Hispanics’ Rising Wealth Fuels Growth Of New Luxury Market
We have an empowered base of roughly 25% of Hispanics, or 15.5 million consumers, earning $100,000 or more per year and, in many cases, with disposable cash to buy what they want while supporting multigenerational households.
In the past, advertisers would run English-only, total market campaigns with the mistaken belief that affluent Hispanics would be reached.
We’ve learned since then that this approach fails to portray specific segment nuances and cultural insights that have proven to boost advertising ROI. While there has been some progress, Hispanics remain underserved and underrepresented.
In this time of cultural pride and spending habits that are unique to Hispanics, there are golden growth opportunities for luxury brands who understand what matters to this demographic group.
Luxury is inclusivity rather than exclusivity. Globalization has rendered luxury more aspirational than exclusive. Hispanics yearn for more tailored experiences. It’s not so much about cost, but the value a luxury brand brings.
Luxury is having a voice, a purpose and an impact, being able to express oneself and grow as a person. For brands, it’s about helping people connect with themselves and facilitating a positive transformation.
Hispanics have ample criteria when it comes to determining value. Bicultural Hispanics have traveled, usually speak more than one language, and have seen both poverty and the fruits of their labor. They’ve either made significant sacrifices themselves or witnessed their parents do so. Marketers who understand where Hispanics come from are able to build stronger emotional connections and communicate these experiences and emotions through their campaigns.
It’s all about circumstances and identities. This group sees themselves as both Hispanic and American. They know that their identities are what make them who they are, and that these identities change depending on context.
According to the Merrill study: “We’re more likely to think of ourselves as a manager when we are at work and less likely to feel that way at home, where we may think of ourselves as a partner or teammate.”
Whichever identity is stronger tends to drive goals, attitudes, and choices. As a marketer, understanding the role of your product or service can help you determine how it fits into the context of their lives.
Hispanics are motivated by the legacy they leave. The ability to financially support their family and leave a legacy for future generations remains the most crucial motivator for Hispanic affluent consumers. Their parents and grandparents sacrificed so much for their children’s economic stability, and they are following in their footsteps. According to the same report, “one out of ten are driven by a desire to make their family proud, which is 3x higher than the affluent general population.”
Brands that are willing to appeal to affluent Hispanics from a place of cultural awareness and value will be able to make genuine inroads with this demographic, celebrating all their successes.