Bicultural, Stylish & Young: Upscale Latinos are Big Spenders, Better Planners, Healthier and Love Pets
Thousands of companies have spawned campaigns to attract bilingual, tech-savvy and big-spending upscale and affluent Latinos.
Marketers have discovered that the segment has an affinity for technology use, spending hours every week on tablets, smartphones, flat screen TVs, game consoles and computers, where they educate themselves, spend bundles on online purchases, stream TV content, enjoy music, communicate with friends, engage colleagues and search for answers to their countless questions. Marketers are also aware that upscale Latinos like to spend cash on luxury products, high-end brands and big purchases. And they love pets.
There are 15 million upscale U.S. Hispanic households with the resources to saturate markets. The segment contributes nearly 40 percent of the total $1.5 trillion in Hispanic spending. Deemed the most influential faction since the baby boomers, upscale Latinos and affluent Latinos (representing one-fifth of the U.S. Latino population) spend $1,000 or more online each year, and their buying power is projected to be $680 billion in 2016.
The overall upscale Latino crowd leads when it comes to optimism, purchasing behaviors, and plans to further increase spending. More financially confident than overall U.S. Latinos, they visit upscale department stores (like Dillard's, Macy's and Lord & Taylor), shop for mid- to high-end cosmetics (like Clinique, Chanel, Bare Minerals and Dior) and frequent casual dining establishments (like the Olive Garden, Red Lobster and Fuddruckers).
"One of the most compelling attributes of the Upscale Latino is their consistent level of optimism about safety, well-being, and wealth creation," said Monica Gil, SVP and general manager, Multicultural Growth & Strategy, Nielsen. "This optimism, confidence, and increased spending make this segment an imperative to the U.S. economy and prestige brands."
Enthusiastic mobile bankers (51 percent), mobile shoppers (42 percent) and online shoppers (65 percent), upscale Latinos spend about $3.7 billion each year online, purchasing clothing, accessories, airline tickets, health and beauty items, home accessories, furnishing, appliances and electronics. And they generally spend more liberally on entertainment electronics, home improvement, children's clothing and adult fashion.
Young with large families, stylish and bicultural, upscale Latinos are more likely to belong to dual income earning households. They're more likely to devise a plan for family finances (65 percent compared to 57 percent of upscale non-Hispanics), pay off debt (33 percent compared to 26 percent of upscale non-Hispanics) and plan for a brighter future (90 percent compared to 17 percent of upscale non-Hispanics).
Additionally, upscale Latinos tend to lead healthier lifestyles, have health coverage for families, set aside funds for their child's education and they are more likely to plan for retirement than upscale non-Hispanics. Also, they are more likely to support elderly parents and welcome pets as full members of their families.
Dog ownership grows at five times the annual pace of the total market where upscale Latinos are concerned. And upscale Latinos are deeply invested in the lives of their pets, evident by the wealth that they throw toward the $50 billion pet industry, via specialty stores, pet food manufacturers, toys, animal hospitals, grooming spas and other high-end services.
Upscale Latinos do differ, however. The influential segment can be divided into three key sects: luxury seekers (42 percent), sensible seekers (40 percent) and social seekers (18 percent). Each group has different spending drivers, motivations and goals. While they all seek high-end services and goods, and they are willing to pay more for the best quality, some upscale Latinos solely determine purchasing decisions based on good taste, functionality or social recognition.
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