On the Rise: The Growing Influence of the Hispanic Shopper

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1 On the Rise: The Growing Influence of the Hispanic Shopper

2 Foreword from Univision There are currently 52 million in the United States representing nearly 17% of the total population and growing fast. will account for 60% of the country s population growth over the next five years. This group is younger than the general U.S. population, with over 60% of under the age of 35.* Because of their younger demographic skew, many Hispanic consumers are going through important life events. They are moving out of their parents homes into their first apartments, they are getting married, and they are becoming parents. They are in their peak purchasing years. The Hispanic population has reached a point where its sheer size and shopping dollars can be a differentiating growth engine for manufacturers and retailers that successfully address the Hispanic consumer and these shoppers unique needs and shopping preferences. Going forward it is not a question as to whether or not manufacturers and retailers will have a Hispanic marketing strategy, it is a question of how much they will be willing to spend and how they will best engage this dynamic and powerful segment of the U.S. population. Univision is proud to share these timely and actionable shopper insights created in collaboration with AMG Strategic Advisors. By coming together, we produced something exponentially more valuable for our shared retail and CPG clients. Roberto Ruiz, Senior Vice President, Brand Solutions, Univision Communications Smart marketers are quickly learning have their own distinct product consumption patterns, purchase decision influencers and technology usage habits. Success will come for the CPG companies and retailers that understand the similarities between and the general market and can authentically celebrate the differences. With the goal of driving this understanding, AMG Strategic Advisors, a leading growth strategy consultancy, partnered with Univision Communications, the leading media company serving Hispanic America, to create a special Hispanic-specific edition of the bi-annual research report The Why? Behind The Buy. *Source: Nielsen State of the Hispanic Consumer: The Hispanic Market Imperative Quarter 2, The Why? Behind The Buy HISPANIC

3 T he Hispanic market is a bright spot in the U.S. grocery shopping landscape. The fastest growing ethnic segment in the U.S. has massive buying power and broad influence that extends well beyond its own ethnic group. This is a group on the rise in numbers, education, buying power, social media use, mobile technology use, healthy eating, and cultural influence. Acosta Sales & Marketing s AMG Strategic Advisors and Univision collaborated on this first-ever Hispanic version of the influential The Why? Behind The Buy report to give consumer packaged goods (CPG) manufacturers and retailers valuable, actionable insights into one of the most important U.S. consumer segments. spend more on food with a higher average monthly food budget and bigger spends on both routine and stock-up grocery trips. buying power of $1 trillion in 2010 will grow to $1.5 trillion by The Why? Behind The Buy HISPANIC 3

4 Key Findings Hispanic family mealtime is a priority. Whether for cultural or economic reasons or a combination of both, U.S. Hispanic shoppers cook more frequently at home than the general population. Many make an effort to eat healthy foods, including organic foods, despite the extra expense. They plan meals at least two days in advance and are more likely to prepare meals requested by family members. lead the way in use of technology, digital and social media. They are early adopters of new technologies, and heavy users of digital and social media, including streaming video, music sitessocial networking and blogs. A main driver of their technology use is to stay better connected with family and friends. More than half of the U.S. Hispanic shoppers surveyed use technology for grocery shopping. They Media Spanish language is cultural connection Meal Time more celebrations & family meals are also more likely than the general U.S. population to use digital channels for preshop planning, such as shopping lists and recipes. Shopping is a social experience for. Across the board, are more likely to go grocery shopping with a companion, even en masse with several family members. They shop with spouses, young children, sometimes with adult children, and rarely shop alone. They are also more likely to shop for fun or entertainment. Family larger average family size are Family & Food Centric Cooking from scratch with healthy ingredients The Spanish language helps U.S. stay connected to their cultural roots. U.S. relate to two identities American culture and their Hispanic roots. Language is a strong connector for preserving culture and generational traditions. Most of those we surveyed preferred to speak at least some Spanish at home, and that preference was true across generations. Young shoppers also indicated a preference for Spanish language media, from broadcast to print. Technology for social connection Shopping more trips & more spend Hispanic shoppers show more loyalty for national brands. National CPG brands are more likely to show up on the shopping lists of U.S. by specific brand name. Also, more U.S. say they are likely to switch back to national brands from store brands when their financial situation improves. U.S. are optimistic despite economic challenges. Compared to the general U.S. population, more Hispanic shoppers we surveyed suffered job losses and experienced difficulty finding employment over the last year. Yet, they are decidedly optimistic about the future, with more expecting positive changes in household employment and income in the coming year versus the total U.S. population. 4 The Why? Behind The Buy HISPANIC

