Md properties

Latino Franchise Symposium Dallas, Texas

Latino Psychographics Presented By: Luis C. Valenzuela July 19-20, 2017

The Premise • To dispel some of the myths • To give you a better understanding of how Latinos live • To use this information for a new business strategy

Latino Psychographics

• The use of demographic and statistical data to understand the cultural attitudes, values, lifestyles, and opinions, as it relates to the purchase of goods and services

In 1977, Office of Management & Budget issued Directive 15: • The term Hispanic was defined as “a person of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race.”

• Hispanic thought to be less militant

Reality About Latinos Participation in the “Workforce” • In 2000 – 1 of 8 workers were Latino • In 2020 – 1 of 5½ workers will be Latino • In 2050 – 1 of 4 workers will be Latino

The Latino Labor Force • At nearly 23 million people of the Latino ethnicity represented 15% of US Labor Force • By 2018 Latinos are expected to comprise 18% of the labor force • At 39.9% Latinos comprise the lowest long term unemployment rate (27 weeks or more)

The Latino Labor Force • In 2013, 49.7 percent of the more than 22 million employed Latino workers were immigrants, down from a pre-recession high of 56.1 in 2007 • U.S.-born Latinos gained 2.3 million jobs during the recovery, compared with the 37,000 jobs they lost during the recession • Latino immigrants lost 340,000 jobs during the recession & recovered only 453,000

The Latino Labor Force • Employment trends, combined with tighter border enforcement and growing number of second-generation U.S.-born Latino children entering the labor force all contribute to the decline of foreign-born Latino workers

The Latino Paradox

Reality About Latinos

Reality About Latinos

Reality About Latinos

Reality About Latinos

Data taken from the CDC, graphics by The Huffington Post

Life Expectancy at Birth

Percentage of SNAP Recipients by Ethnicity

Homeownership Homeownership Rate by Demographics (Race/Ethnicity) 80 70 60 50

Black Hispanic

40

White Non-­‐Hispanic 30

Other

20 10 0 2010

2011

2012

2013

Source: U.S. Census Bureau Current Population Survey/Housing Vacancy Survey

2014

2015

2016

Homeownership

Latino Entrepreneurship Changes in Composition of New Entrepreneurs by Race (1996 & 2015) 90 80 70 60 50

1996

40

2015

30 20 10 0 White

Black

Source: Kauffman Foundation

Latino

Asian

Other

Latino Entrepreneurship • 75% of Latino owned firms are located in nonLatino neighborhoods serving non-Latino customers • If the number of Latino firms remained the same, we could expect the impact to be an increase of 1.3 trillion dollars in sales • It was estimated that there were 4.23 million Latino firms by the end of 2016

Spanish Language Television • Spanish-language networks are also nipping at the heels of the four biggest U.S. broadcasters—ABC, CBS (CBS, +1.15%), NBC, and Fox • Univision filed for an initial public offering, posted revenues of $2.9 billion in 2016 • Univision reaches 97% of Latino households

Latino Media Trends • 68% of population on Twitter, Facebook, and other social media compared to 58% of the general population • Most of Univision’s US audience speaks English and watches English-language TV • Between 2012 and 2015, internet use among Hispanic adults rose from 78% to 84% • Meanwhile, there was no statistically significant change in the share of white and black adults who report they use the internet

Latino Population in US • US Hispanic population reached 57 million in 2015 (17% of population) • Latinos account for more than half (54%) of total US population growth from 2000-2014 • California continues to have the nation’s largest (15 million people) • The U.S. Census projects Latinos to account for a full 65% of the nation’s population growth over the next 45 years • Projected to reach about 120 million by 2060

Latino Purchasing Power • In 2015 Hispanics controlled $1.3 trillion in buying power • Projected to reach $1.7 trillion in 2020

What do Latinos Need/Want?

• The Same Goods & Services As the General Market • Improved target marketing • Numerous payment options • Goods & Services Indigenous to the Latino Consumer • Focus on the family • Authentic goods from South of the Border

Development Opportunities • Latino-Themed Retail • Acquire and reposition of regional malls • Acquire and redevelop in under-served neighborhoods • Latino-Focused Housing • Multi-family for Rent • Condos & SFD geared toward the Latino families • Name Brands • Growth areas • Investor/Franchisee Pool

How to Mitigate Risk Current Economy • Focus on trends that are growing o Population o Income o Job Growth o Homeownership

• These trends mitigate your risk and enhance the probability of success.

Seek the Solid Customer Latinos Offer the Opportunity • Fastest growing population segment • Increase in consumer power • Growing labor force • Increase in entrepreneurship • Underserved community • Increase in Political Power

Luis C. Valenzuela Executive Vice President M&D Properties 6940 Beach Blvd, Suite D-501 Buena Park, CA 90621 Tel: 714.521.8858 Fax: 714.521.42565 Email: LuisV@MDproperties.Com Source data for slides and related info can be found at: • Tomas Rivera Policy Institute at the University of Southern California by Harry Pachon, Ph.D. • Right Before Our Eyes: Latinos Past, Present & Future, by Robert Montemayor with Henry Mendoza, Scholargy Publishing, 2004 • La Nueva California: Latinos in the Golden State by David E. Hayes-Bautista, University of California Press 2004 • http://www.census.gov/population/socdemo/hispanic/p20-535/p20-535.pdf • http://www.census.gov/prod/2001pubs/c2kbr01-1.pdf • http://www.census.gov/prod/2001pubs/c2kbr01-3.pdf • http://www.selig.uga.edu/forecast/GBEC/GBEC1112.PDF • http://www.census.gov/population/cen2004/atlas/censr01-111.pdf • http://www.census.gov/pubinfo/www/hisphot1.html

• https://www.usnews.com/news/articles/2014/06/19/immigrants-are-no-longer-the-biggestshare-of-the-latino-labor-force • http://fortune.com/2016/08/05/whos-driving-minority-entrepreneurship/ • https://www.jpmorganchase.com/corporate/news/stories/latino-owned-businesses.htm • https://www.gsb.stanford.edu/sites/gsb/files/publication-pdf/report-slei-state-latinoentrepreneurship-2016_0.pdf • https://qz.com/106855/why-a-spanish-language-tv-network-has-the-best-ratings-in-an-englishspeaking-country/ • http://fortune.com/2017/01/18/cesar-conde-telemundo-nbcuniversal/ • http://www.pewhispanic.org/2016/07/20/1-internet-use-among-hispanics/ • http://www.pewresearch.org/fact-tank/2016/09/08/key-facts-about-how-the-u-s-hispanicpopulation-is-changing/ • http://www.nielsen.com/us/en/insights/news/2016/hispanic-influence-reaches-new-heights-inthe-us.html