Based on their rate of population growth within key age groups, their massive spending power, and their far reaching bicultural influence, winning over Hispanics can be the tipping point to total market leadership for U.S. retailers — particularly in the health-and-beauty category. In 2014, U.S. Hispanics spent more than $28 billion on beauty products, and this number is expected to grow to more than $37 billion in the next five years. During the same period, Hispanics will become more than 22 percent of the female population aged 18-49 — commonly known as the “sweet spot” demographic for the category.
Here are some key market-driven reasons to target this critical segment:
1. Hispanics drive health-and-beauty sales.
A recently released Nielsen study reported that Hispanic sales across four major beauty segments (cosmetics, hair care, personal care appliances, and shaving needs) showed significant year-over-year growth while non-Hispanic sales experienced negative growth rates for those same segments.
2. Hispanic purchasing behaviors are based on a deep-rooted value of beauty and personal appearance.
Driven by cultural norms that value taking pride in one’s appearance, Hispanics spend at higher rates across most beauty segments regardless of age, income, and even gender.
3. Hispanics are the power-influencers for health & beauty.
They are five times more likely to review products, blog about them, and share their experiences through large personal and social media networks.
4. They want to hear from advertisers — in their own language and image.
Although Hispanics tend to operate in cross-cultural and bilingual environments, it is not sufficient or wise to assume that your general marketing efforts will reach or resonate with them. Multiple studies show higher response rates and brand loyalty for products that advertise in-language and in-culture.