
- Hispanics are Do-It-Yourselfers: 93% of the Home Improvement category growth came from Hispanics. This is likely to grow ever further as Hispanic drive the growth in home ownership.
4. Hispanics are fully engaged in the new online retail economy.
Hispanics have migrated to online shopping faster than non-Hispanics. Before and during COVID, Hispanics were more likely to shop online than non-Hispanics and they plan to continue to do so after COVID. And reaching them through social media has gotten easier. 57% of Hispanics spend more than one hour per day on social media vs. 48% for the total population.
5. Culturally relevant advertising drives purchase intent.
According to research conducted by the ANA Alliance for Inclusive & Multicultural Marketing, culturally nuanced advertising outperforms one-size-fits-all ads. Specifically, best-in-class, culturally relevant ads have a 3.3x higher purchase intent. Culturally relevant advertising content makes media dollars work much more effectively.
6. Choosing the right marketing partner is a good investment.
I applaud the many companies that are walking the talk and recruiting and investing in heads of diversity and inclusion. These investments will pay dividends over the long run as leaders within companies begin to reflect their consumer base. Similarly, investments in the right marketing partners who are skilled at engaging a new, diverse customer base are also critical to maximize growth opportunities.
The good thing is that firms specialized in engaging diverse consumers exist now and can help brands grow today. As you plan for 2022, be sure to work with partners that are well versed in exploring diverse segment growth opportunities and in marketing effectively to them.
Your bottom line will appreciate it.