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Hispanics and Retail - US - December 2013

“Hispanics are social shoppers. They enjoy shopping and often shop with family and friends. It is therefore not surprising that recommendations from friends and family are the single most influential factor for Hispanic buyers. Though obviously neither friends nor family, marketers have an opportunity to replicate the influence of kin through experienced sales staff and engaging social media.”

– Susan Menke, Category Manager, Multicultural

This report looks at the following areas:

  • Hispanics want recommendations from family/friends, but is that all?
  • With the dominance of discount retailers, where can others stand out?
  • Traditional ads are less effective for electronics than other retail products

Hispanics are a large and fast-growing population who have many retail needs. Because the Hispanic population is a diverse group with a varied set of attitudes about retail shopping, there is a tremendous opportunity for marketers who can meet the specific needs of these consumers.

Readers of this report will learn:

  • Important demographics of the Hispanic consumer, including how varying levels of acculturation and income affect purchasing behavior.
  • Where and why Hispanics shop and the types of products and services they are shopping for.
  • Where Hispanics plan to purchase certain products in the next 12 months.
  • The factors that influence Hispanic consumers’ buying decisions.
  • The influence that promotions have on Hispanic shopping choices.
  • Marketing strategies that are most effective for Hispanic retail consumers.

The categories covered in this report include Hispanics’ consumption of groceries, apparel and footwear, electronics, household products, and personal care products, and their attitudes toward what they purchase.

In discussing their attitudes about themselves, we also address their attitudinal differences by language preference. In this report we’ll look at consumption habits by language, income, and gender and provide insights for targeting each segment of the Hispanic population. We will also discuss and provide examples of trends and opportunities.

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Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Data sources
          • Sales data
            • Consumer survey data
              • Abbreviations and terms
                • Abbreviations
                  • Terms
                  • Executive Summary

                      • Hispanic expenditures reach pre-recession peaks
                        • Figure 1: Average annual expenditures of Hispanic households, three-year rolling averages at current prices, 2007 and 2012
                      • Hispanics over index in apparel and services
                        • Figure 2: Indexed average annual expenditures of households, by Hispanic origin, three-year rolling averages at current prices, 2012
                      • Hispanics enjoy shopping and are more likely to visit multiple stores
                        • Figure 3: Attitudes toward shopping, by Hispanic origin, May 2012-June 2013
                      • Hispanics are social shoppers
                        • Figure 4: Influences on purchase decisions in last three months, by gender, October-November 2013
                      • Outlook good for manufacturers’ stores targeting young Hispanics
                        • Figure 5: Plans to purchase electronics at manufacturer retail store in next year, by age, October-November 2013
                      • Discount retailers are most likely destination for mobile phone purchases
                        • Figure 6: Type of retailer where portable electronics were purchased in last year, October-November 2013
                      • Ads are less effective for electronics than other retail products
                        • Figure 7: Influences on purchase decision in last three months, by product type purchased, October-November 2013
                      • What we think
                      • Issues and Insights

                          • Hispanics want recommendations from family/friends, but is that all?
                            • Insight: knowledgeable clerks and IT professionals can duplicate the influence of kin
                              • With the dominance of discount retailers, where can others stand out?
                                • Insight: manufacturers’ and specialty stores can provide more fun, variety, personal service
                                  • Traditional ads are less effective for electronics than other retail products
                                    • Insight: embrace social media and digital recommendations
                                    • Trend Applications

                                        • Trend: Return to the Experts
                                          • Trend: Click and Connect
                                            • Mintel Futures: Generation Next
                                            • Market Size and Forecast

                                              • Key points
                                                • Hispanic expenditures reach pre-recession peaks
                                                    • Figure 8: Average annual expenditures of Hispanic households, three-year rolling averages at current prices, 2007 and 2012
                                                  • Hispanics over index in apparel and services
                                                    • Figure 9: Indexed average annual expenditures of households, by Hispanic origin, three-year rolling averages at current prices, 2012
                                                • The Hispanic Retail Consumer

