HISPANIC
LOCAL MAT TERS
LOCAL MATTERS
LOCAL MATTERS
HYBRI–CULTURAL The rise of new cultural forms through the blending of the latest social trends with traditional heritage.
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HISPANIC NOW . LOCAL MATTERS
Culture frames everything. It is something
US Hispanics are at the forefront of a new
that people learn over time and are influenced
cultural remix, where multiculturalism has
by from the day they are born.
evolved into a much more fluid, dynamic
To gain a true understanding of people, brands must understand the local culture and the influence this has on individuals. In order for brands to successfully connect with customers they need to understand the social context of brands and categories
exchange of cultural forces and norms – a new Hybri–cultural age. Hispanic Now uncovers what really matters to the US Hispanic community; exploring how they are influencing American culture and what this means for brands.
– the degree that the behavior of others is driving individual behavior – and the cultural conditions that exist around them.
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WHAT WE SEE Hispanics are soaring beyond the fringes of American culture. With an expanding presence across the US and increasing purchasing power, they are central to redefining the American mainstream.
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The trend–to–blend is natural among hispanics. They have a natural ability to merge new cultural trends with their traditional Latin American roots, creating a new hybrid sensibility. They now lead new cultural forms in music, food and fashion.
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HISPANIC NOW . LOCAL MATTERS
Many leading brands are putting a new accent on success with an increased focus on Hispanics. For US brands, Hispanics are now core to their growth strategies and recognized as influential for importing and exporting new ideas south of the border and beyond.
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The social nature of Hispanics is amplified through their use of technology – Convivio Digital. They are leaping ahead with greater than average usage of mobile technology and social media.
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SOARING BEYOND Hispanics are soaring beyond a previous
Not only are Hispanics a growing part of the
position on the fringes of American culture.
general population, they now also represent
They are reaching critical mass through
1 in 4 babies born in the US and are 25% of
tremendous population growth and are now
US millennials.
redefining the mainstream.
The Hispanic population is also experiencing
People now recognize that the sheer size of
a rapid increase in spending power. This
the Hispanic population means that they will
growth is largely driven by the fact that
continue to drive growth across a variety of
Hispanics are more likely to form households
categories for the foreseeable future.
and have children, who contribute to household incomes, earlier than average.
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HISPANIC NOW . LOCAL MATTERS
Home ownership
New car sales
58%
93%
increase between 2001-2013
higher than overall industry
(general population increase 5%)
Growth in households making $70k plus per year
2000
152%
2010
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SOARING BEYOND
HISPANICS PRESENCE EXPANDING ACROSS US
Less than 50%
50% - 74.9%
75%-99.99%
100% or more
N.H. Vt.
Wash. Mont.
Maine
Minn.
N.D.
Ore.
N.Y.
Wis.
S.D
Idaho
Mass.
Mich.
Wyo Iowa
Neb.
Nev.
Pa.a. Ill.
Utah Colo.
Kan.
Mo.
Ind.
Ohio VW.a.
Ky.
Calif.
Tenn. Ariz.
Okla. N.M.
R.I.
N.C
Conn.
S.C
Ark. Ala.
Va.
Del
Ga.
Miss. Texas
Md.
La. Fla.
Alaska Hawaii
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HISPANIC NOW . LOCAL MATTERS
N.J.
D.C.
With Hispanic affluence growing, it makes
It is important to understand how Latinos
sense that there is substantial growth in
will influence local culture in cities across the
home ownership and new car sales. Luxury
country and what differences there may be
brands are taking notice and focusing
between more mature and emerging Latino
increased attention on Hispanic consumers.
markets. Many cities like Portland, Oregon;
The 2010 US Census revealed the influence of Hispanics/Latinos is spreading across the US beyond the traditional metropolitan areas of Houston, Los Angeles, Chicago, Miami and New York City.
Atlanta, Georgia; and Raleigh–Durham, North Carolina are experiencing a rapid rise in Hispanic population and are adapting to the new cultural dynamics Latinos are bringing to their communities.
So what? The rise in Hispanic households is helping drive growth across many categories that meet household needs. Growing affluence is increasing spend across categories such as automotive and luxury.
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TREND–TO–BLEND Hispanics are naturally pre–disposed to be hybri-cultural because of the multitude of influences on Latino culture. LATAM Influences
Latin America itself is a hybrid of European, Indigenous and African influences to different degrees across different countries. In Brazil, the largest of Latin American
Generation
countries, the predominant language is Portuguese, whereas in Peru, Spanish and the native language of Quechua are the country’s official tongues. Some countries like Argentina have greater
US Hispanic
Country of Origin
populations of European descent; others like Mexico have larger populations of Mestizos, while coastal and island countries, like the Dominican Republic, have a greater
Race
African ancestry. Alongside all this diversity exists the Latin American. Solidarity is found in shared values, sensibilities, history and a fusion of influences that form the Latin culture we know today.
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HISPANIC NOW . LOCAL MATTERS
Languages
CULTURAL REMIX
Accept us
We helped make this country
We have arrived
Driving Remix Culture
Hispanics’ rise in numbers and affluence
Multiculturalism focused on acknowledging
has generated a new attitude: a move from
the value of all cultures. Each culture had its
“Accept us” to a “Remix Culture”.
place along side other cultures.
