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UNLOCKING THE HISPANIC
“SUPER CONSUMER” OPPORTUNITY:
What Top-Tier Industries Are Telling Us About Building Relationships
Through Social Media, Mobile Solutions, Big Data, Interactive Technology
and Online Marketing

Prepared by
Center for Hispanic Leadership
8 Corporate Park, 300
Irvine CA, 92606
www.CenterforHispanicLeadership.com

Copyright © 2012 Center for Hispanic Leadership

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UNLOCKING THE HISPANIC “SUPER CONSUMER” OPPORTUNITY:
What Top-Tier Industries Are Telling Us About Building Relationships Through Social
Media, Mobile Solutions, Big Data, Interactive Technology and Online Marketing

Executive Summary

The Hispanic community is one of the greatest untapped markets we have ever seen. Already the
largest minority in the U.S., their numbers continue to grow faster than any other group.
Between 2000 and 2010, the Hispanic population grew by 43 percent, or four times the nation's
9.7 percent growth rate. In real numbers, this was an increase of 15.2 million people of Hispanic
descent and accounted for more than half of the total U.S. population increase of 27.3 million.
The total number of Hispanics in the United States today is 50.5 million people strong – and
climbing.

Hispanics are also one of the most optimistic groups: most believe the struggling economy has
hit them the hardest, yet conversely, they have the highest hopes for the future. According to a
Pew Research survey conducted in January, two-thirds of Hispanics expect to improve their
financial status in 2012, while just over half can say the same in the general population.

Their optimism is tempered with a good deal of skepticism, however. Ideas such as financial
planning and insurance coverage can be foreign concepts to those from families or home
countries where it was not common. The institutions that offer these services are just beginning
to broach this skepticism by getting past their own preconceived notions to truly understand the
Hispanic consumer.

The emergence of Hispanics as a consumer force is growing rapidly, with a purchasing power
expected to reach $1.5 trillion dollars in 2015. Dubbed “super consumers,” Latinos in the U.S.
are blowing past the mainstream and other minority groups in this regard. In fact, the U.S. is
seeing an increase in buying power not happening in other countries, and that is because of
Hispanic growth here.

This growth is not confined to the Hispanic consumer either. According to a recent article on
Forbes.com, the recovery is being spearheaded by Latino – and Latina – business owners and
suppliers. These businesses are growing at twice the national average. Over the last measured
five-year period, Latino-owned business revenue grew 55% and reached nearly $350 billion.


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Such businesses, with their built-in connection to the Hispanic consumer, are serious
competition to many industries looking for a toehold into the market. But if you recognize them
as more than competitors – for example, by partnering with Latino business owners and forging
relationships with Latino suppliers – you will be building an important base from which to
develop your cultural intelligence.

As Hispanics rise as consumers and business owners, we also have to acknowledge the growing
pains, or “tension points” between the community and major industries in the U.S. Hispanics
expect companies they do business with to understand and address their unique and diverse
needs, and research indicates common themes across industries looking to build relationships
with Hispanic consumers. Many of these themes tie into the growing prevalence of social media,
mobile solutions, big data, and interactive technology – and the spotlight all of these
developments put on the importance of relationship building.

Hispanic online and mobile usage is among the highest of any group and continues to increase
faster than the general marketplace. This makes them an important, if not the most important
category of consumers for retailers and other industries. What’s behind all of this usage and
consumption? Consider these statistics:

 Hispanics account for more than half of U.S. population growth over the past ten years.
In one state, Illinois, 90% of the growth was Hispanic.
 The number of U.S.-born Hispanics has reached more than a million a year, for the first
time surpassing immigration as the leading cause of growth.
 Many Hispanic groups have doubled their population in the U.S. in the last ten years.

The objective now is to improve relationships and communication with Hispanic consumers,
influence their buying behaviors online, and leave a targeted value impression that creates
customer conversions.

Increasing conversions means building brand loyalty and bolstering the Hispanic community
with reassurances that their needs are being understood and addressed. This can be as simple as
adding a targeted Hispanic value-added message and impression to an existing web page in
order to establish an association between a company, their products or services, and the
Hispanic community. Research shows that the Hispanic consumer in particular is influenced by
value-added impressions that target them specifically.


