understanding the latina shopper march 1, 2012 prepared by cynthia correa / contact:...
TRANSCRIPT
Understanding the Latina Shopper
March 1, 2012
Prepared by Cynthia Correa / Contact: [email protected]
Latinos Values & Trends Dominate
- Staying connected: strive for better future while remaining connected back home
- Hybrid living: blending languages and cultures while preserving Latino identity
- Proud to be Latino
- Resilient, optimistic
- Always hopeful
- Want good value
- American is better
- Moving upwardsIt’s about moving forward, getting ahead despite economic troubles
Differences in Culture
Hispanics
Home center of life
Family/friends over regularly
Group/family oriented
Entertainment seekers: spectator
Service = relations, respect, values
Relations – touchy feely
Try products if trust
Mañana-time – more relaxed
Mom is the gatekeeper
Non Hispanics
Home more of safe haven
Get-togethers for special occasions
Autonomy, individuals rule
Thrill seekers: recreational
Service = practical, fast, efficient
Arms length, physically distant
Heavy switchers & try new
Planners, schedulers
HH members influence purchases
Today’s Contemporary Latina
She’s not just about the best of both worlds – she lives in a redefined world…her world. She may be a Gómez-Smith or Gómez-Correa. She likes salsa, merengue, rock en español as well as hip hop and blues. She’s into Sábado Gigante, American Idol and novelas and gets her information from a variety of traditional and digital mediums: print, youtube, blogs in Spanish & English. One day she is eating at a Thai restaurant, the next she is batching up her exquisite mole dish for her family. She loves to socialize, talk to people, look good and shop for her family. She is living the American dream, running around in her Nike’s, while keeping her stilettos nearby. As a mom, dutiful spouse, & red hot mama, today’s Latina is empowered, seeking the best possibilities for herself and her family and not afraid to speak out.
Latina
Cash & prepaid driven
Loyal to store with good service
Enjoys shopping with children
Shop Latino/specialty retailers
Hard to resist kid’s request for non-essentials
Friends/family have influence on products
Family satisfaction drives purchasing behavior
Ads present true picture of product
Shopping Differences
Non Latina
Bank & credit driven
Willing to shop new stores
Busy mom prefers shopping alone
Big chains best
Stick to what’s on the list
Willing to try new products at own risk
Individual satisfaction drives purchases
More skeptical toward ads
Always busy, multitask Recession – changed consumer spending & saving
habits
Want guidance
Convenience culture
Careful, conscious
buying
Jobs: moving where the jobs are
The Times
Optimistic, resilient, resourceful
Bank mergers/failures
Impact of Recession
- Economic recession did affect shopping attitudes and behavior, but overall Hispanics mostly positive and optimistic
- Reducing expenses wherever they can – less in areas of leisure and entertainment, postponing large ticket goods
- Food, toilettiries remain steady
- More rational and sensitive to price – staying financially secure requires savvy, resourcefulness and knowledge
- Thrift and control key values in countering fear & uncertainty- “I avoid paying extra at all costs, even if I have to drive to another store”- Unplanned shopping trips minimized- Practical consumption: thrift and control
(Semi) Post-recession: saving money still priority but shopping behavior grounded in thoughtful approach involving higher knowledge and tactics to manage consumption
Source: iconoculture: The Latina Shopper 2012 & NHCS Simmons 2011
Shopping & Strip Malls on the Decline
- No major shake-ups in supermarket or department/discountt store share; drugstore down slightly from 2009 but steady since
- Over the last 3 years, usage has increased where discounts are more expected
Where Latinas shopped in the last month
Source: NHCS Simmons 2011
Where and How Latinas Shop & Buy
- Latinas spend more per week on groceries
• Average $115 vs. $103 Non Hispanics
Source: NHCS Simmons 2011 & Restoring Hispanics’ Brand Loyalty in National Brands – The San Jose Network
Preferred National Retailers
* For household goods
- Spend more on basic food products, toiletries, beauty products, and baby related items
- As a result of recession, sales of national brands went down, private labels went up
• National brands experienced dips in sales in 2010 • Share of private label products was
estimated at 31% for Hispanics and 23% for Non Hispanics
Latinas Are Using Coupons
- Colored leaflet coupon received in mail and newspaper most popular
- Favorite places to redeem coupons are supermarkets and drug stores
• Opportunity to exploit places of usage & products
- #1 reason to use coupons is to save money
- Food and household items coupons preferred
- Recession redefined value
• Value = smart shopper
- But coupon usage still lower than Non-Latinas
• Culture barriers, lack of familiarity with redemption process, different product preferences, requirement of multiple purchases
Source: NHCS Simmons 2011
Factors That Influence Shopping
- Shoppers are interested in gathering information when they shop
• Store brochure, flyers, and signs preferred reference materials
- Although Latinas under-index in-store samples and demonstrations the response remains significant
• Consumers have a strong bond or unity with product/service after sampling
Source: NHCS Simmons 2011
Spanish Language Advertising/Labeling Influence Retailer Loyalty Among Latinas
“When I hear a company advertise in Spanish, it makes me feel like they respect my heritage and want my business.”
