Datos Book 2013

2013

Presenting Sponsor

SuPPoRTing economic deVeloPmenT. Helping the Valley’s many communities thrive is at the heart of everything we do. After all, we live here too. For more than 100 years, SRP has supplied the Valley with water and energy. Besides being a steward of these crucial resources, SRP continues to invest in the area through educational partnerships that develop a skilled workforce to attract businesses to the Valley. Whether it’s economic development, the environment, human services, education or the arts, SRP is committed to helping our many communities prosper for generations to come. To learn more, visit srpnet.com/econdev.

WELCOME

WELCOME TO

DATOS 2013

“SRP has long been a proud sponsor of the DATOS: The State of Arizona’s Hispanic Market report, an absolute must read for any major corporation and small business owner in the state.

DATOS is clear, well organized and provides an indispensable wealth of market intelligence about Hispanic consumer and demographic trends in what has now undeniably become a driving force of Arizona’s economy.”

—Mark Bonsall, General Manager & Chief Executive Officer, SRP Virtually no corner of the world was left unscathed by the crushing impact of the global economic recession. In Arizona, the effects were made worse by the rancorous debate over immigration.

Times have changed.

Today, the world’s economy is rebounding. Arizona’s major industries are reclaiming pre-recession strength. The immigration debate has begun to temper.

Helping to lead the way forward has been the Arizona Hispanic Chamber of Commerce, its growing base of community partners, and the irrefutable evidence that Latinos are vital to the state’s economic prosperity.

It’s hard to argue with facts. Arizona Latinos are now one-third of the state’s population. By 2035, they will be the state’s majority. The state is home to more than 67,000 Latino-owned businesses. One-third of those companies are owned by Latinas and one-third are owned by immigrants—the vast majority from Mexico.

Statewide consumer spending among Latinos has reached an estimated $43.3 billion this year. Nationally, Hispanic buying power is $1.3 trillion, a figure greater than the economies of all but 13 countries in the world.

On the political front, with more than 500,000 registered Latino voters in the state today and a record number of Latinos serving in public office, Arizona’s leading public officials can no longer ignore Hispanic concerns.

Because of the growing economic clout of the state’s 100,000 minority-owned firms, dozens of major corporations have joined the Arizona Hispanic Chamber’s “Million Dollar Circle of Excellence,” that recognizes companies that do $1 million or more in business with minority-owned companies annually.

Corporate Arizona understands more than ever the value of supporting Latino- and immigrant-friendly community outreach and marketing campaigns. In the past two years, the Arizona Hispanic Chamber’s list of “Los Amigos” corporate supporters has nearly doubled to 60 members.

Arizona is reestablishing its reputation as an “opportunity oasis” for newcomers from across the country and around the world. Our changing times, however, bring challenges and opportunities. Among the challenges: education and income gaps between Latinos and non-Latinos that could hobble Arizona’s economic progress if unaddressed. Among the opportunities: Latinos are strengthening Arizona’s entrepreneurial base, entering college in record numbers, climbing the state’s leadership ranks and helping rebuild ties with Mexico.

Arizona’s economic future is bright because its business community understands that a diverse customer base means a strong customer base—proving a resolute stance against intolerance and a fact-based argument for inclusive public policies can lead to greater alliances between all Arizonans.

Gonzalo A.

de la

Melena, Jr.

President & CEO Arizona Hispanic Chamber of Commerce

Hector Peñuñuri

DATOS Chair SRP

1

Grow your potential.

At University of Phoenix, we shape our curriculum around the skills employers are actively seeking, so your studies can prepare you for a brighter future.

Get started at our local campus and see how far you can go.

Visit phoenix.edu

University of Phoenix is accredited by The Higher Learning Commission and is a member of the North Central Association (ncahlc.org). The University’s Central Administration is located at 1625 W. Fountainhead Pkwy., Tempe, AZ 85282. Online Campus: 3157 E. Elwood St., Phoenix, AZ 85034.

ACKNOWLEDGEMENTS

ACKNOWLEDGEMENTS

2013

Datos 2013 CONTENT Committee

ARIZONA STATE UNIVERSITY DATOS CONTENT TEAM

(Listed in alphabetical order)

Andrea Whitsett

Kevin Norgaard

Barbara Barelka

Larissa Acosta

ASU MORRISON INSTITUTE BLUE CROSS BLUE SHIELD OF ARIZONA

Carlos Cordoba Carmen G. Martínez AZHCC

Laura Fullington Marcela Houser

DE RITO PARTNERS, INC.

Michele Valdovinos

Clare Felix

RESEARCHBYDESIGN

SRP

Monica S. Villalobos

Cory Whittaker

AZHCC

VALLEY METRO

WESTGROUP RESEARCH de la

Melena, Jr.

Hector Peñuñuri SRP

James E. Garcia AZHCC

Jaime Boyd UNIVISION

Professional Researchers

Dr. Loui Olivas Director

Andrea Whitsett Morrison Institute for Public Policy at ASU

Student Researchers

Adriana Grado Finance Major

Anna Valenzuela Graduated, Spring 2013

Axel Martinez

Business Communications Major

Paige Chadwick

Glenn Iwata AZHCC

APOLLO GROUP MACERICH

GEOSCAPE

Gonzalo A.

UNIVISION RADIO

AAA OF ARIZONA

Dedire Zuniga

Business Communications Major

Sunnev Chang

Gilberto Lopez

Terri Morgan

Kristell Millan

Zac Emmons

Luis Rodriguez

REPUBLIC MEDIA AZHCC

Phoenix International Raceway

Zaheer Benjamin PHOENIX SUNS

TERMINOLOGY AND RESEARCH

CIS Major

Graduated, Spring 2013 Graduated, Spring 2013

Marco Flores

Graduated, Spring 2013

Yuraidy Najera

Business Communications Major

PRODUCTION TEAM

In DATOS 2013, the terms Hispanic and Latino are used synonymously, as are Native American and American Indian and African-American and Black.

White, non-Hispanic is sometimes referred to as non-Hispanic white. Hispanics may be of any race.

Carmen G. Martínez

The information presented here was selected from standard secondary sources. However, data changes quickly and is not always collected annually. Data often offers a static picture of an everchanging situation. The numbers calculated for any statistic depend on the definitions and assumptions used to produce them.

K aren Murphy

Graphic Design Director

James E. Garcia Co-Editor

Copy Editor/Proofreader

Monica S. Villalobos Co-Editor

Terri Morgan Assistant Editor

AOT/Xerox Printer

Miguel Angel Lopez Gonzalez Intern

3

TABLE OF CONTENTS

TABLE OF

Contents HIGHLIGHTS

7

SECTION I: CONSUMER BEHAVIOR

9 Purchasing Power 9 Consumer 29 Technology 49 Media 61 Politics 71 Health Care 77 Entertainment 87

SECTION II: CONSUMER DEMOGRAPHICS

111 Population 111 Education 139 Immigration 151

Hispanic-owned Business Enterprises 164 Trade with Mexico 187

SECTION III: SEGMENTATION RESOURCES

194

202

This is a comprehensive compilation of secondary research made available to the AZHCC from various sources. It is used with permission from those sources.

5

Teamwork makes it happen.

By pulling together, we can accomplish great things.

All of us at Anheuser-Busch proudly support the Arizona Hispanic Chamber of Commerce for leading the way.

©2012 Anheuser-Busch, Budweiser® Beer, St Louis, MO

Ad Name:Teamwork General Item #:PCS2012xxxx Order #:253255

Closing Date:8/2/13 QC: CS Pub: Arizona Hispanic

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HIGHLIGHTS

DATOS

Highlights

»» Arizona Latino consumer purchasing power grew to an estimated $43.3 billion in 2013 and it could reach $50 billion by 2015. »» There are an estimated 67,300 Hispanic-owned businesses in Arizona that would generate a total of about $10.2 billion in gross receipts in 2013. »» Arizona has the fifth largest percentage of Hispanic-owned businesses in the country, 10.7 percent. »» About one-third of Hispanic-owned businesses in Arizona are owned by immigrants. »» Nationwide, about one-third of Hispanic-owned businesses are owned by women. »» 62 percent of Hispanic business owners in Arizona said they planned on expanding their business during the next few years. »» 63 percent of Hispanic business owners in Arizona believe their company’s financial status will improve in the next few years. »» At approximately $1.3 trillion in purchasing power, the U.S. Hispanic market roughly equals to gross domestic product of the world’s 13th largest economy, Spain ($1.33 trillion), and it’s just ahead of Mexico ($1.1 trillion). »» As of July 1, 2012, there were 53 million Hispanics in the United States, 17 percent of the nation’s total population. Only Mexico, 112 million, has a larger Hispanic population. »» As of July 1, 2012, Arizona had nearly 2 million Hispanics, 30 percent of the state’s total population. »» U.S. Hispanics accounted for more than 50 percent of the total U.S. population growth from 20002010. »» Arizona’s Hispanic population more than doubled from 1990 to 2010 and it’s estimated to double again by 2035. »» In 2035, Hispanics will become the majority population in Arizona. »» Between 2008 and 2012, the number of Phoenix Hispanics visiting casinos grew by 6 percent, while 1 percent fewer whites visited casinos during that period. »» Between fall 1998 to Fall 2012, Hispanic students accounted for 87% of Arizona’s total student enrollment increases. »» A higher percentage of Hispanics, 69 percent, than non-Hispanic Whites, 67 percent, entered college in 2013. »» Arizona’s foreign exports in 2012 totaled $18.4 billion. The state’s largest export market was Mexico, $6.3 billion, 34.2 percent of the state’s total. »» A record number of Hispanics nationwide, 11.2 million, voted in the 2012 presidential election, and a record 13.7 million registered to vote.

7

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CONSUMER BEHAVIOR

CONSUMER BEHAVIOR

Purchasing Power In its report, The State of the Hispanic Consumer, Nielsen concluded “Latinos are no longer just a sub-segment of the economy, but a prominent player in all aspects of American life.”

To that, we simply say, “¡Si! ¿Por supuesto?” Translation, “Yes, of course!”

The same can be said of Latinos in all aspects of Arizona life.

Today, Arizona Latinos are more than one-third of the population and growing fast. In the past 20 years, the Latino population nearly doubled to more than 2 million people. In the next decade, Latinos will be another 1 million people to the population. By 2030, or soon thereafter, Latinos will be a majority of the state’s population.

Bigger numbers mean more buying power.

The purchasing power of Latinos will top $43.3 billion in 2013 and it is slated to reach $50 billion by 2015—a figure greater than the total gross domestic product of Costa Rica. Total Hispanic purchasing power in the United States will reach $1.5 trillion by 2015, equivalent to the 12th largest economy in the world.

The greater promise of Latino purchasing power may be its potential for growth. Demographers estimate that the U.S. Latino population will increase at a rate four times faster than the general population between now and 2050. Today, Latinos are more than 16% of the total U.S. population, but 23% of the nation’s population under 18. That trend will likely continue, given that Hispanic households have twice as many children as non-Hispanic households.

Now the nation’s largest ethnic community, U.S. Latinos have become an economic powerhouse within the framework of an increasingly multicultural society. Latinos will account for more than 40 percent of the $3.6 billion in combined buying power of Latinos, African-Americans, Asian-Americans and Native Americans by 2015.

The irony, according to one expert, is that even as U.S.-based corporations seek to cultivate new customers in the world’s major emerging markets, such as China, Russia, India and Brazil, “the per capita income of U.S. Hispanics is higher than [in] any one of those nations.” That income is growing. “Despite the recession, U.S. Latino households that earn $50,000 or more are growing at a faster rate than non-Latino U.S. households,” according to Nielsen.

Contrary to popular misconceptions, most of the rapid population growth among U.S. Latinos is due not to immigration but native births, a reflection of the relative youth of the population. Census figures show the median age of U.S. Latinos is 28, nearly 10 years younger than the general market median age of 37. (Most families, incidentally, decide to buy homes in their mid-20s and early 30s, making Latinos a potentially lucrative market for the rebounding housing industry to consider.)

Perhaps a byproduct of its bullish population growth, Latinos are apparently bullish on the future of our economy, too. About 60% of Hispanics versus 37% of non-Hispanics “strongly believe” their personal wealth will grow in the next four years.

Nationwide, Hispanics are 41% more likely than non-Hispanics to buy a home in the next six months. More than 1 in 4 U.S. Hispanics plans to buy an automobile and 29% plan to buy furniture in that same period.

In Arizona, Hispanics are now more than a third of the state’s population and we account for 18 percent of total purchasing power statewide.

9

CONSUMER BEHAVIOR

Purchasing power

10

• u.s. purchasing power

CONSUMER BEHAVIOR

Purchasing power

• u.s. purchasing power

+50%

2000 to 2011 Hispanic vs. Total

Market Income Growth 2000 to 2011 Percent Income Growth

2011 Income

HISPANIC

Total

Hispanic

Total

Hispanic

Household Income

<25K

24%

29%

-17%

-19%

25-34.9K

11%

14%

-13%

-10$

35-49.9K

15%

17%

-6%

0%

50-74.9K

19%

19%

0%

10%

75-99.9K

12%

10%

16%

31%

100K+

18%

11%

49%

71%

Source: U.S. Census, 2012

11

CONSUMER BEHAVIOR

Purchasing power

â&#x20AC;˘ u.s. purchasing power

Categories in Which Hispanics

Outspend General Population

12

CONSUMER BEHAVIOR

Purchasing power

â&#x20AC;˘ arizona purchasing power

13

CONSUMER BEHAVIOR

Purchasing power

â&#x20AC;˘ arizona puchasing power

While Hispanic Income Before Taxes is Lower than the Non-Hispanic, Their Average Annual Expenditure Continues to be a Higher Share of their Income, 84.2% to 77.4% respectively

2011 Consumer Expenditure Survey

HISPANIC

Non-Hispanic

Income Before Taxes

$49,966

$65,635

Average Annual Expenditure

$42,086

$50,782

84.2%

77.4%

Expenditure as a Percent of Income

Source: U.S. Department of Labor, Consumer Expenditure Survey 2011

14

CONSUMER BEHAVIOR

Purchasing power

• RETAIL/SHOPPING PREFERENCES

(%)

(%)

15

CONSUMER BEHAVIOR

Purchasing power

16

• RETAIL/SHOPPING PREFERENCES

CONSUMER BEHAVIOR

Purchasing power

â&#x20AC;˘ retail/shopping preferences

Shopping Trips Per Household (Per Year)

Hispanic-Spanish preferred

Hispanic-Spanish preferred

Hispanic-English preferred

Hispanic-English preferred

White Non-Hispanic

White Non-Hispanic

17

CONSUMER BEHAVIOR

Purchasing power

â&#x20AC;˘ u.s. purchasing power

% of Hispanic Population AZ GeoName

% of Hispanic Population (2013)

Flagstaff

14.6

Lake Havasu City-Kingman

16.2

Nogales

83.4

Payson

18.6

Phoenix-Mesa-Glendale

30.7

Prescott

15.0

Safford

35.2

Show Low

11.7

Sierra Vista-Douglas

33.0

Tucson

36.2

Yuma

62.0

Source: Geoscape State and Metro Consumer Spending

Percent of DMA Population and Growth since 2000

2011 U.S. Hispanic

DMA region - Designated Market Area: A term used by Nielsen to identify an area of counties in which the home market television stations hold a dominance of total hours viewed.

Source: Nielsen Pop-Facts, 2011

18

CONSUMER BEHAVIOR

Purchasing power

â&#x20AC;˘ arizona income & EXPENDITURES

Aggregate Household Income Income: Hispanic Households 2013 (Millions)

Income: Total Households 2013 (Millions)

% of Aggregate Hispanic Income

Flagstaff

283

2,849

10%

Lake Havasu City-Kingman

427

4,234

10%

Nogales

504

786

64%

GeoName

Payson

123

1,063

12%

17,974

107,181

17%

Prescott

421

5,109

8%

Safford

223

752

30%

Show Low

166

1,815

9%

Phoenix-Mesa-Glendale

Sierra Vista-Douglas

583

3,007

19%

Tucson

5,160

23,573

22%

Yuma

1,425

3,394

42%

Source: Geoscape State and Metro Consumer Spending 2013

Aggregate Annual Household Expenditures Annual Expenditures: Hispanic Households 2013 (Millions)

Annual Expenditures: Total Households 2013 (Millions)

% of Hispanic Annual Expenditures

Flagstaff

216

2,205

10%

Lake Havasu City-Kingman

344

3,448

10%

Nogales

436

632

69%

GeoName

Payson

110

884

12%

15,919

90,778

18%

Prescott

337

4,049

8%

Safford

179

632

28%

Show Low

129

1,497

9%

Phoenix-Mesa-Glendale

Sierra Vista-Douglas

486

2,336

21%

Tucson

4,393

19,310

23%

Yuma

1,198

2,712

44%

Source: Geoscape State and Metro Consumer Spending 2013

19

CONSUMER BEHAVIOR

Purchasing power

â&#x20AC;˘ arizona income & EXPENDITURES

Aggregate Food Subtotal Food Subtotal: Hispanic 2013 (Millions)

Food Subtotal: Total 2013 (Millions)

% Hispanic Food Subtotal

Flagstaff

32

303

11%

Lake Havasu City-Kingman

53

486

11%

Nogales

71

96

73%

GeoName

Payson

17

126

14%

2,397

11,814

20%

Prescott

51

549

9%

Safford

28

93

30%

Show Low

20

225

9%

Phoenix-Mesa-Glendale

Sierra Vista-Douglas

77

322

24%

Tucson

682

2,614

26%

Yuma

202

412

49%

Source: Geoscape State and Metro Consumer Spending 2013

Aggregate Housing Subtotal GeoName Flagstaff

Housing Subtotal: Total 2013 (Millions)

% of Hispanic Housing Subtotal

75

723

10%

Lake Havasu City-Kingman

116

1,097

11%

Nogales

153

215

71%

38

281

14%

6,340

34,371

18%

Prescott

114

1,288

9%

Safford

61

208

29%

Show Low

44

478

9%

168

757

22%

1,613

6,752

24%

415

895

46%

Payson Phoenix-Mesa-Glendale

Sierra Vista-Douglas Tucson Yuma Source: Geoscape State and Metro Consumer Spending 2013

20

Housing Subtotal: Hispanic 2013 (Millions)

CONSUMER BEHAVIOR

Purchasing power

â&#x20AC;˘ arizona income & EXPENDITURES

Aggregate Apparel and Services Subtotal GeoName

Flagstaff

Apparel and Services Subtotal: Hispanic 2013 (Millions)

Apparel and Services Subtotal: Total 2013 (Millions)

% of Hispanic Apparel and Services Subtotal

9

73

12%

Lake Havasu City-Kingman

13

102

13%

Nogales

18

23

76%

Payson

4

26

16%

678

3,098

22%

Prescott

13

122

11%

Safford

7

21

34%

Show Low

5

47

11% 26%

Phoenix-Mesa-Glendale

Sierra Vista-Douglas Tucson Yuma

20

75

181

643

28%

50

95

53%

Source: Geoscape State and Metro Consumer Spending 2013

Aggregate Transportation Subtotal GeoName

Transportation Subtotal: Hispanic 2013 (Millions)

Transportation Subtotal: Total 2013 (Millions)

% of Hispanic Transportation Subtotal

Flagstaff

40

378

11%

Lake Havasu City-Kingman

64

593

11%

Nogales

80

114

70%

Payson

20

150

13%

2,733

14,613

19%

Prescott

62

683

9%

Safford

34

114

30%

Show Low

24

256

9%

Phoenix-Mesa-Glendale

Sierra Vista-Douglas

88

403

22%

Tucson

784

3,212

24%

Yuma

223

479

47%

Source: Geoscape State and Metro Consumer Spending 2013

21

CONSUMER BEHAVIOR

Purchasing power

â&#x20AC;˘ arizona income & expeditures

Aggregate Health Care Subtotal Health Care Subtotal: Hispanic 2013 (Millions)

Health Care Subtotal: Total 2013 (Millions)

% of Hispanic Health Care Subtotal

Flagstaff

10

149

7%

Lake Havasu City-Kingman

21

311

7%

Nogales

25

42

59%

GeoName

Payson

7

82

8%

599

5,228

11%

Prescott

19

360

5%

Safford

10

45

22%

7

119

6%

Phoenix-Mesa-Glendale

Show Low Sierra Vista-Douglas Tucson Yuma

27

180

15%

202

1,290

16%

60

194

31%

Source: Geoscape State and Metro Consumer Spending 2013

Aggregate Entertainment Subtotal Entertainment Subtotal: Hispanic 2013 (Millions)

Entertainment Subtotal: Total 2013 (Millions)

% of Hispanic Entertainment Subtotal

Flagstaff

10

123

8%

Lake Havasu City-Kingman

15

190

8%

Nogales

19

30

64%

GeoName

Payson

5

49

10%

617

4,387

14%

Prescott

15

226

7%

Safford

8

35

24%

Show Low

6

84

7%

22

128

17%

190

1,011

19%

52

137

38%

Phoenix-Mesa-Glendale

Sierra Vista-Douglas Tucson Yuma Source: Geoscape State and Metro Consumer Spending 2013

22

CONSUMER BEHAVIOR

Purchasing power

• BANKING AND ARIZONA HIsPANICS

© Henry Schmitt| Fotolia.com

Expect their family’s financial situation to improve during the next 4 years

(Household Uses Any Bank/Credit Union) Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Adults 18+, Phoenix DMA Scarborough, 2013, Release 1, (Feb 2012 - Jan 2013), Adults 18+, Tucson DMA

23

CONSUMER BEHAVIOR

Purchasing power

• BANKING AND ARIZONA HIsPANICS

Phoenix Hispanics are Using

Major Banks

Ranked on Hispanic Customers

Bank Household Uses

RANK

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

#1

Wells Fargo

36%

31%

112

#2

Chase

32%

37%

89

#3

Bank of America

26%

31%

88

#4

Any Credit Union

22%

40%

61

#5

None

13%

3%

237

#7

Other Credit Union

8%

17%

57

#8

Arizona Federal Credit Union

7%

6%

112

#9

Other Bank

6%

12%

52

#9

Desert Schools Federal Credit Union

6%

13%

51

#11

Other Financial Institution

5%

8%

70

#12

Bbva Compass

4%

4%

106

#12

Internet Bank (Such As Etradebank, Etc.)

4%

3%

127

Market Index: An index demonstrates what is above average (101 or greater), average (100), and below average (99 or less) of a given demographic.

Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Phoenix DMA, Adults 18+

Tucson Hispanics are Using

Major Banks

Ranked on Hispanic Customers

Bank Household Uses

RANK

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

#1

Wells Fargo

39%

32%

114

#2

Chase

30%

31%

97

#3

Bank of America

27%

28%

99

#4

Other Credit Union

11%

15%

78

#5

Hughes Federal Credit Union

9%

8%

105

#6

Other Bank

6%

11%

65

#6

Pima Federal Credit Union

6%

6%

98

#6

Tucson Federal Credit Union

6%

6%

99

#9

Vantage West Credit Union

5%

13%

53

#10

Bbva Compass

4%

6%

67

#11

Bank of the West

2%

1%

122

#11

Other Financial Institution

2%

5%

46

Market Index: An index demonstrates what is above average (101 or greater), average (100) and below average (99 or less) of a given demographic.

Scarborough,2012, Release 2, (Aug 2011 - Jul 2012), Tucson DMA, Adults 18+

24

CONSUMER BEHAVIOR

Purchasing power

• BANKING AND ARIZONA HIsPANICS

An Opportunity to Grow Phoenix Hispanics into More

Financial Products Ranked on Hispanic Customers

RANK

Financial Products

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

#1

Debit Card

68%

76%

92

#2

Checking Account

58%

86%

73

#3

Savings Account

56%

72%

82

#4

Atm Card

36%

49%

79

#5

Online Banking

24%

43%

63

#6

Home Mortgage

20%

34%

65

#7

Online Bill Paying

19%

42%

53

#8

Auto Loan

13%

24%

60

#9

401(k) Plan

12%

24%

56

#10

Money Market Account

7%

17%

46

#10

Ira (Individual Retirement Account)

7%

20%

39

#12

Refinance Home Mortgage

4%

4%

113

Market Index: An index demonstrates what is above average (101 or greater), average (100) and below average (99 or less) of a given demographic.

Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Phoenix DMA, Adults 18+

An Opportunity to Grow Tucson Hispanics into More

Financial Products Ranked on Hispanic Customers

RANK

Financial Products

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

#1

Checking Account

68%

87%

84

#2

Debit Card

64%

68%

95

#3

Savings Account

60%

73%

87

#4

Atm Card

37%

49%

82

#5

Online Banking

25%

37%

77

#6

Online Bill Paying

23%

33%

76

#6

Home Mortgage

23%

30%

81

#8

Auto Loan

19%

24%

85

#9

401(k) Plan

9%

16%

62

#10

Personal Loan

8%

3%

173

#11

Money Market Account

6%

15%

49

#11

IRA (Individual Retirement Account)

6%

19%

39

Market Index: An index demonstrates what is above average (101 or greater), average (100) and below average (99 or less) of a given demographic.

Scarborough,2012, Release 2, (Aug 2011 - Jul 2012), Tucson DMA, Adults 18+

25

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success. shared. Š 2013 AT&T Intellectual Property. All rights reserved.

We take pride in supporting organizations like the Arizona Hispanic Chamber of Commerce.

CONSUMER BEHAVIOR

Purchasing power

© Maxim_Kazmin | Fotolia.com

RANK

Types of Credit Cards Used in Past 3 Months

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

Any Credit Card

64%

80%

84

#1

Visa

61%

66%

94

#2

MasterCard

12%

34%

42

#3

Major Department Store Credit Card

9%

17%

57

#4

American Express

7%

18%

46

#5

Discover

4%

12%

43

#6

Other Major Credit Card

3%

3%

103

#6

Gasoline Credit Card

3%

5%

66

Market Index: An index demonstrates what is above average (101 or greater), average (100) and below average (99 or less) of a given demographic.

RANK

© Maxim_Kazmin | Fotolia.com

• BANKING AND ARIZONA HIsPANICS

Types of Credit Cards Used in Past 3 Months

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL) 87

Any Credit Card

66%

81%

#1

Visa

59%

69%

90

#2

MasterCard

22%

32%

75

#3

Major Department Store Credit Card

13%

14%

94

#4

American Express

8%

13%

69

#5

Discover

7%

20%

45

#6

Other Major Credit Card

3%

3%

97

#6

Gasoline Credit Card

2%

5%

55

Market Index: An index demonstrates what is above average (101 or greater), average (100) and below average (99 or less) of a given demographic.

27

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To learn more about the APS Solutions for Business program,visit aps.com/businessrebates.

This program is funded by APS customers and is approved by the Arizona Corporation Commission.

CONSUMER BEHAVIOR

CONSUMER BEHAVIOR

Consumer As America grows increasingly multicultural, enter the “ambicultural® ” Latino.

The term was trademarked by EthniFacts and connotes a desire and ability to function in two cultures.

The ambicultural® Latino is a byproduct of the country’s increasing multicultural society. The Census Bureau reports that racial and ethnic minorities totaled more than one-third of the U.S. population and more than half of all U.S. children in 2011. In short, America is growing proportionally more multicultural every day.

At the same time, more of the nation’s 53 million-plus U.S. Hispanics (who can be of any race or nationality) now describe themselves more often as a blend of cultures, according to a study by EthniFacts and LatinWorks.

The groups’ research shows that most Hispanics say they are proud to be Hispanic, but they also do not limit themselves to exploring and expressing only Hispanic culture. U.S. Hispanics, in other words, are “assertively both [Hispanic and American], gradually redefining the middle-ground space and becoming more comfortable with their ‘and’ status,” the study found.

Notably, 85% of Latinos, the study found, feel “equally American and Latino.” Nearly two-thirds, meanwhile, say they are proud to be Latino; two-thirds want their children to speak Spanish as fluently as they speak English; and half say “Latino identity feels natural to them.”

While some view ambiculturalism® as potentially confusing, others see it as a unique opportunity to appeal to this nation’s fast-growing Hispanic population in more varied and less restrictive ways.

Marketing to the Latino community requires an understanding of how best to communicate with them. In days long past, corporate America believed marketing to Latinos basically meant translating existing English-language advertising into Spanish. No more. Ad agencies today have begun to apply far more sophisticated and nuanced approaches to appealing to the Latino market.

When it comes to language, for instance, it’s important to know that eight of 10 Latinos learned Spanish first, nearly half of all U.S. Latinos today are bilingual and the percentage of U.S. Latinos who speak primarily Spanish at home versus those who speak primarily English at home is about evenly split.

How and why the Latino community self-identifies is critically important. Besides acknowledging its racial or national origins, when asked to describe what it means to be Latino, respondents say Latino identity is centered on family and community, while their ties to wider American culture is linked to economics, education and freedom.

Religious preference remains a strong cultural marker for U.S. Latinos. Nearly 62 percent of Hispanics nationwide are Catholic, as compared to 23 percent of the general population, but a greater percentage of religious Latinos are joining evangelical and Protestant-based denominations, including Mormonism. (Worldwide, the largest community of Mormons is Spanish speaking.)

Culinary tastes among Latinos nationwide are ambicultural® as well, while food purchasing habits reveal that Latinos are more likely than non-Hispanic Whites to look for the freshest ingredients and to seek out organic and natural products when they go shopping for food. Likewise, they are less likely than non-Hispanic Whites to eat frozen foods or “store-made” meals and proportionally more interested in products with low-sugar, high-fiber and reduced-calorie content than the total market.

Just as telling as what they buy and where they shop is data about how often Latinos shop and how much they spend per shopping venture. About one-third of Latinos spend $150 per week on groceries, as compared to 21 percent of nonHispanic Whites. Latino households, meanwhile, account for 10.1% of overall consumer spending in the United States, but 11.1% of the money spent on food at home.

Research on who does the spending among U.S. Latinos finds that nationwide, Latinas make 57 percent of the purchases in a Hispanic household. A typical Arizona Latina, meanwhile, is younger on average than a non-Hispanic woman. A Latina household tends to have more people and more children than a non-Hispanic home. And nearly two-thirds of Hispanic women are employed outside of the home, compared to 54 percent of non-Hispanic White women.

29

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CONSUMER BEHAVIOR

CONSUMER

Demo

Hispanic Population

% Hispanic of Total

Children 2-11

281,000

40%

Teens 12-17

153,000

37%

Adults 18+

824,000

23%

Adults 18-34

366,000

34%

Adults 18-49

623,000

31%

Adults 25-54

524,000

28%

â&#x20AC;˘ CULTURE

Hispanic Population

% Hispanic of Total

2000

899,000

23%

2012

1,440,800

28%

2017

1,638,300

30%

31

CONSUMER BEHAVIOR

CONSUMER

32

• CULTURE

CONSUMER BEHAVIOR

CONSUMER

• LANGUAGE

33

CONSUMER BEHAVIOR

CONSUMER

34

• RELIGION

CONSUMER BEHAVIOR

CONSUMER

• RELIGION

35

CONSUMER BEHAVIOR

CONSUMER

• FOOD

Entertaining Types Of Entertaining Do At Home

HISPANIC

NH White

Family Get-Togethers

62%

62%

Holiday Parties

57%

39%

Cookouts/Barbecues

56%

53%

Get-Togethers With Friends

51%

54%

Watch A Sporting Event On TV

43%

39%

Potluck Dinners

29%

21%

Sit-Down Dinner Parties

22%

20%

Drinks Or Cocktail Parties

21%

19%

Coffee And Dessert Get-Togethers

18%

14%

Get-Togethers With People I Work With

14%

11%

9%

5%

Theme Parties Source. Yankelovich 2010 Multicultural Marketing Study. Base: A18+

36

© Henry Schmitt| Fotolia.com

Hispanics enjoy hosting a wide variety of get-togethers, which evokes a greater need for frequent grocery purchases

CONSUMER BEHAVIOR

CONSUMER

• FOOD

37

CONSUMER BEHAVIOR

• FOOD

© Andres Rodriguez | Fotolia.com

CONSUMER

38

CONSUMER BEHAVIOR

CONSUMER

Top Grocery Stores

• FOOD

in Phoenix

Ranked by Percentage of Hispanic Adults 18+ that Shopped from Each Grocery Store in the Last 7 Days

Hispanic Rank

Grocery Store Shopped Last 7 Days

% of Hispanic

% of Non-Hispanics

Hispanic Index (vs. Total)

93

#1

Fry’s - Fry’s Marketplace

58.8%

64.8%

#2

Walmart Supercenter

50.1%

51.1%

98

#3

Food City

44.4%

7.8%

270

#4

Safeway

28.6%

40.9%

75

#5

Ranch Market

26.6%

4.2%

280

#6

Walmart Neighborhood Market

23.5%

15.4%

136

#7

Costco

21.9%

32.3%

73

#8

Target/SuperTarget

17.7%

16.4%

106

#9

Sam’s Club

14.5%

12.9%

109

#10

Bashas’

11.3%

22.3%

57

#11

Other Hispanic grocery store

10.9%

0.8%

344

#12

Albertsons

9.1%

20.2%

52

#13

Sprouts

9.0%

19.2%

54

#14

Other grocery store

7.2%

9.8%

78

#15

Fresh & Easy Neighborhood Market

5.4%

7.8%

75

#16

Whole Foods Market

4.4%

4.2%

103

#17

Trader Joe’s

4.1%

9.5%

50

#18

Smart & Final

3.6%

2.8%

121

#19

AJ’s Fine Foods

2.6%

4.5%

64

#20

Sunflower Farmers Market

0.5%

1.8%

33

Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Hispanic Adults 18+, Phoenix DMA

39

CONSUMER BEHAVIOR

CONSUMER

• LIGHT RAIL COMMUTERS

In its 2012 “Rider Satisfaction Survey” of Valley Metro passengers (bus and light rail), as compared to the year before, riders tended to be younger, lower income, more likely to be minority and/or students, and less likely to be retirees.* Among the survey findings: The average age of riders decreased to 34.5 years, from 38.2 in 2011, and 39 and older for previous years.

The ethnicity of survey participants shifted to a minority majority (62%) from 48% in 2011, and 50% in 2010 when the study was conducted via telephone only.

In 2012, the sample is comprised of 28% Hispanics, 22% Black and 38% Caucasian; 50 percent male and 50 percent female.

GLENDALE

The average household income of the sample dropped significantly to $24,700 (down from $36,000 for the past two years).

PHOENIX

SCOTTSDALE

MESA PEORIA

TEMPE SURPRISE SCOTTSDALE

Percent of Hispanic Population- US Census 2010

LEGEND

Within 1/2 mile of Light Rail Line

Percent Hispanic Population 0% - 12%

51% - 69%

13% - 27%

70% - 93%

¯

Light Rail Line

28% - 50%

0

1

FOUNTAIN HILLS

PEORIA EL MIRAGE YOUNGTOWN

2

PARADISE VALLEY

Miles

Map 1 shows the percentage breakdown of the Hispanic population that lives within ½ mile of the current light rail line.**

GLENDALE LITCHFIELD PARK

BUCKEYE

PHOENIX

TOLLESON

PEORIA

AVONDALE

MESA

SURPRISE

TEMPE

SCOTTSDALE FOUNTAIN HILLS

PEORIA

GOODYEAR

EL MIRAGE YOUNGTOWN

PARADISE VALLEY GLENDALE LITCHFIELD PARK

BUCKEYE

QUEEN CREEK

BUCKEYE

Hispanic Ridership- Departures

LEGEND Number of Hispanic Departures 1 - 67 331 - 697

68 - 168

AVONDALE

MESA

APACHE JUNCTION

GUADALUPE TEMPE GOODYEAR

GILBERT

CHANDLER

QUEEN CREEK

BUCKEYE

Hispanic Ridership- Boardings

LEGEND Number of Hispanic Boardings 1 - 57 271 - 524

525 - 1097

Data based on Valley Metro 2010-2011 Transit On-Board Survey

¯

0

3

6

to Census Tracts Miles Map 2 shows number ofaggregated Hispanic boardings as a percentage of all total boardings.

141 - 270

40

GILBERT

CHANDLER

PHOENIX

TOLLESON

58 - 140

APACHE JUNCTION

GUADALUPE

169 - 330

698 - 1058

Data based on Valley Metro 2010-2011 Transit On-Board Survey aggregated to Census Tracts

¯

0

3

6

Miles

Map 3 shows the number of Hispanic departures as a percentage of all total departures. *The 2012 researchers used only in-person “intercept surveys,” whereas previous data was gathered through a combination of in-person and telephone surveys. **Data based on 2010 U.S. Census.

CONSUMER BEHAVIOR

CONSUMER

• LATINAS

U.S. Hispanic women, also known as Latinas, have recently and rapidly surfaced as prominent contributors to the educational, economic and cultural well-being of not only their own ethnicity, but of American society and the consumer marketplace. This rise of Latinas is driven both by strong demographics and a healthy inclination to embrace and retain their Hispanic culture even as they make significant strides toward success in mainstream America.

• The rise of Latinas. Latinas are outpacing Latino males in their educational pursuits and career development, are overwhelmingly the decision-makers in household spending, have surpassed the proportion of non-Hispanic White families with children and through their youth and increased incomes have become an attractive consumer segment who is being actively courted by marketers.

• Latinas are leading the shift to the ambicultural® middle.1 Latinas’ embrace of culture and language is salient; over the past decade, bilingual language proficiency has significantly increased while the proportion of Spanish dominance has held steady.

• Latinas are expanding their purchasing power. Latinas are rapidly catching up with or exceeding Hispanic males and non-Hispanic females in big-ticket purchasing (homes and autos) and in the use of financial services. Eighty-six percent of Latinas say they are the primary decision makers in their households making them pivotal to the Hispanic market’s $1.2 trillion in annual buying power.2,3 • Family needs are reflected in the Latina shopping basket. In many categories, the consumer behavior of Latinas distinctively varies from that of other American females. Some of the high levels of purchasing by Latinas are associated with the needs of their larger families or cultural nuances – many food categories, oral hygiene products, bottled water, detergent and paper products, for example.

• Latinas cultivate connectivity. Focused on strong shifts toward an increasingly balanced bicultural milieu, Latinas are adopting and adapting all types of technology at a higher pace than U.S. females. In significant areas, Latinas are outpacing society in using technology for culturally centered social networking. Personal technology has found an ideal fit with Latinas’ propensity to be connected, to communicate and to investigate ways to improve their own well-being and that of their families. For many Latinas, personal technology and social networking are enabling the maintenance and recovery of ethnic culture, language and traditions. This takes place domestically as Latinas build affinity groups around their ethnicity and their common trajectories within American society, as well as internationally as they create robust connections with relatives and friends in their countries of origin.

1

Ambicultural is a registered service mark of EthniFacts, LLC and is used with their permission.

2 Nielsen, April 2013.

3 UGA Selig Center Multicultural Economy Study 2012.

2013 Nielsen, Latina Power Shift

41

CONSUMER BEHAVIOR

CONSUMER

• latinas

2013 Nielsen, Latina Power Shift

42

CONSUMER BEHAVIOR

CONSUMER

• latinas

2013 Nielsen, Latina Power Shift

2013 Nielsen, Latina Power Shift

43

CONSUMER BEHAVIOR

CONSUMER

• latinas

2013 Nielsen, Latina Power Shift

44

CONSUMER BEHAVIOR

CONSUMER

• WOMEN IN PHOENIX

45

CONSUMER BEHAVIOR

CONSUMER

46

• WOMEN IN PHOENIX

CONSUMER BEHAVIOR

• WOMEN IN PHOENIX

© Paul Hakimata | Fotolia.com

CONSUMER

47

CONSUMER BEHAVIOR

CONSUMER BEHAVIOR

Technology The digital divide is narrowing. The so called “divide” is the statistical gap in Internet and technology usage between Latinos and non-Latinos.

As the world continues its digital march toward ever more technologically interconnected economies, closing this gap is essential and goes hand-in-hand with the slow but steadily closing education gap.

Experts say the trends are encouraging.

Latinos own smartphones—most, in fact, go online from a mobile device—and they use social networking sites at similar and sometimes even higher rates than other groups in the U.S. population.

Latinos also have been fast adopters of technology. Between 2009-2012, the share of Latino adults who said they went online at least occasionally grew 14 percentage points, from 64% to 78%, while Internet usage overall among Whites increased at about half that rate in 2012.

© Nenetus | Fotolia.com

Cellphones, especially smartphones, are anchoring the growing usage trends.

Today, 84 percent of Latinos now own a cellphone, while half say they have a smartphone. In 2012, the gap in cellphone ownership between Latinos dramatically diminished, with almost half of Latino adults living in “cellphone-only” households as compared to 30 percent of non-Hispanic whites.

Young Latinos, meanwhile, are flocking to social media sites, such as Facebook Twitter Pinterest and Instagram. Among Latino Internet users 18 to 29, about 84% (the highest rate among Latinos nationwide) say they use social networking sites. Overall, nearly 70 percent of Latinos in the U.S. use social media.

About 60 percent of Latinos using social networking sites say they do so mostly or only in English, while 29% say they do so mostly or only in Spanish.

Hispanic women, meanwhile, are among the faster adopters of Pinterest, making up nearly two-thirds of the site’s users, while Hispanics with children made up a majority of Pinterest users among Hispanics overall.

49

T:7.5”

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1.800.256.4646 • VERIZON.COM/ESPANOL • VZW.COM/TIENDAS Nuestros recargos (incl. cargo de Servicio Universal Federal de 16.1% de cargos por telecomunicaciones interestatales e internacionales [varía trimestralmente], cargo normativo de 16¢ y cargo administrativo/línea/mes de 90¢ y otros cargos por área] se suman al cargo de acceso mensual y no son impuestos (para detalles llame al 1-888-684-1888); los impuestos gubernamentales y nuestros recargos podrían agregar entre 6% y 42% a su factura. Cargo de activación/actualización: Hasta $35. INFORMACIÓN IMPORTANTE AL CONSUMIDOR: Sujeto al acuerdo con el cliente, plan de llamadas y aprobación de crédito. Hasta $350 de cargo por cancelación prematura y $15/GB después de la asignación. Las llamadas ilimitadas son para llamadas de marcado directo en vivo entre dos o más personas. La cobertura, que varía según el servicio, no está disponible en todas las áreas; visite vzw.com/espanol. Máx. de 10 líneas. © 2013 Verizon Wireless.

T:10”

®

CONSUMER BEHAVIOR

TECHNOLOGY

• GENERAL

51

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Member SIPC

CEA-8084-A Š 2013 Edward Jones. All rights reserved.

CONSUMER BEHAVIOR

TECHNOLOGY

• GENERAL

53

CONSUMER BEHAVIOR

TECHNOLOGY

54

• Mobile

CONSUMER BEHAVIOR

TECHNOLOGY

• Mobile

55

CONSUMER BEHAVIOR

TECHNOLOGY

56

• Mobile

CONSUMER BEHAVIOR

TECHNOLOGY

• social media

57

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PF120368 7/15/13

CONSUMER BEHAVIOR

TECHNOLOGY

• Social Media

59

CONSUMER BEHAVIOR

CONSUMER BEHAVIOR

Media

The mass media marketing tools used to reach Latinos is changing. Whether it’s television, radio, online or print, the job of effectively reaching Latinos requires an understanding of the community’s wants, needs, interests and habits.

In short, media outlets must understand what makes Latinos tick, or, put another way, how acculturated they are.

For instance, reaching Latino audiences has never been as simple as translating an advertisement or news report into Spanish. While Spanish-language media will be an industry powerhouse for years to come, the Latino market has always been diverse and grows more diverse every day.

Univision, UniMás (owned by Univision), and Telemundo remain the most popular television networks watched by Hispanics in the Phoenix DMA, or designated market area. Earlier this year, Univision was ranked as the No. 1 national network during the July sweeps “ahead of ABC, CBS, Fox and NBC among the valued adults ages 18-49 and 18-34,” according to a report in the Denver Post. In Phoenix, an average of 43 percent of Hispanic adults 18-49 and 66 percent of all Hispanic adult Spanish-language viewers, 18-49, watched Univision between November 2012 and July 2013.

Other Hispanics, however, even some who self-identify as bilingual, watch little, if any, Spanish-language television, preferring one of the sundry other English-language broadcast, cable or online networks. And like all Americans, Hispanics, who are quickly adopting smartphones and other wireless and online technology, are increasingly turning to new media outlets like Netflix, Hulu, Youtube and other video/television services. A Pew Hispanic Research study, for instance, earlier this year found “a growing share of Latinos get their news in English.” According to Pew’s survey, “In 2012, 82% of Hispanic adults said they got at least some of their news in English, up from 78% who said the same in 2006.”

Still, Nielsen, regarded as the most accurate in the industry at tracking television viewing habits, found in a one-week period in May 2013 that 8.7 million Hispanic adult viewers in the U.S., 18-49, watch news in Spanish versus 5.7 million who watch news in English. Nielsen also found that 17 of the top 20 rated news programs watched by Hispanic adults, 18-49, during a six-month period from December 2012 to June 2013, were watched in Spanish.

Immigration also impacts how media messaging occurs. While anywhere from 35 to 40 percent of Latinos in the United States are foreign-born, the great proportion of Latino population growth in the United States is not due to immigration but native births. About 800,000 Latinos who were born in the United States turn 18 every year, according to the U.S. Census. Still, with predictions that immigrants over the next 40 years will make up a growing proportion of the overall U.S. population, media aimed at Spanish-speakers will remain a formidable force.

Radio remains an important way to reach all Americans listeners, but especially U.S. Latino audiences. Hispanics represent the largest ethnic group in the national radio market, with regional Mexican music the most popular genre. There are 338 Mexican Regional music stations in the U.S. About 77 percent of Spanish speaking Hispanics listen to regional Mexican format in Arizona.

Growing income earnings among Latino families also play a role in the community’s media consumption habits. As more Latinos earn higher degrees, more Latinos are entering the middle-class, becoming entrepreneurs and climbing the ranks of politics and business. Nielsen describes this expanding segment of the community as “upscale Latinos” who earn $50,000 to $100,000 in annual income, adding that “this viable and sophisticated market….lives in a world of cultural duality.”

61

CONSUMER BEHAVIOR

MEDIA

62

• ADVERTISING ATTITUDES

CONSUMER BEHAVIOR

MEDIA

• ADVERTISING ATTITUDES

Source: Fall 2012 SimmonsLOCAL (Phoenix) Courtesy of Univision Arizona

63

CONSUMER BEHAVIOR

MEDIA

• MEDIA CONSUMPTION

Ad Spending

by Top Spanish-Language Advertisers Parent Company

Total $ (Million)

National Magazine % of Total

Spanish Language Cable TV % of Total

Spanish Language Network TV % of Total

Spot Radio % of Total

Spot TV % of Total

PROCTER AND GAMBLE

225.6

13%

13%

73%

1%

0%

BANCORP INC

193.1

0%

0%

98%

0%

2%

160

1%

8%

89%

0%

2%

MCDONALD’S

131.2

1%

4%

72%

10%

13%

AT&T

130.5

0%

9%

42%

7%

42%

VERIZON

125.6

0%

10%

67%

4%

18%

TOYOTA

DISH NETWORK

100.5

1%

8%

77%

4%

10%

GENERAL MILLS

94.8

0%

5%

93%

1%

1%

KRAFT FOODS

91.8

3%

15%

77%

4%

2%

90.8

3%

9%

71%

8%

8%

1,343.8

3%

8%

76%

3%

9%

GENERAL MOTORS TOP 10

Source: Q2 2012 Nielsen, “State of the Hispanic Consumer,” P.14.

Overall Hispanic

Ad Spending Across Media MEDIA

2011 (THOUSANDS)

% GROWTH 2010-2011

Spanish TV Network

3,268,707

13%

Spanish Spot TV

1,153,639

1%

Spanish Cable TV

452,207

21%

Spot Radio

664,375

1%

National Magazine

136,305

26%

61,225

-4%

5,736,458

11%

Local Newspaper Total

Source: Q2 2012 Nielsen, “State of the Hispanic Consumer,” P.14.

