The Hispanic community continues to grow each year. The spending power of the more than 57 million Hispanics in the U.S. offers a unique opportunity for retailers, manufacturers, the food industry, the health industry, and other brands in the consumer space. In fact, marketing industry research suggests that Hispanic spending increases across the automotive, retail, consumer goods, financial services, and insurance sectors throughout tax season.
Could changing your marketing message this tax season attract more Hispanic customers to your business? Here are some hard facts:
- 45% of Hispanics said that they would save their tax refund; 53% said that they would spend it (Statista).
- Hispanic consumers increased their dollar spending in the fast-moving consumer goods landscape by 0.7%, while non-Hispanic expenditure decreased by 0.1% in the same landscape (Nielsen).
- Hispanics are big spenders in automotive, retail, consumer packaged goods, financial services, and insurance (Nielsen).
Other rising categories where Hispanics might consider spending their income tax refunds include:
- Appliances and electronics
- Home furnishings
What does this mean for you?
If your brand or company is considering the Hispanic community as a growth market tax season would be a great entry point into the market. Consider these tactics as you develop your tax season go-to-market strategy with the Hispanic market:
- Fintech/Banking/Financial: Identify ways to promote savings products or checking accounts that will help the Hispanic client increase their savings. Position your brand as the right financial partner with features such as savings accounts for their children or down payment funds to buy a house.
- Promote the value of your product or service by offering bundles or 2-for-1 pricing instead of coupons. Be direct with your pricing model, and the Hispanic community will be direct with you.
- Win Hispanic consumers with low-cost items that let them experience your brand, product, or service firsthand. Include entertainment or family experiences as a bundle or as part of your brand experience.
- Use culture to connect your brand’s attributes. For example, if your brand stands for affordability, identify what “affordable” means within the Hispanic market segment you are targeting.
One final note:
Recent Hispanic household income data for 2016-2017 shows a fascinating breakdown: 45.8% of Hispanics make less than $40,000 per year, and 54.2% earn more than $40,000 per year, with the majority making upwards of $60,000 per year. According to the study, the “Upscale Latinos,” representing households earning between $40-$100K a year, are the most upwardly mobile segment and account for 40% of Hispanic buying power.
The takeaway here? As income increases in the Hispanic community, discretionary spending also increases.
Does your tax season marketing campaign speak to the Hispanic market? If not, the insights and tactics we’ve described in this post should provide a great starting point for your brand. If you want to dig deeper into how your brand can use tax season effectively with the Hispanic market, let’s talk! We’d be glad to talk through your specific opportunity and answer and questions you might have.