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These consumers are also more likely to make spontaneous, “impulse” decisions. This opens up
more opportunities for businesses in the Hispanic marketplace, and those capitalizing on the
power and scope of digital technologies will have a competitive edge. One example: creating a
rich user experience that is easy to navigate and transferable to mobile devices. Another is
enabling your Hispanic customers to engage with your brand through social media; in
particular, young Hispanics want to join the conversation, but they also want to change it and
make good on the progress made from previous generations. Hispanics want to engage in an
experience that empowers them and gives meaning to their voice, opinions and attitudes.

Data integration and management strategies are also needed to measure Hispanic buying power
and trends in their behavior as consumers so that companies can allocate resources properly
and measure their return on investment. Several examples have clear connections to the Retail
industry, but can also be applied across the board to other industries, including Healthcare,
Insurance, Banking & Finance, Media & Entertainment, and more.

These industries are already looking to one retail giant online, Amazon, as they retool
themselves to become more consumer-focused. Taking it to the next level – to zero in on and
serve the largest and fastest-growing minority consumer group - is a natural progression.

Whatever the industry, the common themes that emerge with regards to the Hispanic
community include:

 The Hispanic community is underrepresented (in the media), “unbanked” (in finance), and
underserved by all industries.
 Companies need to do a better job of reaching out to the Hispanic community, targeting
them with culturally-appropriate messages and language, providing education, showing care
for the community beyond just selling to them, and understanding their diversity (i.e., not
treating them as a single bloc of consumers).
 Hispanic consumers are fast and furious adopters of new technology, providing myriad
opportunities to reach them online, via mobile devices, and through social media.
 Companies must get past preconceptions about the Hispanic consumer; those who strategize
now to understand and capture this large and fast-growing market will be gaining a huge
competitive advantage.


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The important take-away fact to remember is: success will come to those who embrace the
immigrant perspective. Companies must not force the Hispanic consumer to see through their
lens, but rather, they must adapt and seize new opportunities by looking through the lens of the
Hispanic consumer.

Herewith, a gathering of relevant articles, events and advocacy group websites listed by vertical,
along with relevant tension points that we can help to alleviate. As a prelude, please watch the
following video, The Shift: Hispanics in America, at http://vimeo.com/26085366

THE HEALTHCARE INDUSTRY

Hispanics and Healthcare in the United States: Access, Information and
Knowledge (Pew Hispanic Center Report)
http://pewhispanic.org/files/reports/91.pdf

Tension point: The Hispanic community is not getting the information they need, targeted to
them.

Most of those without a usual healthcare provider don’t perceive themselves as getting sick or
needing healthcare. It is true that Hispanic adults have a lower prevalence of some chronic
health conditions, but there are exceptions, the most notable being diabetes. Yet even those with
health insurance or a usual healthcare provider score low on the diabetes knowledge index. This
shows that the Hispanic community is not being served with appropriate content, i.e. the
importance of preventive medicine and check-ups, not just healthcare for the sick, and
especially in regards to diabetes knowledge and prevention.

Tension point: The medical community is not reaching out directly to Hispanics.

More than eight in 10 receive their health information not from medical personnel but from
alternative sources, such as television and radio (non-medical sources). More than half heard
the message in Spanish or a mix of Spanish and English. When coming from these sources,
almost 80% acted upon it. The medical community needs to become more active in reaching out
to this audience instead of letting healthcare information be passively delivered and consumed.
The growing prevalence of social media and mobile devices (since this report was published in
2008) offers unprecedented opportunities for reaching out to specific consumers, in this case
the Spanish-speaking and bilingual Hispanic community.


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National Alliance for Hispanic Health
http://www.hispanichealth.org/

Tension point: Disproportionate burden of preventable disease, death, and injury among
Hispanics.

