Now You’re Speaking My Language.

The Spanish-language sector increased by 3%, posting gains across every major product category... 

Even as the U.S. gears up for a formal census expected to validate the size and scope of its Hispanic population, advertisers are way ahead of the learning curve. While 2008 national TV advertising grew at a slower rate than prior years, the Spanish-language sector increased by 3%, posting gains across every major product category with the exception of automotive offerings. 

Together, advertiser spending within the Top 10 Spanish-language product categories expanded by 8% over prior year results, reaching $2.9 billion in 2008. Leading the way on a dollar basis were pharmaceuticals at $663 million, followed by automotive (factory and dealer associations) at $530 million, wireless telephone services at $315 million, department stores at $307 million and quick service restaurants at $300 million. 

The fastest growing segment reflects the rising digitization of the Hispanic population: satellite communication services increased their spend on Spanish-language TV stations by 124%, dwarfing the gains by runners-up auto insurance at 39% and pharmaceuticals at 32%. 

And this dollar shift accompanies a rise in audience sizes for the Spanish-language networks in the 2008/09 television season. The two major Hispanic networks, Univision and Telemundo, garnered 11% more viewers overall last season, and reported a 6% increase in the coveted adult 18-49 primetime audience demographic (based on Live+7). 

But audience size is only part of the story. As an advertiser trying to reach the burgeoning Latino market, it’s also critical to target Hispanics with a high-quality ad in an environment where they are most engaged and receptive to the commercial message. And to do that successfully, from both a media and creative perspective, all signs point to language. 

Bilingual preferences 

Nielsen IAG measures the impact of advertising among Hispanics of all acculturation segments across English- and Spanish-speaking primetime television every day. Much recent attention has been placed on the emerging segment of bilingual Hispanics, who can seamlessly switch from English to Spanish and surf from Criminal Minds on CBS to Cuidado con el Angel on Univision without losing much in translation. But as an advertiser, where can you more effectively communicate with this consumer? 

Viewer response is significantly stronger on the Spanish-language networks... 

Reach and cost considerations aside, research shows that viewer response is significantly stronger in general on the Spanish-language networks. Bilingual consumers report 30% higher recall rates for advertising creative executions and the advertised brand when commercials are seen on Spanish-language programming (on Univision and Telemundo) rather than English-language broadcast networks. 

Language advantage 

Part of the advertising performance advantage can likely be attributed to the unique characteristics of the Spanish-language networks that offer reduced ad clutter and increased ad exposure frequency, as well as Hispanic media consumption factors like lower DVR penetration. 

Ads on Spanish-language TV rated 62% on the likeability scale... 

But that doesn’t account for one of the most powerful points of difference: likeability, a key ad effectiveness measure. Ads on Spanish-language TV rated 62% on the likeability scale on average versus just 41% for spots featuring the same brand on English-language TV among bilingual consumers. 

On the recall measure, Spanish-language TV ads achieved a 35% brand recall score versus 27% for English-language ads. In many cases, these substantial gaps were seen even for “translated” spots, where the ad executions mirrored the version airing on general market TV, suggesting that the difference lies in something other than the creative treatment or content. 

Emotional connection 

The performance differential points to a strong emotional link forged between the consumer and their native language. Spanish-language networks uniquely provide a “language outlet” for bicultural Hispanics—many of whom may be speaking English in their daily professional lives, but prefer Spanish in their private or family lives. The television viewing experience, when delivered in Spanish, allows viewers to connect with their culture, history and identity in a way that may not be readily available elsewhere. The translation for marketers: it appears that the bilingual consumer’s appreciation for in-language experiences results in a more favorable impression of those commercials which deliver them. 

Ads created specifically for the Hispanic market outperform... 

And the power of language becomes even more evident when evaluating creative-level differences. Ads created specifically for the Hispanic market on average outperform those that are merely lifted or translated from general market TV spots, earning 16% higher brand recall results and 22% better message recall. The factors behind improved performance appear to be culturally relevant cues embedded in the advertising such as Hispanic characters, music and themes. 

