"America's New Baby Boomers": Upscale Latinos Have Massive Influence and Will Leave a Legacy of Wealth for Off-Springs
53 million Hispanics live in the United States. The weight of the swelling population has worked to sway and influence industries, communications, technology, marketing and brands. The core of the group's financial strength, however, lies with a few "upscale Latinos" who account for just 37 percent of Latinos' mounting spending power.
Deemed the" most influential segment since the Baby Boomers," upscale Latinos function in a world of cultural duality, indulge in luxury brands and earn between $50k-$100k annually, and this group motivates and drives "category consideration, purchasing behavior and brand relationship.Seventy-five percent of the $50K+ club are under the age of 45 years old; 77 percent live in a household with 4 or more people; and 60 percent live in the southwest and pacific region of the country. By the year 2050, the 15 million upscale Latinos will double, and will remain younger than upscale non-Hispanic Whites (33 years old compared with 39 years old). This segment lives active lifestyles, and often has young families.
New York, Los Angeles, Houston and Miami, and secondary markets such as Honolulu, Washington, D.C. and Oklahoma City, are areas where upward-earning, educated, professional and technologically-confident Latinos are concentrated. With the latest technology at their disposal, they're seen as trendsetters, and they boost a higher volume of white collar professions than the whole of the U.S. Hispanic population. On the forefront of wealth creation and preservation, and the development of improved childhood education, this segment tends to own their own homes; 86 percent maintain saving accounts, and most pursue investment opportunities -- such as mutual funds and stocks.
Their hefty salaries allow them disposable income to maintain their image, and in that regard they outspend Hispanics and upscale non-Hispanic whites on health and beauty products. Marketers target this group, aware that they have strong preferences when it comes to purchasing fragrances, hair care products, toiletries and cosmetics, even alcohol and baby care products. Their desires tend to dictate what labels are sold at stores, certainly because they control $4 of every $10 Hispanics spend at markets.
Higher income does not necessarily dictate total assimilation, however. In fact, 75 percent of upscale Latinos speak both Spanish and English, though most are English-dominant. Bicultural behaviors and cultural duality is evident in uses of media and social media. More than a third watch content in both languages. Spanish-language programming is preferred when witnessing concerts, sports and cultural events. Upscale Latinos tend to watch English-language documentaries, children's television and comedies, however.
Because of upscale Latinos' position as the lead controllers of Hispanic spending power, this means that they would not only have the power to steer brands, but they would be also pass on a legacy of substantial income to their children -- possibly able to offer their children a healthy and stable home life, provide proper education, and make the necessary investments for their children's future.
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