                                                  • Key points
                                                    • Hispanics enjoy shopping and are more likely to visit multiple stores
                                                        • Figure 10: Attitudes toward shopping, by Hispanic origin, May 2012-June 2013
                                                      • Half of Spanish-speaking Hispanics enjoy shopping with family
                                                          • Figure 11: Attitudes toward shopping, by language spoken in home, May 2012-June 2013
                                                        • Walmart is most popular retail store
                                                          • Figure 12: Specific retail stores visited in last three months, by Hispanic origin, May 2012-June 2013
                                                        • Best Buy is most popular electronics store
                                                          • Figure 13: Electronics stores visited in last three months, by Hispanic origin, May 2012-June 2013
                                                        • Hispanics want cell phones with more features
                                                            • Figure 14: Attitudes toward mobile phone usage, by Hispanic origin, May 2012-June 2013
                                                          • Hispanics using PCs for educational purposes
                                                              • Figure 15: Activities conducted on home computer, by Hispanic origin, May 2012-June 2013
                                                            • Dell tablet/PCs popular with Hispanics
                                                                • Figure 16: Brand of tablet/PC owned, by Hispanic origin, May 2012-June 2013
                                                              • Top cell phone brands are popular with Hispanics
                                                                  • Figure 17: Brand of cell phone owned, by Hispanic origin, May 2012-June 2013
                                                                • Wireless provider Verizon under indexes with Hispanics
                                                                    • Figure 18: Wireless plan provider used, by Hispanic origin, May 2012-June 2013
                                                                • Marketing Strategies

                                                                  • Facebook launches Hispanics affinity cluster
                                                                    • Wireless providers acquire prepaid plan services and spend big on ads
                                                                      • T-Mobile airs Hispanic version of “Help” campaign
                                                                        • Figure 19: T-Mobile, Television ad, 2013
                                                                      • “It’s not complicated” campaign features kids, may attract Hispanic parents
                                                                        • Figure 20: AT&T, television ad, 2013
                                                                      • Apple ad celebrates global diversity
                                                                        • Figure 21: Apple, TV ad, 2013
                                                                      • CNET launches CNET Espanol
                                                                      • Effectiveness of Promotions

                                                                        • Key points
                                                                          • Sale prices are the most effective promotion
                                                                            • Figure 22: Effectiveness of promotions in choosing products to purchase, by gender, October-November 2013
                                                                          • Sale items are effective across all age groups
                                                                            • Figure 23: Effectiveness of promotions in choosing products to purchase, by age, October-November 2013
                                                                          • Affluent Hispanics are financially savvy shoppers
                                                                            • Figure 24: Effectiveness of promotions in choosing products to purchase, by household income, October-November 2013
                                                                          • Free samples work for Hispanic parents
                                                                            • Figure 25: Effectiveness of promotions in choosing products to purchase, by presence of children in household, October-November 2013
                                                                          • Opportunity for more Spanish-language coupons
                                                                            • Figure 26: Effectiveness of promotions in choosing products to purchase, by language primarily spoken in home, October-November 2013
                                                                        • Sources of Information for Making Buying Decisions

                                                                          • Key points
                                                                            • Hispanics are social shoppers
                                                                              • Figure 27: Influences in purchase decisions, by gender, October-November 2013
                                                                            • Recommendations online beginning to affect younger Hispanics
                                                                              • Figure 28: Influences in purchase decisions, by age, October-November 2013
                                                                            • Hispanic parents are more easily influenced to buy
                                                                              • Figure 29: Influences in purchase decisions, by presence of children in household, October-November 2013
                                                                            • Chance to engage in Hispanic community events
                                                                              • Figure 30: Influences in purchase decisions, by language primarily spoken in home, October-November 2013
                                                                          • In-store Behavior and Loyalty Program Usage

                                                                            • Key points
                                                                              • In-store shopping behavior largely consistent
                                                                                • Figure 31: In-store shopping behavior and usage of rewards programs, by gender, October-November 2013
                                                                              • Loyalty programs more attractive to Hispanics earning $75K+
                                                                                • Figure 32: In-store shopping behavior and usage of rewards programs, by household income, October-November 2013
                                                                              • Opportunity for Spanish-oriented loyalty programs
                                                                                • Figure 33: In-store shopping behavior and usage of rewards programs, by language primarily spoken in home, October-November 2013
                                                                            • Purchasing Electronics