5 Optimistic About the Future Despite job and income challenges, many believe the coming year will be better. Overall there is a positive and hopeful view among U.S. as they focus on building better futures for their families. Do you expect any change in employment for your household s main breadwinner in the coming year? Do you expect any change in total household income in the coming year? 78% 57% 50% 64% 25% 14% 19% 8% 32% 22% 19% 13% Positive Change No Change Negative Change Positive Change No Change Negative Change Total U.S. There s reason for CPG manufacturers to be optimistic too. About three out of four create shopping lists and these lists are twice as likely to include a brand name. What s more, appear to be significantly less committed to store brands with 39% indicating they would likely resume buying more national brands than store brands when the economy or their financial situation improves. are more loyal to national brands. They are more than twice as likely as the general population to switch back to national brands when their financial situation improves. When the shopping list is created in your household, how are items typically listed? 44% 55% 29% 35% 24% 19% 14% 7% 13% 3% Don t typically use a list By type of product By brand name of product By brand name and its specific variety A combo of the above, depends on product Total U.S. The Why? Behind The Buy HISPANIC 5

6 Shopping Together and More Often When the U.S. Hispanic shopper goes grocery shopping, she usually has company. More U.S. Hispanic shoppers do their grocery shopping with family. also make more stock-up and routine shopping trips and spend more on those trips on average than the general population. You mentioned making routine, regular shopping trips. Who typically goes with you on these trips? No one else goes with me Spouse/partner Kids 5 years of age and younger Kids 6-12 years of age Parent(s) Kids years of age Adult children Other relatives Friend(s) Roommate(s) Someone else 22% 46% 40% 32% 16% 10% 15% 8% 14% 7% 10% 6% 12% 5% 6% 3% 6% 2% 3% 1% 1% 1% Total U.S. shop with company on nearly 80% of their shopping trips. More than half of with children are taking them shopping. During the last year, Hispanic shoppers frequented dollar stores, mass merchandisers and grocery stores more than the general U.S. population. Meanwhile, both and total U.S. shoppers reported a decline in trips to drug, limited assortment, convenience, and natural/organic stores. Compared to last year, how often do you shop at each type of store for any reason? Dollar stores 5% 19% Mass merchandisers 1% 18% Supermarkets 3% 14% Warehouse clubs -2% 5% Total U.S. 6 The Why? Behind The Buy HISPANIC

7 spend 14% more on routine shopping trips and 10% more on stock-up trips and shop more frequently. About how much do you spend on each of the following types of shopping trips? In a month, how often do you make these trips? Stock-up trip Routine trip $ $ $ $ Occasion-based trip Fill-in trip Specialty trip $41.90 $79.20 $57.60 $78.70 $69.90 $51.30 Stock-up trip Routine trip Occasionbased trip Fill-in trip Specialty trip Total U.S. Total U.S. Cooking at Home and Eating With Family Mealtime is a priority in the Hispanic household. When it comes to meals, 60% of Hispanic shoppers are planning meals at least two days in advance. Family requests and healthy choices are stronger influencers for Hispanic households mealtime choices than amongst the general population. U.S. General U.S. Population Cooking more frequently at home 62% 52% Prepare specific meals requested by family members 24% 14% Agree with we eat healthy foods even though they are more expensive 47% 42% Eat more natural foods 38% 27% Eat more organic foods 31% 22% keep social ties strong with celebratory meals. For which of the following types of significant dates or holidays do you typically prepare a special meal for your family? Special family days 55% Religious holidays 54% U.S. holidays 50% Hispanic holidays 25% Other 1% None of the above 14% The Why? Behind The Buy HISPANIC 7

8 Driving Digital and Mobile Trends in Grocery As a group, are heavier users of text messaging, mobile websites, tablets, smartphones, and mobile apps than the general population. Staying in touch with family, friends and extended family are key drivers of technology use for, as well as the desire to share product information and tips. U.S. General U.S. Population Use a smartphone 51% 41% Regularly text message 47% 42% Stream music from websites such as Pandora 30% 24% Use video/tv streaming websites such as 29% 24% Hulu/YouTube Regularly use a mobile app 19% 14% Hispanic shoppers are more likely than the general population to use new technologies such as smartphones and tablets to access the Internet, 50% vs. 34% respectively. They also use more grocery shopping apps and list functions on mobile devices. 8 The Why? Behind The Buy HISPANIC

9 When it comes to grocery shopping planning, once again use of technology tends to be more cuttingedge and socially oriented. They are more likely to visit product review sites, local review sites and cooking or recipe sharing sites. They are early adopters of new technologies, ahead of the general U.S. population, and surpassing U.S. Millennial and U.S. Gen X shoppers in their use of sophisticated interactive tools and sites like social networking, group buying, online community websites, and mobile technology. What online or interactive tools do you use regularly? Websites Social networking sites like Facebook or Twitter Text messaging Smartphones like Blackberry, iphone & Android Videos/TV streaming websites like Hulu, YouTube, etc. Music streaming websites like Pandora, YouTube, etc. Group buying sites like Groupon or Google offers Online community websites for a specific interest Mobile websites Blogs Tablet computer like ipad, Samsung Galaxy, etc. None of these 4% 3% 5% 5% 8% 8% 12% 11% 19% 18% 18% 18% 15% 15% 13% 12% 15% 12% 14% 11% 24% 22% 24% 29% 29% 30% 36% 35% 42% 47% 46% 48% 46% 47% 55% 53% August 12 Total U.S. August 12 Total U.S. July 11 The Why? Behind The Buy HISPANIC 9

