Hispanic consumers now comprise more than 15% of the U.S. population. And they wield plenty of spending power. Some research shops estimate that by next year, Hispanic consumers will spend about $1.2 trillion. Marketers can boost their sales to this demographic by understanding what Hispanic consumers like to buy.
A new study indicates that a majority of Hispanic households are bucking the trend when it comes to purchasing personal care products. While many consumers have shifted to store brand soaps and shower gels, about 64% of Hispanics say they purchase their favorite name brands. However there is a bit of a difference within the Hispanic demographic. Mintel research shows that 58% of English-speaking Hispanic households, those who are more acculturated, have shifted their purchases from favorite brands to more generic brands.
But for Spanish-dominant Hispanics, brand favorite purchases look like this:
- Lotions 51%
- Facial cleansers 27%
- Toothpaste/mouthwash 69%
Leylha Ahuile, senior multicultural analyst at Mintel says, "[o]ver the last six years, Hispanics have consistently increased their spending on personal care products.” This has occurred even as 64% of these households are living on a modest income ranging from $25,000-$49,999. However, they are conscious of the need to save money. As a result, they favor purchasing multifunctional products such as shampoo/conditioners and toothpastes that also whiten.
Marketers can increase sales of their branded products by specifically targeting Hispanic-speaking households with ad campaigns.[Source: CPG Industry Eyes Ways to Capture Hispanic Consumers. CSNews.com. 8 Feb. 2011. 18 Feb. 2011]