There is a need to promote health and quality of life by providing cultural proficiency training
and technical assistance to local and state health agencies that serve Hispanic communities. Also
need programs to deliver culturally and linguistically-appropriate public health services,
including updates to The National Hispanic Family Health Helpline database of providers, with
an emphasis on cultural and language appropriateness of available services.

Tension point: Hispanic consumers need to receive health information in a more timely
manner.

Actions that can help: Adapt current materials for use in the Hispanic community. Develop a
Spanish language web presence with special health topics for the Hispanic community. Quickly
adapt and disseminate crucial consumer health information, such as food and drug warnings
and recalls, to Hispanic communities. Media dissemination should include wide placement on
wire services serving Spanish language media and community newspapers.

National Hispanic Medical Association
http://www.nhmamd.org/

Tension point: Efforts to protect Hispanic adults from preventable diseases are falling short
because they have low vaccination rates.

Low vaccination rates leave Hispanic adults vulnerable to influenza, pneumococcal disease and
other illnesses. Health care reform efforts should prioritize wellness and prevention services,
including vaccinations, within the Hispanic community. A doctor’s recommendation for
vaccination is a leading motivator, and this is especially true for Hispanic medical professionals
who share common cultural experiences, language and values with their Hispanic patients.
Approaches to promote vaccination need to be integrated across practices, and efforts also need
to be extended beyond clinic walls to engage the larger Hispanic community.


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Hispanic Health Information Portal
http://www.hispanichealth.info/

Tension point: The obesity epidemic hit the Hispanic population fast and hard, fueled by their
assimilation into the modern American diet and lifestyle.

Pursuing the American Dream can have detrimental effects on physical health, as it can lead to a
fast food diet and sedentary lifestyle. This must be addressed in the Hispanic community, as the
obesity epidemic is leading to increased rates of diabetes and other diseases. Healthcare
professionals serving the Hispanic community must put a strong emphasis on promoting
nutrition, physical activity, and healthy habits in children as well as adults.

THE RETAIL INDUSTRY

Hispanic Retail 360 Summit
http://www.hispanicretail360.com/

Tension point: The Hispanic consumer market represents a significant growth opportunity
for retailers and suppliers, but it is a complex market for researchers, marketers, buyers and
sales professionals to understand.

Selling to Latino shoppers in the U.S. and maximizing their business requires retailers to
effectively target, segment, and execute merchandising and marketing plans aimed at the
complex Hispanic market. Retailers and suppliers marketing to this population have to address
Hispanic consumer interests, trends and other topics across multiple channels, including food
merchandising, department store merchandising, specialty retailers, and more.

Reach Hispanic (What Retailers Should Know About Hispanics)
http://tinyurl.com/7yet762

Tension point: Only some retailers, such as WalMart, are aware of the need to focus on the
Hispanic consumer, limiting where this important and diverse market shops.


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Retailers have been slow to realize and act on some interesting statistics regarding the Hispanic
consumer:
 U.S. Hispanic spending power is growing faster than non-Hispanics.
 Food plays an important role in Hispanic culture, and that is reflected in their purchasing of
consumer packaged goods (13% greater than the general population).
 Hispanics are more likely to spread out their food purchases, typically frequenting grocery
stores several times per week; marketing programs can be tweaked or designed around this
predictable buying pattern.
 Advertising works: Hispanics remember advertised products while shopping and actively
seek new and improved products.
 Hispanics enjoy shopping more than non-Hispanics, and the experience is extending to
online shopping, which is growing faster than the general market; 62% of Hispanic Internet
users make online purchases.

Social Media Spanish (US Retailers’ Outreach to the Online Hispanic Retail
Consumer)
http://socialmediaspanish.com/blog/hispanic-retail-marketing/
Tension point: As the fastest growing ethnic group in the U.S., many retailers oversimplify the
Hispanic community as a large homogenous bloc instead of a diverse group with deep roots in
Latin traditions.

Hispanics want and expect greater understanding when they are the target of retail marketing.
They are strong proponents of online interactions and actively engage with their favorite retail
brands through social media. The retail industry can see this as an opportunity to build ongoing
relationships with the Hispanic community and gain greater insight into their unique and
diverse needs. For example, some consumers may prefer their content in Spanish; retailers can
cater to this audience by launching versions of their websites in Spanish, at the same time
rewriting/redesigning them to resonate with Hispanic cultural values and alleviate industry
tension points.