Character counts 

But more than any other element, the inclusion of a Spanish-speaking character(s) in the ad appears to be the driving critical success factor. Consistently, these types of ads resonate more with viewers, receiving higher brand recall and message communication scores than those without such characters. The finding holds for both Hispanic original spots (+29% higher brand recall) and translation spots (+37% higher brand recall), underscoring the benefit of incorporating more relatable talent who speaks the language in the ad. 

Creating a specific spot from scratch for the Hispanic market, which incorporates culturally relevant themes and Spanish-speaking characters, generally results in stronger impact, but may not always be practical given production costs and timing considerations. As an alternative, utilizing bilingual actors in ads that are merely “re-purposed” from the general market appear to have some benefit. In this scenario, the creative content and narrative plays out identically to the English-language version (with cultural adaptations where necessary), but the script is verbalized in Spanish. In other words, in the absence of any other cultural cues, an ad where the characters are at least speaking in one’s native language is more likely to grab the viewer’s attention and drive brand impact—regardless of whether it was designed exclusively for the Hispanic market. 

Screen scene 

Hispanic consumers have become a force to be reckoned with across screens large and small, fixed and mobile. According to Nielsen May 2009 universe estimates, 82% of Hispanics have cable plus (expanded cable package that does not require a cable box)—a usage level which has risen by 12 percentage points from just four years ago and significantly narrowed the gap with non-Hispanics (89%). One-third of Hispanics have wired digital cable, another 33% have direct broadcast satellite subscriptions, 21% are DVR owners and 88% have DVD players. 

Two-thirds of Hispanic households have personal computers, with six in ten also signed up for Internet access at home. Nearly seven in ten of those Hispanic Internet households have high speed broadband access—almost identical to the general population percentage. While all Internet users average 28.5 minutes online per day, Hispanic households log slightly less time at 21 online minutes per day. 

Latinos who are online are more likely to download music... 

Nielsen reports that Latinos who are online are more likely to download music than the general Internet population—32% of Hispanics download music online versus 24% of all Internet users. The same pattern holds true for video downloads, with 17% of online Hispanic households pulling video off the web, versus 14% of all Internet users; 9% of online Hispanics downloading movies versus 6% of the general Internet population; and 8% of Hispanics accessing TV shows online versus 7% of all Internet users. 

Wired Hispanics trail the general Internet population when it comes to online shopping. While 70% of Internet users shop online, spending approximately $861 per year, just 62% of Hispanics purchase products on the web and spend $762 annually. 

Latinos receive or make more phone calls per day than any other ethnic group... 

Dialing in 

Mobile phones have made tremendous inroads in the Hispanic community, which trails only the African-American segment in number of minutes per month (783 minutes versus 811 minutes respectively). Although Latinos don’t spend as much time on the phone, they receive or make more phone calls per day (14) than any other ethnic group, and have the phone bills to prove it—$94 per month compared to African Americans $89, Asians $82 and Whites $80. Roughly two-thirds of Hispanics used text messaging services in the last 30 days, about one-fourth utilized mobile Internet, and the same percentage sent an email in the past month. 

What’s clear is that Hispanics represent a viable and growing segment in the electronic marketplace. Their increasing “three screen” media consumption as well as their favorable predisposition to advertising make them an audience that can be harnessed on new platforms to boost brand impact.

Source - Nielsen

How An Entry Into The Hispanic Market Today Can Save Your Company Precious Dollars

The bleak news about the health of global advertising just won't stop.

ZenithOptimedia yesterday slashed its 2009 forecast for a second time since December 2008, when it predicted statistically flat planetary growth.

Now, it predicts the world's total advertising dollars, Euros, pounds and yen to drop by 8.5 percent from 2008. The sharpest cuts were seen in the automotive, financial and business travel categories.

"Faced with extreme uncertainty, advertisers in most sectors planned for the worst and cut their costs in anticipation of steep drops in revenue," ZenithOptimedia said in a statement released July 6.