64

CONSUMER BEHAVIOR

MEDIA

• MEDIA CONSUMPTION

65

CONSUMER BEHAVIOR

MEDIA

66

• MEDIA CONSUMPTION

CONSUMER BEHAVIOR

MEDIA

• MEDIA CONSUMPTION

Phoenix Spanish-Language

Radio Share of Voice

Top 10 Spanish Radio Advertisers in Phoenix 2012 and 2013 YTD Top Advertisers on Spanish Radio 2012

Top Advertisers on Spanish Radio Jan-July 2013

Fry’s Food City The Home Depot AutoZone McDonald’s US Dept Of Health & Human Services Rapido Express Sears Safeway Stores Rosetta Stone Curacao Wells Fargo Walmart State Farm Let’s Move O’Reilly Auto Parts Bud Light The Mollen Foundation SRP Verizon Wireless

Fry’s Food City McDonald’s State Farm Rosetta Stone The Home Depot Rapido Express Safeway Stores AutoZone Walmart O’Reilly Auto Parts AT&T Wireless Sears Midway Nissan T-Mobile Macy’s GEICO USDA US Dept Of Agriculture Let’s Move Toyota Dealer Association

Source: Q2 2012 Nielsen, “State of the Hispanic Consumer,” P.14.

67

CONSUMER BEHAVIOR

MEDIA

• MEDIA CONSUMPTION

Phoenix Radio Ownership Univision Radio KHOT 105.9 FM- La Nueva, Regional Mexican KOMR/KKMR 106.3/106.5 FM- Recuerdo, Spanish Adult Hits KQMR /KHOV 100.3/105.3 FM- La Kalle, Spanish Contemporary Entravision Communications KLNZ 103.5 FM- Tri-Color, Regional Mexican KVVA 107.1 FM- José, Spanish Adult Hits KDVA 106.9- José, Spanish Adult Hits KBMB 710 AM- ESPN Deportes, Spanish Sports Riviera Broadcasting KVIB 95.1 FM– Latino Vibe, Spanish Contemporary United Farm Workers Union KNAI 88.3 FM– Radio Campesina (Non-Commercial), Regional Mexican

68

Fiesta Radio KSUN 1400 AM- Radio Fiesta, Regional Mexican En Familia, Inc. KIDR 740 AM- Spanish Religious New Radio Venture KNUV 1190 AM- Talento Independiente, Spanish News/Talk Radio Hogar KASA 1540 AM– Radio KASA Tunota de Amor, Spanish Religious Deportes y Musica Communications KRPH 99.5 FM– Regional Mexican

77%

75%

61%

46%

44%

50%

36%

38%

37%

37%

36%

30%

CONSUMER BEHAVIOR

MEDIA

• MEDIA CONSUMPTION

69

azcentral.com • 12 news • la Voz • Deal chicken • Buyer’s eDge • repuBlic Direct • tV y mas • repuBlic custom puBlishing • arizona Business gazette • autoshopper • cars.com • homefinDer.com • careerBuilDer.com • apartments.com • ahwatukee repuBlic • chanDler repuBlic • gilBert repuBlic • glenDale rpuBlic • mesa repuBlic • northeast phoenix repuBlic• phoenix repuBlic • northwest Valley repuBlic • peoria repuBlic • scottsDale repuBlic • southwest Valley repuBlic • surprise repuBlic • tempe repuBlic • azcentral.com • 12 news • la Voz • Deal chicken • Buyer’s eDge • repuBlic Direct • tV y mas • repuBlic custom puBlishing • arizona Business gazette • autoshopper • cars.com • homefinDer.com • careerBuilDer.com • apartments.com • ahwatukee repuBlic • chanDler repuBlic • gilBert repuBlic • glenDale repuBlic • mesa repuBlic • northeast phoenix repuBlic • phoenix repuBlic • northwest Valley repuBlic • peoria repuBlic • scottsDale repuBlic • southwest Valley repuBlic • surprise repuBlic • tempe repuBlic • azcentral.com • 12 news • la Voz • Deal chicken • Buyer’s eDge • repuBlic Direct • tV y mas • repuBlic custom puBlishing • arizona Business gazette • autoshopper • cars.com • homefinDer.com • careerBuilDer.com • apartments.com • ah� watukee repuBlic • chanDler repuBlic • gilBert repuBlic • glenDale repuBlic • mesa repuBlic • northeast phoenix repuBlic • phoenix repuBlic • northwest Valley repuBlic • peoria repuBlic • scottsDale repuBlic • southwest Valley repuBlic • surprise repuBlic • tempe repuBlic • azcentral.com • 12 news • la Voz • Deal chicken • Buyer’s eDge • repuBlic Direct • tV y mas • repuBlic custom puBlishing • arizona Business gazette • autoshopper • cars.com • homefinDer.com • careerBuilDer.com • apartments. com • ahwatukee repuBlic • chanDler repuBlic • gilBert repuBlic • glenDale repuBlic • mesa repuBlic • northeast phoenix re� puBlic• phoenix repuBlic • northwest Valley repuBlic • peoria repuBlic • scottsDale repuBlic • southwest Valley repuBlic • surprise repuBlic • tempe repuBlic • azcentral.com • 12 news • la Voz • Deal chicken • Buyer’s eDge • repuBlic Direct • tV y mas • repuBlic custom puBlishing • arizona Business gazette • autoshopper • cars.com • homefinDer.com • careerBuilDer.com • apart� ments.com • ahwatukee repuBlic • chanDler repuBlic • gilBert repuBlic • glenDale repuBlic • mesa repuBlic • northeast phoenix repuBlic • phoenix repuBlic • northwest Valley repuBlic • peoria repuBlic • scottsDale repuBlic • southwest Valley repuBlic • surprise repuBlic • tempe repuBlic • azcentral.com • 12 news • la Voz • Deal chicken • Buyer’s eDge • repuBlic Direct • tV y mas • repuBlic custom puBlishing • arizona Business gazette • autoshopper • cars.com • homefinDer.com • careerBuilDer.com • apart� ments.com • ahwatukee repuBlic • chanDler repuBlic • gilBert repuBlic • glenDale repuBlic • mesa repuBlic • northeast phoenix repuBlic • phoenix repuBlic • northwest Valley repuBlic • peoria repuBlic • scottsDale repuBlic • southwest Valley repuBlic • surprise repuBlic • tempe repuBlic • azcentral.com • 12 news • la Voz • Deal chicken • Buyer’s eDge • repuBlic Direct • tV y mas • repuBlicazcentral.com • 12 news • la Voz • Deal chicken • Buyer’s eDge • repuBlic cars.com • homefinDer.com • careerBuilDer. com • apartments.com • ahwatukee repuBlic • chanDler repuBlic • gilBert repuBlic • glenDale rpuBlic • mesa repuBlic • north� east phoenix repuBlic• phoenix repuBlic • northwest Valley repuBlic • peoria repuBlic • scottsDale repuBlic • southwest

MILLION STRONG

We are Where yOuR cuSTOmeRS are.

Partnering for the community U.S. Bank is proud to support Arizona Hispanic Chamber of Commerce.

At U.S. Bank, our success is directly related to the success and vitality of the communities we serve. And we believe strong communities help make a strong economy. That’s why we feel it’s important to partner with organizations like The Arizona Hispanic Chamber of Commerce to provide corporate leadership on issues of community importance.

Because no company gains the same strength alone as it can with the help of others. We’re glad to have the opportunity to partner with them.

usbank.com Member FDIC

CONSUMER BEHAVIOR

CONSUMER BEHAVIOR

Politics

The voices of Latino voters rang loud and clear in the 2012 presidential election. The resounding message? The growing Latino electorate is a force that cannot be ignored.

A record 11.2 million Latinos voted in the 2012 presidential election, about 1.4 million more than voted in 2008. According to an analysis of national exit polls conducted by Pew Hispanic Research, Latinos were 10 percent of the country’s electorate in 2012, up from 9% in 2008 and 8% in 2004. As a group, non-white voters were 28% of the nation’s electorate last year.

Asked during 2012 Election Day exit polling about top issues facing the country (of four listed): 60% of Hispanic voters said the economy was the most important, as compared to 59 percent of all voters. After that, Hispanic voters identified health care (18%), the federal budget deficit (11%) and foreign policy (6%) as the next three most important issues.

Voters were asked about what should happen to unauthorized immigrants working in the U.S., and 77% of Hispanic voters said they should be offered a chance to apply for legal status while 18% said they should be deported. Among all voters, 65% said these immigrants should be offered a chance to apply for legal status and 28% say they should be deported.

Despite a record number of registered Hispanic voters in 2012 (13.7 million), an impressive increase of 18% over 2008, the actual rate of Latino voter turnout dropped and continued to lag “other groups significantly,” according to an analysis of Census Bureau data this spring by the Pew Research Center. Among eligible Hispanic voters, 48% went to the polls, a decrease of 1 percentage point as compared to 2008. African American voters, meanwhile, tallied a turnout rate of 66.6% and non-Hispanic Whites cast ballots at a rate of 64.1%.

In the wake of the 2012 election, the Republican Party is struggling to respond to Election Day results that found 71 percent of Latino voters supported President Barack Obama’s reelection while 27 percent backed GOP candidate Mitt Romney.

Conservative luminaries from Arizona Sen. John McCain to Republican National Committee Chairman Reince Priebus have acknowledged the GOP must do much more to appeal to Latino voters. Priebus told group of Latino community leaders in Chicago: “We’ve done a pretty lousy job of connecting in the Latino community….But that’s going to change.”

David Damore, a senior analyst for Latino Decisions, recently wrote “Latino voters have the capacity to be quite relevant in 2014, depending on what happens with immigration reform,” but only if they are motivated to go to the polls during the midterm elections.

The final verdict won’t be known until the next election, but one thing for sure, says Damore, is there will be more eligible Latino voters and fewer eligible White voters in the nation in 2014. He predicts that if federal immigration reform does not pass in Congress this year Latino voters may be inspired to turnout and again punish GOP candidates.

Yet, Latino Decision polling also shows that 71 percent of Latino voters in GOP held districts say they would have a more favorable view of Republicans if the party passes an immigration reform plan that offers undocumented immigrants “a path to earned legalization and a chance to earn citizenship.”

In Arizona, the party’s challenges may be even greater. While the GOP Party’s state director says Republicans are reaching out to Latinos, most Latino voters in the state have a very low opinion of Arizona’s top Republican office holders.

All of this matters because the Latino voter pool in Arizona and nationwide is still growing fast. Each year, 800,000 new U.S.-born Latinos turn 18 years old, voting age, even as the Latino community becomes an ever bigger piece of the country’s overall electoral pie.

71

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CONSUMER BEHAVIOR

POLITICS

• U.S. VOTING

73

CONSUMER BEHAVIOR

POLITICS

74

• U.S. VOTING

CONSUMER BEHAVIOR

POLITICS

• U.S. VOTING

75

“Through my experience at Cancer Treatment Centers of America®, my family and I learned that super heroes don’t always wear capes.” ~Sara

Cancer Patient

Advanced Treatment for Advanced Cancer

It’s difficult to imagine hearing the three words, “you have cancer” just before celebrating your son’s second birthday. Sara and her family turned to Cancer Treatment Centers of America® (CTCA) for her care where clinical experts have been fighting advanced cancer for decades.

Because Sara wanted to fight her cancer while still being an active mom to her young son, CTCA assembled a team of cancer experts, her super heroes, who worked with her to create a comprehensive and tailored treatment plan focused both on results and quality of life.

The combined leading-edge oncologic medical treatments with naturopathic medicine, nutrition, rehabilitation, psychological counseling, spiritual support and pain management met her goals. CTCA’s advanced care, whole person approach helped her in the most important battle of her life, without causing her to sacrifice her most important job: Mom. We are different. At CTCA, we put the patient at the center of our care and we never give up.

Call now to speak with one of our Oncology Information Specialists and learn how we fight cancer like no one else. Call 888-214-9488 or go to cancercenter.com.

No case is typical. You should not expect to experience these results. © 2013 Rising Tide

CONSUMER BEHAVIOR

HEALTH CARE

Health Care Phoenix Hispanics spent nearly $700 million, an average of nearly $1,200 per person, on health care in 2010.

Yet, Arizona health care experts know Hispanic care consumers remain underserved. Federal data shows Hispanics are the least likely population to carry health insurance. Nationwide, 1 in 4 Hispanics do not have insurance. In Phoenix, 389,626 Hispanics, 30 percent of all Hispanics in the city, did not have health insurance in 2012.

Not having health insurance does not mean Hispanics do not use health care services. It simply means that when they do seek medical treatment many either pay out-of-pocket or they wait until they have no choice but to seek emergency medical treatment.

For instance, 90 percent of Hispanic families with children say they purchased medications in 2012; about 12 percent of Hispanic women versus 10 percent of non-Hispanic women received maternity care; and 16.5% of Hispanics sought pediatric treatment as compared to 12.5% of non-Hispanics, according to 2012-2013 data collected by Phoenix CBSA Scarborough.

Enter the Affordable Health Care Act, also commonly known as Obamacare, which mandates that most people in the United States must have health insurance starting in January 2014. Next year, most individuals will be required to prove that they have health insurance they either pay for on their own, or receive through an employer, the military or an approved local, state or federal government program such as Medicare or Medicaid/CHIP. In October 2013, the federally mandated Health Insurance Marketplace will be launched to provide people without health insurance the ability to shop online and compare insurance plans from a wide range of companies. To help advertise the launch of the Affordable Health Care Act and the Health Insurance Marketplace, the federal government is running a nationwide media education campaign in broadcast, print and online outlets. In Arizona, English- and Spanish-language television outlets are airing ads about the new health care law.

A major target of the education campaign is the Hispanic community because so many are uninsured. In Arizona, 1 in 4 Hispanics, about 500,000 people, do not have health insurance. Many do not carry it because they cannot afford the monthly premiums, work for employers who do not provide insurance or do not believe they need to be insured. In some cases, language barriers are a problem. The Latino community also includes a large undocumented immigrant population, many of whom are low-income and not eligible for government-funded services.

To support the federal education effort, AARP Arizona officials have appeared on the Univision and Telemundo networks in Nogales, Tucson, Phoenix and Yuma. People can also learn more by going online to CuidadoDeSalud.gov or HealthCare.Gov. Members of Congress and a wide range of other public officials have hosted informational conferences, public forums and town halls across the state to help explain the new law.

Herb Schultz, regional director for the U.S. Department of Health and Human Services, told the Capitol Times newspaper that “state organizations such as local health centers and nonprofits, are paramount to informing citizens of the changes.”

Schultz added, “We know not everyone has access to the Internet, so there have been significant dollars provided under the act to expand services for community health centers – a prime and very key way in rural areas and for aging Americans and seniors to be able to get their health care.”

Federal health officials are especially determined to get young Hispanics, who often do not believe they will get sick, to sign up for health care. This is a bigger problem in the Hispanic community in part because the median age of Arizona Hispanics is 28 versus 41 in the general market.

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CONSUMER BEHAVIOR

HEA;LTH

78

• NATIONAL STATISTICS

© Minerva Studio | Fotolia.com

© Shakzu | Fotolia.com

CONSUMER BEHAVIOR

HEALTH

• LOCAL INFO

79

CONSUMER BEHAVIOR

HEA;LTH

• LOCAL INFO

Health Net, CIGNA, Humana & State Farm

Over-index on Hispanic Members Ranked on Hispanics GROUP OR INDIVIDUAL HEALTH INSURANCE PROVIDERS (Among those with insurance)

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

Blue Cross Blue Shield

23%

28%

87

UnitedHealthcare

16%

23%

76

Health Net

13%

4%

240

CIGNA

104

11%

11%

Aetna

9%

12%

79

Humana

7%

5%

123

State Farm

3%

1%

214

Aflac

2%

2%

94

PacifiCare/Secure Horizons

1%

3%

48

© Valua Vitaly | Fotolia.com

Among those with Any Group/Individual Health Insurance Hispanic Scarborough, 2012 Release 2 (Aug 2011 - Jul 2012), Adults 18+, Phoenix DMA

80

CONSUMER BEHAVIOR

HEALTH

• LOCAL INFO

81

CONSUMER BEHAVIOR

HEA;LTH

82

• LOCAL INFO

CONSUMER BEHAVIOR

HEALTH

• LOCAL INFO

83

Diversity

is our common thread. diverse cultures and people have made arizona the great state it is today and they will continue to shape our future. thatâ&#x20AC;&#x2122;s why Blue cross Blue shield of arizona is proud to support the arizona hispanic chamber of commerce and this yearâ&#x20AC;&#x2122;s datos study. Your influence is

93657-13

helping to shape a better arizona.

CONSUMER BEHAVIOR

CASE STUDY

BCBS DATOS Insight Helps Arizonans Find Health Insurance Coverage

In 2012, Arizona Hispanics accounted for $40 billion in consumer spending statewide. The growing influence of this important and diverse community cannot be understated. That’s why Blue Cross Blue Shield of Arizona, Inc.1 (BCBSAZ) relies on the Arizona Hispanic Chamber of Commerce (AZHCC) and the resources they provide, such as DATOS. The DATOS report is a major influence as we continually seek to increase the value of our products and services to the Hispanic market. Most recently, we’ve applied DATOS insight to a variety of educational outreach, marketing and community efforts related to the Affordable Care Act (ACA).

Increased opportunities for health coverage

Accounting for 1 in 4 eligible individuals nationally, the Hispanic population has historically been an underserved population when it comes to health insurance. Through the ACA more individuals will have access to plans with options to help pay for their coverage. Consider that 27 percent of Hispanics in Arizona are currently uninsured with 37 percent who are likely eligible for a subsidy/tax credit.

Many consumers, especially those new to purchasing health insurance, will need help and support to understand what the law means to them. BCBSAZ is prepared to help.

DATOS has helped us refine the information, resources and services BCBSAZ offers – such as: • • •

Spanish version of azblue.com.

Spanish-member support line – Mi Consejero Azul.

Community partnerships – not only have we supported and advocated for many of AZHCC’s Latino-owned businesses initiatives, we have developed outreach programs with Chicanos Por La Causa (CPLA), Telemundo and Univision to jointly educate the community on the impact of the ACA and the upcoming open enrollment beginning on Oct. 1, 2013.

Further, because consumers within the Hispanic community turn more often to insurers, pharmaceutical companies and hospitals than non-Hispanics for trusted health information2, we developed a comprehensive education program aimed to assist Spanish-language /bilingual households to help answer some basic questions: • • •

Health Care is changing. How will it impact you?

Tax credits are available to pay for insurance immediately. Are you eligible?

Open enrollment is Oct. 1 – March 31, 2014. Where can you buy insurance?

Through our partnership at AZHCC and its resources such as DATOS, we are better able to collaborate with governments, business and individuals to address this complex public issue, which cannot be solved by a single organization.

A heritage of service to the community

This year’s DATOS report shows once again the continued growing economic influence of Hispanics throughout Arizona and across the nation. It remains an invaluable resource helping us keep pace with consumers’ evolving needs and wants.

BCBSAZ relies on the DATOS report to help us build strong and meaningful relationships within our communities and recognizes that these relationships will help improve health outcomes throughout Arizona.

Edited by

1

An Independent Licensee of the Blue Cross and Blue Shield Association

2

Univision / Experian Simmons/ Pharmaceuticals Advertising Awareness Study

85

AAA is a proud sponsor of the Arizona Hispanic Chamber of Commerce.

We also serve the needs of local businesses with commercial insurance.

AAA.com

AAA Insurance. Competitive Rates. Legendary Reliability.

速

CONSUMER BEHAVIOR

CONSUMER BEHAVIOR

Entertainment The importance of family has always been central in Latino culture. So it should be no wonder Latinos strongly consider their families wants and needs when picking entertainment options.

In many ways, the demographic characteristics of U.S. Latinos make that a practical necessity. Half of all Hispanic households in the United States have children under 18, a statistic that won’t likely change anytime soon. Latinos also tend to have more children overall. And contrary to what some might presume, it is Latino births, not immigration, that are driving the rapid population growth in the U.S. Latino community.

Reflecting those family values, the Phoenix Latino community’s taste in entertainment varies, but high on the list is the Phoenix Zoo, an undoubtedly family-friendly environment. Other top entertainment choices: high school sports events, Arizona Diamondbacks baseball and the Arizona State Fair. Disneyland, rock concerts, art museums, basketball and football games and the circus also are big draws.

Latinos, like most Americans, also love visiting theme parks. The next time you hear someone’s headed to Disneyland, odds are good it’s someone Latino. In 2012-2013, more than 130,000 Latino adults from Phoenix and Tucson visited the Magic Kingdom. In fact, on average, Latinos are significantly more likely than Whites to go to Disneyland. Tucson Latinos are almost twice as likely to visit Disneyland as White Tucsonans.

Gambling fever is catching hold among Latinos in Arizona. Between 2008 and 2012, the number of Phoenix Hispanics visiting casinos grew by 6 percent, even though 1 percent fewer Whites did the same during that period. The average Latino casino-goers, compared to non-Latinos casino-goers, tend to be younger, have more children and a substantially higher percentage of them are employed either full- or part-time.

A day or night on the town—whether you’re headed to a casino, a theme park or the zoo—requires the right apparel.

While per capita income among Latinos remains lower compared to non-Latinos, the average Latino household spends more on footwear and clothing than non-Hispanics. In 2012 alone, Phoenix Hispanics spent $1.2 billion in clothing and footwear.

While Latinos were more likely than non-Latinos to purchase clothing at discount stores such as Walmart, Ross or Target, Hispanics in Phoenix also were twice as likely as non-Latinos to buy their apparel at Marshall’s.

Good food, as any top chef will tell you, is its own form of entertainment.

On average, a Latino household in Phoenix spent nearly $4,000 in 2012 eating out, or 4 percent more than the average non-Latino household. When it comes to “quick-serve” or fast-food eateries, Latino households spent an average of 22 percent more than non-Latinos.

Where do Hispanics go out to eat? Of the $1.6 billion spent by Phoenix Latinos on “food away from home,” nearly twothirds was spent at fast-food restaurants and one third was spent at sit-down restaurants. Latino culinary tastes vary widely, but the top two choices are Chinese and Mexican food, with a slightly higher percentage of Phoenix Latinos preferring Chinese restaurants than Mexican restaurants.

Think about it: An egg roll is basically a tiny burrito—or is a burrito a really big egg roll? You be the judge.

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11:45 AM

CONSUMER BEHAVIOR

ENTERTAINMENT

• destinations

Zoos, Sports and the Fair…

Phoenix Hispanics Are More Likely to Attend a Variety of Events Ranked Among Hispanics RANK

EVENTS ATTENDED/PLACES VISITED PAST 12 MONTH

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

#1

Zoo

33.8%

30.0%

109

#2

Phoenix Zoo

28.7%

25.0%

111

#3

High School Sports Event

20.6%

13.7%

134

#4

Arizona Diamondbacks Baseball

19.9%

19.6%

101

#5

Arizona State Fair

15.7%

9.8%

140

#6

Castles and Coasters

15.4%

5.1%

205

#7

Arizona Science Center

10.6%

11.7%

93

#8

Disneyland (Anaheim)

10.6%

7.3%

132

#9

Rock Concert

9.8%

13.1%

79

#10

Art Museum

9.5%

10.1%

95

#11

Golfland Sunsplash

9.5%

6.0%

139

#12

Phoenix Suns Basketball Game

9.4%

7.1%

123

#13

Arizona Cardinals Football Game

8.6%

12.0%

77

#14

Westgate City Center Event

7.6%

6.8%

109

#15

Circus

7.5%

3.9%

157

Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Adults 18+, Phoenix DMA

89

CONSUMER BEHAVIOR

CASE STUDY

PHX Zoo Reflecting the Community

The Phoenix Zoo’s reputation as a cherished cultural asset of the Valley has been built upon an audience that truly reflects the entire community of Maricopa County. More than 1.4 million guests of all ages, representing all socioeconomic groups and cultural backgrounds, visit the Zoo each year to enjoy an educational immersion in the exotic natural world.

This reputation has grown even greater in recent years as the Zoo’s outreach to the Hispanic community has evolved and refined, reaching increasing levels of awareness and engagement with this growing segment of the population. These efforts have produced excellent results thanks to a carefully crafted plan carried out consistently and with great cultural sensitivity.

A Comprehensive Approach

The key to the Zoo’s approach in attracting a Hispanic audience begins before they leave their home and continues until they exit the Zoo after an enjoyable and comfortable experience.