“Spanish language labeling on products helps me select what I want.”
“I am much more loyal towards companies that show appreciation for our culture by advertising in Spanish.”
“I remember more about or pay more attention to the products/services that are advertised in Spanish.”
“Spanish-language advertising is important to me because it’s the best source of information for making purchasing decisions.”
“It’s important to me that websites I visit are available in Spanish.”
Source: NHCS Simmons 2011
Response to Incentives Lower, But Significant Opportunity
- What defines a good deal is not cheap or screaming offers – it’s about tangible value
Source: NHCS Simmons 2011
Segmenting the Latina Shopper
Just the essentials8%
27%
24%8%
22%
10%
Status strivers
Mall maniacsUpscale clicks
Virtual shoppers
Original traditionalists
Each Segment Has Different Needs
Source: NHCS Simmons 2011
Status Strivers, Mall Maniacs & Virtual Shoppers = Bulk of Target
- Skew younger, bilcultural, higher HH income, larger HHs
Source: NHCS Simmons 2011
Mall Maniacs Frequent Shoppers that Spend the Most
- Also, Mall Maniacs highest users of Angel Soft brand
Source: NHCS Simmons 2011
Examples of Best Bets for Latina Shoppers
Source: iconoculture: The Latina Shopper 2012
Summary and Opportunities # 1
The recession affected shopping behavior (across the board), but overall Hispanics have remained more positive and optimistic. ‘Getting the most for your money’ is still a priority and "managed consumption" buying remains.
Find ways to deliver more for less, to appeal to tighter budgets and new status
#2
Family satisfaction drives purchasing behavior. During down economy, it’s not just price or selection that influences purchases, but how products benefit the entire household.
Adopt and align with key core values and beliefs that shape our culture
Summary and Opportunities# 3
Latinas spend more than the general market on basic food products, toiletries, beauty products, & baby related items. Private label brands also went up.
Opportunity for Angel Soft to move into meaningful position by knowing what drives purchase consideration: conscious buying (thrift & control), value/quality, family influence, brand that speaks to “her” (meaningful engagement)
Engage in stronger retail promotion to win back loyalty
#4
Latinas are using coupons and engaging in promotions/incentives but on a lesser scale than the general market.
Reinforce deep cultural insights to connect Angel Soft to her needs.
Make promotion and savings-related information more easily accessible across all shopper touchpoints – no small print or jumping through hoops to get savings. Make promotion redemptions an easy, seamless experience
Summary and Opportunities# 5
Key Angel Soft segments are Status Strivers, Mall Maniacs, & Virtual Shoppers. They are brand conscious, info seekers online and offline, and frequent shoppers focused on getting the best value for their families
Motivate these consumers by increasing both in-store and online interaction to give her ways to share the experience in person or via social shopping. Appeal to her imagination, her confident sense of self and entertain her love of the process
