The Hispanic American population is growing steadily; therefore, it is crucial to long-term growth that retailers understand these consumers.
A study performed by The NPD Group has revealed that Hispanic Americans, particularly those who speak Spanish on a regular basis, shop differently and buy different things when compared to other Americans.
● Bilingual Hispanics spend 20% of their dollars online … a higher percentage than that of all Americans (17%), and all non-Hispanics (16%).
● The amount of money spent per online buying visit by bilingual Hispanics is $72 compared to $68, the total market average.
● Shoppers who are Spanish-language dominant (self-reporting that Spanish is the primary language they use at home) spend more per buying visit ($61) than non-Hispanics ($53).
● When they make a purchase, Hispanics are more than two times as likely as non-Hispanics to put the following categories in their baskets: footwear, accessories, video games, sporting goods, music and software.
● Hispanics are particularly important to jewelry, off-price and footwear specialty retailers — accounting for 25% or more of all buying visits in those channels.
● Spanish-language dominant Hispanics spend $8 more per buying visit than non-Hispanics
These findings are just a few of the insights found by The Hispanic Shopping Activity Service, the product of an alliance between The NPD Group and Univision Communications, Inc. (UCI), the leading media company serving Hispanic America.
“When bilingual and Spanish-language dominant consumers buy, they really buy,” said Marshal Cohen, chief industry analyst of The NPD Group. “Their shopping behaviors don’t conform to the patterns of other Americans. And it’s important for retailers and marketers to understand the differences.”
“We know that Hispanics tend to have larger households and that shopping is a family affair, and we know this has a significant impact on what they buy, how they buy, and where they buy,” said Roberto Ruiz, executive vice president of Strategy & Insights at Univision Communications Inc. “We also know that the U.S. Hispanic population is growing rapidly, which makes understanding this consumer crucial to the long-term growth strategy for any retailer.”
Hispanics spend roughly $170 billion a year in general merchandise, grocery and drug store channels, and represent 14% of all buying visits. But given the extraordinarily rapid increase in the U.S. Hispanic population (Hispanics accounted for more than half of U.S. population growth between 2010 and 2013), the impact of Hispanics on retail is certain to rise.
The Hispanic Shopping Activity Service provides the first look at the true market for Hispanic consumers.