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Also see:

Latino-Owned Businesses: Leading the Recovery
Latino businesses are growing at twice the national average; over a five-year period, their
revenue grew 55% and reached nearly $350 billion.
http://tinyurl.com/cfbktzv

THE INSURANCE INDUSTRY

Trends in Marketing Insurance to Hispanics
April 2006- Trends in Marketing Insurance to Hispanics.pdf

Tension point: Hispanics represent the group most underserved by the insurance industry.

Hispanics are the fastest growing minority in the United States, with the increasing buying
power to match. Hispanics are using this buying power to purchase cars and homes at record
rates, which has caught the attention of the insurance industry. Hispanics as a group have
significantly lower insurance rates than non-Hispanic whites and other minority groups. Like
the auto and real estate industries, the insurance industry needs to target the Hispanic
consumer with culturally-specific marketing and websites, training programs for employees, and
Hispanic-specific services.

Tension point: There are many cultural and educational hurdles that insurance companies
must leap as they target the Hispanic community.

Because insurance is not mandatory or necessarily needed in most Latin American countries, its
important role in U.S. society is not widely understood across the Hispanic population. There
can be the perception that it is “a waste of money” or “something you can live without.”
Insurance terminology is another problem, with financial terms that are difficult to explain or
translate because they have no Spanish equivalent. Insurance companies must work to alleviate
confusion through terminology that clearly explains how insurance works and why it is
important to the U.S. Hispanic community. These consumers must be addressed uniquely
because their backgrounds and motivations may be different from the mainstream. Insurance


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messages need to be tailored with respect to Hispanic cultural beliefs, e.g., the unpredictability
of life and “live for today” mentality, as these can contradict the value in planning for the future.

Understanding Hispanic and Latino Health and Life Insurance Buying Patterns
http://tinyurl.com/77vxqk7

Tension point: Learning about insurance can cause high levels of anxiety in the Hispanic
community, especially among those without coverage.

Even after learning about the need for insurance, most don’t act on it. The main reasons are
insurance costs, the need for more knowledge about insurance coverage, or simply
procrastination. Education is key to influencing Latino buying patterns in the insurance arena,
and the Internet offers the greatest opportunity when it comes to providing insurance coverage
to the Hispanic market. Health and life insurance providers must develop website tools in
Spanish and English for small business owners and individuals, with the goal of developing a
caring partner relationship that not only educates and understands the Hispanic community,
but adds value to their personal dreams. Issues to consider when talking about insurance to the
U.S. Hispanic population include: socioeconomic status, citizenship status, migration
experience, length of time in the U.S., and the number of generations living in the U.S. Also
important is the diverse nature of the Latino market, which includes many different racial
backgrounds with different life experiences that will impact insurance decisions.

Latinos for National Health Insurance
http://www.latinosnhi.org/

Tension point: The Hispanic community suffers disproportionately because of lagging
insurance coverage, which contributes to health disparities and mounting medical bills.

Lack of health insurance is the biggest barrier to adequate healthcare in the Hispanic
community, even more so than culture, language, and the absence of workforce diversity.
Addressing the plight of the uninsured is the most important step in eliminating the health
disparities and financial consequences found among Hispanics. The elimination of segregation
under our current healthcare system is important to the Hispanic community, as it currently
provides unequal access and imposes additional hurdles to acquire and maintain insurance


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coverage. This is an opportunity for providers to address the insurance crisis in the Hispanic
community with a comprehensive approach to health insurance coverage that meets their
unique needs.

THE BANKING & FINANCE INDUSTRY

Latino Branding Power (Taking Latinos to the Bank)
http://tinyurl.com/7ajtcps

Tension point: Latino populations have a general mistrust of banks, and financial institutions
are missing tremendous opportunities until they find a way to better connect with Hispanic
clients.

