Hispanic shoppers currently make up roughly 16 percent of the national population, but research shows that this percentage is rising every day, and with it, the demographic as a whole is becoming more highly sought after by everyone from politicians to marketers.
In light of this trend, market research agencies M/A/R/C Research and The Integer Group teamed up for their latest "The Checkout" report, a survey that sought to determine how Hispanic shoppers behave when making purchases and assess how these habits compare to those of the general consumer population.
"This growing audience presents unique challenges and opportunities for marketers," the report's authors said. "Understanding their shopping behaviors and attitudes is paramount to generating long-term loyalty and revenue."
Given these findings, the study concluded, retailers and merchants that wish to compete successfully for the spending of this population group need to take a specific approach to gain favor in this market space. For example, the poll revealed that Hispanic shoppers rely more on personal networks, put more emphasis on value than price and use technology more than the typical consumer, among other findings.
In this PYMNTS.com Data Point, we'll take a closer look at the survey's determinations and what they may mean for retailers and merchants who want to ensure that they optimize their buying experience for Hispanics across multiple platforms.
When Marketing To Hispanics, Family Is Key
Hispanic consumers were found to be more likely to take shopping trips as a family, meaning young, middle-aged and older members of this demographic are apt to make purchases together - whether during the holidays, back-to-school week or another important part of the retail year.
In total, the report found that one out of every three Hispanics said they had this shopping tendency, a greater amount than the one-in-four in the general population that indicated these habits. Similarly, Hispanics were more likely to look to friends and family members for buying advice either in-store or through social media - 40 percent - compared to 29 percent of the general population. Additionally, Hispanic men were more likely to follow this behavior, with 51 percent responding that they were strongly influenced by others, compared to the 43 percent of Hispanic women.
Hispanics Value Supplemented In-Store Experience
When it comes to using technology at brick-and-mortar locations, researchers found that 73 percent of Hispanic shoppers utilize the Internet to make weekly chore lists. This demographic was equally savvy when it came to using the Internet to secure deals.
According to the findings, Hispanics more commonly took advantage of social coupon services - by roughly 10 percent - as compared to the general market. Further, Hispanics were more likely to use QR codes for real-time pricing information, log on to location-based services or play games or quizzes on a shopping site. By comparison, these Americans were less likely to read product reviews or ratings, use real-time price checking or follow suggestions for related purchases and services.
More Hispanics Favor Mobile For Purchasing
The Integer Group found that 16 percent of Hispanics reported using their mobile devices for purchases, compared to 12 percent observed for the general market. Hispanics were ahead of the general population in a majority of categories, as more reported using mobile phones to locate retails, compare prices, read product reviews, create shopping lists and select a retailer.
Now Is The Time To Act
For brands with a weak foothold in this market, the most alarming statistic may have been that 68 percent of Hispanic shoppers reported to finding their regular brand in stores, while 28 percent said they were immediately drawn to brand-name products. However, the report said savvy retailers could pursue successful strategies.
"This tendency to be loyal in some categories give[s] retailers an opportunity to target Hispanic shoppers by offering lower prices in categories where Hispanics are open to trying new brands, while also giving them the opportunity to spend more with offers and promotions on those name brands to which they are more loyal," the report said.