10 Spanish Language Keeps Cultural Roots Strong U.S. relate to two identities American culture and Hispanic culture. Language is a bridge used by many to stay connected to their roots. Most of those we surveyed preferred to speak at least some Spanish at home, and that preference held strong across generations. Nonetheless, the majority of U.S. understand English, with a slight drop among the 65 and older crowd. Also notable is a strong preference among the 18 to 34 year olds for Spanish language media. What language do you speak at home? 57% 63% 69% 40% 38% 49% 46% 28% 21% 11% 15% 12% 16% 20% 15% Spanish more than English Both Spanish and English English all the time Total Gen Y Gen X Boomers Silents 65+ U.S. ages 18 to 34 report a strong preference for Spanish language media. What language do you prefer to watch TV, read magazines and newspapers, and listen to radio? 28% 39% 21% 12% 34% 52% 43% 59% 65% 48% 20% 18% 21% 23% 19% Spanish more than English Both Spanish and English English all the time Total Gen Y Gen X Boomers Silents The Why? Behind The Buy HISPANIC

11 Taking Insights Into Action Leveraging the enormous opportunity and potential of the Hispanic market will be key to the success of CPG manufacturers and retailers. AMG Strategic Advisors can help companies design an effective Hispanic market strategy and answer key questions, such as: How do Hispanic Millennials differ versus the general population? How should we think about segmenting the Hispanic shopper? How should we position our brand to grow with Hispanic shoppers? How do perceive and define value? What product or package innovation do we need to reach Hispanic shoppers? Which categories are Hispanic children influencing most? How should we measure ROI on Hispanic marketing? What types of shopper marketing are most effective? How should we address Hispanic specialty retailers? How should we structure our organization to maximize the opportunity with Hispanic shoppers? What are the differences in Hispanic male versus female shoppers? For More Information For more information on The Why? Behind The Buy HISPANIC, including customizing the analysis, contact: Elena Etcharren Senior Vice President, AMG Strategic Advisors, or visit The Why? Behind The Buy HISPANIC 11

12 The Why? Behind The Buy HISPANIC is an exclusive survey produced by AMG Strategic Advisors and Univision that provides valuable insights into U.S. Hispanic shopper behavior. This research was fielded in August 2012 with a random sample of 1,012 Hispanic shoppers via Acosta s proprietary ShopperF1st online and face-toface survey, which was available to respondents in both Spanish and English translations. The Why? Behind The Buy survey and report on the total U.S. population has been produced bi-annually by Acosta Sales & Marketing since About Univision Communications Inc. Univision Communications Inc. (UCI) is the leading media company serving Hispanic America. Its assets include Univision Network, one of the top five networks in the U.S. regardless of language and the most-watched Spanish-language broadcast television network in the country reaching 96% of U.S. Hispanic households; TeleFutura Network, a generalinterest Spanish-language broadcast television network reaching 88% of U.S. Hispanic households; Univision Cable Networks, including Galavisión, the country s leading Spanishlanguage cable network, as well as Univision telenovelas, a new 24-hour cable network dedicated to novelas, Univision Deportes Network, a new 24-hour cable network dedicated to sports, ForoTV, a new 24-hour Spanish-language cable network dedicated to news, and an additional suite of six cable offerings - De Película, De Película Clásico, Bandamax, Ritmoson, Telehit and Clásico TV; Univision Studios, which produces and co-produces reality shows, dramatic series and other programming formats for the Company s platforms; Univision Television Group, which owns and/or operates 62 television stations in major U.S. Hispanic markets and Puerto Rico; Univision Radio, the leading Hispanic radio group which owns and/or operates 69 radio stations in 16 of the top 25 U.S. Hispanic markets and Puerto Rico; Univision Interactive Media, a network of national and local online and mobile sites including Univision.com, which continues to be the #1 mostvisited Spanish-language website among U.S. online, Univision Móvil, a longstanding industry-leader with unique, relevant mobile products and services, and Univision Partner Group, a specialized advertising and publisher network. Headquartered in New York City, UCI has television network operations in Miami and television and radio stations and sales offices in major cities throughout the United States. For more information, please visit Univision.net. AMG Strategic Advisors AMG Strategic Advisors is the growth strategy consulting unit of Acosta Sales & Marketing, assisting clients in accelerating profitable growth through insight-driven strategies and advanced analytics. Comprised of consultants with in-depth experience in marketing strategy, including experience at leading CPG manufacturers, AMG Strategic Advisors provides best-in-class strategy consulting, brand positioning, shopper & marketing insights, and data analysis. AMG Strategic Advisors collaborates with clients to drive multicultural and multigenerational growth on an individual project or on an outsourced services basis. AMG Strategic Advisors offerings include: Strategic Planning & Consulting Growth Platform Identification Demand Driven Innovation Strategies Brand Positioning and Brand Strategies Consumer Insight and Segmentation Shopper Insights / Path-to-Purchase Insights Channel / Go-to-Market Strategies Shopper Marketing Strategies ROI / Measurement Solutions Operational / Organizational and Supply Chain Effectiveness 12 The Why? Behind The Buy HISPANIC

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