© 2009 Mintel International Group. All rights reserved. Confidential to Mintel. 1 1 Hispanics and...

© 2009 Mintel International Group. All rights reserved. Confidential to Mintel.1

1

Hispanics and the Retail Environment

Leylha Ahuile

Senior Multicultural Analyst


About Mintel

Mintel International

For over 35 years we have been a trusted,

reliable research partner providing unique insight into consumer trends,

market trends and product innovation.

Mintel is a leading global supplier of

consumer, product and marketing intelligence.


Brief overview of Hispanic

demographics

Revisiting the Hispanic

consumer in this economy:

Changes in expenditure by

category

The Hispanic shopper mindset

and how acculturation

impacts behavior

The Hispanic retail shopper by

category and level of

acculturation

Overview of “Hispanics and the Retail Experience”

What are the hidden opportunities for retailers?


4

Hispanic Demographics


Hispanics are…

Hispanics are…

purchasing power projected to reach

more than $1.4 trillion by 2013

population projected to grow by 12.9%,

compared to 2.9% by non-Hispanics from

2008-13

in 2008, 62.7% of all Hispanics were less

than 34 years old

nearly 50% of Hispanic households have

children

Hispanic babies are now 24% of the

nation’s total baby population vs. 20% in

2000

Mintel’s report: Hispanics and the Retail Experience, July 2009


How do you determine level of acculturation?

Acculturation

Language spoken at

home

Language spoken at

work

Language used for reading

Place of birth

Educational attainment

Place of residence

Personal desire

Mintel report: Hispanic Acculturation Process—U.S., January 2009


U.S. Household Income Distribution



Income Earners by Language Preference at Home

%Multiple earners, multiple decision makers and influencers.

Mintel’s report: The Economic Impact of Hispanics in the U.S. Marketplace, June 2009


The Larger Hispanic Household

36% of Hispanic households include 5 or more people, compared to 17% of non-Hispanics.



10

Hispanics in Today’s Economy


Attitudes Towards Their Finances

More than three quarters of

Hispanics say that their personal

finances are in fair or poor shape while

61% of non-Hispanics believe

so.

75% of Hispanics are now looking for

deals and sales more than they were

one year ago.

Almost half of Hispanics believe that their financial

situation will improve in 2009, compared with only a third of the general U.S.

population.



Expenditure by Category

Hispanic expenditures grew by 78% across all categories from 2001 to 2007, compared

to 33% for non-Hispanics.

Based on Mintel’s exclusive analysis, growth is estimated

to continue by 1.81% between 2007 and 2009, compared to

1.1% for non-Hispanics.



Hispanics’ Category Expenditures



14

The Hispanic Shopper Mindset


Hispanics’ Spending Habits



Couch to Cash Register

What motivates the Hispanic consumer to shop?

• Price sensitive but not the only factor

• Prefer stores that are closer to home

• They look for the shopping experience – part entertainment

• Trust is a key factor among less acculturated Hispanics

• Coupons do not drive traffic to the store but are purchasing drivers



Macho Shopping

%



18

The Hispanic Retail Shopper


Channel Analysis: The Communal Shopping Cart

Hispanic and non-Hispanic spending on CPGs by retail channel



See you mañana, maybe…

Hispanic and non-Hispanic shopping annual trip frequency by channel



Distance Considerations

Hispanic travel distance by store type



Food Retailers

• Higher propensity to eat at home and spend more on groceries regardless of income.

• Less acculturated Hispanics are less likely to feel the store they shop offers the products they are looking for.

• Nearly three in five Hispanics use coupons when shopping:

– Nearly 7 in 10 of English-dominant

– Slightly more than half of Spanish-dominant

• Almost 2/3 of Hispanics prefer to see bilingual signage.



Household Grocery Spending

$113

$119All Hispanics $116

Hispanic

En

gli

sh

Sp

anis

h



Retailers of non-Food Items

• Almost two thirds of more acculturated Hispanics shop their favorite apparel store because they like the brands offered

• Less than half of less acculturated Hispanics choose an apparel store based on brands carried in the store

• Hispanics shop at drug stores at identical levels to non-Hispanics but over index in consumption of personal care items

• Spanish-dominant Hispanics are much less likely than English-dominant Hispanics to convert their shopping occasions into a purchase of home electronics.



Home Improvement


The Home Depot Television Ad


Convenience Store Preference by Race/Hispanics


%


Convenience Store and the Hispanic Shopper

• Hispanics use the corner store at a much higher rate than any other consumer group

• Hispanics are notably more likely to purchase automotive products and phone calling cards

• Healthier snack options…not so fast!

• Hispanics aged 18-34 are the most likely to shop in convenience stores once a week or more often

• Financial services are of interest to young Hispanics

• Home office and home entertainment, opportunities for retailers



28

Opportunities for Retailers


Retailers to Offer Financial Services

The Banking Hispanic Closely related to a non-Hispanic consumer in terms of attitudes and use of banking. • Household income is more likely to be

greater than $75K• Prefers to communicate in English

The Underbanked Does not participate in the traditional U.S. banking system. • Likely to use alternative banking

systems • Prefers to communicate in Spanish

Mintel report: Hispanic Finances and Financial Services, March 2009


Hispanics and Bank Services by Place of Birth

Mintel report: Hispanic Finances and Financial Services, March 2009


The Customer Service Desk

Approximately one in four Hispanic shoppers make their way to the customer service desk of grocery stores to conduct financial transactions:

• Check cashing

• Paying household bills

• Sending remittances

• Purchasing pre-paid credit cards



Financial Conveniences by Acculturation


%


Opportunities for Retailers

Hispanics (55%) are slightly more likely to

pay cash for things than non-Hispanics (53%)

Nearly half of Hispanics are not

able to save money because they are living paycheck to

paycheck Almost half of Hispanics believe that their

financial situation will improve over the next

year, compared with only 33% of the general U.S.

population.



34

Questions & Answers


Contact

For more information about Mintel, please contact us at 312.932.0600, visit www.mintel.com, or email us at [email protected].

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© 2009 Mintel International Group. All rights reserved. Confidential to Mintel. 1 1 Hispanics and...

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