A recovery in North America may not be seen until 2011; ZenithOptimedia believes the U.S. and Canadian advertising market will shrink an additional 2.4 percent in 2010.

For the marketer who hasn't yet launched a Hispanic marketing effort for their company, the gloomy forecast may present an unprecedented opportunity. 

"An advertiser that is interested in getting into the Hispanic market can go in and do a test and get it for a substantial discount, compared to what it would have cost two years ago," says Don Parsons, a veteran Spanish-language media sales executive who is now president of sales for the recently rebranded television operation CV Network.

"In the Hispanic market, we've never had years with minus growth - until last year," he notes. Therefore, a multimedia Hispanic market trial involving Spanish-language television, print and radio - paired with a promotional effort designed to "move case" - could bring a company additional revenue at a fraction of the cost it will take when the economy recovers.

A packaged goods advertiser not yet talking to U.S. Hispanics could easily accomplish this, Parsons says. At CV Network, the category remains one of the strongest. Pharmaceutical, telecommunications and beverages are among the other categories that continue to perform well for Parsons and his team. 

There's also new business development, Parsons notes. "One category that continues to grow on a local level is healthcare and HMO," he says. "It's happening in all markets, including Puerto Rico."

While CV Network is seeing new business, Parsons believes the addition of first-time clients is not happening to the degree that it did in the past. He adds that this is likely the case for all Hispanic media in mid-2009.

The addition of healthcare and HMO dollars hasn't made up for the loss in automotive dollars seen across the entire landscape of Spanish-language media.

"The automobile manufacturers are spending on the network level, but the dealer associations are the ones cutting their budgets, and that hurts at the local level," Parsons explains.

A new entrant to Hispanic marketing today can also make a bold statement about their interest and commitment to reaching the Spanish-speaking consumer because of an overall air of caution among media buyers and CMOs already in the market.

"Instead of an annual budget, people are reviewing their expenditures on a quarterly basis," Parsons says. "Advertisers are just very cautious right now. Planning and buying used to be done far more in advance, but it is not happening."

Thus, it's "slow-growth mode" until at least the beginning of the fourth quarter for Parsons and CV Network. There are no predictions as to what 2010 has in store for the network, which operates in Miami and New York in addition to Puerto Rico.

That being said, Parsons says the Latino market environment is far richer today than it was a decade ago. 

"The research is better, and there is more data," he says. "This will help a marketer understand the Hispanic market better than 10 or 20 years ago."

Parsons also points to a plethora of media options that was only nascent in 1999, including electronic media, print publications and in-store retail opportunities.

"I definitely think there is room for growth, and online opportunities represent major growth for the entire industry," he says.

Parsons also believes that one or two additional Spanish-language television networks will bow in the coming years, as existing properties evolve.

Sure, that's added competition for Parsons. But he welcomes the challenge. 

"That means we will all have to work harder," he says. "We will have to offer a great product and offer our advertisers a multiplatform opportunity - especially the new advertisers."
Source: Hispanic Market Weekly

Social Media Solves Latino Assimilation Problem

By Louis Pagan

This is something I've addressed again and again over the years:  keeping one's traditions vs. assimilation.  With most 'hot buttons' this topic follows suit and lines up the ranks either for or against.  While I never understood why the lines had to be so trenched in the ground, it seems to me that both sides are skewed and serve to only slide it's proponents into a hole instead of maintaining a plateau.  Thankfully, there is now proof to support why Latinos should embrace US culture.

In a recent study, we see what does work is a revolving acceptance of the former and new, namely keeping one's Latino culture while embracing US culture.  This not-so-common, common sense method maximizes the benefits of both cultures and let's one successfully apply themselves in the real world - a world of diversity.

These same thoughts can be found at the heart of social media.  To limit oneself in social media to their own natural tendencies, one would have to put up many safe guards, namely locking their account from general public view and filtering content to select friends.  This is not what social media is and works against the social media movement.

