More organizations are paying attention to Hispanics and Hispanic Millennials are drawing a great deal of that attention for reasons discussed in our recently released project:

• Hispanic Millennials make up the second largest Hispanic cohort living in the U.S. – accounting for 25% of all Hispanics

• Hispanic Millennials account for a sizeable proportion – 21% – of all U.S. Millennials

• Hispanic Millennials now make up the majority of Millennials in key DMAs

Our findings, like other studies on Hispanic Millennials, are captivating marketers to focus on this key demographic today. The present focus of most companies is on how to better market to Hispanic Millennials to get them to buy their products and services. However, after having pored through the detailed data underpinning the project, I realized there is more to this research than some supporting data points on the how to better market to Hispanic Millennials today. Hidden in the data is a fascinating glimpse into a future marketplace where organizations have to fundamentally change their approach to the Hispanic market.

I introduced the concept of “futurecasting” the Hispanic market in 2011. Futurecasting is a heuristic technique that helps envision future consumers, products, industries, competitors, challenges, or marketplaces; by combining forecasting and imagination to model future states.

Using the data in the Hispanic Millennial Project Wave 1 research, we can begin to futurecast Hispanic Millennials – looking at how Hispanic Millennials will impact the marketplace in 5, 10 and 20 years. Three key insights emerged: 

• Hispanic Millennials will be very attractive consumers – educated homeowners with children, likely to own their own business
  • 46% plan on completing college (vs. 31% of non-Hispanic Millennials)
  • 47% (of those without children) say having children is a future goal 
• Hispanic Millennials will drive business starts and entrepreneurship
  • 47% of Hispanic Millennials perceive owning their own business as a strong indicator of success; 48% view it as a future goal.
• Hispanic Millennials are the ideal brand advocates of the future
  • They are satisfied with their lives, optimistic about the future and have a strong belief in the American Dream
  • 67% of them say they want to stand out as a Latino

Futurecasting Hispanic Millennials provides us a glimpse into a much different Hispanic marketplace than before. Historically, most organizations have focused their efforts on selling to Hispanics. However, as large, forward-thinking organizations begin to plan out their Hispanic “initiatives,” this future Hispanic marketplace necessitates a new, more holistic Hispanic approach. Specifically, moving from one dimensional marketing to what I am calling “Three Dimensional Hispanic integration.”

Three Dimensional Hispanic Integration Model

Marketing – Marketing to Hispanics has been the dominant focus of Hispanic efforts by organizations in the U.S. the last 50 years. However, there is an opportunity to centralize these efforts. One way is by leading with Hispanic insights – something I’ve described in my posts around Total Market Approach and the emergent opportunity for cross-cultural marketing.

Procurement – Many large Fortune 500s have developed sophisticated supplier diversity efforts over the last 10-15 years to increase the number of minority-owned – particularly – Hispanic-owned businesses they do business with. But the futurecasting exercise shows us the central role Hispanic entrepreneurs will have in driving new business growth. For companies looking to continue innovating, they will need innovative, young business partners and suppliers – many which will be Hispanic-owned. This necessitates raising the bar on supplier diversity efforts.

Hispanic Products – This is the keystone of Hispanic integration. Some CPGs and movie studios have experimented with this strategy. The idea is two-fold – create products and services that connect with Hispanics at a cultural level and involve Hispanics in the creation of new products and services. The studios have been starting to do this by cultivating Hispanic talent in front of and behind the camera. CPGs have tested out new products incorporating Hispanic flavors and heritage. However, companies will have to go well beyond one-off experiments and make this a central part of their corporate strategies, to leverage the large, attractive population of future Hispanic brand advocates.

By Jose Villa

Also Read:
Engage Hispanics A Quick Review Of What You Need To Know About Marketing To Millenials

 

 

As a whole, Millennials are quickly stealing the spotlight from its predecessors, Gen X and Baby Boomers. Why? Because there are over 80 million of them now coming of age and moving into the workforce. This increased buying power is influencing their purchase decisions and driving major trends within the economy.

Of all Millennials nationwide, Hispanics comprise 21%, a statistic expected to rise to 23% by 2020. And within the U.S. Hispanic community itself, Millennials represent 25% of the population and make up the majority of all Millennials in cities like Los Angeles, Miami-Ft. Lauderdale and San Antonio.

But reaching this market isn’t just about the numbers, and relying on volume and skimping on value is still the worse possible way to reach them. I’ll tell you why.

Hispanics are a unique and diverse group.

I’ll concede that trying to understanding Hispanic Millennials is tough because while they share some similarities with the rest of their generation, they are a unique group, even when compared to other Hispanic segments and sub-groups.

Let’s look at the stats. Early results from the Hispanic Millennial Project, co-sponsored by ThinkNow Research and Sensis, shows that when compared to older Hispanics (35-64 years of age):

• Hispanic Millennials are more positive in their overall outlook

• 61% of Hispanic Millennials are satisfied with where they are in life, compared to only 47% for 35-64 year olds

• “My quality of life is better than my parents”… 65% vs. 55%

• On being optimistic about the future… a whopping 70% vs. 49%

• Interestingly, they are more aligned with their Hispanic heritage

• 67% of Hispanic Millennials said they want to stand out as a Latino, compared to 52% for the older group

• On “feeling closer to the Latino culture”… it’s 47% vs. 30%

Hispanic Millennials also differ significantly from Non-Hispanic Millennials…

• They are more optimistic

• 63% of Hispanic Millennials said they were satisfied with the direction of the U.S., compared to just 39% for non-Hispanics.

• On being “extremely optimistic about the future”… it was 70% vs. 52%

• On their belief in the “American Dream”… Hispanic Millennials 71%, non-Hispanic Millennials 55%

• And as part of their “American Dream”…

• 48% of Hispanic Millennials have a goal of owning their own business, compared to just 29% for non-Hispanics

• Graduating from college? 46% vs. 31%

In contrast with Non-Hispanic Millennials, today’s Hispanic Millennials strive for the more traditional markers of success such as owning a home, buying a nice car and going to college.

And when U.S.-born and foreign-born Hispanic Millennials were compared, across the board, foreign-born Millennials seem to have what might be referred to as a more “traditional” or “conservative” belief system, showing in some cases as much as a 20% variance in their opinions toward topics like same-sex marriage and religion.

Language is and will always be a factor.

Cultural relevancy and the appropriate use of language in your marketing messages to the Hispanic market can make or break your attempts to attract their attention.

And specifically, if you want to advertise to Hispanic Millennials, then you better be prepared to communicate (TV, radio, internet, magazines) in both English and Spanish because, according to our study, 35% of them consume their media mostly or exclusively in English, 25% in Spanish, and 40% claimed English and Spanish equally.

Key takeaway? 

U.S. Hispanic Millennials have their own distinct traits. Take the time to learn what they are and get in early while everyone else is still trying to figure it out.

By Mario Carrasco

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