Tuesday February 15, 2011

Research Sheds Light On Hispanic Shoppers

Chicago — New products, on-pack health claims and point-of-sale (POS) signage can be appealing to Hispanics, who account for more than 15 percent of the U.S. population, according to a report from SymphonyIRI Group, Inc. and researcher Synovate.

The growing demographic can be segmented to better understand shopper needs, according to Larry Levin, executive vice-president of consumer insights for SymphonyIRI. The more an ethnic group is acculturated in the U.S. population, the more they tend to mirror habits of Americans, he says, explaining unacculturated Hispanics tend to look for packages and signs in Spanish and seek out flavors specifically intended to appeal to their cultural palate.

“There is a willingness to try new things among this group, which is a real opportunity for candy and snack manufacturers and retailers,” Levin tells Candy & Snack TODAY.

Forty percent of unacculturated Hispanics say they want to try new products, along with 25 percent of acculturated Hispanics, compared with 17 percent of non-Hispanics surveyed in the report. The overall group is health-conscious, Levin says, but is also willing to spend money on items that are considered a treat.

In addition, unacculturated Hispanics rely on in-store displays, advertising and word-of-mouth promotion more than any other group, Levin says, so retailers should use targeted POS signage in Spanish as well as English.

Hispanic consumers have current spending power of $950 billion, Levin says, adding: “It’s a big group and it’s here to stay. Understanding this demographic is vital to any kind of manufacturer or retailer.” Researchers predict Hispanic shoppers will increase CPG spending to $1.2 trillion by 2012, according to the report.