Latino or Hispanic?
Retailers Should Get To Know
This Fast Growing Market

     What is the correct term, Latino or Hispanic? This is a very good question to ask these days as the number of Spanish-speaking consumers continues to grow phenomenally in Georgia. Actually, the terms are interchangeable most of the time. But, more often than not, Latino is the more appropriate way to refer to this consumer. Latinos come from twenty-two different countries of Latin America, beginning with Mexico and ending at the southernmost tip of Argentina. The majority of them speak Spanish, but a significant number also speak Portuguese. Hispanic, on the other hand, emphasizes the language derived from Spain and not the culture that is more diverse.
     Latinos are very family oriented and enjoy the festive life that a large family brings. Family is also an investment in the future. There is little concern for health or retirement issues. It is a Latino tradition to care for the less fortunate, including older family members. Most Latino families in the U.S. are young and include three or more children. The average U.S. Latino is 16 and 45 years of age. This makes the population a desirable target for advertisers. Most are Roman Catholic and celebrate many religious holidays. One such holiday is Three Kings Day on January 6 that’s just as important as Christmas. Most holidays include presents, which opens up many opportunities for retailers.
     A large segment of Latinos in the U.S. and especially in Georgia are arriving from Mexico. The average education level of adults is fifth grade. Their language preference is Spanish. Due to their busy schedules and long work hours, they seldom have the opportunity to learn English or attend school. They have come to the U.S. to obtain a better quality of life and are willing to work for it. This community works very hard and has plenty of disposable cash. Cash is king in most parts of the world, especially Latin America. Salaries are small and banks are for the wealthy. But credit does exist on the store level in most Latin American countries. U.S. retailers can take notice of this bit of information and make a stronger effort in offering Latinos store credit cards and further increase the Latino buying power.
     The Latino population continues to grow in the U.S. and in Georgia. This segment of the population has grown more than 60 percent in the last decade, to more than 35 million people. In Georgia alone there are close to 1 million Latinos, making it the 9th largest Latino market in the country. The New York Times states that by the end of this decade Latino buying power is projected to approach $1 trillion, twice what it is now.
     So, what does all this information mean to Georgia retailers? The Latino community is one of the only untapped markets available to Georgia retailers. According to the Selig Center for Economic Growth, a branch of the University of Georgia, Latinos in Georgia are spending over $11 billion every year and their spending power will more than double by 2007.
     Retailers that are interested in marketing to this dynamic community must take into consideration the following:
LANGUAGE
     • The main language is Spanish (Castilian).
     • English ads, promotions and literature should not be translated, but adapted (If English is translated literally word for word into Spanish the message is lost).
CULTURE
     • Family is most important. The Latino community is the largest family of all.
     • To Latinos, religion is as important as state. Most religious holidays are celebrated and acknowledged by Latin American governments.
     • Latinos generally come from simpler lives and smaller towns, so the simpler the message the better the response.
     • This communities trust must be earned through honest advertising.
MIND-SET
     • The Latino community is very set in its ways. Knowing their traditions is a good way for retailers to attract them.
     • PR factor is important, if Latino leaders endorse a product the community will usually endorse it as well.
LOYALTY
     • Retailers must build loyalty with messages specific to this community. Advertisements need to be done in proper Spanish and Latino models should be used.
     • Retailers need to strengthen their brands in the Latino community through constant marketing and advertising.
     • To maintain loyalty, retailers must show great customer service by recruiting Latinos and making store signage in Spanish (Portuguese in certain markets).
     Whether this community is known as Hispanics or Latinos, it is important that retailers take time to better understand this new dynamic market in Georgia. While Latinos may require more marketing efforts, the increased revenue far outweighs the costs.
Article contributed by ROG Communications, a marketing firm specializing in assisting businesses and organizations in developing relationships with the Latino community . Contact ROG Communications at 404.347.8931 or info@rogcommunications.com.