The money transfer business is a prime example of the missed opportunities in the lucrative
Hispanic market. Many Hispanics in the U.S. send the fruits of their hard labor to families in
their home countries, a transfer of funds that could be handled by banks and credit unions.
Financial institutions could capture billions of dollars by connecting to “unbanked” Latino
households in the U.S. There is $53 billion attributed to unbanked Latino households, according
to “Lost in Translation: The Opportunity in Financial Services for Latinos,” a report based on a
year-long study conducted by a research arm of the University of Virginia’s Darden School of
Business. Capturing these Latino customers means: considering alternative locations for branch
offices; providing education, especially for recent arrivals who may not have experience
managing their money with a bank; offering culturally relevant services in Spanish with
bilingual/bicultural staff to build trust and credibility; and providing mobile banking to support
the growing numbers of Hispanics connecting to the web via mobile devices.

Hispanic Business (The Hispanic Wealthy: The Next Big Wave in Financial
Services)
http://tinyurl.com/82lr9xv


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Tension point: The misconception persists that only Hispanic celebrities and sports stars like
J-Lo and A-Rod have money, and that most Hispanics are in service occupations with no need
for financial planning.

Hispanic High Net Worth Individuals (HHNWI) are one of the fastest-growing groups in the
U.S., but only one-third have a financial plan or plan for retirement. This presents a great
opportunity for financial organizations to educate and advise Hispanics about the risks and
rewards of their products and services. Hispanic business owners and companies are another
fast-growing group with a host of financial needs. Financial services companies are competing
heavily for this market, but Merrill Lynch is doing it best with active involvement in local
corporate communities, strategies to penetrate specific geographies, and sponsorship of Latin
American events that attract affluent Hispanic clients.

Latin Business Blog (Servicing unbanked Hispanics begins with financial literacy)
http://tinyurl.com/8xaf6yq

Tension point: There are multiple barriers between Hispanics and their use of conventional
banking services, and financial institutions are not making enough of an effort to serve them
with specialized outreach.

There is a clear disconnect between Hispanics excluded from the banking system and the
financial institutions that should be serving them. Few banks have made it a strategic priority
and too many assume that doing business with this group will not be profitable; they also cite
“regulatory impediments” and “fraud concerns.” On the flip side, Hispanics aren’t reaching out
to financial institutions either, mainly because of a lack of financial literacy. Efforts to remedy
the disconnect on both sides should focus on financial education as the primary outreach
strategy.

THE MEDIA & ENTERTAINMENT INDUSTRY

New Generation Latino Consortium
http://tinyurl.com/7sbvvj3


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Tension point: Media & Entertainment focuses on Spanish-dominant Hispanics, largely
ignoring the uncharted territory of the bilingual/bicultural majority.

In the world of media and entertainment, New Generation Latinos (NGLs) are the underserved
majority of U.S. Hispanics. This market represents a huge opportunity for entertainment and
content creators. As part of the fabric of mainstream America, this trendsetting group is ripe to
be portrayed in the mainstream media. And because they’re more assimilated than previous
generations, they’re more open to embracing their heritage and seeing it reflected in their
entertainment choices. Attracting NGL viewers depends on casting choices, show themes, and
other lifestyle connections. True and balanced content trumps trying too hard to single out the
Hispanic demographic or being overtly Latino. A subtle, nuanced approach that’s culturally in
tune with the NGL lifestyle and mindset will be more effective.

The Digital Behavior of Latinos in Entertainment Consumption
http://tinyurl.com/7w9v4tz

Tension point: Media and Entertainment companies need to acknowledge that Hispanics are
at the forefront of the digital consumer revolution, and act accordingly.

Hispanics use mobile and online technologies at higher levels than the general public. In
entertainment, they are more likely to experience videos and music on their mobile phones, and
are the biggest wireless group in the U.S. Latinos engage in dynamic behavior while using new
technologies for entertainment consumption. For example, nearly one-third of heavy movie
goers in the U.S. are Latinos; as the youngest ethnic group in the country, they rely on smart
phones and other digital mobile devices to choose films and theaters. Latinos also are quick to
share opinions by text and social media, and are more open to mobile ads, banners and search
results than the average consumer.

