A powerful consumer market with annual purchasing power exceeding $350 billion, Hispanics (or should they be Latinos?) have become the largest minority group in the United States and a market worth exploring and with a lot to see, once you get the labels straight.
Are they “Hispanic” or “Latino”?
Hispanics and Latinos have hotly debated that question for years, and apparently choosing one answer over the other means drawing political, social and generational lines in the sand.
I’ll explain later, but for now let’s put some numbers on the table.
Hispanic Database – The Numbers Tell the Story
It was news! Hispanics are now the largest minority group in the US, outnumbering blacks by nearly 1 million (37 million vs. 36.2 million).
That may have been news, but demographers and advocacy groups saw it coming; those population estimates just confirmed it. With extensive immigration from the economic shopping basket, Latin America, and a strong birth rate among predominantly Catholic Hispanics, this gap is expected to grow. By 2020, the Hispanic population could easily double to 70 million, or 21% of the US population; by 2050 people of Hispanic origin are expected to exceed 100 million. Hispanics make up 11.4% of today’s workforce, a number that could easily double in ten years.
o More than 7.6 million Hispanic households in the US have an average of 3.6 people per household.
o US Hispanic households have 2 or more full-time employees; 58% of Hispanics over the age of 18 are employed full time.
o About 1 million Hispanic households in the United States have incomes of $50,000 or more.
o The average Hispanic household spends $31,013 a year.
o Hispanics are a young population. The median age of US Hispanics is 26.5 years, compared to the median age of 32.2 years for non-Hispanics.
o 12.8 million Hispanics were born abroad; of this number, 1 in 4 were naturalized citizens.
o Among foreign-born Hispanics, 43% entered the US in the 1990s, while 27% entered before 1980.
o While 74% of those who entered the country before 1970 had obtained citizenship by the year 2000, only 7% of those who entered between 1990 and 2000 had become citizens. (Becoming a naturalized citizen requires five years of residence in the US.)
Sources: United States Census Bureau 2000 Population Census and Hispanic Population in the United States, March 2000, Roberto Ramírez and Melissa Therrien.
Flexing economic and political muscle
Today, the more than 7.6 million Hispanic households in the US have higher educational levels, greater access to credit and capital, and sharper technology skills than ever before. Consequently, with purchasing power in excess of $350 billion, the current generation of Hispanics is an economic powerhouse.
That adds up to the main marketing potential
More than half of all Hispanics in the US are between the ages of 18 and 49, which means most of them are getting married, buying homes, starting families, starting careers and, in many cases, opening their own business.
A strong entrepreneurial streak runs through this market, with Hispanic-owned businesses in the US totaling 1.2 million businesses employing more than 1.3 million people and generating $186.3 billion in revenue in 1997, according to a report released this year by the Commerce Department’s Census Bureau. In fact, Hispanic-owned businesses account for 6% of the nation’s 20.8 million non-farm businesses and 1% of the $18.6 trillion in revenue for all businesses.
Positioning country in the market (as always)
The longer Hispanics live in an area and the more affluent they are, the more invisible they become, and many school districts are having great success with “immersion” English training among Hispanic elementary school students. However, assimilation may never be complete. In most US Hispanic communities, a strong cultural identity persists and that can affect how you market to them. So even though times are changing (to borrow a phrase), you’ll still find that a fundamental understanding of Hispanic culture and a working knowledge of Spanish are assets in this market; they make markets, since Hispanic communities are no longer homogeneous than others.
Like any group, Hispanics in a community are often reconfigured into different market segments (small business owners, professionals, agribusinesses, etc.) with all the usual qualifying characteristics: common identity and accessibility; Common features; Identifiable wants, needs and goals; Activate communication networks.
Where is home?
“The Southwest and Northeast still have the highest concentrations of Hispanic communities, but Latinos are changing the look, sound and feel of more and more cities across the country that have not traditionally been home to Hispanics,” reports Gigi Anders in Hispanic Magazine, adding that Hispanic communities are developing at record rates in other non-traditional states like Arkansas, Oregon, Nevada and South Carolina.
And Georgia!
Yolanda Rodriguez, writing in Hispanics Online: “In 1996, the Georgia Hispanic Chamber of Commerce had 180 members and now it has 931, ranging from multi-million dollar companies to small family-owned operations.”
Business owners and professionals who understand that will enjoy a competitive advantage in this market and will find it easier to build productive relationships with receptive Hispanic prospects and customers.
So which is it: Hispanic or Latino?
back to that question…
Those who call themselves Hispanics tend to be more assimilated (or acculturated), politically conservative, and younger than those who use the term Latino, who, by contrast, tend to be liberal, older, and sometimes more radical.
“A recent presidential tracking poll conducted by Hispanic Trends, Inc., a polling company associated with Hispanic Magazine, wanted to put the identity issue to rest once and for all by asking registered voters which term they preferred: Hispanic or Latino? “. Ms. Granado concludes: “The result was somewhat surprising: the majority prefers the term Hispanic.”
There, does that straighten the picture on the wall?
Reference sources:
1. US Census Bureau, Census of Population.
two. [http://www.HispanicsOnline.com]. This website is an invaluable resource for anyone looking to learn more about the Hispanic culture, lifestyle, economy, and demographics.
3. “Surveys Reveal Hispanic Families’ Concerns,” Humberto Cruz, The Savings Game, Tribune Media Services, 5/1/03
4. “Family is a priority for many Hispanic workers,” Carol Kleiman, Tampa Tribune, 12/24/02
5. The Allied Media Publishing Network allows you to target this market through publications whose editorial focus is directly related to Hispanic culture.
6. “Bilingual Yellow Pages to Embrace Hispanics,” Rafael Morales, Tampa Tribune, 10/25/02
7. “Small Business Research Brief: Analysis of Hispanic-Owned Businesses,” David Birch, September 2000. Cognetics Marketing Services, Inc.
8. “The Hispanic market continues to grow everywhere!” Alex López Negrete, President/CEO, López Negrete Communications.
9. “The Hispanic Population in the United States, March 2000”, Roberto Ramírez and Melissa Therrien.
10. “Top 10 Cities for Hispanics 2002”, Gigi Anders, [http://www.HispanicsOnline.com]
11. “Hispanics living in the Peach State”, Yolanda Rodríguez, [http://www.HispanicsOnline.com]
12. “’Hispanic’ vs. ‘Latino’: New Survey Finds ‘Hispanic’ Preferred,” Christina Granado, http://www.Hispaniconline.Com
They want more? Send questions and comments to [email protected].
