Latinx Community Defining Future of Consumption

Lawndale News Chicago's Bilingual Newspaper - Local News

Lawndale News Chicago's Bilingual Newspaper - Local News

By: Ashmar Mandou

Latinx consumers are defining the future of consumption, reports Nielsen using Census data. Nielsen’s latest Diverse Intelligence Series report, La Oportunidad Latinx: Cultural Currency and the Consumer Journey, dives deep into what drives U.S. Hispanic consumer’s purchasing habits. This year’s report nearly twice as many Latinx consumers will visit websites/apps on their smartphones as on a computer or tablet. By carrying their digital experience in their pocket, Latinx consumers often merge their digital and physical experiences, allowing brick-and-mortar retailers to make physical shopping more attractive to with a digitally augmented experience. “The Latinx path to purchase is social and circular, meaning recommendations of friends, family, and virtual networks play a preeminent role in product/service discovery, awareness and decision making,” said Stacie de Armas, Nielsen’s VP, Strategic Initiatives & Consumer Engagement. “The Latinx affinity for technology and specific media platforms can provide marketers with a look at what’s next through authentic engagement and outreach strategies.” The report also showcases how Latinx buying power, which is expected to rise to $1.9 trillion in 2023, is increasing at a rate more than double non-Hispanic growth over the same period.

Key Report Insights include:

U.S. Hispanics are vital to commercial and viral success, uniquely combining the digital and physical shopping experience.

– The highly social nature of the Latinx community and their love of technology and specific media channels can provide marketers with a fast track to making their product “go viral’ if those marketers seek insights and develop solid Latinx strategies.

– Validating the social connection Latinx consumers have with shopping, the second most stated reason for visiting a social networking website by Latinx consumers is to receive exclusive offers, coupons, or other discounts (over-indexing by 22 percent).

– With a big number of brick-and-mortar locations dwindling in many cities, connecting with Latinx consumers as a source of growth in the categories they are passionate about can be vital for the survival for brick-and-mortar retailers. Creating an authentic in-store experience could be a competitive advantage for brick-and-mortar retailers in the race against online purveyors.

– Merging the physical and digital worlds, Latinx consumers are front-runners in digital coupon use, with text being reported as their number one way to receive coupons.

U.S. Hispanics have mastered the art of blending old and new, leading a new wave of culturally relevant trendsetters. The Latinx community keeps up with the latest trends by being constantly connected to their inner circles, asking for advice, recommendations, and approval from those who mean the most to them.

– They are more likely than the general population to use social networking sites to find out about products and services, and they are also more likely to share their product/services experience on a social networking site. They, in fact, are likely to both offer and seek out recommendations.

– Almost 40 percent of Hispanics state that their friends or neighbors seek advice from them before making a purchase, over-indexing the general population by 10 percent.

– Seventy-three percent of U.S. Hispanics agree that it’s important for them that their children continue their family’s cultural traditions, and that their ethnic cultural heritage is an important part of who they are, which means that language, culture, and familial ties are a foundation in understanding the unique Latinx path to purchase.

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