All advertising – print, electronic, digital, OOH – is not simply translated from English to Spanish, but is specifically targeted and differentiated according to the unique characteristics of Valley Hispanic market segments. Upon arrival at the Zoo, Latinos are greeted by Spanish-language maps, making navigating the Zoo easy and comfortable and, if any questions arise, bilingual staff is readily available to answer any questions with a smile.

Unique Cultural Events

To reach out specifically to the Hispanic community in a meaningful way, the Zoo created Día del Niño in 2004. This holiday, celebrated widely in the Mexican community, celebrates children and education. The Zoo became the perfect venue for “Día” and promotional and media partnerships specifically targeting the Hispanic market helped this event quickly grow from 5,600 guests to more than 11,900 in just a few years. The cultural elements of the event not only embraced Hispanic families, but also fostered understanding with all guests who could easily enjoy the folkloric dancing, food, storytelling and arts activities featured.

Following the success of Día, the Zoo decided to incorporate another uniquely Hispanic celebration – Noche de los Reyes Magos. Reyes Magos not only created another opportunity to engage the Hispanic community in a special event, but enabled the Zoo’s Hispanic marketing outreach to become incorporated with its most popular general market event – ZooLights. In its first year in 2012, Reyes Magos was underwritten by the Flinn Foundation, which recognized the unique opportunity this new event would have to increase the Zoo’s relevance in the Hispanic market, while continuing to foster cultural understanding. Nearly 7,500 guests enjoyed the inaugural Noche de los Reyes Magos in 2012 and plans are underway for a bigger celebration in 2013.

Great Results

Since initiating these efforts to increase the engagement with the Hispanic community, the Zoo has seen a significant increase in visitation from Latino families and a greater customer satisfaction among those guests. As a result of our efforts, today the Phoenix Zoo customer base currently mirrors the demographic makeup of the Valley with more than 30 percent of the audience being Hispanic. But more and better efforts are planned, including the launch of a Spanish section of the Zoo’s website in early 2014, as well as continued growth in promotion and programming of both Día del Niño and Reyes Magos events. These initiatives will continue to be refined and improved as the Zoo continues to increase its relevance within the growing Hispanic market of the Valley.

Testimonial

Increasing our relevance in the Hispanic community has been an integral part of our marketing and community outreach for several years. Emphasizing authentic and culturally sensitive connections to this vibrant and growing segment of the Valley, has allowed us to make great strides in ensuring that Hispanic families are not only aware of the Phoenix Zoo, but that they enjoy their experience while visiting and that they look forward to returning in the future.

Norberto J. (Bert) Castro President/CEO Arizona Zoological Society/Phoenix Zoo Edited by

90

CONSUMER BEHAVIOR

ENTERTAINMENT

â&#x20AC;˘ SPORTS

School, Baseball & Basketball Phoenix Hispanics Are More Likely to Attend a Variety of Sporting Events Ranked Among Hispanics SPORTING EVENTS ATTENDED PAST 12 MONTS

RANK

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

#1

High School Sports Event

20.6%

13.7%

134

#2

Arizona Diamondbacks Baseball

19.9%

19.6%

101

#3

Phoenix Suns Basketball Game

9.4%

7.1%

123

#4

Arizona Cardinals Football Game

8.6%

12.0%

77

#5

Arizona State University Football

4.3%

5.1%

87

#6

Phoenix Coyotes Hockey Game

3.6%

6.8%

59

#7

Arizona State University Basketball

3.3%

1.5%

169

#8

NASCAR

3.0%

4.1%

77

#9

Cactus League Baseball Game

2.9%

6.1%

55

#10

Arizona Fall League Baseball Game

1.7%

0.3%

260

#11

Turf Paradise Racetrack (Horse Races)

1.7%

2.2%

82

#12

Firebird International Raceway Event

1.4%

2.1%

72

#13

Phoenix International Raceway Event

1.3%

2.5%

59

#14

Pro Rodeo

1.1%

1.7%

68

#15

WWE (Pro Wrestling)

1.1%

0.7%

137

Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Adults 18+, Phoenix DMA

91

DATOS

Notes

92

CONSUMER BEHAVIOR

ENTERTAINMENT

â&#x20AC;˘ SPORTS

U.S. Hispanics Enjoy NASCAR & Phoenix International Raceway is in Our Backyard!

Hispanic NASCAR Fan Base: Income and Education

Retail Channels Shopped

Hispanic NASCAR fans are more likely than the U.S. Hispanic population to be more affluent: 40% earn $50,000+ per year (118 index vs. U.S. Hispanic population).

INCOME

U.S. HISPANIC POPULATIon

HISPANIC nascar fans

index fans vs. u.s. hispanic population

Under $30,000

33%

28%

85

$30,000 - $49,999

32%

32%

100

$50,000 - $74,999

14%

17%

121

$75,000 - $99,000

9%

10%

111

$100,000+

11%

13%

118

$50,000+

34%

40%

118

Hispanic NASCAR fans are more likely than the U.S. Hispanic population to have completed some college or more.

EDUCATION

Some college or higher

U.S. HISPANIC POPULATIon

HISPANIC nascar fans

index fans vs. u.s. hispanic population

35%

41%

117

Source: Scarborough Research (USA+ Release 1, 2011) Courtesy of Phoenix International Raceway/NASCAR

Hispanic NASCAR fans are substantially more likely than Hispanic non-fans to shop in a variety of retail channels.

U.S. HISPANIC POPULATIon

HISPANIC nascar fans

index fans vs. u.s. hispanic population

Supermarkets

97%

89%

109*

Drug Stores

84%

71%

118*

Automotive Retail ^

76%

65%

117*

Convenience Stores

70%

55%

127*

Mass Retailers

63%

52%

121*

Department Stores ^^

58%

43%

135*

Home Improvement Stores

44%

31%

142*

Warehouse Clubs

39%

20%

195*

Home Electronics Stores

28%

23%

122

Office Supply/Computer Stores

25%

18%

139

Home Furnishing Stores

13%

16%

81

Shopped at in the past 4 weeks

^Data reflects shopped at in the past 12 months. ^^Data reflects shopped at in the past 3 months.

Read: 97% of Hispanic NASCAR fans have shopped at a supermarket in the past month compared to 89% of Hispanic non-fans, a 109 index. In other words, Hispanic NASCAR fans are +9% more likely than Hispanic non-fans to shop at supermarkets.

Source: Experian Consumer Research (Simmons National Consumer Study, Full Fall Year 2011)

93

CONSUMER BEHAVIOR

• TRAVEL

© Margie Hurwich| Fotolia.com

ENTERTAINMENT

94

CONSUMER BEHAVIOR

• TRAVEL

© Michael Jung | Fotolia.com

ENTERTAINMENT

95

CONSUMER BEHAVIOR

ENTERTAINMENT

96

• TRAVEL

CONSUMER BEHAVIOR

• GAMING

© Igor Mojzes | Fotolia.com

ENTERTAINMENT

97

CONSUMER BEHAVIOR

• GAMING

© JoLopes | Fotolia.com

ENTERTAINMENT

98

CONSUMER BEHAVIOR

ENTERTAINMENT

• GAMING

99

Since our opening in 2010, Talking Stick Resort has become one of the most distinct resort destinations in the Southwest. We proudly invite you to experience for yourself what others are saying about Talking Stick Resort.

•

Best Casino (Talking Stick Resort) by Phoenix Magazine

•

Award of Excellence (Talking Stick Resort) by Travelocity

•

Best Restaurant View at Dusk (Orange Sky) by AZCentral

•

Award of Excellence (Orange Sky) by Wine Spectator

101 & IndIan Bend | 480.850.7777 | talkIngstIckresort.com Locally owned and caringly operated by the Salt River Pima-Maricopa Indian Community. ©2013 Talking Stick Resort

6819-20_TSR_PIS_natv_DATOS.indd 1

9/5/13 11:36 AM

JOB #: 6819-20_TSR_PIS_natv_DATOS · Client: Talking Stick Resort · Agency: RIESTER · Trim: 7.25" x 4.75" · Bleed: none · Color: CMYK Pub: Indian Country Today · Insertion Date: 10/01/13 · Contact: Bill Robbins · brobbins@riester.com

CONSUMER BEHAVIOR

• SHOPPING

© Antonio Diaz | Fotolia.com

ENTERTAINMENT

Marshalls Ranks #12 Among Hispanics And Hispanics Are 2X as Likely

as Non-Hispanics to Buy from Marshalls Ranked Among Hispanics HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

#1

Walmart

54%

45%

114

#2

Ross Dress For Less

35%

16%

173

#3

Target

32%

26%

115

#4

Kohl’s

19%

29%

71

#5

Costco

15%

17%

91

#5

JCPenney

15%

16%

92

#7

Other store

13%

12%

106

#8

Old Navy

12%

9%

128

#8

Kmart

12%

11%

106

#8

Macy’s

12%

11%

107

#8

Dillard’s

12%

11%

108

#12

Marshalls

10%

5%

169

#12

Sears

10%

5%

175

#14

Victoria’s Secret

9%

5%

148

#14

Sam’s Club

9%

6%

135

Clothing Stores Bought in the Past 30 Days

RANK

Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Hispanic Adults 18+, Phoenix DMA

101

CONSUMER BEHAVIOR

CASE STUDY

American Family Insurance

The American Family Mercado Agency began in August 2011 and is operated by American Family Agent, Kelly Rojas. It is located in the Mercado De Los Cielos, inside Desert Sky Mall. It serves as a satellite operation for her brick and mortar agency located at 103rd Ave & Camelback. Kelly’s initial interest in opening in the Mercado was to maintain her roots and become a part of her community. Being bilingual and of Hispanic background, she felt the need to follow her dreams as an entrepreneur and serve the same Hispanic community where she grew up.

Marking her 2 year anniversary in August, she has continued to grow by serving clients 7 days a week!

The interest in the Mercado agency market share in Arizona, to increase Hispanic market and to be culturally consumer.

stemmed from the continued need to grow American Family penetration into the relevant in order to attract the Hispanic

The presence at the Mercado allows trusting relationships with the Hispanic stand and can embrace. The agency relationships, educates and services by the Mercado.

American Family to connect and build consumer in a way they appreciate, underactively engages, builds trust, establishes the insurance needs of customers served

Kelly Rojas

As the industry continues to change and evolve, the Kelly Rojas Agency has been on the forefront of meeting the needs of the Hispanic consumer in Arizona. Kelly collaborates and works alongside the Mercado and Desert Sky Mall to help insure and be a part of her clients’ dreams. “It’s amazing to hear my client’s dreams and aspirations. It’s a blessing to be a part of a community that is like family and to see their dreams become realized. They are dreamers just like me and I will always be here to protect them.” —Kelly Rojas

sponsored by

103

CONSUMER BEHAVIOR

CASE STUDY

Desert Sky Mall In December of 2010, Macerich partnered with The Legaspi Company and began its ground-breaking, Hispanic retail/ marketing initiative, now referred to as Vanguardia. Initially, Vanguardia was focused solely on Desert Sky Mall and its surrounding community where the Hispanic population represented over 70 percent of the primary trade area. Since then, however, Vanguardia has successfully achieved numerous milestones placing both Desert Sky Mall and the expansive Vanguardia program in the shopping center and retail industry spotlights.

Each of the Vanguardia shopping centers follows a customized plan to embrace their community by providing not only a relationship between cultural elements, but more importantly building on their historical and local environment. This has given each center the ability to create transcultural experiences for properties, which are now well on their way towards becoming super-regional shopping, dining and entertainment destinations.

As the flagship center of the Vanguardia program, Desert Sky Mall has experienced exponential growth in its celebrations of cultural events such as Cinco de Mayo and Fiestas Patrias, drawing massive numbers of attendees â&#x20AC;&#x201C; over 75,000 people attended the two-day Cinco de Mayo celebration in 2013! The Mercado de los Cielos continues to attract new tenants and now includes a vast array of retailers offering goods, services and food. This marketplace provides a forum for small businesses to begin their retail operations, some of which have expanded within the Mercado such as American Family Insurance (read more about their experience at Desert Sky Mall below). Moreover, some retailers, such as La Carreta de Lily, have achieved such great success that they have opened larger stores within the main mall. Along with local retailers which add a unique flavor to Desert Sky Mall, national retailers are embracing the strength of Hispanic consumers and actively participate in our comprehensive Vanguardia program; Macerich continues to add well known retailers and brands to the mall. Sales and traffic growth have been driven by the development of the unique, vibrant shopping environment at Desert Sky Mall.

sponsored by

104

CONSUMER BEHAVIOR

• Dining

© Joshua Resnick | Fotolia.com

ENTERTAINMENT

105

CONSUMER BEHAVIOR

ENTERTAINMENT

• Dining

Phoenix Hispanics Over-index

on 7 of the top 15 Casual Dining Restaurants Ranked on Hispanic Patrons RANK

SIT DOWN RESTAURANTS VISITED FOR ANY MEAL

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

#1

Denny’s

27.9%

14.8%

156

#2

IHOP

18.2%

13.4%

125

#3

Olive Garden

14.7%

15.2%

98

#4

Applebee’s

13.0%

12.0%

107

#5

Golden Corral

11.7%

7.4%

139

#6

Chili’s

7.5%

9.0%

87

#7

Red Lobster

5.6%

8.0%

75

#8

Chuck E Cheese’s

4.5%

1.2%

227

#9

Garcia’s

4.3%

3.3%

120

#10

Cracker Barrel

4.0%

7.7%

59

#11

Village Inn

3.7%

7.8%

54

#12

T.G.I. Friday’s

3.4%

2.7%

119

#13

P.F. Chang’s

2.9%

4.2%

75

#14

Macayo’s

2.3%

5.1%

52

#15

Arriba Mexican Grill

2.2%

2.8%

83

Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Hispanic Adults 18+, Phoenix DMA

106

CONSUMER BEHAVIOR

• Quick Serve Restaurants

© Piliphoto | Fotolia.com

ENTERTAINMENT

107

ESTO ES PHOENIX. Phoenix is high art in alleyways and cinema in swimming pools. Phoenix is surfing without an ocean and dining without walls. Phoenix is canyoneering and wild horses. Phoenix is food trucks, racing school and Mexican rodeo.

This is Phoenix. So much more than sunshine. So many stories to tell.

Visit Phoenix is a proud partner of the Arizona Hispanic Chamber of Commerce.

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All loans are subject to application, credit qualification, and income verification. Š 2013 Wells Fargo Bank, N.A. All rights reserved.

Member FDIC. 122933 08/13

CONSUMER BEHAVIOR

ENTERTAINMENT

• Quick Serve Restaurants

Hispanics Enjoy

© Kzenon | Fotolia.com

A Variety of Menu Choices

Phoenix Hispanics Over-index at the Top 15 QSRs

Ranked Among Hispanics

© Aaron Amat | Fotolia.com

RANK

And Hispanics are much more likely than Non-Hispanics to visit Quick Serve Pizza Restaurants

QSR Visited for Any Meal in Past 30 Days

HISPANIC

NON-HISPANIC

HISPANIC INDEX (vs. TOTAL)

106

Any Quick Serve Restaurant

94%

87%

#1

McDonald’s

54%

38%

130

#2

Jack in the Box

39%

21%

156

#3

Subway

36%

32%

107

#4

Taco Bell

31%

30%

103

#5

Burger King

25%

21%

113

#6

Little Caesars

24%

11%

168

#7

Panda Express

24%

14%

144

#8

Filiberto’s Mexican

22%

9%

184

#9

Starbucks

21%

17%

118

#10

Sonic

19%

13%

137

#11

Domino’s Pizza

18%

6%

198

#12

In-N-Out Burger

17%

16%

108

#13

KFC

17%

16%

103

#14

Pizza Hut

16%

10%

146

#15

Peter Piper Pizza

16%

4%

227

Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Phoenix DMA, Adults 18+

109

THANK YOU for choosing Fry’s grocery store!

Since 1960, Arizona families have trusted Fry’s for fresh food and famous low prices.

Stop by and see why year after year, Fry’s is named Arizona’s low price leader.

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Population In 2035, Arizona will mark a milestone in its remarkable, ongoing demographic shift.

If census forecasts hold true, by the time a Hispanic child born in Arizona today is a young adult he or she will be a member of the state’s majority population.

Today, Arizona’s more than 2 million Latinos are 31 percent of the total population—more than double the number of Hispanics who lived here in 1990. Between now and 2035, the Hispanic community is expected to double in size yet again to about 4 million people, or more than 50 percent of all Arizonans, based on census data analysis by Pew Hispanic Research.

On the national level, the Hispanic population has topped 53 million people, or 17 percent of the population, and demographers predict Hispanics, who can be of any race, will be 30 percent of the U.S. population by 2060.

Arizona’s Maricopa County, which includes Phoenix and several major suburbs, is home to more than half of the state’s Latino population.

As the country’s minority communities grow, the non-Hispanic White population will peak in 2024, and non-Hispanic Whites skew older and have fewer children. Latinos tend to be comparatively younger and have more children. The median age for Whites is 41; African-Americans, 32; Asians, 31.6; and Latinos, 27.

America in 2050, long known as a nation of immigrants will become a nation of minorities, as the non-Hispanic White share of the total U.S. population dips to 47 percent. Non-Hispanic Whites today are about two-thirds of the country’s population.

In 1960, they were 85 percent of the population.

Population growth among non-Hispanic Whites already has slowed to a crawl. Between 2000 and 2011, the Non-Hispanic White population grew only 1.5 percent, while Hispanics increased by 46 percent.

Most Latino population growth today, contrary to popular belief, is attributed to native births and not immigration. While 35 to 40 percent of the country’s Hispanic population today is foreign-born, U.S.-born Latinos account for 90 percent of Hispanic population growth.

In a stark example of these contrasting trends, about 80 percent of senior citizens today are Non-Hispanic Whites, while minority babies born in the U.S. outnumbered White babies for the first time in 2011.

The implications of these trends are far-reaching. As the White population ages, the nation’s workforce-aged population will become increasingly minority. At the same time, a greater number of jobs in the U.S. labor market will require more training and education. How our nation addresses today’s gaps in educational achievements between Whites and NonWhites will affect our economic and overall societal development.

111

Stronger together By partnering for the common good we can achieve uncommon results. We proudly sponsor the Arizona Hispanic Chamber of Commerce’s 2013 DATOS: The State of Arizona’s Hispanic Market Breakfast.

© 2013 JPMorgan Chase & Co.

chase.com

CONSUMER DEMOGRAPHICS

POPULATION

• U.S. POPULATION

113

CONSUMER DEMOGRAPHICS

POPULATION

114

• U.S. POPULATION

CONSUMER DEMOGRAPHICS

POPULATION

• U.S. POPULATION

5.0

115

CONSUMER DEMOGRAPHICS

POPULATION

• U.S. POPULATION

.0

116

CONSUMER DEMOGRAPHICS

POPULATION

• az population

117

CONSUMER DEMOGRAPHICS

POPULATION

118

• az population

CONSUMER DEMOGRAPHICS

POPULATION

• az population

119

CONSUMER DEMOGRAPHICS

POPULATION

120

• az population

CONSUMER DEMOGRAPHICS

POPULATION

Hispanic

• az population

White, Non-Hispanic

121

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Population Marcela Houser, CCIM Investment / Sales De Rito Partners, Inc. Hispanics continue to be the fastest growing ethnic group in the USA. By 2050 it is estimated that Hispanics will be 130M in the USA (Peter Reuell - Harvard Staff Writer). Many retailers/investors are well aware of the statistics and the importance that the Hispanic market has. Retailers are taking steps to accommodate the Hispanic needs and are focusing on providing shopping centers that offer cultural activities and events that idenify with the Hispanic community. Big supermarket chains over the years have offered more and more Hispanic food products in their aisles, not to mention the increase of Hispanic music, celebrities, politicians etc., that presently influence our society.

The statistics above show a total of 25,802 firms that in 2007 were owned by Hispanics in the 15 cities with the highest Hispanic Population in the Valley. Phoenix, Mesa and Glendale (in that order) take the lead as the cities with the highest Hispanic population and the highest Hispanic owned firms. The graphics above show how the business owned by Hispanics goes in proportion to the Hispanic population in each city. The average rate is 3.18%. However, it is interesting to observe that cities like Scottsdale and Queen Creek have more Hispanic Owned Businesses in relation to their Hispanic population. Hispanic business owners are also reaching out to cater to other ethnic groups.

The growth rate of Hispanics in the Valley slowed down in the past few years due in part to anti-immigration legislation and slow economy in the State and the Country. However, the retail market as well as other commercial real estate markets such as industrial, office and multi-family, are recovering steadily. In Commercial Real Estate we are experiencing increased interest from eager Hispanic entrepreneurs to open their first business location or additional ones. We also see an increase of foreign Hispanics looking for commercial real estate investment opportunities nationwide. Hispanics in the Valley have always been interested in learning the ins and outs of Commercial Real Estate Investment and how they can benefit from it.

Residential Real Estate has had a strong comeback since 2012 and Commercial Real Estate is definitely following its steps. Something interesting to keep in mind is the recent increase in Consumer Confidence which is a very important factor in the economic recovery of the Country and a good sign. That could indicate that the economy is going in the right direction.

We at De Rito Partners, Inc. are glad to be a part of these exciting times and are well prepared to meet the Hispanic ever growing market Commercial Real Estate needs en Espa単ol.

Marcela Houser has over 11 years of experience in Commercial Real Estate. She holds the CCIM designation. Originally from Guadalajara, Mexico, studied at ITESO University and is fluent in English and Spanish. sponsored by

122

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Arizona

Market Snapshot The Arizona Hispanic population continues to represent a substantial portion of the local population, accounting for close to one-third of Arizona residents. The 2013 statewide Hispanic population exceeds 2 million individuals.

Arizona Hispanics are primarily of Mexican ancestry. 52% of all Hispanics may be considered bicultural or less acculturated.

Aggregate household expenditures (all consumer products and categories) among Arizona households exceeds $23.8 billion annually, 18% of total.

Population

% of Population

2013 Population

100%

6,573,587

Hispanic

31%

2,032,405

White Non-Hispanic

56%

3,689,612

Black Non-Hispanic

4%

260,622

Asian Non-Hispanic

3%

194,601

Other Non-Hispanic

6%

396,347

Total

123

CONSUMER DEMOGRAPHICS

Consumer demographics

• arizona

Hispanics represent the second-largest population group in the state at close to one-third of total.

HISPANICITY HA1: Americanizado English dominant (nearly no Spanish) Born in US; 3rd+ generation Few Hispanic cultural practices

Fully 53% of the Hispanics in the Phoenix DMA are ranked as HA3, HA4 or HA5 and 25% fall into the Bicultural category of the Hispanicity segmentation model..

HA2: Nueva Latina English preferred (some Spanish) Born in U.S.; 2nd generation Some Hispanic cultural practices; often “retro-acculturate” HA3: Bicultural Bilingual (equal or nearly) Immigrant as child or young adult Many Hispanic cultural practices HA4: Hispano Spanish preferred (some English) Immigrant as adult, in U.S. 10+ years Pre-dominant Hispanic cultural practices HA5: Latinoamericana Spanish dominant (nearly no English) Recent immigrant as adult (less than 10 years ago) Primarily Hispanic cultural practices Identify with home country more so than U.S.

124

CONSUMER DEMOGRAPHICS

Consumer demographics

• arizona

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

This Market Snapshot is produced by Geoscape using the Geoscape Intelligence System (GIS) and the American Marketscape DataStream™ Series 2013 and Consumer Spending Dynamix™ Series 2013.

For a FREE test drive of GIS, point your browser to: http://gis4.geoscape.com/testdrive/ Copyright 2013© All rights reserved. Reproduction rights are granted provided the material is reproduced in its entirety and sourced to Geoscape and the American Marketscape DataStream, Series 2013.

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

125

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Phoenix

Market Snapshot The Phoenix Metro Hispanic population continues to represent a substantial portion of the local population, accounting for close to one-third of Phoenix residents. The 2013 metro Hispanic population exceeds 1.3 million individuals.

Phoenix Hispanics are primarily of Mexican ancestry. 52% of all Hispanics may be considered bicultural or less acculturated.

Aggregate household expenditures (all consumer products and categories) among Phoenix Hispanic households exceeds $15.9 billion annually, 18% of total.

