Nielsen Sees Upscale Latinos As The New Boomers
June 25, 2013 at 6:15 AM (PT)
According to NIELSEN and THE ASSOCIATION OF HISPANIC ADVERTISING AGENCIES, 15 million upscale Latinos in the U.S. accounted for 29% of the country’s Hispanic population in 2012, 37% of the group’s total spending power, and is expected to double in size by 2050. Upscale Latinos are younger than upscale non-Hispanic Whites (33 years old compared with 39 years old) and they live active lifestyles, often with young families. 85% of upscale Hispanics have a household size of three or more, compared with 65% of upscale non-Hispanics.
Defined as Hispanic households earning $50K-$100K in annual income, upscale Latinos are the most influential segment since the baby boomers and will drive shifts in category consideration, purchasing behavior and brand relationship. This sophisticated market of upscale Latinos provides lifetime value and upside opportunities for many high-end and luxury brands, says the report.
Upscale Hispanics are mostly concentrated in urban areas such as LOS ANGELES, NEW YORK, HOUSTON and MIAMI, although they show significant representation in secondary markets such as HONOLULU, WASHINGTON, D.C. and OKLAHOMA CITY.
Upscale Latinos are more likely to own businesses than upscale non-Hispanics, finds the study. Accordingly, the upscale Hispanic segment has a higher concentration of white collar professionals than total U.S. Hispanics, and place a greater emphasis on saving for education than upscale non-Hispanics.
Upscale Hispanics tends to own their own homes and are very financially savvy:
* Half have investments
* 86% maintain savings accounts
* 50% more likely to manage their financial accounts from their mobile device
* More likely to invest in the stock plans their employers provide them
* More invest in mutual funds more than the total U.S. Hispanic population (21% vs. 16%)
Upscale Hispanics live in two cultures, says the report. Three-quarters speak both English and Spanish. Though upscale Hispanics are slightly more English-dominant, their strong cultural duality and bicultural behavior is reflected in their media consumption.
* More than a third of upscale Hispanics watch content in both languages
* English-language comedies, documentary-style programming and children’s weekly programming are the most watched
* Upscale Latinos switch to Spanish-language television for cultural events, concerts and sports
* Upscale Latinos outspend upscale non-Hispanic Whites and Hispanics overall on health and beauty products.
* Men’s toiletries, women’s fragrances, hair care and cosmetics dominate in the health and beauty aisle
* When shopping for alcohol and baby care products, this group steers toward store labels.
* Upscale Hispanics spend more on fresh ingredients than general U.S. Hispanic population. Healthy and nutritious food is a priority.
The study concludes marketers have a unique opportunity to identify the needs of an evolving upscale Hispanic household.