Q3 2019

16 LATIN AMERICA NEWS / Q3 2019 , Vital to Viral Success The Latinx community blends the digital and physical world, defining the future of consumption. Nielsen’s latest Diverse Intelligence Series report pulls back the curtain on what piques Latinx consumers’ interest. U.S. Hispanics’ unique ability to blend the physical and digital shopping experience, provides an opportunity for marketers in a variety of industries to reach them. And, because Latinx consumers are young, economically powerful and growing in population, these consumers represent a tremendous opportunity for growth. Nielsen’s latest Diverse Intelligence Series report, La Oportunidad Latinx: Cultural Currency and the Consumer Journey , dives deep into what drives U.S. Hispanic consumer’s purchasing habits. This year’s report showcases the many points of entry for marketers to reach the Latinx market. Nearly twice as many Latinx consumers will visit websites/apps on their smartphones as on a computer or tablet. By carrying their digital experience in their pocket, Latinx consumers often merge their digital and physical experiences, allowing brick-and-mortar retailers to make physical shopping more attractive to with a digitally augmented experience. In addition to blending their digital and physical shopping experiences, U.S. Hispanics view their consumer journey as a community endeavor. For Latinx consumers, the most important purchase influencers are family, friends, and consumer reviews. Thirty-three percent of Latinx consumers agree with the statement “I prefer to buy things my friends or neighbors would approve of,” over-indexing by 20% versus the general population. Further, 79% shop for groceries with someone else, frequently with family members who participate in decision making. “The Latinx path to purchase is social and circular, meaning recommendations of friends, family, and virtual networks play a preeminent role in product/ service discovery, awareness and decision making,” said Stacie de Armas, Nielsen’s VP, Strategic Initiatives & Consumer Engagement. “The Latinx affinity for technology and specific media platforms can provide marketers with a look at what’s next through authentic engagement and outreach strategies.” The report also showcases how Latinx buying power, which is expected to rise to $1.9 trillion in 2023, is increasing at a rate more than double non-Hispanic growth over the same period. With this knowledge, marketers must understand the largely bilingual and ambicultural nature of the Latinx community in order to market their brands in relevant ways that speak to the cultural push and pull of living 100% in more than one culture. U.S. Census 2020 information shows when considering the U.S. Hispanic path to purchase, marketers must be very aware that Latinx consumers differ from the U.S. population as a whole in one primary way –they are the youngest ethnic or racial group in America. With a median age of 28 vs. 38 years of age in the general population, this highly influential demographic has grown up during the digital age and is swiftly approaching their peak earning years, accounting for 75% of all U.S. labor force growth over the last six years, impacting their overall multichannel path to purchase. Nielsen uses census data to determine universe estimates (population estimates) in our U.S. panels and as a key benchmark for understanding consumers. Accurate census data has never been more important, due to the rapid diversification of the U.S. population. Nielsen knows the importance of being counted, which is why the company has proudly signed on to be a 2020 Census Official Partner and an active participant in ensuring that the 2020 Census is as accurate as possible. “Nielsen’s 2020 Census partnership allows both the company and its clients to plan for growth and adapt to changing U.S. demographics,” said Lillian Rodríguez López, Co-chair of Nielsen’s Hispanic/Latinx Advisory Council. “The civic implications of an inaccurate count are well known. However, a census count that doesn’t adequately represent Latinx consumers-- one of the primary future growth engines for the U.S. is the impact on businesses. Through Nielsen, Census measurement is the foundation for $90 billion in advertising transactions and powers decision-making by the country’s biggest retailers and manufacturers that influence more than $1 trillion.”