                                                                              • Key points
                                                                                • Walmart and Target are the most popular retailers for electronics
                                                                                  • Figure 34: Type of store where electronics are purchased, by gender, October-November 2013
                                                                                • Manufacturers’ stores gain appeal among younger Hispanics
                                                                                  • Figure 35: Type of store where electronics are purchased, by age, October-November 2013
                                                                                • Discount retailers popular with Hispanics of all household incomes
                                                                                  • Figure 36: Type of store where electronics are purchased, by household income, October-November 2013
                                                                                • Store clerks and IT professionals influencing Walmart/Best Buy shoppers
                                                                                  • Figure 37: Type of store where electronics are purchased, by influences on purchase decision, October-November 2013
                                                                                • Brands endorsed by celebrities are popular with Walmart/Target shoppers
                                                                                  • Figure 38: Type of store where electronics are purchased, by influences on purchase decision (continued), October-November 2013
                                                                              • Electronics Purchases in the Future

                                                                                • Key points
                                                                                  • Hispanic men planning more electronics purchases than women
                                                                                    • Figure 39: Type of store preferred for future purchases of electronics, by gender, October-November 2013
                                                                                  • Manufacturers’ own stores appeal to young Hispanics
                                                                                    • Figure 40: Type of store preferred for future purchases of electronics, by age, October-November 2013
                                                                                  • Fewer middle-income Hispanics planning to buy electronics
                                                                                    • Figure 41: Type of store preferred for future purchases of electronics, by household income, October-November 2013
                                                                                • What Influences the Electronics Purchase Decision?

                                                                                  • Key points
                                                                                    • Personal recommendations are most effective
                                                                                      • Figure 42: Influences in electronics purchase decisions, by gender, October-November 2013
                                                                                    • Social media now an influential channel
                                                                                      • Figure 43: Influences in electronics purchase decisions, by age, October-November 2013
                                                                                    • More affluent Hispanics often relying on reviews
                                                                                      • Figure 44: Influences in electronics purchase decisions, by household income, October-November 2013
                                                                                    • Need for Spanish-speaking IT professionals
                                                                                      • Figure 45: Influences in electronics purchase decisions, by language primarily spoken in home, October-November 2013
                                                                                  • Portable Electronics—Where They are Purchased

                                                                                    • Key points
                                                                                      • Discount retailers are the most likely destination for mobile phone purchases
                                                                                        • Figure 46: Type of store where portable electronics were purchased in last 12 months, by gender, October-November 2013
                                                                                      • Club stores are used by more affluent Hispanics
                                                                                        • Figure 47: Type of store where portable electronics were purchased in last 12 months, by household income, October-November 2013
                                                                                      • Half of Hispanic parents buy portable electronics at discount retailers
                                                                                        • Figure 48: Type of store where portable electronics were purchased in last 12 months, by presence of children in household, October-November 2013
                                                                                      • Product presentations are effective in multiple retail channels
                                                                                        • Figure 49: Type of store where portable electronics were purchased in last 12 months, by influences on portable electronics purchase decisions, October-November 2013
                                                                                    • Anticipated Purchases of Portable Electronics

                                                                                      • Key points
                                                                                        • Portable electronics are in high demand
                                                                                          • Figure 50: Type of store preferred for future purchases of portable electronics, by gender, October-November 2013
                                                                                        • Hispanics aged 25-34 most likely to buy
                                                                                          • Figure 51: Type of store preferred for future purchases of portable electronics, by age, October-November 2013
                                                                                        • More affluent Hispanics planning to buy portable electronics
                                                                                          • Figure 52: Type of store preferred for future purchases of portable electronics, by household income, October-November 2013
                                                                                        • Hispanic parents planning to buy at discount retailers
                                                                                          • Figure 53: Type of store preferred for future purchases of portable electronics, by presence of children in household, October-November 2013
                                                                                      • The Portable Electronics Buying Decision

                                                                                        • Key points
                                                                                          • Ads are less effective for portable electronics
                                                                                            • Figure 54: Influences in portable electronics purchase decisions, by gender, October-November 2013
                                                                                          • Videos and social media have an influence
                                                                                            • Figure 55: Influences in portable electronics purchase decisions, by age, October-November 2013
                                                                                          • Hispanic parents are active online
                                                                                            • Figure 56: Influences in portable electronics purchase decisions, by presence of children in household, October-November 2013
                                                                                          • Spanish-speaking IT professionals can help sell portable electronics
                                                                                            • Figure 57: Influences in portable electronics purchase decisions, by language primarily spoken in home, October-November 2013
                                                                                        • Appendix – Overview of the Hispanic Consumer