Media Coverage of Hispanics (Pew Research Center Publications)
http://pewresearch.org/pubs/1432/media-coverage-hispanics-sotomayor-lead-newsmaker


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Tension point: The general public’s knowledge of Hispanics is primarily colored by event-
driven news stories and stereotypical portrayals instead of a more accurate and focused coverage
of the community that portrays real individuals, their lives and experiences.

Considering that Hispanics are the largest minority group in the U.S. – and growing every day –
it is perplexing that their portrayal in mainstream media has such a limited range, from nearly
invisible to clearly stereotypical. Whether for entertainment or in the news, stories rarely
mention Hispanics, much less focus on their lives and experiences beyond the stereotypical
mold of preconceived notions. More than a third of all recent Hispanic-related coverage dealt
with Supreme Court Justice Sonia Sotomayor, a big news event but one that left the rest of the
Hispanic community largely ignored. Even coverage of the immigration issue has been dropped
or curtailed by the media. There is great potential here for media and entertainment companies
to provide a more thorough and focused portrayal, to both service the Hispanic community and
enlighten the general population.

Also see:

Univision and Disney in Talks for an English-Language News Channel
http://tinyurl.com/6o57ma2

Spanish-language broadcaster Univision is in talks with The Walt Disney Company to combine
news division resources and start an English-language cable news channel. As the first channel
specifically for English-speaking Hispanics in the U.S. – and one expected to compete with the
likes of CNN, MSNBC and Fox News – this development acknowledges the growing numbers
and influence of the Hispanic audience.

Univision: The Hispanic Consumer
http://corporate.univision.com/the-hispanic-consumer/

National Hispanic Media Coalition
http://www.nhmc.org/about
THE AUTOMOTIVE INDUSTRY


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Growing Hispanic Demographic Urges Bi-Lingual Marketing in Automotive
Industry (Tier 10 News)
http://tier10news.com/?p=201

Tension point: The Hispanic attitude toward purchasing a vehicle must be treated with more
understanding and respect; more so than with non-Hispanics, it is “an event, a proud
celebration” that elicits strong emotion.

Companies marketing to Hispanics must understand what it means to them when they buy an
automobile, the second largest purchase most of us make in our lifetime. It’s part of the
American dream, but it’s more than that, too, as it reflects Hispanic values, the importance of
family and providing for them. And this in turn is a reflection of their desire to not assimilate
but “acculturate,” i.e. hold on to their culture, language, customs and traditions as they take part
in what it means to be an American. Companies can show that they understand these emotional,
cultural and traditional values in their marketing and advertising, but also by investing in the
community and aligning themselves with non-profits and other groups that serve the Hispanic
population.

Hispanics and the U.S. Auto Market (Polk View)
http://www.brokendowndesign.com/hispanicsAndAuto.pdf

Tension point: Domestic automakers are not connecting with Hispanic consumers, while their
foreign counterparts are making greater efforts and winning market share.

At #1 with Hispanic consumers, Toyota recognizes the diversity of the Latino market and gears
millions in advertising, its Spanish-language online content, and event sponsorships to different
segments of the community. #2 Honda also has a Spanish-language website as well as integrated
advertising campaigns focusing on the Hispanic values of tradition and reliability. #3 Nissan
courts Hispanic customers, especially the growing numbers of Hispanic youth, through
advertising, sports related sponsorships and scholarship funds. Meanwhile, domestic
automakers are seeing a decline in Hispanic market share and would do well to follow the
successful lead of their foreign counterparts in reaching this important demographic. Domestic
automakers will begin to see a turnaround when they embrace the immigrant perspective that
foreign automakers already have.


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Engage:Hispanics – Automotive Moms
http://www.mediapost.com/publications/article/126159/

Tension point: The industry doesn’t always get that women – and Hispanic moms in
particular – have a vested interest in automobile purchases and a big say in vehicle selection.

