Retailers across the nation, listen up: Hispanics are a fast-growing target audience. By 2007, it is estimated that the purchasing power of Hispanics will top $926 billion. Hispanic consumers older than 18 were asked by NOP World to rank nine retail attributes, or factors, in terms of importance when choosing a shopping destination. NOP World also surveyed them on favorite stores: The clear choice was Wal-Mart, with 36 percent of respondents selecting the discount retailer as their top shop. “Wal-Mart comes out so far ahead because they are being successful with practically every factor,” said Brad Fay, managing director of NOP World. J.C. Penney, Sears and Target tied in second place, all with 4 percent of the votes.
1. FACTOR: LOW PRICES
77 percent
It’s all about the low prices, and everyone loves a good deal. The Hispanic population is no exception, especially when recognizing that the Hispanic median household income ($33,103) is below the U.S. average ($43,318), according to fall 2003 data. “Consumers do have some universal needs, some fundamental expectations for the retail industry,” explained Brad Fay of NOP World. “Finding low prices is a perfect example.”
2. FACTOR: CONVENIENT LOCATION
72 percent
One of the strategies that chain stores must constantly be pushing is where to locate their new stores. And mass retailers such as Wal-Mart, Target and Kmart have definitely figured out where their bricks should go. In the coming fiscal year, Wal-Mart plans to open between 180 and 185 new Supercenters alone. Kmart believes its niche is as an urban discounter and aims to cater to ethnic groups such as Hispanics.
3. FACTOR: WIDE RANGE OF MERCHANDISE
71 percent
The more a store offers, the more time a consumer can spend inside its doors. At least that’s how Hispanic shoppers feel. Hispanic families tend to be larger in size, which gives retailers extra incentive to create a shopping environment for the entire family. Fay also pointed out: “It’s not just about offering merchandise that’s totally different. It’s also about the communication and the presentation of the merchandise that makes the products feel relevant, as if they’re made specifically for you, the consumer.”
Related Articles
You May Also Like
4. FACTOR: EMPLOYEES WHO SPEAK SPANISH
54 percent
“Mass market retailers have been extremely successful at employing Spanish-speaking staff,” said Fay. At the end of 2004, Wal-Mart had 128,000 Hispanic workers in the U.S., which accounts for 10 percent of its 1.2 million employees.
5. FACTOR: PRODUCTS RELEVANT TO HISPANIC CUSTOMERS
52 percent
Here’s a tip for marketers: Attach hot celebrities to your products. Thalía is a former Mexican soap opera actress and one of the latest Latin sensations to hit the U.S. pop music scene. Her name is attached to a clothing line for girls and women found exclusively at Kmart. “If the clothes are being worn by people who are Hispanic, it can give consumers that more-relevant feeling,” Fay said.
*6. FACTOR: WIDE RANGE OF PAYMENT OPTIONS
47 percent
Stores that provide numerous payment options also will keep consumers happy. In fact, the top four store chains for Hispanics all accept the following forms of payment: Visa, Mastercard, Discover, American Express, store credit cards, debit cards, gift cards-gift certificates and cash.
*7. FACTOR: SPANISH SIGNAGE
47 percent
The word “sale” can be easily recognized by most people, but seeing signs in Spanish is still an area of importance. A study conducted by the Magazine Publishers of America last year indicated that 46 percent of Hispanics are Spanish-dominant speakers. Something like store signs in Spanish could attract even more of this segment of the population.
8. FACTOR: PRODUCT PACKAGING AND LABELS IN SPANISH
43 percent
Labels marked in Spanish aren’t a top priority for consumers, but for Hispanic shoppers who do not speak English, this is a clear benefit. “Combine factors like products labeled in Spanish with employees who speak Spanish — these go together in making a welcoming environment for the Hispanic consumer,” said Fay.
9. FACTOR: OWNER IS A MEMBER OF THE LOCAL COMMUNITY
34 percent
This is the least important attribute when it comes to shopping — Hispanic consumers do not find as much importance in identifying with the owner of a store as they do with getting a good deal on a product. NOP pointed out that, while no one specific Hispanic store was selected as a favorite shopping spot, 5 percent of respondents named a local store that caters to Hispanic-Americans as their favorite.
SOURCE: NOP World, a global market research company, New York, N.Y.
*INDICATES A TIE.