Population

% of Population

2013 Population

100%

4,318,869

Hispanic

31%

1,323,928

White Non-Hispanic

57%

2,454,532

Black Non-Hispanic

5%

212,809

Asian Non-Hispanic

4%

154,826

Other Non-Hispanic

4%

172,774

Total

126

CONSUMER DEMOGRAPHICS

Consumer demographics

• Phoenix

Hispanics in the Phoenix Metro area account for 31% of the local population and represent the second largest ethnic group.

Hispanic Population White Non-Hispanic Black Non-Hispanic Asian Non-Hispanic American Indian Non-Hispanic

HISPANICITY HA1: Americanizado English dominant (nearly no Spanish) Born in US; 3rd+ generation Few Hispanic cultural practices HA2: Nueva Latina English preferred (some Spanish) Born in U.S.; 2nd generation Some Hispanic cultural practices; often “retro-acculturate” HA3: Bicultural Bilingual (equal or nearly) Immigrant as child or young adult Many Hispanic cultural practices

Other Non-Hispanic

25% of Phoenix Hispanics are bicultural with an additional 29% less acculturated

HA4: Hispano Spanish preferred (some English) Immigrant as adult, in U.S. 10+ years Pre-dominant Hispanic cultural practices HA5: Latinoamericana Spanish dominant (nearly no English) Recent immigrant as adult (less than 10 years ago) Primarily Hispanic cultural practices Identify with home country more so than U.S.

127

CONSUMER DEMOGRAPHICS

Consumer demographics

• Phoenix

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

This Market Snapshot is produced by Geoscape using the Geoscape Intelligence System (GIS) and the American Marketscape DataStream™ Series 2013 and Consumer Spending Dynamix™ Series 2013.

For a FREE test drive of GIS, point your browser to: http://gis4.geoscape.com/testdrive/ Copyright 2013© All rights reserved. Reproduction rights are granted provided the material is reproduced in its entirety and sourced to Geoscape and the American Marketscape DataStream, Series 2013.

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

128

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Tucson

Market Snapshot The Tucson Metro Hispanic population continues to represent a substantial portion of the local population, accounting for over one-third of Metro residents. The 2013 Tucson Hispanic exceeds 360,000 individuals in a Metro total of just over 1 million.

Tucson Hispanics are primarily of Mexican ancestry. Half the Hispanic population be considered bicultural or less acculturated.

Aggregate household expenditures (all consumer products and categories) among Tucson Metro Hispanic households approaches $4.4 billion annually, 23% of the metro total.

Population

% of Population

2013 Population

100%

1,007,418

Hispanic

36%

364,369

White Non-Hispanic

53%

538,771

Black Non-Hispanic

3%

32,914

Asian Non-Hispanic

3%

26,974

Other Non-Hispanic

4%

44,390

Total

129

CONSUMER DEMOGRAPHICS

Consumer demographics

• Tucson

Over one-third of the Tucson Metro population is of Hispanic ancestry.

Hispanic Population White Non-Hispanic Black Non-Hispanic Asian Non-Hispanic American Indian Non-Hispanic Other Non-Hispanic

Tucson’s population is evenly divided between the more acculturated and the bicultural & less acculturated segments.

HISPANICITY HA1: Americanizado English dominant (nearly no Spanish) Born in US; 3rd+ generation Few Hispanic cultural practices HA2: Nueva Latina English preferred (some Spanish) Born in U.S.; 2nd generation Some Hispanic cultural practices; often “retro-acculturate” HA3: Bicultural Bilingual (equal or nearly) Immigrant as child or young adult Many Hispanic cultural practices HA4: Hispano Spanish preferred (some English) Immigrant as adult, in U.S. 10+ years Pre-dominant Hispanic cultural practices HA5: Latinoamericana Spanish dominant (nearly no English) Recent immigrant as adult (less than 10 years ago) Primarily Hispanic cultural practices Identify with home country more so than U.S.

130

CONSUMER DEMOGRAPHICS

Consumer demographics

• Tucson

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

This Market Snapshot is produced by Geoscape using the Geoscape Intelligence System (GIS) and the American Marketscape DataStream™ Series 2013 and Consumer Spending Dynamix™ Series 2013.

For a FREE test drive of GIS, point your browser to: http://gis4.geoscape.com/testdrive/ Copyright 2013© All rights reserved. Reproduction rights are granted provided the material is reproduced in its entirety and sourced to Geoscape and the American Marketscape DataStream, Series 2013.

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

131

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Flagstaff

Market Snapshot The Flagstaff Metro Hispanic population represents 15% of the local population, accounting for close to 20,000 individuals in a metro population of 136,732.

Flagstaff Hispanics are primarily of Mexican ancestry. 51% of all Hispanics may be considered bicultural or less acculturated.

Aggregate household expenditures (all consumer products and categories) among Flagstaff Hispanic households exceeds $216 million annually, 10% of total.

Population

% of Population

2013 Population

100%

136,732

Hispanic

15%

19,922

White Non-Hispanic

55%

74,534

Black Non-Hispanic

1%

1,511

Asian Non-Hispanic

1%

2,034

Other Non-Hispanic

28%

38,731

Total

132

CONSUMER DEMOGRAPHICS

Consumer demographics

• flagstaff

Hispanics account for 15% of the metro population. There is a substantial native American presence in the metro area.

Hispanic Population

White Non-Hispanic

Black Non-Hispanic

Asian Non-Hispanic

HISPANICITY HA1: Americanizado English dominant (nearly no Spanish) Born in US; 3rd+ generation Few Hispanic cultural practices HA2: Nueva Latina English preferred (some Spanish) Born in U.S.; 2nd generation Some Hispanic cultural practices; often “retro-acculturate” HA3: Bicultural Bilingual (equal or nearly) Immigrant as child or young adult Many Hispanic cultural practices HA4: Hispano Spanish preferred (some English) Immigrant as adult, in U.S. 10+ years Pre-dominant Hispanic cultural practices

American Indian Non-Hispanic Other Non-Hispanic

Just over half (51%) of local Hispanics are bicultural or less acculturated.

The balance of the population is English preferred or English dominant.

HA5: Latinoamericana Spanish dominant (nearly no English) Recent immigrant as adult (less than 10 years ago) Primarily Hispanic cultural practices Identify with home country more so than U.S.

133

CONSUMER DEMOGRAPHICS

Consumer demographics

• Flagstaff

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

This Market Snapshot is produced by Geoscape using the Geoscape Intelligence System (GIS) and the American Marketscape DataStream™ Series 2013 and Consumer Spending Dynamix™ Series 2013.

For a FREE test drive of GIS, point your browser to: http://gis4.geoscape.com/testdrive/ Copyright 2013© All rights reserved. Reproduction rights are granted provided the material is reproduced in its entirety and sourced to Geoscape and the American Marketscape DataStream, Series 2013.

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

134

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Yuma

Market Snapshot The Yuma Metro population has a majority Hispanic presence, accounting for 62% of the metroâ&#x20AC;&#x2122;s 200,733 persons and driving the local population growth.

Yuma Hispanics are primarily of Mexican ancestry. 58% of all Hispanics may be considered bicultural or less acculturated.

Aggregate household expenditures (all consumer products and categories) among Flagstaff Hispanic households exceeds $1.2 billion annually, 44% of total.

Population

% of Population

2013 Population

100%

200,733

Hispanic

62%

124,402

White Non-Hispanic

33%

66,348

Black Non-Hispanic

2%

3,109

Asian Non-Hispanic

1%

2,232

Other Non-Hispanic

2%

4,642

Total

135

CONSUMER DEMOGRAPHICS

Consumer demographics

• Yuma, AZ

Metro Yuma’s population is driven by the local Hispanic presence, at 62% of all residents.

Hispanic Population White Non-Hispanic Black Non-Hispanic Asian Non-Hispanic American Indian Non-Hispanic Other Non-Hispanic

Acculturation levels are driven by the bicultural and less acculturated Hispanics

HISPANICITY HA1: Americanizado English dominant (nearly no Spanish) Born in US; 3rd+ generation Few Hispanic cultural practices HA2: Nueva Latina English preferred (some Spanish) Born in U.S.; 2nd generation Some Hispanic cultural practices; often “retro-acculturate” HA3: Bicultural Bilingual (equal or nearly) Immigrant as child or young adult Many Hispanic cultural practices HA4: Hispano Spanish preferred (some English) Immigrant as adult, in U.S. 10+ years Pre-dominant Hispanic cultural practices HA5: Latinoamericana Spanish dominant (nearly no English) Recent immigrant as adult (less than 10 years ago) Primarily Hispanic cultural practices Identify with home country more so than U.S.

136

CONSUMER DEMOGRAPHICS

Consumer demographics

• Yuma, AZ

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

This Market Snapshot is produced by Geoscape using the Geoscape Intelligence System (GIS) and the American Marketscape DataStream™ Series 2013 and Consumer Spending Dynamix™ Series 2013.

For a FREE test drive of GIS, point your browser to: http://gis4.geoscape.com/testdrive/ Copyright 2013© All rights reserved. Reproduction rights are granted provided the material is reproduced in its entirety and sourced to Geoscape and the American Marketscape DataStream, Series 2013.

P. 888.211.9353 | E. geoscape@geoscape.com | URL. www.geoscape.com Source: Geoscape American Marketscape DataStream™ and/or Consumer Spending Dynamix™ Series 2013 The Designated Market Area (DMA) boundaries are defined by Nielsen.

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CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Education

When it comes to understanding Hispanic student education trends, it only requires basic math to read the writing on the wall.

In short, Latino student achievement is slowly improving, but serious education gaps remain. Consider the following: • Hispanics are less likely than any other major population segment in the U.S. to be enrolled in college or graduate school: 18% of Hispanics are enrolled in higher education, versus 38% of Asians, 30% of Non-Hispanic Whites and 27% of African-Americans, according to the U.S. Census.

• Nationally, while 31% of non-Hispanic Whites and 18% of African-Americans have completed at least a bachelor’s degree, only 13% of Hispanics have attained the same level of education.

• High school graduation rates among Hispanics continue to lag, though recent news on that front is promising.

“The share of Hispanics ages 18 to 24 who have not completed high school and were not enrolled in school fell to a record low of 15% in 2012,” less than half the rate of 32% in 2000, according to Pew Hispanic Research, among the nation’s top public policy think tanks. That marks an important development, though it remains twice as high as the national average of 8 percent for non-Hispanics, 18-24, who had not completed high school and were not enrolled in school in 2012.

In other encouraging news from Pew Hispanic Research, Latinos now represent the largest single minority group at fouryear colleges and universities in the United States; a record number of Hispanic high school graduates nationwide, nearly 46%, are enrolled in two- or four-year college programs; and, for the first time, a higher percentage of Hispanic high school graduates, 69 percent, entered college than non-Hispanic Whites high school graduates, 67 percent of whom enrolled in college in 2012.

Nevertheless, major challenges lie ahead, much of it tied to the Latino community’s booming population growth.

Hispanic children now account for 1 in 4 public elementary students nationwide, foreshadowing ever-larger Latino student populations in secondary and higher education institutions. In Arizona, nearly 90 percent of new K-12 students between 1998 and 2010 in Arizona were Hispanic; and a record 44 percent of all K-12 students statewide in 2012 were Hispanic and will soon be the majority here.

Nationally, the Census Bureau estimates the number of Hispanic elementary and secondary education students nationwide will grow by 94 percent between 2000 and 2050. And the number of Hispanic college students in that same period will increase 60 percent.

Given the critical role education plays in any community’s economic prospects, the single greatest long-term challenge facing Arizona Latinos may not be immigration or health care, but improving the quality of education for our children.

The Dropped? report published by the ASU Morrison Institute for Public Policy in 2012 found that unless the education gap between Latinos and non-Latinos is closed, “This imbalance represents a grave threat to Arizona’s future economic health.”

The primary issue, according to the report: “Education and skills training are expected to become even more important drivers of workforce quality, earning potential and economic growth than they are today…..Low educational achievement is usually linked to low earning power.… Less income means less purchasing power, which drags down overall economic growth and, consequently, tax revenues. Lower tax revenues means additional strains on state budgets and services.”

Briefly stated, failing to properly educate Latino children in Arizona could limit the entire state’s long-term economic prosperity.

To read the full Dropped? report, visit the Morrison Institute website at morrisoninstitute.asu.edu/‎

139

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MENTAL ILLNESS

One in every four people is affected by a mental disorder. That means someone you know—a friend, a neighbor, a relative, a coworker—lives with mental illness.

Fewer than one in 11 Hispanics with a mental disorder contacts a mental health specialist for help, while fewer than one in five contacts their primary health care provider (Surgeon General’s Report, 2001).

Magellan Health Services of Arizona and our partners have worked to better the lives of adults and children in the central Arizona behavioral health system who experience mental health and/or substance abuse issues. Through partnership with the community, we have: • Reached more than 600,000 people • Served more than 76,400 Hispanic individuals • Delivered the message that help is available and recovery is possible.

If you or someone you know needs help with a mental health or substance use issue, call (800) 564-5465 or TTY (800) 424-9831. For individuals experiencing a behavioral health crisis, call the Crisis Line at (800) 631-1314 or TTY (800) 327-9254. For emergencies, dial 9-1-1.

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CONSUMER DEMOGRAPHICS

EDUCATION

• enrollment trends

141

CONSUMER DEMOGRAPHICS

EDUCATION

• enrollment trends

143

CONSUMER DEMOGRAPHICS

EDUCATION

144

• enrollment trends

CONSUMER DEMOGRAPHICS

EDUCATION

• enrollment trends

Over 8 out of 10 new students were Hispanic, Grade Level K-12, Fall 1998-Fall 2012 total

HISPANIC

WHITE

BLACK

ASIAN

Native American

Fall 1998

847,762

268,098

466,597

38,421

16,171

58,475

Fall 2012

1,096,037

473,793

456,478

57,384

30,822

53,852

Net Gain

248,275

205,695

-10,119

18,963

14,651

-4,623

100%

83%

-4%

8%

6%

-2%

% of Total Growth

© Andres Rodriguez | Fotolia.com

Hispanic Scarborough, 2013 Release 1 (Feb 2012 - Jan 2013), Adults 18+, Phoenix DMA

145

CONSUMER DEMOGRAPHICS

EDUCATION

146

• enrollment trends

CONSUMER DEMOGRAPHICS

EDUCATION

• enrollment trends

College Enrollment by Race in AZ Enrollment in Postsecondary Education Fall 2010 Total Fall Enrollment

Arizona

U.S. Average

Total fall enrollment - Male

305,782

171,951

Total fall enrollment - Female

522,849

228,592

Total fall enrollment - American Indian or Alaska Native

19,300

3,725

Total fall enrollment - Asian, Native Hawaiian, of Pacific Islander

22,850

23,351

Total fall enrollment - Black or African American

93,533

51,584

Total fall enrollment - Hispanic or Latino

101,617

44,808

Total fall enrollment - White

383,779

226,071

2,107

1,691

185,975

36,005

19,470

13,304

Total fall enrollment - Undergraduate

706,866

344,418

Total fall enrollment - Graduate

121,765

56,125

Degrees / certificates awarded - Total

158,882

78,228

Degrees / certificates awarded - American Indian or Alaska Native

3,042

647

Degrees / certificates awarded - Asian, Native Hawaiian, of Pacific Islander

4,777

4,446

Degrees / certificates awarded - Black or African American

15,227

8,701

Degrees / certificates awarded - Hispanic or Latino

19,270

7,264

Degrees / certificates awarded - White

83,244

47,570

420

326

27,795

5,919

Total fall enrollment - Two or more races Total fall enrollment - Race/ethnicity unknown Total fall enrollment - Nonresident alien

Degrees / certificates awarded - Two or more races Degrees / certificates awarded - Race/ethnicity unknown

5,107

3,350

Degrees / certificates awarded - Associate’s

50,252

16,655

Degrees / certificates awarded - Bachelor’s

44,339

32,353

Degrees / certificates awarded - Master’s

34,860

13,588

Degrees / certificates awarded - Doctor’s

2,684

Degrees / certificates awarded - Nonresident alien

*Hispanic enrollment comprises 12.3% of total college enrollment in Arizona.

Source: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS). (2011). Institutional counts are from the Fall 2010, Institutional Characteristics component; Degrees awarded are from the Fall 2010, Completions component (Awards/degrees conferred between July 1, 2009 and June 30, 2010); and Fall enrollment data are from the Spring 2010, Enrollment component (Fall 2009). Washington. D.C. Retrieved July 29, 2013 from http://nces.ed.gov/programs/stateprofiles/sresult.asp?mode=full&displaycat=4&s1=04 Courtesy of University of Phoenix

147

CONSUMER DEMOGRAPHICS

EDUCATION

â&#x20AC;˘ enrollment trends

Hispanic Serving Institutes in Arizona CITY

Total Undergrad FTE Enrollment

Hispanic

% Hispanic

Arizona Western College

Yuma

4,687

2,796

59.7

Central Arizona College

Coolidge

4,020

1,058

26.3

Conchise College

Douglas

2,748

1,172

42.6

Avondale

4,411

1,872

42.4

Scottsdale

6

2

33.3

GateWay Community College

Phoenix

3,195

848

26.5

Glendale Community College

Glendale

12,160

3,471

28.5

Phoenix College

Phoenix

6,542

2,517

38.5

Pima Community College

Tucson

21,532

7,904

36.7

South Mountain Community College

Phoenix

2,573

1,062

41.3

61,874

22,702

36.7

Institution

Estrella Mountain Community College Frank Lloyd Wright School of Architecture

Arizona Total

Source: Excelencia in Education. (2012). Hispanic Serving Institutions (HSIs): 2011-12. Retrieved July 29, 2013 from http://www.edexcelencia.org/sites/default/files/hsilist-2011-12.pdf Courtesy of University of Phoenix

148

CONSUMER DEMOGRAPHICS

CASE STUDY

Morrison Institute Latino Public Policy Center Think of Arizona demographics as an hourglass.

The bottom half of the hourglass is mostly a White population whose time of employment is largely up, as Baby Boomers en masse join the retiree generation. Meanwhile, the hourglass’ top half is a largely much younger Latino population who are quickly coming of age to form the state’s dominant workforce.

Median age for Whites in Arizona is 44, while for Latinos it’s 25, a prime family-building age. For the first time, this year there were more Latino children in Arizona K-12 schools than Whites. By 2030, Arizona is expected to be a “majorityminority” state.

That’s what data tell us – that the face of Arizona is changing, along with everything that comes with such a defining dynamic. But data also tell us Arizona is headed for a crisis unless we prepare our future workforce through education, skills, certification and college degrees, which as a state we are not doing at the level necessary to compete regionally, nationally and internationally.

In fact, the Latino education gap is relatively the same today as it was in 2000. High school dropouts remain at unacceptable rates. “College” is not part of the daily vocabulary for the burgeoning younger Latino population, including too often among those most scholastically able. Low expectations – from educators to parents to students themselves – become a self-fulfilling prophecy of lower achievement.

Education is the lynchpin for economic success in Arizona, which is noted in many of the reports by the Morrison Institute Latino Public Policy Center at Arizona State University.

But time is of the essence. More to the point, the hourglass is running.

MorrisonInstitute.asu.edu/Latinos

“In a very short time, Morrison Institute Latino Public Policy Center has demonstrated its relevance in helping Arizonans better understand Latino issues and how they affect Arizona. The Morrison Institute’s longtime trusted brand for independent and nonpartisan research and analysis give its Latino Center immediate credentials in clarifying how the growing Latino community more and more will shape our state’s future.”

—Max Gonzales, Vice President, Administration, Chicanos Por La Causa, Inc. sponsored by

149

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Immigration Arizona was known as “Ground Zero” in the national immigration debate in 2010—the year the state legislature passed one the toughest immigration bills in the country, SB 1070. The controversial measure inspired copycat laws nationwide, an economic boycott against Arizona, federal lawsuits and protests for and against the sweeping law.

Over the past three years, most of SB 1070 was overturned by the U.S. Supreme Court. The author of the bill is no longer in office. And even though polling at the time found more than 70 percent of Arizonans supported 1070’s passage, polls since show two-thirds of Arizonans and a comparable bipartisan majority of Americans say it is time for Congress to fix the problem and, provided security concerns are properly addressed, they also support a path to citizenship for the nation’s 11 million undocumented immigrants.

In short, Arizona’s red-hot debate over immigration has mostly cooled.

This dramatic shift in sentiment is tied to the changing context of the immigration debate in the United States.

As the economy has improved, fewer Americans worry undocumented immigrants are taking jobs that could be filled by U.S. citizens. Stepped-up security measures in the past decade also have restricted the flow of undocumented immigrants across our borders and U.S. ports of entry. (More than 40 percent of undocumented immigrants in the United States today entered legally but overstayed their visas.)

The political discourse over immigration shifted as well, particularly in the wake of a burgeoning U.S. Latino electorate and its overwhelming rejection during last year’s presidential election of calls to stop immigration by simply increasing deportations and fortifying our borders.

At the same time, immigration into the United States, especially from Mexico, has sharply decreased. For example, from 1995 to 2000, about 3 million Mexicans migrated to the United States and fewer than 700,000 left the U.S. bound for Mexico. One decade later, from 2005 to 2010, migration from Mexico to the United States was at “net zero.” That is to say, as many Mexicans moved from the U.S. to Mexico (about 1.4 million) as from Mexico to the U.S. In Arizona, undocumented immigrants at their peak in 2008 numbered about 560,000 people, according to the U.S. Census. But between 2008 and late 2010, the U.S. Department of Homeland Security estimates 200,000 undocumented immigrants left the state. Experts say some left because of the lack of jobs, though many thousands fled in fear of arrest as a result of SB 1070 and many were joined by relatives who were legal immigrants and U.S. citizens.

As the U.S. economy picks up steam immigration is increasing again, but odds are that fewer Mexicans will migrate here in the coming years. Mexico’s economy is growing fast, which means fewer Mexicans will seek work abroad. Security at the border and other ports of entry has also tightened. And Mexico has seen a drop in its birth rate as well, reducing the overall pool of people there looking for work.

In the meantime, the number of undocumented immigrants in the United States has dropped from a peak of more than 12 million, or the current estimate of 11 million. Researchers suggest some immigrants returned home unable to find work here.

During the past year, chambers of commerce and business leaders across the country, including the Arizona Hispanic Chamber of Commerce, have called for passage of a federal immigration reform bill that factors in the economic contributions of immigrants today and into the future.

As the U.S. population’s median age continues to rise and its labor force continues to gray, demographers say more immigrant workers are needed at virtually every level of our economy.

On that point, a 2008 study by Pew Hispanic Research found that by 2050 nearly 1 in 5 people living in the United States will have been born outside this country, as compared to 1 in 8 in 2005. In addition, immigrants and their offspring will account for more than 80 percent of our nation’s total population growth over the next 40 years.

151

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CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Immigration Citizenship or Something Less?

Economic Implications for Arizona

By Mike Slaven, Policy Analyst | Morrison Institute Latino Public Policy Center

Introduction At the foundation of the current debate about immigration reform is the consensus that the 11 million unauthorized immigrants presently living in the United States are, for the most part, here permanently. Given this likelihood, what is the best way to address their status?

Leaders in both political parties are working on immigration reform from the starting point that some kind of legalization program is needed to address the status of this group, who in Arizona comprise about 5.5 percent of the population.

Should this reform program be a broad one eventually leading to U.S. citizenship? Or should it offer the unauthorized population some permanent status short of citizenship? Or, perhaps both?

The decision will be multifaceted and it will affect the currently unauthorized and their families most directly. However, it is a policy decision that ultimately will affect all of Arizona and therefore is worth examining the possible effects that such options might have on the broader community, including economically.

Recent research into the economic value of naturalization suggests that a broad path to citizenship would have a significantly greater positive economic impact for Arizona than a form of legalization short of citizenship. Naturalized immigrants tend to have many traits associated with higher income and the mere fact of citizenship itself usually means a significant economic impact — estimated in Arizona to be at least $500 million in the first five years after naturalizations begin.

The proposals A number of broad frameworks are under discussion in Washington, D.C., but few details have been made available public. Bipartisan groups in the Senate and the House are reported to be negotiating legislative language and the White House has developed some parameters, as well.

