Like a Great Boxing Trainer... prepping a world class professional for a title fight, 2020
Advertising is dedicated to you and your company's success as much as you
are and we are here to ensure that no matter what, you've got the knowledge to
make the best, most creative and effective strategic decisions moving forward.
We know you've got the proper skills by virtue of your title and role, now all
you need is the right team in your corner to help with the preparation: a team
that's dedicated to the "sweaty" side of the business to make the most of the
fight versus your competitors.
Even before we begin to train, here are some basics we
know will put you on firm ground for any initial discussion about Hispanic
marketing; even in preparation for your agency search, where we hope you are
clearly considering 2020 Advertising.
Hispanic Market Overview 2009 US Latinos are the Largest Minority Population Segment in the US ♦ Over 80% of the Los Angeles Unified School district's student body, grades K-6, are Latino ♦ Since 1980 there have been more Latinos living in the US than there are Canadians living in Canada ♦ By 2020 it is estimated that there will be more Spanish-speakers residing in the US than in Spain US Latinos are Concentrated: ♦ Over 70% of the entire US Latino Mexican American population resides in only two states: CA and TX ♦ Over 75% of the entire US Latino Cuban American population resides in one state, FL, and in one City, Miami ♦ Mexico City is the largest city in the western hemisphere with a population exceeding 20 million ♦ The second largest concentration of Mexicans in the western hemisphere resides in Los Angeles, CA
♦ Over 80% of the largest concentration of Central Americans in the Western Hemisphere (Salvadorans) resides in one city: Los Angeles
Young:
On average, the US Latino population is 10 years younger than the US general population. Certain cities are even more concentrated and skew even younger, for example Chicago, with a large and growing Latino population, over 50% of their Latino population is under the age of 18!
Great Shoppers Even in This Economy!
♦ In 2010, the US Hispanic population's disposable income (spending money after taxes) is projected to be approximately $1Trillion (# revised for 2009 economics).
♦ In 2009, the US Latino buying power is equivalent to the entire Gross Domestic Product of Mexico.
♦ In 2009, the US Hispanic markets disposable income could rank as the 9th largest economy in the world, exceeding Mexico, all of Latin America, Canada and several European nations as well.
♦ Isn't it time you invested some of your marketing budget and tapped into this burgeoning consumer segment and your future’s business growth? If so, give us a call 305.804.9106 or write to us: Success@2020Advertising.com
US Hispanic Population Distribution Map: 2009
Us Hispanic Population Country of Origin
Hispanic Buying Power
A Bit More on US Latino Buying Power and the Economy In 2008, the disposable income of the U.S. Hispanic consumer market was about $800 Billion or about the same size as Mexico's entire gross domestic product! This ranks the US Latino population's disposable income 9th in the total world's economy!
The Selig Center for Economic Growth at the University of Georgia estimated that the Total Buying Power (disposable income after taxes) of the US Hispanic population would be approximately $1.24 trillion by 2011. At that time (1 year ago) the 10 states with the largest Hispanic buying power were (and still are) California ($228 billion), Texas ($154 billion), Florida ($91 billion), New York ($66 billion), Illinois ($38 billion), New Jersey ($33 billion), Arizona ($28 billion), Colorado ($20 billion), New Mexico ($17 billion) and Georgia ($14 billion).
Projections Disclaimer :
As reliable as the Selig Center is (and all of these resources are), we hesitate to anchor our projections based upon early 2008 figures since only a few shorts months ago and even now, in Q1 of '09, the financial world has tilted considerably. Thus, in the above bar graph, we've scaled back on all secondary and tertiary data projection (from Census, PEW Institute, Selig and Synovate) and have reduced the numbers significantly. Whereas the US Latino population's buying power increased over 350% since 1990, and all projections we encountered continued this unbridled momentum, we choose to divide this in half, but nevertheless, we're still talking about a growth rate of over 150%! The numbers and marketplace characteristics are solid enough for any marketer to appreciate the upside of targeting the Latino market, long-term.
What's in Store?
While all economic growth estimate
bets are off for this and next year's post-economic bust, we can promise
one thing for sure: the US Latino population and purchase power (disposable
income after taxes) will continue to grow at a rate faster than the non-US
Hispanic population. Don't get us wrong, the beating that the country will
take during the 2009 economic storm will certainly effect the US
Hispanic marketplace. And although a greater percentage of US Latinos have
joined the middle class, a still far greater % are lower-income, hard-working,
seasonal, blue-collar and service industry income dependent and as a result,
there will no doubt be more Latinos laid-off and unemployed. But during these
tough times, as cavalier as it may sound, "to a certain degree,
Latinos are recession proof."
It's Important to Remember:
♦ The majority of Latino households are
still identified as multi-generational and many extended-family members
characteristically pool their financial resources for the good of the whole. In
fact, the US Latino market very much resembles the profile of US households of an
older, by-gone, more stable era, despite the overall youth of
the market segment, in contrast with the general consumer marketplace,
which does not generally hold the same "family-values/family-life"
system from a collective standpoint as the Latino culture does.
♦ Latino consumers will continue to
exhibit the same profitable consumption habits they always have (i.e.
over indexing in the purchase of highly disposable consumer goods and
entertainment) due to their collective youth, large households
and geographic concentration
♦ The US Latino market will likely see an
upsurge in entrepreneurship (professional independence driven by survival,
cultural and immigrant instincts). This phenomena occurred previously
throughout Latin America as a result of Mexico's
peso devaluation in the early 1990's and the pan regional "Tequila
effect" this had later throughout South America, including Argentina.
♦ 2020 Advertising can assure you that the
US Latino marketplace will continue to be the most effective and efficient
consumer segment in which to invest your strategic marketing dollars.
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