Research shows that Hispanic moms have great influence in automobile selection and purchase
for their families. More than any other industry, communications can influence and should
target the Hispanic Mom, even to the point of building marketing plans around her. In
particular, messaging should convey an understanding of her unique needs and reflect the
importance of family and children; clearly show features and functions and how they will benefit
her; and be spread across as many different media outlets as possible to reach these busy and
on-the-go moms. Building trust is especially important with this market segment, as she will
share her brand loyalty with family, friends, and through social media.

Also see:

Hispanics Accelerating Auto Industry Growth (Brand Solutions, Automotive at
Univision Communications Inc.)
http://tinyurl.com/7to9b5d

Hispanic PR Wire: Hyundai Motor America Launches…Traffic Safety Campaign
“Motor vehicle related crashes are the leading cause of death among Hispanics ages 1-34.”
http://tinyurl.com/6om9ohs

Nissan Español Twitter Feed
Companies like Nissan are extending their brands in Spanish via Twitter to gauge their
connection with the Hispanic audience.
http://twitter.com/NissanEspanol


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THE TELECOMMUNICATIONS INDUSTRY

Hispanic Technology & Telecommunications Partnership (Latino Innovation and
the President’s State of the Union)
http://tinyurl.com/4jhrkf2

Tension point: Though Hispanic Americans are leading users of mobile technology, only 1/3
use the Internet capabilities; they are not making up for it at home either, as less than half of
mobile users have alternate sources of Internet broadband access.

In the modern world, access to and usage of the latest technology is crucial to fulfilling the
American dream. Hispanics must take advantage of the full range of broadband and wireless
capabilities as they strive toward their economic and social goals. Broadband in particular is the
platform that will enable the Hispanic community to connect to valuable resources and
participate in important areas that affect their lives, such as healthcare, education, and
employment opportunities.

Broadband & Social Justice (‘Don’t Go to the Ghetto?’ Some Consider New
Application a Digital Divider)
http://tinyurl.com/79mqdps

Tension point: Broadband technology can enable change and create opportunities for the
Hispanic community, but companies need to be wary of creating a divisive environment.

As the telecommunications industry targets the Hispanic community for more inclusion, it could
leave them vulnerable to more unfair treatment by those who would use the information against
them. Less than forward-thinking companies have been known to engage in questionable
practices, such as pulling advertising and availability of products and services in minority
communities or communities considered “high risk.” We’ve seen so called redlining in housing,
banking, and insurance; now it is threatening the availability of broadband Internet service to
Hispanic consumers. Incredibly, the FCC recently had to take action against a “No Urban/No
Spanish” policy some companies tried to pull with their refusal to advertise on broadcast
stations for Latinos and other minorities.


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The Americano: Hispanics Will Spend the Most on Telecommunication Services
http://tinyurl.com/7lnbrav

Tension point: Hispanic usage of telecommunications is growing faster than other groups,
and with it they are demanding more services for their unique, diverse, and quickly evolving
needs.

Telecommunications providers are under the gun to understand and address the Hispanic
American consumer and their rising purchasing power and influence. They must differentiate
their spending patterns, usage habits for wire lines and cellular, calling cards and international
services, as compared to the general population and other minority groups. For example, the
Hispanic market spends double what the average household spends on wire line services, but
they are also a greater consumer of mobile content, more connected than other groups with
online usage growing faster, and a heavier user of social networks.

THE DIRECT SALES INDUSTRY (MULTI-LEVEL MARKETING)

Direct Selling News: How to Effectively Reach the U.S. Hispanic Market
http://tinyurl.com/8237kfb

Tension point: Companies can’t just jump on the bandwagon and start pushing sales on
Hispanic consumers, they need a long-term strategy, starting with their top leaders, that shows
they support the community and care about their issues.

Companies looking to attract Hispanic business must be prepared to advocate for their issues
and make investments accordingly. Support from the highest levels of the company is key, and
the management team would do well to add bilingual/bicultural leaders and staff to show their
commitment to the community. Communications should not just be translated, but
“transcreated,” i.e., adapted with culturally relevant words and tailored messages that convey
awareness and caring about Hispanic lives and traditions – for example, the importance of
family in Hispanic culture. Also important is promoting Hispanic leaders as mentors, role
models, and a voice for the community.