An initial proposal for discussion is expected soon, perhaps this spring. Here are a few of the topics of discussion and likely ensuing debate:

Some policy points that could affect the impact of a legalization program: • Border security “triggers” before granting permanent status – discussed in the U.S. Senate, could significantly delay the granting of permanent residency and citizenship • Work documentation requirements – included in the U.S. Senate framework (but not in the White House’s), could be a major impediment for informal workers • Costs of applications or penalties — high costs to join a legalization program or to naturalize could prevent many people from doing so.

153

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGR APHICS

• IMMIGRATION

Path to citizenship

Unauthorized immigrants would immediately be granted a new, temporary legal status once they have fulfilled a number of requirements (discussed below in greater detail). After an established period, they would be able to gain Lawful Permanent Residency (LPR, often called a “green card”). At present, most people can apply for citizenship after having had a green card for five years. The U.S. Senate “Gang of Eight” – which includes Arizona Republicans John McCain and Jeff Flake – and President Barack Obama both broadly seem to follow this model, with recent reports suggesting that the Senate is discussing a 10-­year path to LPR and a subsequent three-­year path to citizenship.

The White House, meanwhile, is discussing an eight-­year path to LPR and five-­year path to citizenship.i

Legal status

Unauthorized immigrants would eventually be granted a permanent legal status, which is significantly different from LPR – especially given the restriction to prohibit those who qualify from becoming U.S. citizens. This method is preferred by some U.S. House Republicans, former Florida Gov. Jeb Bushii and others who say the United States should not reward illegal entry with U.S. citizenship.

No “special path”

Reportedly being discussed by a bipartisan group in the House, unauthorized immigrants would be granted provisional legal status. They would be able later to apply for LPR but only through a modified version of current channels (via a family sponsor or an employer). Eventually they would be allowed to seek citizenship by virtue of their green card. A large number of people without a family or employer sponsor, however, would not be able to gain LPR or, consequently, U.S. citizenship.iii It seems any of these proposals would require applicants to meet requirements such as passing a criminal background check, paying any back taxes and a penalty and demonstrating an understanding of English and U.S. civics. There also seems to be a stronger consensus that an immigration bill would separately address the status of “DREAMers,” unauthorized immigrants brought to the United States as young children. The following assessments will therefore attempt to take DREAMers out of the equation.

Frameworks of immigration reform are moving targets, so this policy brief looks at two simplified models in order to measure their effects against each other: 1. A “path to citizenship” where unauthorized immigrants are immediately given temporary status, eventually gaining LPR and being able to apply for citizenship after 13 years; and 2. “Non-­citizenship legalization,” where unauthorized immigrants are immediately given temporary status and after eight to 10 years are granted a permanent residency status that does not allow them to apply for citizenship.

Who in Arizona would be eligible?

The most recent estimate for the unauthorized population in Arizona is 360,000.iv This number has fallen in recent years amid decreased economic opportunity, increased enforcement and tough state legislation, including Senate Bill 1070.

But for the sake of this analysis we can assume Arizona’s unauthorized population is now stable. Between 50,000 and 54,000 of these unauthorized immigrants are current or potential “DREAMers.”v This leaves around 310,000 unauthorized immigrants in Arizona whose status would be addressed by a general legalization program on the federal level.

Who are these 310,000?vi Most unauthorized immigrants are workers. Labor force participation among unauthorized men is much higher than in the general population, though it is lower among women. Almost all are of working age and very few are over age 65; a great many are parents and most have been in the United States since before 2000.vii

154

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGR APHICS

• IMMIGRATION

Proceeding from an earlier estimate of the proportion of unauthorized immigrants in Arizona who are working,viii the unauthorized population contains around 190,000 workers today, which accounts for about 6.8 percent of Arizona workers.ix A 2007 study estimated the average earnings of a three-­person unauthorized immigrant household to be $36,000 per year, meaning most are low-­income.

How and why does citizenship affect immigrant earnings?

Authorized immigrants earn much more on average than unauthorized immigrants, as do naturalized citizens in comparison to non-­‐naturalized immigrants.xi However, naturalized citizens are likely to have many traits associated with higher income — for instance, being more educated and knowing English better than other immigrants.

Research has shown, though, that a substantial portion of this increase in income is attributable to immigration or citizenship status by itself. There is a difference in earnings between people who are similar in all ways except their status.

Any federal legalization program that broadly gives unauthorized immigrants a permanent status would likely result in a significant boost in earnings for that group. In this way the “first steps” of either a path to citizenship or a more basic legalization would have a similar effect. The experience of the 1986 Immigration Reform and Control Act (IRCA) has allowed for extensive study of its effects and the clear consensus is that the most prominent economic impact of such a program is higher earnings for those legalized.xii Coming out of the shadows, authorized immigrants can bargain more effectively with employers. They also are freer to invest in their own human capital. On the other hand, unauthorized immigrants face a “wage penalty” in comparison to authorized immigrants doing similar work and this deepens the longer they stay unauthorized. A legalization program ceases the deepening of this penalty and results in relatively fast subsequent wage growth, allowing the legalized to partially “catch up.”xiii Additionally, research has shown that becoming a naturalized citizen also has the effect of increasing an immigrant’s earnings, even when controlling for factors such as education levels, English-­speaking ability and age.xiv There are two main reasons:xv • •

Being a citizen allows an immigrant to compete for certain jobs (largely white-­collar and especially in government) that are available only to U.S. citizens. This increases job mobility.

Becoming a citizen signals commitment to one’s life in the United States and the U.S. labor market. Employers are more willing to invest in a naturalized citizen’s skills and human capital. Research has suggested these impacts are not felt until an immigrant attains citizenship.

A study by policy analysts Manuel Pastor and Justin Scoggins, using extensive cross-­sectional and longitudinal data, pegged naturalization alone — controlling for other important characteristics — as accounting for, on average, 8 percent to 11 percent higher earnings.xvi

Possible economic impacts A path to citizenship that causes additional earnings growth of this magnitude would present a large economic impact for Arizona that a simple legalization would not. Estimating this impact requires two things: looking forward to 2016 to estimate how many workers might naturalize and estimating what they might be earning before naturalization.

Working from the figure of around 190,000 unauthorized Arizona workers and considering the age demographics of the unauthorized population, allows for a reasonable estimate.xvii Taking out current workers who are probably DREAMers,xviii and subtracting the remaining population to turn 68 before 2026,xix this leaves an estimated 160,000 workers who would be eligible to naturalize in 2026. Their mean age would be about 51.

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CONSUMER DEMOGR APHICS

• IMMIGRATION

How many would naturalize? Around 40 percent of participants in the main IRCA legalization program had naturalized within the first five years possible,xx and 53 percent within the first 13 years.xxi The appeal of naturalization may be higher today amid increased enforcement, but for the sake of this estimate, it is reasonable to suppose that the impacts of a legalization program today would be similar — a 40 percent legalization rate in the first five years and around 50 percent over time.

How much would these immigrants be earning? After legalization, IRCA immigrants leveled out earning on average 63 percent to 67 percent of the average earnings of native-­‐born people their age, with older workers at the bottom of that range.xxii Since the average beneficiary would be in the 45 to 54 age range, this estimate works from BLS data to estimate average pre-­naturalization individual annual earnings of about $27,450.xxiii Repeating Pastor and Scoggins’ methods with Arizona-­‐specific estimates, what, then, might be the overall wage impact in Arizona?

»»

FROM NATURALIZATION ALONE

INCLUDING INDUSTRY EFFECT

Est. Earnings (2011 Usd)

$27,450

$27,450

Returns To Naturalization

7.93%

11.22%

Incr. Income (Per Worker)

$2,176.79

$3,079.89

80,000

80,000

$174,142,800

$246,391,200

Naturalizing Workers Aggregate Increased Income (Per Year)

A reasonable, conservative estimate is that a path to citizenship could mean about $174 million to $246 million in additional individual income a year in Arizona and these additional earnings would go mostly to low-­income families, making them more financially secure. It’s worth emphasizing that this is the effect that citizenship status alone has on earnings — apart from other attributes naturalized citizens are likely to have that could cause them to earn more.

Additional income also has a ripple effect through the economy via increased demand. Pastor and Scoggins, borrowing from scholarship on “demand multipliers,”xxiv recommend as a reasonable and conservative estimate a multiplier of $1.17 of economic impact per additional $1 in income.

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CONSUMER DEMOGRAPHICS

CONSUMER DEMOGR APHICS

• IMMIGRATION

The overall economic impact for Arizona then looks like this:

»»

FROM NATURALIZATION ALONE

INCLUDING INDUSTRY EFFECT

$174,000,000

$246,000,000

Macroeconomic Multiplier

1.17

1.17

Total Demand-side Impact

$203,580,000

$287,820,000

Rounded Wage Impact

This means an overall economic impact in the ballpark of $200 million to $300 million per year for Arizona as a result of greater citizenship alone — one that would not result from a legalization program without citizenship.

Or, looking at it in a slightly subtler way, assuming that 40 percent of those eligible naturalize at a stable pace in the first five years:

YEAR

ADDITIONAL NATURALIZATIONS

Add. income (low bound)

Aggregate income impact

2026

12,800

$27,862,912

$27,862,912

2027

12,800

$27,862,912

$55,725,824

2028

12,800

$27,862,912

$83,588,736

2029

12,800

$27,862,912

$111,451,648

2030

12,800

$27,862,912

$139,314,560

Total

$417,943,680

Demand Multiplier

1.17

Arizona Economic Impact

$488,994,106

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CONSUMER DEMOGRAPHICS

CONSUMER DEMOGR APHICS

• IMMIGRATION

The macroeconomic impact of a path to citizenship for Arizona could be conservatively estimated to be about $500 million in the first five years. However, looking at the impact from only the demand side, as this exercise does, it is quite likely a significant underestimate of the economic impact of increased citizenship. This is because, as Pastor and Scoggins note, one effect of naturalization is greater investment in a worker’s skills — a supply-­‐side effect that increases the productivity of the workforce.xxv

Implications for policy: Citizenship presents benefits Research presents some important implications for the policy debate:

• Significant, broadly shared economic benefits to citizenship: There is strong evidence that a state

such as Arizona stands to benefit significantly more economically from a path to citizenship than from legalization short of citizenship. Broader citizenship means increased earnings for beneficiaries and a more skilled workforce.

• Possible implications for families and children: Earnings increases would accrue mostly to loweri­ncome workers, many who have children. Along with clear evidence children from more economically stable families perform better in school, there is some evidence that parents’ legal status has an independent effect.xxvi

• Drawbacks to programs that withhold permanent legal status from some: Proposals that

would exclude a significant number of unauthorized immigration from legal status may have a very different economic impact, due to evidence that legalization programs have a negative effect on the earnings of workers who remain unauthorized.xxvii Broadly extending legal status would in principle guard against this.

• Removing unnecessary barriers to citizenship: Given the potential benefits of naturalization, the esti-

mate that only around half of eligible people would naturalize may be surprising. However, currently, 93 percent of eligible Hispanic immigrants who have not naturalized say they would if they could and many cite administrative barriers or the cost of the citizenship application as a chief obstacle.xxviii As broader citizenship seems to have economic benefits, policy should consider lowering unnecessary administrative barriers to naturalizing.

• Why wait? Thirteen years is the fastest path to citizenship currently being proposed. It may be legislatively

and administratively difficult to execute a legalization program faster than this. The question of how long to make the path should be considered in light of all the objectives of immigration reform legislation. However, it should be noted the longer the path, the longer the delay before communities reap the economic benefits of citizenship and the less these economic benefits become, as beneficiaries get older and retire.

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CONSUMER DEMOGR APHICS

• IMMIGRATION

Endnotes Shear, M. D. and Parker, A. (2013) “A Senate Plan Alters Waiting Periods for Immigration,” The New York Times, March 17, 2013 (accessed March 19, 2013). Gomez, A (2013) “White House Immigration Plan Offers Path to Residency,” USA Today, February 17, 2013 (accessed March 19, 2013). ii Glueck, K. (2013) “Bob Goodlatte: No Need for Citizenship Path,” Politico, February 21, 2013 (accessed March 19, 2013). “Jeb Bush Opposes Pathway to Citizenship,” Today Show (video), March 4, 2013. iii Harrison, D. (2013) “House Immigration Negotiators Mull Citizenship Compromise,” Roll Call, February 28, 2013 (accessed March 19, 2013). iv Hoefer, M., Rytina, N. and Baker, B. (2012) “Estimates of Unauthorized Immigrant Population Residing in the United States: January 2011.” Department of Homeland Security, Office of Immigration Statistics: March 2012. v Immigration Policy Center (2012) “Who and Where the DREAMers Are: A Demographic Profile of Immigrants Who Might Benefit from the Obama Administration’s Deferred Action Initiative.” July 2012. vi We assume (safely) that Arizona’s unauthorized population is broadly similar to the national one. vii Passel, J. S. and Cohn, D. (2009) A Portrait of Unauthorized Immigrants in the United States. Washington: Pew Hispanic Center. viii Hinojosa-Ojeda, R. (2012) “The Consequences of Legalization versus Mass Deportation in Arizona: Findings and Methodology.” Washington: Center for American Progress. ix This is an estimate working from Hinojosa-Ojeda’s (2012) estimate, but it does not re-conduct his methodology (due to a lack of data). Instead, it more crudely adjusts the estimated number of workers to an estimate of the overall unauthorized population that is 40,000 people lower than Hinojosa-Ojeda used at the time of his analysis. The figure of 190,000 unauthorized workers in Arizona is rounded and does not account for improvements in the labor market in the past three to four years, so in that way it is conservative. The calculation regarding the portion of all Arizona workers who are unauthorized derives from BLS Current Population Survey data, which recently has placed the number of workers in Arizona at around 2,790,000. x Passel and Cohn (2009). Furthermore, immigrant populations’ incomes are especially prone to wax and wane with economic tides. xi Rivera-Batiz, F. L. (1999) “Undocumented Workers in the Labor Market: An Analysis of the Earnings of Legal and Illegal Mexican Immigrants in the United States,” Journal of Population Economics 12: 91-116. xii Orrenius, P. M. and Zavodny, M. (2012) “The Economic Consequences of Amnesty for Unauthorized Immigrants,” Cato Journal 32(1): 85-106. xiii Kossoudji, S. A. and Cobb-Clark, D. A. (2002) “Coming out of the Shadows: Learning about Legal Status and Wages from the Legalized Population,” Journal of Labor Economics 20(3): 598-628; Rivera-Batiz (1999). xiv Pastor, M. and Scoggins, J. (2012) Citizen Gain: The Economic Benefits of Naturalization for Immigrants and the Economy. Los Angeles: Center for the Study of Immigrant Integration. xv Bratsberg, B., Ragan, J. F and Nassir, Z. M. (2002) “The Effect of Naturalization on Wage Growth: A Panel Study of Young Male Immigrants,” Journal of Labor Economics 20(3): 568-597. xvi As Pastor and Scoggins explain, the 7.93 percent figure controls for occupational characteristics and industry, as well as for human capital characteristics, age, household characteristics, geographic origin, length of time in the U.S., etc.

However, because increased job mobility is a potential result of naturalization, it is not clear that occupational characteristics should be controlled for in understanding the impact of naturalization. The 11 percent figure results from not controlling for occupation or industry. It is reasonable to see the potential impact therefore as probably closer to 11 percent, but the 8 percent estimate is a conservative figure. xvii This estimate works from two studies of the age structure of the unauthorized population: Passel and Cohn (2009); and Hoefer, Rytina and Baker (2012). xviii The rough assumption is that unauthorized immigrants currently under 26 are “DREAMers.” xix This is about 10 percent of the remaining total. xx Rytina, N. (2002) “IRCA Legalization Effects: Lawful Permanent Residence and Naturalization through 2001” (Conference Paper). i

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CONSUMER DEMOGR APHICS

• IMMIGRATION

xxi Baker, B. C. (2010) “Naturalization Rates among IRCA Immigrants: A 2009 Update,” Office of Immigration Statistics, Department of Homeland Security, October 2010. xxii Rob Paral and Associates (2009) Economic Progress via Legalization: Lessons from the Last Legalization Program.

Washington: Immigration Policy Center. xxiii 2011 dollars. This is conservative in that it assumes no real wage growth on average between 2011 and 2026. This estimate takes 2011 Bureau of Labor Statistics data on the individual earnings of the native-born in that age group and estimates the average income for people on the eve of naturalization eligibility in 2026 would be 63 percent of that.

This is clearly a rough estimate, but the number accords well with Pastor and Scoggins’ rigorous examination of the earnings of the non-naturalized. It might also be objected that a new legalization’s impact may be less than IRCA, because it would legalize more people; the newly legalized, however, would have several more years of possible wage growth to “catch up” than under IRCA, a faster program. Furthermore, because average annual earnings in Arizona are less than the national average, the figure is discounted 4.5 percent. (See: Bureau of Labor Statistics (2012) “Foreign-Born Workers: Labor Force Characteristics — 2011,” News Release, Bureau of Labor Statistics, May 24, 2012. See also: Bureau of Labor Statistics (2013) “County Employment and Wages in Arizona — Second Quarter 2012,” News Release, Western Information Office, Bureau of Labor Statistics, February 27, 2013.) xxiv Zandi, M. (2011) “At Last, the U.S. Begins a Serious Fiscal Debate,” Moody’s Analytics, April 14, 2011. xxv Orrenius and Zavodny (2012) also note that legalization could result in less flexibility in the labor market, though they aptly question whether unauthorized labor is truly flexible in a high- enforcement environment. They also note that a macroeconomic impact might, in principle, be blunted by some amount of an increase in wages may be passed to consumers through higher prices. xxvi Bean, F. D., Leach, M. A., Brown, S. K., Bachmeier, J. D. and Hipp, J. R. (2011) “The Educational Legacy of Unauthorized Migration: Comparisons Across U.S.-Immigrant Groups in How Parents’ Status Affects Their Offspring,” International Migration Review 45(2): 348-385. xxvii Davila, A., Pagan, J. A. and Grau, M. V. (1998) “The Impact of IRCA on the Job Opportunities and Earnings of Mexican-American and Hispanic-American Workers,” International Migration Review 32(1): 79-95. xxviii Gonzalez-Barrera, A., Lopez, M. H., Passel, J. S. and Taylor, D. (2013) The Path Not Taken: Two Thirds of Legal Mexican Immigrants are Not U.S. Citizens. Washington: Pew Hispanic Center.

About the chief researcher/author

Mike Slaven is a former staff member of the Arizona Governor’s Office and the U.S. Department of Homeland Security.

He has a master’s degree from the University of Edinburgh in Scotland and was a U.S. Fulbright Scholar in the United Kingdom researching immigration policy. Slaven can be reached at mcslaven@gmail.com or on Twitter @mcslaven.

Morrison Institute Latino Public Policy Center

The Latino Center is an extension of Morrison Institute for Public Policy, an Arizona State University resource. The Latino Center’s mission is to bridge the gap of understanding between Arizona policy issues and Latino issues, which due to rapidly changing demographics no longer can be viewed separately in terms of impact or future. Joseph Garcia is center director.

Edited by

MorrisonInstitute.asu.edu/Latinos 411 N. Central Ave., Suite 900 / Phoenix, AZ / 85004-0692 Joseph.C.Garcia@asu.edu / 602.496.0205 R eprinted with P ermission

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CONSUMER DEMOGRAPHICS

IMMIGR ATION

â&#x20AC;˘ general

First- and Second-Generation Immigrants

Share of the Population,

Actual and Projected Percent, 1900-2050

Source: Second Generation Americans: A portrait of the Adult Children of Immigrants, Pew February 7, 2013

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CONSUMER DEMOGRAPHICS

IMMIGR ATION

• general

163

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Hispanic-owned Business Enterprises Joel Kotkin, author of The Next Hundred Million: America in 2050, lists the Phoenix Valley in the top 10 metro areas for minority entrepreneurs.

The numbers support that conclusion. Today, about 100,000 minority-owned companies call Arizona home. The state has an estimated 67,300 Hispanic-owned businesses that will generate $10.2 billion in annual gross receipts in 2013.

Thatâ&#x20AC;&#x2122;s a 28 percent increase since 2007, despite the Great Recession and the passage of tough immigration legislation.

Nationwide, there are approximately 3 million Hispanic-owned businesses growing at a rate 2.5 times faster than nonLatino-owned firms, according to U.S. Census Bureau. Companies owned by Hispanic women are growing at an even faster rate: at least three times the overall growth rate of all businesses in the United States.

Among the distinct characteristics of Hispanic-owned firms: One-third nationwide are owned by women. In Arizona, about 30 percent of Hispanic-owned companies are owned by immigrants. Most Hispanic-owned companies are sole proprietorships and/or family owned. Arizona, meanwhile, has the fifth-largest percentage of Hispanic-owned businesses in the United States. About 30 percent of Hispanic-owned firms are in construction or service sectors such as repair and maintenance and restaurants. Hispanic-owned firms also are flourishing in health care, retail trade and transportation, U.S. Census data show.

The rapid growth rate of Hispanic-owned small businesses is largely tied to overall booming population growth among U.S. Latinos, which nearly doubled in Arizona between 1990 and 2010 to more than 2 million people. The United States is now home to more than 53 million Hispanics.

One troubling note: Average annual gross receipts by Hispanic-owned businesses, estimated at $152,000, continued to lag behind non-Latino companies, which had annual average gross receipts of more than $490,000 per year in 2007 (the last figures available from the Census).

In Arizona, the biggest challenges faced by Latino business owners are mostly the same as those confronted by any small business, though unique challenges do remain, according to The Hispanic Business Enterprise Study, a new report by the Arizona Hispanic Chamber of Commerce that surveyed Arizona Hispanic business owners in 2012 and provides insights into their challenges, strategies, needs and resources.

AZHCC Hispanic Business Research Series sponsored by

164

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGR APHICS

• HISPANIC-OWNED BUSINESS ENTERPRISES

Among the survey’s highlights: •

62 percent of Hispanic business owners surveyed said they planned on expanding their business during the next few years

•

63 percent believe their company’s financial status will improve in the next few years

•

Asked about the “most significant challenges and barriers” they faced: 23 percent said the challenges they face are “no different” than for other small businesses, 9% reported “making enough money” is a big problem, 9% reported “securing loans/funding for the business” among their major challenges, 7% cited “overcoming the economic downturn” and 6% said discrimination was a significant barrier

•

Asked if overcoming negative perceptions tied to being Hispanic Business Enterprises was a problem, 38% said yes

•

32% felt that cultural differences had an impact on their business practices

•

26% agreed with the statement that they were treated differently by suppliers/customers because they were an HBE

•

22% said they were not treated with respect when applying for loans

In those cases where being a Hispanic-owned business served as an obstacle, the survey found that most Latino business owners said they “work harder” to overcome the discrimination that surfaced in the course of doing business. As one business owner noted, “Being a minority is my biggest challenge, because I’ve been here 41 years and it’s funny because someone comes in they are looking for a white person to talk to and they look you over like, ‘Huh, you’re the owner?’”

Despite facing some unique challenges that come with being a Latino-owned firm, the survey found that there was a 17% increase from 2007 to 2012 in firms that leverage their minority status as a strategy to build successful businesses and as a tool to survive the economic downturn by: •

networking with other minority-owned businesses

•

using their status to pursue contracts

•

promoting their “Minority Business Enterprise” status to potential customers

One surprising result: Only three companies out of the 380 surveyed mentioned SB 1070, the state’s 2010 immigration bill, as being a challenge to them, though it must be noted that the people surveyed were not directly asked a question about SB1070. The three responses came from the open-ended question asking about the challenges they face.

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& I N

P A R T N E R S H I P

W I T H

P R E S E N T

AZ Million Dollar Circle of Excellence Leading

2 0 1 3

the

Way

in

Supplier Diversity

I N D U C T I O N

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGR APHICS

• HISPANIC-OWNED BUSINESS ENTERPRISES

HISPANIC-OWNED BUSINESSES HAVE A STRONG PRESENCE IN THE U.S. ECONOMY

Nearly 3 million Hispanic-owned businesses in the United States generate annual combined revenues of $420 billion.

