culled from:bizjournal.com
The holidays are here, and many retail stores are eager to reach or even surpass their sales goal for the year. According to Nielsen Annual Sales Forecast, holiday spending is expected to rise 1.8 percent in 2014, compared to 1.2 percent in 2013. Minority consumers — Hispanics, African Americans and Asian Americans — will help fuel this growth in sales significantly.
Even though 10 percent of the U.S. population plans to spend more this holiday season than last year, multicultural consumers account for 43 percent of projected extra spending. About 17 percent of African-Americans, 13 percent of Asian-Americans and 13 percent of Hispanics plan to increase their spending, according to the forecast.
About 60 percent of Hispanic consumers plan to spend $250 to less than $1,000, compared to 53.8 percent of the total population. Also, Hispanics plan to spend 15 percent more on gift cards, 13 percent more on electronics and 13 percent more on toys than last year.
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According to the National Retail Federation, shoppers are expected to spend $616.9 billion this holiday season, up to 4.1 percent more from 2013. This is a wake-up call for big retailers and corporate America. Minority groups, especially Hispanics, now are fueling the economy of this nation in a big way.
Here are four tips on how you can drive more Hispanics to your stores:
1. Know your audience
Hispanic women, also called Latinas, are extremely influential when it comes to shopping for a Hispanic household. Most of the time, mom is the one who handles the finances and has the final word. Based on the Nielsen report “Latinas are a Driving Force Behind Hispanic Purchasing Power in the USA,” Hispanic women are expected to represent 30 percent of the total U.S. female population by 2060.
2. Understand the culture
It is crucial to understand cultural nuances if you want to engage with this growing and influential target audience. For example, one playful approach in English marketing campaigns is to portray the father figure as somebody who is a little goofy, doesn’t know what is going on, or always breaks something in a household.
This humorous portrayal of a father figure can make several target audiences laugh. However, if you try that with the Hispanic audience, you will insult just about every Hispanic man if they are represented that way because they are a symbol of authority and respect.
3. Interpret their needs
It’s important to have the right product selection in your stores. Food, beverages, clothing and electronics are important retail items for Hispanics. Analyze your store’s demographics and push those hot products accordingly. Have bilingual signage and employees to help answer any questions they may have at the time of purchase. You will create an overall better shopping experience and lay the foundation for a loyal consumer relationship.
4. Make it easy
Online shopping is poised to grow even more this holiday season, according to the Nielsen Report. About 24 percent of Hispanics plan to shop online for most of their holiday purchases. Make sure to have a wide selection — online and offline — available to them.
According to the latest Census, approximately 36.3 percent of the U.S. population currently belongs to a racial or ethnic minority group. The question is: How much money are you missing out on by not targeting to them effectively?
