The argument is quite simple, so I'll keep this short. There are ~50M Hispanics here per the US Census and they consumed approximately $1.1 trillion worth of goods and services in 2009. A trillion anything is a lot, but some firms make the mistake of ignoring this sum because it's very small compared to the aggregate consumption seen in this country---$10 trillion. These firms often stick to general mass marketing efforts and invest very little in ethnic specific messaging.
Ignoring the market is short-sighted for two reasons. 1) Disproportionate growth rates 2) Relative market size
1) Whether you like it or not, the US Hispanic market is growing at a faster rate than any other segment in the country. About 40% of the US population growth was attributed to Hispanics alone from 2000-2010. More interestingly, US buying power will grow approximately 30% to nearly $15T over the next five years while Hispanic buying power is projected to grow nearly 50% to $1.6T. Greater than average population and consumption growth rate will very quickly change the face of commerce in this country as Hispanic preferences start to impact the bottom line across all industries.
2) How many companies out there are fighting to expand internationally. Banks, major retailers like Walmart and Target, car companies and food corporations like Nestle are all about the international markets. The B in BRICs shows us that Brazil is a powerful magnet of American corporate attention. Mexico is a significant trade partner. Indonesia is the latest hot market. Does it surprise you to hear that consumption in these markets is roughly equal to or lower than that of Hispanics living in the United States? Given these stats, it may also make sense for firms to invest resources and grow consumer loyalty right here in our own backyard.
These are just a few reasons why it makes sense for companies, in just about any industry, to pursue the US Hispanic market...the basics.
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