Upscale Latinos: 'Most Influential' Segment Since Baby Boomers With $500 Billion Spending Power, Says Nielsen
Hispanics and their spending power have continuously shaped the landscape of the United States.
Hispanics contribute to $1.3 trillion in spending power to the U.S. economy. Of the aforementioned figure, Hispanics with an annual income from $50,000 to $100,000 are becoming a "powerful" population segment and known as "Upscale Latinos."
According to Nielsen and the Association of Hispanic Advertising Agencies (AHAA), the upscale Latino segment was identified as the "most influential" group since Baby Boomers. Upscale Latinos, consisting of more than 15 million Hispanics, grew by two million since 2010. Accounting for 29 percent of Hispanic homes, upscale Latinos are said to represent the "core" of the Hispanic population and more likely to be led by two incomers than non-Hispanics earning the same income.
Follow the Latest Tech News on Twitter: @LatinPostTech
Nielsen reported upscale Latinos are consistent with their optimism levels particularly with safety, well-being and wealth creation. With the optimism level, upscale Latinos have more confident and likely to increase their spending habits. As a result, upscale Latinos are labeled as "imperative" to luxury brands and the U.S. economy.
With their better-suited financial status, Nielsen and the AHAA noted the segment is "avid" mobile bankers. Upscale Latinos reportedly spent $3.7 billion in online purchases during the last 12 months. The online purchases ranged from airline tickets, beauty and health products, clothing and home accessories. In comparison to upscale non-Hispanics, upscale Latinos are more likely to spend on home entertainment electronics.
With the spending power upscale Latinos provide, Nielsen identified three groups within the segment: luxury seekers, sensible seekers and social seekers.
As Latin Post reported, Nielsen calculated 42 percent of upscale Latinos to be luxury seekers.
"Led by luxury seekers, upscale Latinos spread their discretionary spending across different retailers," Nielsen said. "They are twice as likely as non-Hispanic upscales to increase their spending in department stores and twice as likely to shop for high-end brands. Luxury seekers are most comfortable shopping in mid-market stores, which have been successful in attracting and retaining upscale Latino shoppers."
The upscale Latinos segment are popular with luxury, or high-end, brands. Nielsen stated upscale Latinos have acquired an "affinity" toward mid-market and high-end retailers that "fit their unique emotional and functional needs."
Nielsen added, "And in those areas, they exhibit a willingness to spend more."
The luxury brands see a "significant" opportunity with upscale Latinos' spending, but marketers have to set an "understanding" about the segment. Marketers are told to require an understanding on the upscale's attitudes and behaviors. In addition to the three types of upscale Latinos -- the luxury seekers, sensible seekers and social seekers -- commonalities do exist. Within the three groups of the upscale Latinos, approximately 60 percent said they maintain strong ties to their Latino culture, and 30-40 percent said they have a strong "cultural duality."
Nielsen provided a webinar titled "Upscale Latinos 2.0: A Renewed Outlook for High-End Marketers," which touched on the segment's growth and behavior toward retailers. The webinar can be heard by clicking here.
__
For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO or contact via email: m.oleaga@latinpost.com.
Must Read Articles: