Latino Consumer Spending Growth Outpaces the General Market
According to the experts, the U.S. economy began slipping into a recession in December 2007.
And then things got worse.
That’s common knowledge.
What may not be so well known is the surprising bit of good news that came to light in the last month of 2009 amid all of the mostly bad.
Turns out that even as the U.S. economy was contracting and consumers in general were cutting back, spending by Hispanics was shooting up by 6.4% — more than double the more modest 2.9% growth registered by non-Hispanics.
That’s from a report by the Latinum Network based on recent consumer spending figures released by the U.S. Bureau of Labor Statistics.
So in what major categories did the growth of Hispanic consumer spending far exceed that of non-Hispanics?
Well, they included, among others:
• cereals
• computers
• education
• entertainment fees and admissions
• food away from home
• laundry and cleaning supplies
• major appliances
• vehicle finance and insurance
• women’s apparel
And listen to these specific examples.
From 2007 to 2008, the food industry grew by $40 billion. Thirty percent of this came from Hispanic consumers.
Hispanics also spent 58% more on education (compared to 9% for non-Hispanics) and 14% more on entertainment admissions and fees (compared to a decline of 7% for non-Hispanics).
All of which reminds me of the closing questions I posed in my very first post to this blog four months ago.
What if there were a market for your product that you haven’t even tapped into?
A market 45 million strong.
And growing.
A market with a buying power of almost $1 trillion.
And growing.
Would you be interested?
With Hispanics outspending non-Hispanics in the midst of the worst economic downturn since the Great Depression, the question now is —
Can you afford not to be?
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Next time we’ll pick up where we left off with our previous post and talk about some effective ways to reach Hispanics.
And why they work.
Stay tuned.
Where Does the Dinero Come From?
In an earlier post, we mentioned that Hispanics’ buying power is about to outstrip that of every other minority in the country.
(A projected $1 trillion by 2010 — a 457% increase over 1990 compared to a 176% increase in non-Hispanic buying power.)
So, where’s all that money coming from?
Well, you’ll find Latinos working in almost any job category you can think of.
Cowboys and cannery workers.
Disk jockeys and doctors.
Biologists and business executives.
Teachers and telecommunications engineers.
Secretaries and sales managers.
Hospitality workers and healthcare providers.
And, yes, gardeners and domestics and construction workers.
But here’s the part that might surprise you.
Turns out a lot of Hispanics own businesses.
Yep.
Three million of them.
That generate some $450 billion in annual sales.*
Which means Hispanic businesses need —
Banking and telecommunications services.
Computers and office supplies.
Office furniture and vehicles.
Janitorial and sanitation equipment.
And a host of other products and services.
So again the question is this.
Are they buying any of these things from you?
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Next time we’ll talk about what makes Latinos tick.
And about why understanding their values is important.
Stay tuned.
*Source: Selig Center for Economic Growth, 2006.