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Market America Creates Hispanic Direct Selling Program
http://tinyurl.com/c8yxe7

Tension point: The entrepreneurial spirit of the Hispanic community and natural fit of the
Direct Selling industry may entice them to resign prematurely from more traditional and secure
jobs.

Hispanics are turning to the Direct Selling industry in pursuit of the American Dream. It is a
natural fit, combining the Hispanic values of entrepreneurship and family. Hispanics also have a
tradition of turning to informal sales during times of high unemployment, e.g. selling street
wares or from home to make ends meet. Recognizing this, companies in the direct selling
industry are gearing sales material, websites and even whole product lines toward Hispanic
sellers and buyers. The Direct Selling Association even ran a 20-page insert in Latina magazine
to entice the community. However, companies should practice restraint and not oversell the
benefits when pitching Direct Selling to the Hispanic community. Direct sales companies fit into
the culture in a way that other industries do not, and with that entry into the community comes
the responsibility to respect individuals and set realistic expectations so that people can make
informed decisions about their futures.

Feet in 2 Worlds: Telling the Stories of Today’s Immigrants (Latino Immigrants
Embrace Herbalife)
http://tinyurl.com/7xhbloz

Tension point: The direct sales industry provides an alternative source of income to the
unemployed/underemployed Hispanic, but reaps most of the reward from increased sales to
Hispanic consumers.

Hispanic consumers may do business with direct sales companies they perceive as helping
Hispanics. But in reality they may just be lining the pockets of the parent company. Some
companies may take advantage of those from small towns, the uneducated, or those merely
desperate for work in the bad economy. Hispanics, with an employment rate of 11.5%
nationwide according to the U.S. Bureau of Labor Statistics, will naturally gravitate toward an
opportunity that looks promising. While low start-up costs and other advantages are attractive,
the direct sales industry, so reliant on word-of-mouth, will also need to develop a fair long-term
strategy.


18

Embracing a Solution and the Immigrant Perspective

Hispanic community pain points are felt across many vertical industries. To transcend these
tensions, the Hispanic consumer must live their cultural values and the natural characteristics
that define their immigrant perspective. As mentioned in the introduction, industries reaching
out to the Hispanic community – from their advertising to sales to customer care – must see the
community through the lens from which they see themselves.

Providing a platform for Thought Leadership that speaks authentically to Hispanic users is
critical to engagement with, loyalty to and post impression value of your business. Hispanics
want to know that your organization has carefully invested in their needs and you can
demonstrate this by associating with credible and reputable leaders in the Hispanic community.
They also want to feel as if your brand is living and supporting the same cultural values that they
themselves are fighting to hold onto and proudly seeking to live more frequently.

Hispanics battle the gulf between “too much” assimilation and “not enough” authenticity.
Brands have a unique opportunity to earn this incredibly valuable consumer – one that has yet
to be fully unlocked – by empowering Hispanics to recognize that their cultural roots are not
barriers to advancement, but deep sources of strength.

Become a part of the solution by embracing the immigrant perspective, and you will win the
hearts and minds, business and support, of the Hispanic community.

Additional Reading

For more on this opportunity, see “The Immigrant Perspective on Business Leadership” at
http://www.glennllopisgroup.com/download-wpaper.php. This informative white paper further
illustrates the changing face of America and how businesses can attract new consumer groups by
canvassing the multicultural landscape for new and exciting possibilities.

“The Six Reasons Why Hispanic Leadership Will Save America’s Corporations”
http://www.glennllopisgroup.com/free-book.php


19

“Creating Cultural Relationships for Your Hispanic Business”
http://tinyurl.com/7kncjsb

“The Oscars Prove that Hollywood Must Place Diversity at the Center Stage to Survive Long
Term”
http://tinyurl.com/7mqj927

“Don't Sell to Me! Hispanics Buy Brands that Empower Their Cultural Relevancy”
http://tinyurl.com/848sqa2

Visit the Center for Hispanic Leadership at:
http://www.centerforhispanicleadership.com/


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Center for Hispanic Leadership

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