'Upscale Latinos' Contribute 40 Percent of Hispanics' Trillion Dollar Spending Power, Says Report
A Hispanic trade organization and a global information and measurement company identified "Upscale Latinos" as the most influential segment in the United States.
AHAA: The Voice of Hispanic Marketing and Nielsen revealed its second study titled "Upscale Latinos 2.0: A Renewed Outlook for High-End Marketers," which found 40 percent of the "Upscale Latinos" contribute to the $1.5 trillion spending power by Hispanics. The aforementioned segment of Latinos also lead in the overall upscale demographic in optimism and purchase behaviors, which is set to increase its spending further.
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According to AHAA: The Voice of Hispanic Marketing and Nielsen, an Upscale Latino is defined as a household earning $50K to $100K. The Upscale Latinos are reportedly bicultural, skew younger with families, and more likely to become dual income earners than non-Hispanic Upscales. Upscale Latinos are said to be "tech savvy" as well as have more of a college experience than the average Hispanic.
"Upscale Latinos have demonstrated significant upward mobility across the upscale economy, making them an enormous opportunity for growth for U.S. marketers," said AHAA Education Chair and G ADMarketing Communications President Gaby Alcantara-Diaz. "Latinos are living the American story and augmenting it by upgrading their lifestyle, sense of self, and family with the pursuit of luxury -- a key distinction that makes this segment so attractive to a broad set of brands."
In the latest "Upscale Latino 2.0" study, the Upscale Latino is said to live a "healthier lifestyle" and provide their own health coverage for families. This demographic is also "determined" to invest in their children's advanced education and plan for retirement. The retirement aspect, however, is about as equal compared to Upscale non-Hispanics, but Latinos are placed a higher importance in helping their elderly parents.
Nielsen's Multicultural Growth and Strategy's Senior Vice President and General Manager Monica Gil said, "One of the most compelling attributes of the Upscale Latino is their consistent level of optimism about safety, well-being, and wealth creation. This optimism, confidence, and increased spending make this segment an imperative to the U.S. economy and prestige brands."
Based on the "Upscale Latinos 2.0: A Renewed Outlook for High-End Marketers" report, Upscale Latinos spent $3.7 billion in online purchases during the last 12 months. The online transactions were spent on airline tickets, beauty and health materials, home accessories, and clothing. Upscale Hispanics are also more probable to have home entertainment electronics, designer clothing and shoes, and home improvements. Of the home furnishings and appliances segment, Upscale Latinos accounted for 40 percent of the purchases, which is 18 percent more likely than the 34 percent representing non-Upscale Hispanics.
The Upscale Latino, per the report, have an "influential" $500 billion in spending power and were categorized to three "attitudinal" subgroups: luxury seekers, sensible seekers, and social seekers.
The "luxury seeker" are likely to be attracted to high-end products for a sense of individual award. The "sensible seeker" is more rational about their purchases and when it would "make sense." Finally, the "social seekers" view high-end goods and services as refined and look for recognition and social status.
Overall, Upscale Latinos are twice as likely to increase their spending in department stores and high-end brands than non-Hispanic Upscales.
"This study suggests that opportunities exist to optimize high-end brand efforts by developing an overarching brand message and complementing it with more targeted approaches that respond to particular drivers and detractors within each subgroup," said AHAA Research Chair and Santiago Solutions Group President Carlos Santiago. "As part of AHAA's thought leadership initiatives, we plan to host a series of webinars with Nielsen that dissect media consumption and explore the categories that present the greatest opportunities for growth."
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