                                                                                          • Key points
                                                                                            • Hispanic purchasing power projected to reach $1.7 trillion in four years
                                                                                              • Hispanic household income lags that of Whites and Asians
                                                                                                • Figure 58: Median household income, by race/Hispanic origin of householder, 2011
                                                                                              • Hispanic male median personal income improved in 2011
                                                                                                  • Figure 59: Median personal incomes of people aged 15 or older, by Hispanic origin and gender, in inflation-adjusted dollars, 2001-11
                                                                                                • Hispanic unemployment rates declining
                                                                                                  • Figure 60: Percent unemployment at end of third quarter, by race/Hispanic origin, 2007-12
                                                                                                • Hispanics among the fastest-growing population segments in the US
                                                                                                  • Hispanics are overwhelmingly young
                                                                                                    • Figure 61: Generational profile, Hispanics vs non-Hispanics, 2011
                                                                                                  • Hispanic households larger than non-Hispanic households
                                                                                                    • Figure 62: Average household size, by Hispanic origin/race of householder, 2001, 2008, and 2011
                                                                                                    • Figure 63: Number of households, by number of people in the household—Hispanics vs all, 2011
                                                                                                  • Hispanic households have younger children
                                                                                                    • Figure 64: Number of households with children, by race and Hispanic origin of householder, 2012
                                                                                                    • Figure 65: Number of households, by race of householder and presence and ages of children, 2011
                                                                                                  • Hispanic educational attainment generally high school or lower
                                                                                                    • Figure 66: Educational attainment of Hispanic men, by age, 2011
                                                                                                    • Figure 67: Educational attainment of Hispanic women, by age, 2011
                                                                                                  • Hispanics overwhelmingly reside in Southern and Western America
                                                                                                    • Figure 68: Largest* Hispanic groups, by region, by country of origin/ancestry, 2010
                                                                                                  • Immigration is declining—but immigration reform may present an opportunity
                                                                                                      • Figure 69: Estimates of the US unauthorized immigrant population, 2000-11
                                                                                                  • Appendix – Other Useful Tables

                                                                                                    • Buying decisions and household income
                                                                                                      • Figure 70: Influences in general retail purchase decisions, by household income, October-November 2013
                                                                                                    • In-store shopping behavior and age
                                                                                                      • Figure 71: In-store shopping behavior and usage of loyalty programs, by age, October-November 2013
                                                                                                    • In-store shopping behavior and presence of children
                                                                                                      • Figure 72: In-store shopping behavior and usage of loyalty programs, by presence of children in household, October-November 2013
                                                                                                    • Electronics purchased and presence of children
                                                                                                      • Figure 73: Types of stores where electronics are purchased, by presence of children in household, October-November 2013
                                                                                                    • Electronics purchased and language spoken in home
                                                                                                      • Figure 74: Types of stores where electronics are purchased, by language primarily spoken in home, October-November 2013
                                                                                                    • Electronics planned to be purchased and presence of children
                                                                                                      • Figure 75: Types of stores preferred for future electronics purchases, by presence of children in household, October-November 2013
                                                                                                    • Electronics buying decisions and presence of children
                                                                                                      • Figure 76: Influences in the electronics buying decision, by presence of children in household, October-November 2013
                                                                                                    • Where portable electronics purchased and age
                                                                                                      • Figure 77: Type of store where portable electronics are purchased, by age, October-November 2013
                                                                                                    • Where electronics purchased and language spoken in home
                                                                                                      • Figure 78: Type of store where portable electronics are purchased, by language primarily spoken in home, October-November 2013
                                                                                                    • Where portable electronics planned to be purchased and language spoken in home
                                                                                                      • Figure 79: Type of store preferred for future purchases of portable electronics, by language primarily spoken in home, October-November 2013
                                                                                                    • Sources influencing portable electronics buying decisions and household income
                                                                                                      • Figure 80: Influences in electronics purchase decision, by household income, October-November 2013
                                                                                                  • Appendix – Trade Associations

                                                                                                    Companies Covered

                                                                                                    • Association of Information Technology Professionals
                                                                                                    • Consumer Electronics Association
                                                                                                    • Entertainment Merchants Association
                                                                                                    • Interactive Entertainment Merchants Association
                                                                                                    • Video Software Dealers Association
                                                                                                    • Wi-Fi Alliance
                                                                                                    • Wireless Communications Association International (WCA)

                                                                                                    Hispanics and Retail - US - December 2013

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