Ethnifacts

Who buys ď‚ž What sells ď‚ž Why

America Reimagined: Empowerment in the Self Made Economy Latino Franchise Symposium July 19, 2017

ALL U.S. GROWTH IS COMING FROM MULTICULTURALS Mortality has exceeded births for the non-Hispanic White population since 2012

41.6M M

19.8MM

10.3MM 5.6MM

14.2MM 9.7MM

: From the Ballot Box to the Grocery Store - August 2016 Source: U.S. Census Bureau National Population Projections. Nielsen: From the Ballot Box to the Grocery Store, August 2016 Report

WHAT IS DRIVING THE TECTONIC SHIFT IN THE NEW AMERICAN MAINSTREAM % Foreign Born Population of European Ancestry

41.6M M

# Foreign Born (MM) % US Pop Foreign Born

19.8MM

10.3MM

14.2MM 9.7MM

5.6MM

Years

THE BLENDED NEW MAINSTREAM BY GENERATION Bln

UnBln MC GI GEN (AGE 70+)

BOOMER (AGE 50-69)

GEN-X (AGE 40-49)

16.6%

12.0%

20.9%

27.5%

UnBln NHW

28.6% High MC Influence

71.4%

15.2%

36.1% High MC Influence

63.9%

20.2%

47.7% High MC Influence

52.3%

41.6M M

MILLENNIAL (AGE 20-39)

GEN NEXT (<20)

29.8%

32.1%

22.8%

52.6% High MC Influence

47.4%

22.8%

45.1%

54.9% High MC Influence 19.8MM

Population in Blended Households 10.3MM + MC 5.6MM Households now accounts for the majority (53%) of the under 50 American population

<50

50+

% of Total US Population

66%

34%

UnBlended NHW Pop

47%

66%

UnBlended MC + Blended Pop

53%

34%

14.2MM

9.7MM

MULTICULTURAL CONSUMERS ARE A LONG TERM INVESTMENT •

Because of the much younger age of the multicultural market, and their longer life expectancy as compared to the white non-Hispanic population, multiculturals’ value to product and service providers is greater.

Source: CDC NCHS 2010 Life Expectancy/ACS Median Age

â&#x20AC;ŚAND THE MULTICULTURAL POPULATION IS INFLUENCING THE MAINSTREAM Multicultural consumers are having unprecedented influence on societal and retail trends and are driving product innovation

52%

Copyright Š2016 The Nielsen Company. Confidential and proprietary.

over half of all Americans agree it is important to speak more than just English

49%

of all adults

Would shop more at a retailer that offers a wider selection of multicultural products

32% of all Americans would pay more for a brand that understands multicultural needs

65%

of all Millennials

Source: 2016 Harris Poll Study

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LATINOS LEAD THE WAY IN NEW BUSINESS GROWTH IN THE SELF MADE ECONOMY 5 Year Growth in Majority-Owned Businesses 46%

38% 35%

34%

24%

Growth in # Firms Sales Growth 12%

11% 7%

2%

All firms

-5%

White

Black or African American

US Census Survey of Business Owners (5 yr. data released 12/15)

Asian/PI

Hispanic

Copyright Š2016 The Nielsen Company. Confidential and proprietary.

EthniFacts and Nielsen have joined forces to develop a unique intercultural Household Panel analysis tool that incorporates the Aggregation model powered by EthniFacts to better pinpoint cross-cultural activation strategies for the new mainstream:

NIELSEN INTERCULTURAL AFFINITY SEGMENTATION

The leading global information and measurement company, provides insights & data about what people watch, listen to & buy.

EthniFacts, a next generation consumer research consultancy and cross-cultural insights provider.

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Intercultural Affinity Aggregation Allows Clients to â&#x20AC;&#x153;Make the Buckets Biggerâ&#x20AC;? Tapping Into Larger Budgets Traditional Niche Segmentation

EthniFacts Aggregation

Multiculturals (38% = 121M) Multiculturals (38% = 121M)

Hispanics (18% = 57M)

Foreign Born Hispanics (6% = 19M)

Multiculturals + their spouses/ households (+4%) (42% = 134M)

(%) = 10M

Multiculturals + their spouses/households + other ambicultural whites (+8%) (50% = 159M)

Many Small Activation Buckets Costly to Implement

Cost Effective Activation to Culturally Adjacent Consumers

Spanish Dominant

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Source: 2014 U.S. Census

MONOCULTURALS

% of U.S. Pop 18+

TASTES & PREFERENCES

Copyright ©2016 The Nielsen Company. Confidential and proprietary.

INTERCULTURAL AFFINITY MODEL: SEGMENT PROFILES

11% Do not experience in diverse tastes.

May even reject or avoid.

5 YR % Pop Growth Projection

SIDELINERS

22% Aware of but generally uninvolved in diverse tastes.

EXPLORERS

ENTHUSIASTS

28%

AMBICULTURALS

22%

Experiment with and situationally engaged in diverse tastes.

Exposed and embracing diverse tastes.

Practicing, but not leading.

17% Environment & lifestyle leader.

Influencer with high desire to share diversity.

.

+3% HIGH IC AVERSION

+3%

+5%

+8%

+13% HIGH IC AFFINITY

Aggregates consumers from all races and ethnicities by their affinity to cultures other than their own root culture(s).

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Copyright ©2016 The Nielsen Company. Confidential and proprietary.

THE ICA MODEL CAN HELP OPTIMIZE STORE LOCATION AND ASSORTMENT •

Ambicultural Spectra Demand Indices for Chain A

Source: Spectra

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Mission: To provide actionable insights on the New American Mainstream

Core Strength: Thought leadership in conceptualizing culture and providing metrics and models for understanding and activation

Select Clients: Coca-Cola, Nielsen, Anheuser-Busch, AT&T, NBC Universal, Pepsico, CVS, AARP, Telemundo, Disney, Target, Mission Foods, Mass Mutual, Toyota

MIKE LAKUSTA I mlakusta@ethnifacts.com I 972-567-1981