167

CONSUMER DEMOGRAPHICS

HISPANIC BUSINESS ENTERPRISE REPORT The purpose of the 2012 Hispanic Business Enterprise (HBE) Study is to provide insights into the challenges, strategies, needs and resources of these Arizona businesses. The Phoenix MBDA Business Center and Arizona Hispanic Chamber of Commerce designed the study to be a resource for businesses, organizations, educators, government agencies and individuals who want to help Arizona HBEs succeed. A total of 380 telephone interviews were conducted with Arizona HBEs during August – October 2012. The businesses represent a range of industries, company sizes and locations throughout the state. Comparisons were made with the 2007 SRP Arizona Business Study - Focus on Minority-Owned Businesses1, when applicable.

The study addressed five different topic areas – Challenges, Strategies/Successes, Business Profiles, Owner Profiles and The Future. Here are highlights from the study.

What types of challenges have Hispanic business enterprises (HBEs) faced?

Similar challenges — HBEs felt that most of the challenges they faced were common to businesses in general and not necessarily unique or related to being minority-owned.

The top responses to an open-ended question about the most significant challenges or barriers they faced as a minorityowned business was “no unique challenges/same as other businesses” (23%). The specific challenges they mentioned tended to be business-related, such as “making enough money” (9%) and “securing loans/funding for the business” (9%).

Some businesses still experience specific minority-related issues — When asked specific questions about the challenges of being a minority business enterprise: • 38% felt that they have had to overcome negative perceptions of being an HBE (percent significant/somewhat of a challenge).

• 32% felt that cultural differences had an impact on their business practices (percent significant/somewhat of a challenge).

• 26% agreed with the statement that they were treated differ-

ently by suppliers/customers because they were an HBE (percent strongly agree/agree with the statement).

• 22% disagreed with the statement that they were treated with respect when applying for loans (percent strongly disagree/disagree with the statement).

A sample of comments about most significant challenges/ barriers included:

“Competing with the bigger companies is my biggest challenge.”

“When the economy is slow, it hurts my business because people don’t have discretionary funds to pay for my services.”

“Being a minority is my biggest challenge because I’ve been here 41 years and it’s funny because when someone comes in they are looking for a White person to talk to and they look you over like,“Huh, you’re the owner?””

A review of comments throughout the survey highlighted that most just “work harder” to overcome the discrimination that surfaced in the course of their business.

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CONSUMER DEMOGRAPHICS

section I

• CHALLENGES

Hispanic-Owned Business

170

CONSUMER DEMOGRAPHICS

section I

• CHALLENGES

171

CONSUMER DEMOGRAPHICS

section I

172

• CHALLENGES

CONSUMER DEMOGRAPHICS

section ii

Strategies and Successes What steps have these businesses taken to succeed?

Leveraging their minority status – HBEs have used their status as minority-owned businesses to promote, network and target their businesses.

• Network with other minority-owned businesses – 54% agree with the statement • Use minority-owned status to pursue contracts – 42% agree • Promote their Minority-Owned Business Enterprises (MBEs or MOBs) status – 36% agree

Increased positioning of their minority status – Significantly more HBEs were using their minority status

in 2012 compared to 2007 for…

• Networking with other minority-owned businesses – 54% in 2012; 44% in 2007.

• Promoting their Minority-Owned Business Enterprises (MBEs or MOBs) status -- 36% in 2012; 28% in 2007.

Impact of the economic downturn – The most significant accomplishments HBEs felt they achieved involved

“surviving in business” (45%) and “growing a successful business” (34%). Most recognize that just getting through the past five plus years of economic challenges was a significant milestone.

Accomplishments/Success Stories Here are examples of some significant accomplishments and successes HBEs have experienced since starting their businesses.

(1) We survived the economic down turn. (2) We have won recent awards recognizing us for quality of work and type of business we do. (3) We have a stable staff; some have been here 10 to 20 years.

(1) Having obtained contracts from other states and keeping them. (2) Overcoming this economic famine.

(3) From 1999 to-date, I’m still having people employed so they could provide for their families.

(1) Helping other minorities. (2) Helping the community. (3) Starting with nothing.

(1) The fact that we are still in business with the economy being the way it is. (2) We have enough of a standing in the community to survive both of the economic downturns. (3) Our reputation within the industry.

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CONSUMER DEMOGRAPHICS

section II

174

• Strategies and Successes

CONSUMER DEMOGRAPHICS

section iii

business characteristics What are the characteristics of HBEs? A key screening criterion for survey participants was that the businesses had to have at least one full-time employee. In addition, small businesses represented the largest share of firms who were surveyed. The profile characteristics tended to reflect smaller-size businesses.

Companies surviving the economic downturn - A profile of the typical HBE included: •

Almost one-third (34%) were sole proprietorships; one quarter (23%) were S Corporations.

•

Median revenue in 2011 was $263,000, which was slightly, but not significantly higher, than $226,000 in 2007.

•

Median number of employees was four.

•

Median age of the company was 14 years old, which was significantly higher than in 2007 (9 years).

•

Almost two-thirds were family-owned (62%)

•

Half were home-based businesses (41%)

HBEs conducted business both nationally and internationally – One-third (36%) conducted business throughout the United States; 14% conducted business internationally. This geographic span of customers was comparable to the 2007 study.

hispanic business enterprise 2007

2012

441

380

Sole Proprietorship

40%

34%

Corporation

22%

19%

S Corporation

17%

23%

Partnership

13%

11%

8%

12%

$226,000

$263,000

4

4

9 years

14 years

Family-owned

67%

62%

Home-based

38%

41%

6%

3%

Conducts Business Internationally

16%

14%

Conducts Business Nationally

31%

36%

Sample Size OWNERSHIP

LLC Median Revenue (2006 and 2011) MEDIAN NUMBER OF EMPLOYEES MEDIAN AGE OF COMPANY BUSINESS DESCRIPTIONS

Nonprofit GEOGRAPHIC SCOPE

Bold figures are significantly different between 2007 and 2012.

175

CONSUMER DEMOGRAPHICS

SECTION IV

Owner Characteristics Who owns these Hispanic business enterprises?

Characteristics of HBE owners:

•

•

More than one-third had college degrees (39%)

•

Median age was 51 years old

•

Median income was $69,500

Compared to the general population - HBE owners were 50% more likely to have a college degree and had 50% higher annual income compared to the state’s median household income.* •

2009 Arizona education attained – degree2 compared to 39% among owners

26%

college

2011 Arizona median household income - $46, 7093 compared to the $69,500 among owners

* NOTE: The income for HBE owners is not a direct comparison with the overall household figures because the state’s 2011 median income accounts for multiple wage earners in the home compared to the HBE owner’s individual income. The difference of HBEs’ household income would be even greater than Arizona household income.

Impact from the economic slowdown – Demographics of the HBE owners generally did not change significantly from 2007 to 2012.

hispanic business enterprise

Sample Size

2007

2012

441

380

49 YRS.

51 YRS.

36%

39%

$76,400

$69,500

74%

74%

Demographics Median Age Percentage with college degree or more education Median Household Income Culture/Language Born in U.S. No significant differences between 2007 and 2012.

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CONSUMER DEMOGRAPHICS

SECTION V

The Future What do these owners think about the future of their business?

Improving economic future - Most HBEs felt that their financial situation will improve in the next 12 months (63%). Only 10% anticipated that their situation will become worse. As a point of comparison, optimism was down compared to before the recession (73% felt their financial situation would improve in 2007).

Expansion plans â&#x20AC;&#x201C; Almost two-thirds (62%) planned to expand their businesses during the next five years. Only 5% planned to shrink their businesses.

177

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CONSUMER DEMOGRAPHICS

CONCLUSIONS

1. Race-related challenges still exist - While most companies/organizations surveyed focus on the day-to-day challenges of staying in business, approximately one-third of HBEs indicated having to overcome negative perceptions related to being a minority-owned business. A review of comments throughout the survey highlighted that most just “work harder” to overcome the discrimination that surfaced.

One surprising note is that only three companies out of the 380 surveyed mentioned SB 1070 as being a challenge. It should be noted that HBEs were not directly asked a question about SB 1070. The three responses came from the open ended question asking about the challenges they face.

2. Increasing visibility of their minority status - HBEs’ have leveraged their minority status as a strategy to build successful businesses and as a tool to survive the economic downturn. They network with other minority businesses, they use their status to pursue contracts and they promote their minority status to potential customers.

3. Opportunities to help HBEs - HBEs biggest needs focus on the basics of building a business during this economic recovery:

• Marketing/Sales – One of the top challenges they mentioned was “making enough money” – i.e., how to market and build their sales.

• Capital – Some businesses listed securing loans was their top challenge.

• Growth – Two out of three HBEs plan to expand their business during the next five years. They will need help with staffing, cash flow, facilities and other growth-related infrastructure needs in order to build their organizations.

END NOTES

Salt River Project, 2007 SRP Arizona Business Study — Focus on Minority-Owned Businesses, 2007.

United States Census Bureau, Education Attained by State, The 2012 Statistical Abstract, The National Data Book, 2012, http://www.census.gov/compendia/statab/cats/education/educational_attainment.html.

Amanda Noss, “U.S. Census Bureau, Household Income for States 2010 and 2011,” American Community Survey Briefs, United States Census Bureau, September 2012.

1 2

3

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BROWN AND WHITE, INC.

OWNER: Pete Granillo Who is Brown and White, Inc.?

Pete Granillo started his business in 1981 as a fence and guard rail company. The construction company he was working with at the time decided to shut down their Tucson operation and asked Pete to finish their existing contracts. Peteâ&#x20AC;&#x2122;s experience as an assistant manager in the construction industry gave him enough of a background to step out on his own in 1981 and incorporated Brown and White in 1983.

Over the past 30 plus years, the company has grown from a small fence and guard rail company to a full-service, general contractor that has worked in Arizona, Texas and New Mexico.

Photo by Joe Ramirez, Area520

Brown and White, Inc. PETE GRANILLO 501 E. 30th Street, Tucson, AZ 85713 [520] 624.9860 brownandwhiteinc.com pete@brownandwhiteinc.com 30 years in business

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CONSUMER DEMOGRAPHICS

—Pete Granillo

BROWN AND WHITE, INC. ­

What have been your biggest challenges as a minority-owned business?

What have been your biggest successes as a company?

The economic downturn hit the company hard. As the size and

I think that the company’s biggest success has been helping

number of available construction contracts began to shrink, we

employees grow over the past 30 years.

had to cut back in order to survive. The biggest challenge

number of long-term employees with tenures ranging from 15 –

we faced was always having to “feed the monster” (i.e., the

30 years. The company has helped employees go to school,

expenses related to maintaining a large organization) and took

buy houses and weather difficult times. These are also the same

a number of steps to downsize the company, cut expenses and

employees whose commitment to the organization has helped

be more selective in the contracts we pursued. These changes

the company succeed over the years.

We have a

made a positive impact over the past five years and helped us return back to the previous growth mode.

Another significant challenge we have faced is the negative perceptions of being a minority-owned business. I have had to battle the perceptions that the only reason we won a particular contract was because we are a minority-owned business.

I have to prove to customers that Brown and White is a well-run company that does good work and also happens to be a minority-owned business. Bidding requirements on government contracts have opened doors, but we still have to work twice as hard to prove that we earned the business.

Customers would not come back to Brown and White if we only relied on our minority status. We are only as good as our last job.

How have you overcome the challenges of being A minority-owned business?

I have found that the key to overcoming the negative stigmas has been to build relationships, especially with those who initially have been resistant to working with our company.

Over the years, we have reached out to these companies until they finally gave Brown and White an opportunity. Once the door was open, we made sure that our company did quality work and convinced the customer to use Brown and White in the future.

What lessons have you learned since starting this company?

A few key lessons I have learned over the past 30 years running Brown and White include: Starting a new business: Learn as much as you can in the business you’ve chosen to begin. Work in the industry and learn the methods. After a few years, step out and create your own methods.

Capital sources: If you are just getting started, try to fund the business as much as you can by yourself.

It is very difficult to find banks and bonding companies who are willing to support startups.

Being a minority – There are significant advantages being a minority business person. I speak two languages. I can navigate in two different cultures. I have learned to survive in one culture and make money in the other. Being a minority has been a blessing for me.

Staying involved/Giving back – Brown and White sponsored the first minority- and women-owned business enterprise (M/WBE) workshops in Tucson.

I have served on a number of local and national boards representing minority businesses. I take the philosophy that everyone benefits if we all share our experiences and help others find solutions to their business challenges. We can show these businesses how to get there. They have to put in the work to be successful.

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CONSUMER DEMOGRAPHICS

!GREAT IMPACT!, INC.

OWNER: Teresa Ornelas

What is ¡Great Impact!, Inc.? ¡Great Impact!, Inc. provides products and services to help organizations meet their marketing needs through promotional products. Some of these promotional product solutions include adding logos and messaging to marketing materials, such as clothing items, awards, mugs, food products and golf items. Services we provide include order fulfillment, inventory management and online company store programs. We are a family-run business with five employees and have certifications as both a Woman Business Enterprise and a Minority Business Enterprise.

What is the history of the company?

My professional background includes 13 years in the corporate world as a business territory manager in the tech industry. I took a break to be a stay-at-home mother, but as my kids began to grow, I decided to start a home-based business. I hoped to combine the best of my professional and personal worlds.

The business began in early 1999 as a reflection of my passion for gift-giving and my background in marketing. As I traveled to gourmet food shows across the United States, I noticed a gap between the products available and a need to provide personalized messaging to customers. The business initially focused on the use of pre-packaged gourmet foods as marketing tools (e.g., gourmet cookies with logos and messages). Early on, we branched into the ad specialty business when our customers began asking if we could also provide customization on items such as mugs and pens.

Much of our diversification is based on our desire to satisfy clients’ needs to the highest possible level. As customers asked about new products and services, we responded and kept growing to make them available.

¡Great Impact!, Inc. TERESA ORNELAS [480] 777.2226 124 W. Orion St. #F8, Tempe, Az 85283 Photo by James e. Garcia, AZHCC

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CONSUMER DEMOGRAPHICS

—Teresa Ornelas

!GREAT IMPACT!, INC. ­

The company soon outgrew our home and required that we

a certification from Women’s Business Enterprise National

move into commercial space. In late 2000, we moved the

Council (WBENC), which has connected me to a broader

business from my home into our current location.

range of business executives and even more mentoring opportunities.

How did the economic downturn affect ¡Great Impact!, Inc.?

We were hit hard by the recession in 2008. At one point, we

What have been your biggest challenges as a minority/woman-owned business?

lost our top six customers overnight. Fortunately, we had metrics

The challenges we face are common to all businesses.

in place to help us determine how much time we had to find

I really have not had many negative experiences being a

solutions and develop a plan.

We survived the downturn

minority- and Woman-owned business. I can only think of the

primarily through the relationships and trust we had built with

benefits associated with being a part of the local Hispanic

our suppliers and customers. We set up payment plans with our

community and network of women business organizations.

suppliers and provided similar options for our customers, which helped stabilize our cash flow. We felt surviving the recession know which companies believe in ¡Great Impact!, Inc., have

What has been your biggest success with your business?

similar values and will stand with us during tough times.

Being happy to go to work and build a the business we can

was a defining moment for our company, because we now

all be proud of has been my greatest success. I also feel that I

How has being a minority/woman affected how you run your business?

I am a third-generation Hispanic and have found the Latino community to be very supportive of my business. The Hispanic culture is naturally very warm and social and the community has been a great resource to me when I needed advice or support. My involvement in the APS Academy for the Advancement of Small, Minority and Women-Owned Enterprise (AAAME) program taught me how to build my company culture based on core values. Arizona Hispanic Chamber of Commerce (AZHCC) and Grand Canyon Minority Supplier Development Council (GCMSDC) have both helped me develop a strong network of contacts in the business community.

have been able to build a positive culture for the business.

What advice would you give to a Latina wanting to start a business?

1. Know what you want to build – Spend time developing your business plan so that you know what type of business you want to build and why you want to build it. It is easy to lose sight of this over time.

2. Values are extremely important – Knowing your values will help guide you when looking for new customers, employees and suppliers.

In the same way, my involvement in National Association of Women Business Owners (NAWBO) especially helped me as

3. Develop a reporting system to measure your success

I was beginning my business. I was able to build a strong

– Be disciplined to review leading and lagging

network of women business owners who have been a good

indicator measures every week. And be ready to

resource to me. ¡Great Impact, Inc. has also recently received

make needed changes to ensure your success.

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NATUROPHATHIC VITALITY WELLNESS CENTER

OWNER: Dr. Judy Hinojos-Sinks What is Naturopathic Vitality Wellness Center?

Naturopathic Vitality Wellness Center is a clinic that integrates holistic medicine with traditional medicine practices to treat patients through the use of natural therapies and modalities. We provide a wide range of services, including wellness check-ups for the entire family, lab work services, well-woman exams and physicals for men, women and children. We offer numerous therapies, including: acupuncture, hydrotherapy, intravenous therapy (such as vitamin C therapy), as well as B-12, B-6 and weight loss injections. We use homeopathic remedies to bring the body back to balance. We also work with patients on nutrition and diet and offer services for detox/cleansing and natural hormonal balancing.

We take great pride in treating the whole person naturally and heal the person with a blend of powerful tools and therapies with the use of homeopathy, IV, injections, nutritional supplementation and other traditional and holistic modalities.

Focusing on womenâ&#x20AC;&#x2122;s medicine we find the root problems and start the healing process. Some common areas we have phenomenal success include hormone balancing, thyroid, fertility, adrenal, energy, weight loss and stress management.

What is the history of the company?

In 2008, I graduated from the Southwest College of Naturopathic Medicine in Tempe with honors and began working for a physician in the Valley where I started treating my own patients.

After about a year and a half, I opened my own practice. It was always a dream of mine to have my own holistic wellness center where I could serve the community by bringing together all the amazing knowledge and natural healing I learned through my education and life experiences. We opened the clinic three years ago and had 200 patients during the first year. We have grown to more than 1,000 patients by our third year.

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Photo by James e. Garcia, AZHCC

My exposure to Naturopathic Medicine began in my native country, Ecuador, where holistic medicine is more prominent. I came to the United States when I was 18 to go to college at ASU and graduated with honors in Psychology and Women Studies. My goal was to be in a field where I could serve others and the community and studying psychology seemed to be the best choice. After graduating from ASU, I started pursuing my interest in Naturopathic Medicine and decided it was a perfect match to integrate treating the mind as well as the whole person and bringing people back to balance through natural modalities.

Naturopathic Vitality Wellness Center Dr. Judy Hinojosa-Sinks 2165 E. Warner Rd. Suite 104 Tempe, AZ 85284

CONSUMER DEMOGRAPHICS

—Dr. Judy Hinojosa-Sinks

NATUROPATHIC VITALITY WELLNESS CENTER ­

To what do you attribute your success so far?

I believe that it is my life’s work and purpose to give hope and healing to others. I truly live my life’s purpose and it fuels the success that we have been blessed with. Closely allied with my purpose is my passion to serve others. I have found my success has come from serving the community and not from being driven by financial motives. My purpose has been to share with everyone the amazing power Naturopathic Medicine has to offer and provide my patients with effective and transforming ways to heal the body. The other driving strength for success has been the healing results of my patients, watching one go from hurting to vibrant health and then being able to share the experience with them boosts my passion to new heights. That has been very inspiring.

What have been the biggest challenges your business has faced?

In the beginning, one of my biggest challenges was finding the right people to represent my business. I wanted my employees to share the same passion and philosophies so that it translated when we were treating our patients. I believe part of our success and growth has been due to creating a compatible team and teaching the employees how to better serve our patients.

How has being a minority/woman affected how you run your business?

I have seen more opportunities than challenges as a Latina business owner. I think some of my greatest challenges as a Hispanic woman came early on, before I started my business.

When I moved to this country, my knowledge of English was very limited, so learning the language and understanding the culture were challenging.

In terms of being a woman and running my own business, I find some of the challenges come when I have to work with other providers, businesses and doctors who are often men. The challenges have been learning how to talk in their language and showing strong leadership, which is often associated as a male characteristic. I try to balance between communicating strong leadership to my employees/members of the community and expressing compassion, caring and kindness to my patients.

do, so I get up and come to work every day having fun, doing what I need to do…I don’t look at it as a challenge.

What advice would you give to someone starting up a business?

I would advise those starting a new business to save money.

You need enough money to last for at least a year and you should be vigilant about cash flow. I would suggest trying to get your customers to pay in a timely manner, which will allow you to have enough cash flow to pay your employees and other business expenses.

I would also recommend having an in-depth knowledge of your customer base. Have a good clear understanding of who your customers are and who you are serving….know how to provide that service in a timely manner and always be 100% professional.

What has been your biggest success with your business?

My biggest success and achievements have come from seeing the results of the wellness care we provide. For example, we do a lot of fertility care at the clinic and we have seen some amazing results from patients who have been trying to get pregnant for years. Some of my patients had seen numerous practitioners prior to visiting us and then, with the right treatment and some powerful therapies (such as acupuncture, homeopathy, adjusting their diet, balancing their hormones naturally and providing natural supplements), we see successful pregnancies.

I think it is these stories that have been the true successes for our business. Success stories translate into more referrals, which in turn grow our business.

What advice would you give to a Latina wanting to start a business?

1. Establish boundaries — There are many challenges when starting a business. Try to establish some level of boundaries between your business and personal life so that you do not compromise your own wellness and health.

What have been your biggest successes as a company?

2. Surround yourself with the right people — Networking is very important when starting your own business and there are many organizations that are interested in helping provide opportunities to meet the right people. Having a good family support system is also important in achieving success.

Every day is a successful one when my doors are open.

I enjoy being able to run my own business and I am proud that the company has endured over 15 years. I really like what I

3. Don’t give up — Focus on your passion and the hard times will eventually become easier. Your desire and commitment will help you make it happen.

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Freeport-McMoRan is pleased to support the Arizona Hispanic Chamber of Commerce and its efforts to promote the success of Hispanic-owned and small businesses.

We are committed to supporting partnerships today that lead to a stronger community and economy tomorrow.

Visit www.FreeportInMyCommunity.com or scan the QR code to learn about our commitment to communities.

FRĂ?A COMO LOS

ROCKIES

CONSUMER DEMOGRAPHICS

CONSUMER DEMOGRAPHICS

Trade with Mexico Courtesy of

North America: A Region of Opportunities A new era of opportunities stands before the region North America is and should remain a region of opportunities for all. Under the North American Free Trade Agreement (NAFTA), bilateral trade and investment within the region have grown exponentially. In 2012 alone, Mexico-US total trade reached 494 billion dollars â&#x20AC;&#x201D;more than 1.3 billion dollars per day, almost 1 million dollars per minute. Mexico is the third largest US trading partner. Positive dynamics are now in place, benefitting both societies.

The Mexican market is fundamental to the US economy In 2012, US exports to Mexico were 216.3 billion dollars. This is more than the 210 billion dollars of combined US exports to all the countries with which it has a trade agreement in place (excluding Canada). It is more than U.S. exports to Japan and China combined (180.6 billion dollars) and the sum of its exports to France, Germany, the Netherlands and the United Kingdom (175 billion dollars).

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CONSUMER DEMOGR APHICS

â&#x20AC;˘ TRADE WITH MEXICO

Exports to Mexico maintain and create jobs in the United States The US Government estimates that each additional billion dollars in new exports supports more than 6,000 new jobs.

Exports to Mexico increased 18 billion dollars in 2012 alone, thus potentially helping create over 107,000 new US jobs.

Almost six million US Jobs rely on trade with Mexico, according to the US Chamber of Commerce.

US states benefit from exports to Mexico In 2012 Mexico was the main destination for exports of 3 US states (Arizona, California and Texas), the second destination for exports from 20 states and was ranked one of the top-five export destinations for 34 states (2012 data). 17 states send more than 10% of their exports to Mexico.

Mexico and the United States compete together in the global economy Production and supply chains in North America are deeply integrated. The US content of Mexican exports to the US is estimated at around 40%. In contrast, it stands at about 25% for Canadian exports, 4% for China and only 2% for the European Union.

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CONSUMER DEMOGR APHICS

• TRADE WITH MEXICO

Investment flows are mutually beneficial According to data compiled by the USTR, sales of services in Mexico by majority US-owned affiliates were 34.4 billion dollars in 2010. Sales of services in the United States by majority Mexico-owned firms were 4.8 billion dollars.