Hispanics have joined African Americans
Hybri-culturalism is how we refer to
in leading a fundamental shift of American
the cultural paradigm of today. It is the
culture – reconstructing traditional
recognition that cultures influence each
cultural paradigms.
other. People are comfortable borrowing and
In the past, monoculturalism has dominated. This is the melting pot idea – where all are
appropriating trends from other cultures – driven, in large part, by social interaction.
welcome as long as they assimilate to the dominant culture.
Monocultural
Multicultural
Hybri-cultural
<
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TREND-TO-BLEND
LEADING NEW CULTURAL FORMS
Hispanics are introducing new music, foods and sensibilities to the world. Reggaeton, for example, which originated in Panama and Puerto Rico as a Latin interpretation of Jamaican Reggae and American Hip Hop, has quickly spread across Latin America, the US and the world. Cuban American pop artist Pitbull, a master of sampling and blending musical styles, has formed a following that spans the globe. This same phenomenon is also happening with food. The modern burrito originated in the Mission District of San Francisco: a prominent Mexicanâ&#x20AC;&#x201C;American neighborhood. Now mission-style burrito restaurants like Chipotle are rising in popularity across the US, Canada, South America and the UK.
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HISPANIC NOW . LOCAL MATTERS
Top 10 Pitbull Facebook â&#x20AC;&#x2DC;likesâ&#x20AC;&#x2122;
1
United States
6
Germany
2
Mexico
7
Venezuela
3
India
8
France
4
Brazil
9
Italy
5
Turkey
10
Indonesia
Source: http://www.socialbakers.com
So what? Acculturation is becoming less useful and less reflective of the Hispanic reality, while the Latin sense of life and vitality is increasingly popular to a global marketplace.
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ACCENT ON SUCCESS Successful brands recognize the importance and vitality of the Hispanic market The Hispanic advertising industry is
Topo Chico, a Mexican mineral water brand,
worth more than $5 billion, outpacing
represents an example of a product initially
other sectors in growth. Historically
brought to the US to appeal to newly arrived
brands were significantly under spending
Mexicans that were seeking a sense of
against Hispanics. There is now a great deal
nostalgia. However, it has recently picked
of catch–up going on.
up momentum with millennial “hipsters” in
Already, leading brands such as Disney and Walmart are making Hispanics core to their
markets with Hispanic influences like Austin, Texas and Chicago, Illinois.
overall strategic initiatives. While Wells Fargo
All this challenges the previous notion that
sees Hispanics as accounting for the lion’s
you introduce a product from Latin American
share of household growth.
just to appeal to Hispanics.
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HISPANIC NOW . LOCAL MATTERS
CROSSOVER APPEAL Haagen-Dazs Dulce de leche ice cream was originally tested in Argentina. As a result of its success, it was introduced in the US to appeal to the Hispanic market. After 7 months of its launch it became Haagen-Dazsâ&#x20AC;&#x2122; fastest growing product. Dulce de leche flavored products are now offered by Starbucks, Cheerios and the Girl Scouts.
Walter Blanco Breaking Bad over-indexed in the US among Hispanics, prompting Univision to create a Spanish language version of the hit show for Latin American markets.
So what? The Hispanic market is booming. It is wise to see this as an indicator of a new direction and set of influences, rather than a segmentation strategy.
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CONVIVIO DIGITAL Hispanics have a strong desire for progress,
Hispanics are embracing the role of social
and openness to new technology. They are
influencers. Across the board they are more
leaping ahead in the adoption of mobile
likely to want to follow and share with friends.
technology and social media, particularly as a result of the social nature of Latin culture.
Hispanics are twice as likely as non-Hispanics to be content creators (47%) or critics
The social nature is evident in how much they
(41%). They rate and review products, post
over-index in terms of hours spent on social
comments on othersâ&#x20AC;&#x2122; blogs, participate in
media sites â&#x20AC;&#x201C; outpacing everyone else.
discussion forums and collaborate on Wikis.
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HISPANIC NOW . LOCAL MATTERS
LEADING THE WAY
26.8% of Hispanic Internet users spend 6 hours or more on social media sites per day
70% of Hispanic population expected to be online by 2014
30% like to be the first to share with friends
31% like to try new products
So what? Winning with Hispanics requires a broad media strategy. They are at the forefront of content engagement trends and can become active and vocal brand advocates or critics. Hispanics need to be core to brand media strategies.
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SO WHAT MATTERS FOR BRANDS? Latinos are ushering in a new hybri窶田ultural paradigm in the US. Young Hispanics are leading the way, influencing non-Hispanics and Hispanics alike. Winning brands are making Hispanics core to their growth strategy. Brands need to continue to increase their investment in the Latino market. Brands should look to US Latino and LATAM insights to inspire their core innovation. To win, they must embrace hybri-culturalism internally and externally. Brands should make digital core to their Hispanic strategy.
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HISPANIC NOW . LOCAL MATTERS
â&#x20AC;&#x153;Latinos will be a definite force driving culture in the U.S. and the shift in population trends only means marketers have to rethink the way they connect, interact and respond.â&#x20AC;? Javier Farfan Senior Director of Cultural Branding, PEPSICO
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