You know Hispanics are a sizzling hot consumer market in the U.S.—but did you know about the newly hot niche of upscale Hispanics? A study by Nielsen and the Association of Hispanic Advertising Agencies says upscale Latinos are the hottest market since the Baby Boomer generation.
Who are upscale Latinos? The report defines them as Hispanic households with $50K to $100K in annual income. On average, they are younger than upscale non-Hispanic Whites (33 years old compared with 39 years old). Many of them have young children: 85% of upscale Hispanics have a household of three or more people, while only 65% of upscale non-Hispanics do.
The nation’s 15 million upscale Latinos accounted for 29% of the country’s Hispanic population in 2012, but possess 37% of the group’s total spending power. The number of upscale Latinos is expected to double by 2050, the study projects.
Upscale Latinos are especially important for high-end or luxury brands, the report contends, because they are highly influential and seen as trendsetters by their peers. One reason is that they’re concentrated in urban regions like Los Angeles, New York, Houston and Miami, and also well represented in secondary markets such as Honolulu, Washington, DC, and Oklahoma City.
Some more to know about upscale Latinos:
- They have high educational and professional attainment, with a higher concentration of white-collar professionals than the average U.S. Hispanic.
- They’re technologically savvy.
- They are more likely to own their own businesses than upscale non-Hispanic whites, and are a strong force in new business startups.
- They typically own their own homes.
- They are very financially savvy: 50 percent have investments and they are more likely than other groups to manage their finances on a mobile device.
- They place a greater emphasis on saving for education than upscale non-Hispanic whites.
- They outspend upscale non-Hispanic Whites and Hispanics overall on health and beauty products.
- They care about healthy and nutritious food and are more likely to buy fresh ingredients than the general Hispanic population.
Don’t assume upscale Hispanics are fully Americanized. The report says they live in two cultures, with three-fourths speaking both English and Spanish (although they’re slightly more English-dominant). For instance, they like to watch TV in both languages.
If you’re targeting these consumers:
- Use culturally sensitive advertising and marketing since upscale Latinos are proud of their heritage.
- Focus on family, future and financial issues. For instance, emphasize how a product is a good value or will save money that can be used for the family.
- Get online. This tech-savvy audience uses digital tools to find the products and services they need, so be where they are online to attract their attention.