Mexico is a global player The Mexican economy is open for business. The country has one of the largest trade and investment agreement networks in the world: 12 free trade agreements with 44 partners, 28 international investment agreements and 9 trade agreements that cover important sectors. These allow for privileged access to markets in the Americas, Europe and Asia. Mexico is part of the Trans-Pacific Partnership (TPP) negotiations and has launched alongside other Latin American countries the ambitious Pacific Alliance liberalization mechanism.

MEXICO IN MOTION: PROGRESS AND STRUCTURAL TRANSFORMATIONS Even within 2012’s complex global context, Mexico’s economy grew 3.9%. It is ranked as the 13th largest in the world.

If current trends continue, it could become the 8th largest by 2050, according to projections made by Goldman Sachs.

At the beginning of the new Administration, the major political forces signed the “Pact for Mexico”, a set of agreements that reflect a shared commitment to promote economic development and social welfare.

OUR COMMON BORDER: AN AREA OF PROSPERITY AND COMPETITIVENESS Our border is more dynamic and secure than it has ever been Over the last few years, our common border has increasingly become an area of prosperity and regional competitiveness.

The total population of the border municipalities and counties, on both sides, is 14 million people. The ten border states in Mexico and the United States would constitute the world’s 4th largest economy. Mexico and the United States continue to work closely together on a day to day basis. Much remains to be done, but our countries’ progress can be objectively measured. Bilateral cooperation is stronger than ever in areas such as infrastructure development, security and trade facilitation. Positive dynamics are now in place, benefitting both societies and our common values and cultural ties are nowhere more visible than at our shared border. The level of ongoing cooperation between Mexico and the United States on border issues is a testament of the maturity and strength of the bilateral relationship.

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â&#x20AC;˘ TRADE WITH MEXICO

A smarter border and historic investments in infrastructure Better use of government resources, greater cooperation Smart and common sense approaches improve the quality of life and trade at the border. Mexico and the United States work towards ensuring regional security and agile inspection procedures. Several programs contribute to these goals: FAST, SENTRI, Ready Lane and Global Entry, to mention a few. The Single Rail Manifest allows companies to send their manifest, simultaneously and electronically, to customs authorities of both countries.

More bridges, more trade The border between Mexico and the United States is one of the busiest in the world, with 56 ports of entry. Around 1 billion dollars is traded every day and 300,000 vehicle crossings take place (including 70,000 trailers). Three new border crossings are in operation as of 2010, two between the states of Texas and Tamaulipas and one between Arizona and Sonora. The crossing between Boquillas del Carmen/ Big Bend binational park, between Texas and Coahuila, began its operations last April. In the coming months, the first new railway crossing in over 100 years will be inaugurated.

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CONSUMER DEMOGR APHICS

• TRADE WITH MEXICO

Modern crossings for modern cities San Diego and Tijuana are increasingly intertwined. Both cities, together, have become a hub for manufacturing with a strong presence of high technology businesses. A new southbound crossing at Tijuana —San Ysidro, “El Chaparral” (October 2012) is in operation, expanding capacity and using non-intrusive inspection devices to facilitate the movement of people and goods. The northbound crossing project remains a priority for both countries, along with the establishment of a pedestrian access point in the United States to the international airport in Tijuana.

MEXICANS IN THE UNITED STATES: THE IMPORTANCE OF THEIR CONTRIBUTIONS The Mexican population is an engine for the US economy and society The 11.7 million Mexicans living in the United States in 2011 represented 29% of immigrants and 4% of the US population. Most Mexicans live in California (37%, 4.3 million) and Texas (21%, 2.5 million), the two largest state economies.

According to the Migration Policy Institute, based on data from US Census Bureau, the cities with more Mexican immigrants are Los Angeles (15%, 1.7 million), Chicago (6%, 684,000) and Dallas (5%, 610,000), whose economies grew faster than the national av"Our nation has always been improved by erage in 2011. Mexicans, including 2nd and 3rd immigrants seeking the freedom to grow, generations, contribute approximately 8% of US prosper and innovate. Nowhere is that GDP (BBVA Bancomer Foundation, 2012).

Mexican immigrants are entrepreneurs that create jobs 40% of the companies included in Fortune 500 were founded by first and second generation immigrants, creating 10 million jobs. According to a study by the Partnership for a New American Economy (PNAE), 28% of the businesses established in 2011 are owned by immigrants and employ 10% of US workers. Mexicans make up 12% of the immigrants that own a small business.

Around 570,000 businesses in the United States, more than 1 in 25, are owned by a Mexican immigrant and together they generate over 17 billion dollars in revenue per year. According to the Center for American Progress, immigrant women are more likely to have their own business than women born in the United States, 9% versus 6.5%.

more evident than with Arizona's Hispanic communities, especially those from Mexico, which have proved to be a driving political and economic force. Mexico is not only Arizona's largest trading partner, it is also one of our most compelling assets when we're working to attract new companies to Greater Phoenix. As a result, a strong partnership with both our Mexican neighbors and Hispanic communities is one of Arizona's best opportunities to create a thriving economic engine." ­—Barry Broome, GPEC, President & CEO

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CONSUMER DEMOGR APHICS

• TRADE WITH MEXICO

The Hispanic market is critical to US prosperity Hispanics are the largest minority market in the country and global US consumer spending drives 70% of US GDP. According to a study by the Selig Center at University of Georgia, Hispanics’ purchasing power may exceed $1.5 trillion in 2015, about 11% of the US total.

In 2009, the average monthly wage of Mexican workers in the United States was 2,190 dollars and the average monthly amount of a remittance was 317 dollars. Therefore, more than 87% of Mexican workers’ wages were spent in the US economy (Center for Latin American Monetary Studies, CEMLA and Banco de Mexico).

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CONSUMER DEMOGR APHICS

• TRADE WITH MEXICO

ARIZONA-MEXICO: QUICK ECONOMIC TIES Arizona’s export shipments of merchandise in 2012 totaled $18.4 billion.

The state’s largest market was Mexico. Arizona posted merchandise exports of $6.3 billion to Mexico in 2012, 34.2 percent of the state’s total merchandise exports. Mexico was followed

by Canada ($2.2 billion), China ($1.3 billion), Japan ($920 million) and the United Kingdom ($915 million).

• Immigrants (the foreign born) make up 13.4% of Arizona’s population.

• Immigrants in Arizona comprised 16.8% of the state’s workforce in 2011 (or 510,990 workers), according to the U.S. Census Bureau.

• Unauthorized immigrants in Arizona paid $443.2 million in state and local taxes in 2010.

Rodrigo Navarro Garcia Cónsul de Asuntos Comunitarios Consulado General de México Secretaría de Relaciones Exteriores

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SEGMENTATION

SEGMENTATION

Acculturation Marketing to U.S. Hispanics requires understanding role of acculturation Experts say effective marketing campaigns must consider range of culturally rooted traits, values and behaviors of Hispanics What is acculturation?

Acculturation is the process by which individuals of one cultural group, typically a minority group and often an immigrant group, adopts elements of the larger culture/community. This process may include the adoption of the larger culture’s attitudes, values, customs, beliefs and behaviors. For some groups, this may also include changes in language preference.

Fundamental to acculturation is its distinction from assimilation, which is the total adoption of the larger culture at the cost or dismissal of the original cultural traits. Individuals who are in the process of acculturation may or may not ever totally discard key elements of their culture of origin. In fact, it is most common to develop a blended existence where some elements are maintained.

Examples of acculturation in play….

Because acculturation happens at an individual level and over a period of time, it can manifest in a gradual manner. A recent immigrant to a foreign country may hold on fiercely to their home country (native) culture yet adapt some new shopping behavior by visiting supermarkets instead of the local corner market in their neighborhood. The children of that same immigrant may more aggressively adopt elements of the new culture by following new celebrities and fashion, adapting new foods and language quite quickly.

Why does acculturation matter?

The traits, values and behaviors of one’s native culture are filters that impact comprehension of communications. Messages that are not relevant cannot resonate, which seriously reduces the effectiveness of a marketing campaign.

For marketers, careful attention to both language and acculturation are essential to success. Since a large share of the Hispanic population in the U.S. will continue to be new immigrants and their second generation children, the acculturation process may not happen has quickly or as thoroughly as with past immigrant groups.

Marketers need to be acutely aware that both language and acculturation matter when crafting marketing strategies. Marketers must shift their focus from thinking about whether Hispanics can understand their advertising to creating campaigns that speak to the heart of the Hispanic consumer in the U.S. (Nielsen 2013).

How to measure acculturation?

Measuring acculturation can be complicated because it is not automatic and not linear – some consumer behaviors acculturate faster than others and the process of acculturation does not take place at the same rate with every person.

Acculturation in today’s U.S. Hispanic population is even more complex than that of previous groups of immigrants. The context is very fluid compared to earlier groups for several reasons:

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SEGMENTATION

SEGMENTATION

• Acculturation

•

Technology allows continual and real-time access to news/events in home country as well as contact and communication with loved ones still there

•

Transportation to and from Latin American countries is much more accessible, providing some measure of back and forth to maintain a connection to home countries

•

Media is extensive and offers a very deep base of access to cultural icons, cues and popular points of connection within the Hispanic community

The pace of Hispanic acculturation in the U.S. will depend on many factors. However, it will likely never mirror the same assimilation patterns of immigrants from past generations. The ready availability of Spanish media (television, radio, newspapers, websites) and the easy ability to communicate with friends and family who have not come to the U.S. slows the pace of acculturation, as does the continuing influx of new immigrants who reinforce the native cultural experience in Hispanic communities. Unlike immigrants from earlier in the history of the U.S., Hispanics today can participate in society while still retaining strong aspects of their Latino culture—including a preference for speaking Spanish at home or with their families and friends. (Nielsen 2009).

Each individual’s acculturation level is generally measured as a point in time reference on a dynamic spectrum. Factors that contribute to the degree of acculturation present at that moment are tabulated to place an individual at a reference point along the continuum. Factors that are commonly considered to be closely aligned with acculturation level include: •

Language aptitude and preference

•

Years in the U.S. / Nativity (born inside/outside the U.S.)

•

Generation

•

Education

•

Social Network (inside/outside native culture)

Many researchers, marketers and advertising agencies in the U.S. Hispanic industry have developed extensive acculturation measurement systems. This includes Nielsen, Geoscape, ResearchByDesign and many more. Each group contributes unique and important insight to understanding the factors, attributes and triggers that define acculturation level among U.S. Hispanics. To provide a sample of these methods, we offer a few examples of modeling and methodology.

To support the concept that language alone does not define acculturation, Nielsen offers a consumer behavioral acculturation metric that includes self–identity. How do Hispanics in the U.S. see themselves?

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SEGMENTATION

• Acculturation

These findings are critical because those who defined themselves as following only Hispanic or Latino culture purchased products very differently from demographically similar non-Hispanics. Hispanic households are considered “behaviorally acculturated” when purchasing patterns match the behavior of non-Hispanic households. (Nielsen 2009).

In a recent Nielsen Report, Latina Power Shift (2013), they use “Ambicultural,” which has been trademarked by EthniFacts.

The diagram below illustrates this concept of being “able to pivot from English to Spanish, Latina to American and back again without thinking about it.”

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SEGMENTATION

• Acculturation

Geoscape builds on the acculturation model by adding a dimension related to the individual’s location in the U.S. Geoscape’s Hispanicity segments are an important strategic element because Metros and DMAs across the country differ widely in Hispanic presence across acculturation levels, reflecting local dynamics such as length of residency, Hispanic population density and other factors.

Geoscape’s proprietary acculturation methodology is based on several immigration and language usage variables, including (but not limited to): •

Place of birth

•

Foreign-born year of entry to United States

•

Foreign language usage versus English language usage for individuals and households

•

Educational attainment

•

Demographic characteristics of the neighborhood (both overall and for the subject ethnic population)

•

Family composition

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SEGMENTATION

â&#x20AC;˘ Acculturation

U.S. Hispanics Acculturation Levels

<--- High Acculturation ------------------------------------------- Low Acculturation ---> Hispanicity: BiCultural Hispanics (HA3) % (2013)

Hispanicity: Hispano (HA4) % (2013)

Hispanicity: Latinoamericana (HA5) % (2013)

27.9%

24.9%

14.0%

14.7%

31.6%

27.5%

14.6%

8.5%

14.9%

26.0%

24.4%

18.7%

16.0%

7.7%

23.4%

23.6%

18.0%

27.3%

20.1%

31.9%

28.4%

12.7%

7.0%

Hispanicity: Americanizado (HA1) % (2013)

Hispanicity: Nueva Latina (HA2) % (2013)

Phoenix

18.5%

Tucson

17.8%

METRO

Arizona Metros

Other Metros Los Angeles Miami San Antonio

Source: Geoscape 2013 American Marketscape Datastream

198

SEGMENTATION

SEGMENTATION

• Acculturation

Geoscape divides the Hispanic population into five segments from highest level of acculturation (HA1) to the least acculturated (HA5): •

HA1: Americanizado. English dominant (nearly no Spanish); born in US and often 3rd+ generation; has few Hispanic cultural practices. Some personalities in this segment may include NFL QB Mark Sanchez NFL Quarterback, singer Selena Gomez and actress Cameron Diaz.

•

HA2: Nueva Latina. English preferred (some Spanish); born in U.S. and typically 2nd generation; some Hispanic cultural practices and often “retro-acculturate.” Examples: TV host Mario Lopez, entertainer George Lopez and actress America Ferrera.

•

HA3: Bicultural Hispanic. Bilingual (equal or nearly); immigrated as child or young adult; has many Hispanic cultural practices.

•

HA4: Hispano. Spanish preferred (some English); immigrated as adult and in U.S. 10+ years; pre-dominant Hispanic cultural practices. Examples: actor Antonio Banderas, TV personality Cristina Saralegui and actress Kate del Castillo.

•

HA5: Latinoamericana. Spanish dominant (nearly no English); recent immigrant as adult (less than 10 years ago); primarily Hispanic cultural practices and identifies with home country more so than U.S. Hispanic.

Examples: Singer Marco Antonio Solis and Radio DJ “EL Piolin.”

ResearchByDesign has also furthered the discussion on acculturation by investigating the intriguing behavior of RETROacculturation. This refers to the search for ethnic identity or roots, especially by second, third, or fourth-generation Latinos who feel they have lost their cultural identity. These individuals are part of mainstream American culture yet would like to enjoy and recover the culture of their parents and grandparents. Hispanics who choose retro-acculturation typically want to learn Spanish, have their children learn Spanish and appreciate their cultural heritage (values, music, arts, food and so on). They are proud of their heritage and welcome ethnic recognition in advertising and promotion of brands and services. As consumers, they may patronize brands that target Hispanics, or may watch Spanish-language TV and listen to Spanish-language programming. They also tend to support Hispanic-related candidates. A sense of ethnic identity and pride tends to motivate these behaviors. This sub-segment of the Hispanic market is growing steadily as the Latino middle class continues to grow. (Hispanic Marketer’s Guide 2008).

199

SEGMENTATION

SEGMENTATION

• Acculturation

The Process of Retro-Acculturation ResearchByDesign has coined the term “REACTs” (short for Retro-Acculturators) to describe those who are part of a mainstream population but seek to retain differentiating aspects of cultural history, background and experiences. This is most commonly found in generations that are U.S. born and have a distant relationship with their families’ country of origin. Early qualitative testing and probing results indicate that retro-acculturation is a process with several phases: Awareness – The very first sign of retro-acculturation is awareness – a child or grandchild of immigrants who becomes aware of the transitioning nature of their parents/grandparents culture to that of the new adopted country. This awareness may manifest itself in comparison to their peers either relatives, such as cousins, or school friends who may be have different experiences – this can cause the REACT to begin to wonder why and how they are different. Awareness generally develops in a young person’s life at a point in time when they are also becoming aware of themselves and their future – it is common even in non-immigrant families for young people to begin to research their roots – asking grandparents for family recipes and photos. With REACTs, this awareness develops into an acute alertness – searching for cultural cues with intense radar to scoop up any lessons and information. They will ask many questions and pursue learning anything they can about their family history.

Action – Once aware, a REACT embarks on a mission that drives many choices they make as they proceed into adulthood.

They may make firm resolutions to “catch up” on any life events they may have missed such as celebrating religious ceremonies and commit to maintaining those traditions throughout their life. Their future plans may be guided strongly by this desire to reconnect to their roots – for example marrying only within their culture or even marrying someone less acculturated than themselves. A key driver can be language – not only will the REACT make focused efforts to speak the language of their heritage but they may insist on raising their children with the language as well so that they can be sure to slow the process of total assimilation in their generation.

Acceptance – a key driver for a REACT is their desire to be accepted. They may feel that they are not close enough to their source heritage to be considered “one of them” yet they may feel very strongly that they are not completely mainstream either. REACTs may feel that even their immediate family is unable to accept their unique situation because they have not experienced it – in fact, immigrant parents may have strongly urged their children to acculturate as they were eager to adapt to the American context. As such, REACTs may actively seek other individuals in similar circumstances to reassure themselves and share their experiences.

Affinity – the key opportunity for marketers lies in the REACTs sincere appreciation of messages that reflect their unique experience. Messages should be inclusive and accepting – acknowledging that this segment, while growing, is sandwiched between two very large, very focused segments (language dominant, less acculturated on one side and English dominant mainstream on the other). Messages should help the REACT feel that they are achieving a very personal and prominent goal – maintaining their heritage for themselves and their children. Companies that can find a way to invite them in, reinforce their commitment to their cultural heritage while still addressing the functional and practical features/benefits that any consumer looks for will have a solid connection with this growing and lucrative segment.

In short, REACTs strive to live successfully in a world that combines their history with their reality, or rather synthesize the world they come from and the one that they are in now. It is imperative to maintain respect and tolerance for both worlds. Any product/service that reflects this phenomenon and living situation will penetrate the REACT mindset by reaching the core of their unique existence.

Acculturation is not an exact science and there are many models to choose from in exploring any consumer base. This information has been compiled from a variety of sources including, but not limited to – • • • •

200

Nielsen, State of the Hispanic Consumer: The Hispanic Market Imperative, Q2 2012 Geoscape, American Marketscape Datastream User Guide, 2013 Pew Hispanic Center, When Labels Don’t Fit: Hispanics and Their Views of Identity, April 4, 2012 Symphony IRI Group, Diverse and Distinct: The Hispanic Population Delivers Numerous Segments and Opportunities – and an Exceptionally Fast-Growing Market, 2012

SEGMENTATION

SEGMENTATION

• Getting Started

Getting Started with Segmentation The goal of any segmentation is to best understand how to optimize communications and product development for your company’s goods and services. An ideal segmentation will take into consideration the specific ways in which your customers interact with your offers and where those fit into their lives.

Generally, you’ll want to a solid research organization with segmentation experience to help deploy the approach that fits your specific needs best. However the following can provide a general outline of steps and factors to consider as you get started segmenting your customer base.

Align – Make sure that you and your internal team are completely aligned on the precise goal of your segmentation.

There are many ways you can filter your base of opportunity so you’ll want to define this as narrowly as possible and keep everyone on track as the project unfolds. A key step in this process is to consider your success metric – how will you know you have succeeded once this process is completed?

Assess – Examine your internal data sources for any variables/factors that you can mine to draw into the analysis.

Do you currently capture key points on your customers related to their shopping or purchase behavior? Are there other demographic or geographic variables you can or would like to expand on?

You will want to identify the most telling variable that is a determining factor in how your products or services are consumed.

Analyze – Next conduct an in-depth analysis to identify the groups that exhibit the greatest degree of variance in how they use or consume your products/services. These segments should be distinct enough that individual strategies will resonate with them. However, there should not be so many segments that the opportunity is too narrow and therefore not efficient or manageable to approach.

Evaluate – From among the identifiable targets that were identified, determine which present the greatest opportunity and prioritize them. Some areas to consider in this prioritization include the number of customers in the segment, how each group fits with the direction of your organization and its goals and also your ability to impact market share within that segment.

Work closely with your marketing communications team to develop strategies that can be tracked and adjusted as needed. This is a key time to revisit the success metrics that were developed in the initial phase to ensure the goal is centered and on point.

Evolve – Finally be sure to monitor the market to watch for changes in your key segments related to any trends in the industry or economy. You may also identify additional segments of emerging opportunities that have appeared.

Source: Compiled and edited from work of Geoscape and ResearchByDesign

201

RESOURCES

DATOS

Resources Arbitron, Hispanic Radio

Forbes.com, Brett nelson/

Latino Consumers, Executive

Today 2012 Report

March 23,2011/best-cities-

Summary, Chapter 5, pg. 86;

for-minority-entrepre-

2011; Latino Consumers,

neurs-2012/2/

Executive Summary, Chapter

Arizona Department of Education, 2012; February

1, pg. 19; 2011; Latino

2012; Research and

Hispanic Executive and

Consumers, Overview of

Evaluation Section, April 2013

USHCC Sync Up for Media

Latino Shopping Behavior,

Partnership, PRWeb: Online

Chapter 7, pg. 116; 2011;

Visibility from Vocus. N.p., 30

Latino Consumers, Executive

Jan 2013. Web. 14 May 2013.

Summary, Chapter 1, pg. 15;

BIGinsight

Bloomberg BusinessWeek 2012

2011 IAB Hispanic Consumers & Digital Report: Hispanic

Pew Hispanic Center; Gallup

Brand-centric Hispanics

Consumers & Purchase

2011; 2012; 2013; tabulations

Impact CPG Shopping

Decisions, October 2012

of the March 2011 and

Trends, [Hispanic] Market

August 2012 Current

Weekly. 17.8 (2013): 6-7. 29

Ipsos Public Affairs, Julio

Population Surveys and Pew

May. 2013.

Franco, associate vp, 31 Milk

Hispanic Center Hispanic

St., #1100, Bostan MA 02109;

vote estimate based on the

www.ipsos-pa.com

National Election Pool

ComScore 2012, Terra Digital Consumer Study

national exit poll and the Nielsen, Latina Power shift

number of votes tallied as

Emerging Majorities,

2013, State of the Hispanic

reported by media outlets

Demographics, Family; April

Market Q2 2012

and election turnout experts;

2012

tabulations of the August Packaged Facts; Financial

2012 Current Population

Experian Simmons National

Profile of Latino Consum-

Survey and Pew Research

Consumer Study, Spring 2010

ers, Chapter 6, pg. 90; 2011;

Center projections, 2012;

202

RESOURCES

DATOS

Resources Hispanic Center tabulations

Scarborough, Release 1 2013,

U.S. Census Bureau, Quick

of augmented March

Feb12-Jan13, Phoenix Metro,

Facts 2012

supplements to the

Adults 18+, Banks HH Uses;

Current Population Survey;

Financial Services HH has/

Russ Oates, 2012; 2012

uses;

National Survey of Latinos; The Demographics of Social

Scarborough, Release 1 2013,

Media Users; 2012; Second

Feb12-Jan13, Phoenix Metro,

Generation Americans: A

Adults 18+, Credit Cards used

portrait of the Adult Children

in last 3 months

PolicyLink

Statistics Administration

U.S. Department of Education, NCES, Common

Selig Center for Economic

State Public Elementary and

Growth, Terry College of

Secondary Enrollment Model

Business, The University of Georgia, 2010; 2012

U.S. Department of Labor, Consumer Expenditure Survey

Research Alert, Focus On Emerging Majorities, 30.8

commerce: Economics and

Core of Data surveys and

of Immigrants, February 7, 2013

U.S. Census â&#x20AC;&#x201C; Department of

Siemens

2011

(2011); Focus On Emerging Majorities, 30.13 (2011); Focus

Targetspot

On Emerging Majorities, Vol. 31, No. 10 (2013); Emerging

The Futures Company

U.S. Hispanic Market 2010, Strategy Research Corporation

Majorities, Marketing/ Advertising, Digital Life

The Integer Group and M/A/R/C Research

Second generation Ameri-

White Horse and Sensis

cans: A portrait of the Adult

U.S. Bureau of Census, 2012;

Why Latinos Are Leading

Children of Immigrants, Pew

National Populations

Retail Trends, [Hispanic]

Hispanic Center, February 7,

U.S. Census Bureau & Pew

Market Weekly. 17.6 (2013):

2013

Research Center

3-4. Web. 29 May. 2013.

203

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