Story of Untapped Hispanic Market
Discover the Marketing Secret of Hispanic-owned Businesses before Everyone Else Does
Published June 19, 2018, HBTV Staff[dropcap]M[/dropcap]arketers are well aware that targeting Hispanic consumers offers tremendous business opportunities. And thousands of ads reference Latino culture from food to music to even the stereotypical mother. Still, many marketers glance over a generally untapped consumer segment with serious growth potential: Hispanic business owners.
A recent study by the Stanford Latino Entrepreneurship Initiative showed that Latino firms are currently growing 15 times faster than the national average. There are more than 4 million Hispanic-owned businesses in America with revenues of over $660 billion. Approximately 1 in 10 U.S. Hispanics are business owners.
Additionally, 75% of Hispanic businesses are located in non-Latino neighborhoods and serve mostly non-Latino customers. This means that targeting these business owners holds the possibility of also reaching non-Hispanics.
Several major companies have caught on to this trend and have positively showcased U.S. Hispanic business owners and entrepreneurs. In 2012, an ad called “Father and Son” depicted a Hispanic-owned architecture firm for the launch of the Honda Accord redesign.
A 2015 Acura ad called “Cervantes” showed a successful, yet humble Latino businessman who never forgot his roots. According to Luiz Salles, Head of Strategy at Orci, the agency behind the ad, “We wanted to show that Latinos play an important role in the business environment in the United States. A role beyond stereotypical Hispanic-heavy occupations.”
Hispanics make an astonishing contribution to the US economy and the growth of Latino-owned firms isn’t slowing down anytime soon. Targeting Hispanic business owners can not only position your brand uniquely in the minds of this growing entrepreneurial pool of consumers, it can also reach the diverse customer base that Hispanic business owners cater to. This will make the ROI of your Hispanic advertising dollars go further.
The opportunity for marketers is clear: Targeting Hispanics through a Hispanic business owner’s perspective is a unique way to connect with a segment that almost every brand and company want to reach. Another thing that companies should be keeping in mind is the fact that population growth in the US is largely being driven by Hispanics. It’s estimated that, by 2024, Hispanics will make up almost a quarter of the US population, even as immigration rates decrease and birth rates slow. This makes it all the more necessary for brands to develop a relationship with Hispanics as soon as possible, as that will help to ensure success in the long term.