How can one possibly restrict themselves to their limited sphere of influence and not expect to understand and grow with the world around them?  Social media breaks down real and perceived barriers.  It gives people the chance to softly engage other cultures and pursue new connections.  It is through social media that one gets exposed to the fast track of what being social is all about, and have the ability to connect to one's peers, both upwardly and laterally.  For Latinos, who are culturally social, I have hopes that social media can help bridge the gap between the traditional and the new without losing the essence of either.

 

Source: LatinoPundit

To Reach Multicultural Youth, Go Mobile

By Tru Pettigrew

It's no secret; multicultural consumers have always been trendsetters. The music, fashion, and lifestyle categories have always been synonymous with--and adopted--what emanates from “the streets." Yet, when it comes to influence in the technology category, or how brands use technology to market to this segment, the conversations have been almost nonexistent.

Multicultural online and mobile consumption and spending habits are outdistancing the general market 1.5, almost 2-to-1. Per capita, they’re texting more, have more unlimited data plans, download and purchase more content, view more online and mobile ads, and buy more high-end mobile devices than the general market. Consumers are turning to new media as their primary source for consumption, and the multicultural segment is driving the bus. This means that in order for brands to reach them, they must restructure their media plans and budgets to meet them where we are. 

Yesterday, while speaking at the Cannes Lions International Advertising Festival, Steve Ballmer (right), a senior Microsoft executive, stated: “…traditional broadcast and print media would have to plan business models around a smaller share of the advertising market, as revenues continue to move to digital outlets." We’ve all seen this happen firsthand over the last 18-to-24 months and we've been adjusting accordingly. It’s important to build out highly engaging online and mobile experiences for brands and clients. Taking traditional offline strategies and media, “digitizing” it, and making it interactive in a way that gives the consumer an experience, and affords them special access to exclusive lifestyle benefits is a necessary approach to stay current and relevant with this audience.

There are gluts of agencies, and companies in the marketplace that profess to know and execute on new media and mobile. However, they fall short in a few key areas that resonate with multicultural consumers. Access and benefits are most important to this consumer when engaging with a brand. The more, the better, and it has to be over a longer duration. These are the keys to winning in the multicultural arena. Of course, they’re looking to be engaged in an authentic way (another subject altogether), but after that hurdle it’s about ongoing access and benefits.

Data shows us that multicultural youth over index in their use of mobile, particularly the Hispanic/Latino consumer. And to that point, instituting some decisive mobile strategies, capabilities, and tactics that appeal to multicultural audiences is paramount for brands looking to connect with this consumer group. Their mobile phones and devices are an extension of who they are, whereas customization and personalization is key. These devices are with them all the time, not only as a means of communication but as a part of their lifestyle. Brands should think about integrating mobile and multimedia features into online widgets and banners to enable simple and effective campaign integration within existing online initiatives. As well, it's necessary to extend online engagements to mobile devices. This process generates higher user participation, improved campaign reach, and a cost effective campaign execution. It's necessary to become an active participant in their world, and go mobile with them.

Source: Fast Company

Latino Teens Happier, Healthier If Families Embrace Biculturalism

Source: University of North Carolina at Chapel Hill

Over the years, research has shown that Latino youth face numerous risk factors when integrating into American culture, including increased rates of alcohol and substance use and higher rates of dropping out of school.

But a new study from the University of North Carolina at Chapel Hill shows adolescents who actively embrace their native culture – and whose parents become more involved in U.S. culture – stand a greater chance of avoiding these risks and developing healthier behaviors overall.

The findings are from a longitudinal study by the UNC-based Latino Acculturation and Health Project, which is supported by the U.S. Centers for Disease Control and Prevention (CDC) and directed by Paul Smokowski, Ph.D., an associate professor at the UNC School of Social Work. Researchers interviewed 281 Latino youths and parents in North Carolina and Arizona, asking questions about a wide range of measures of lifestyle and mental health. Participants answered according to how much they agreed with each question (for example, from “not at all” to “very much”), resulting in scores on a scale for each measure.

“We found teens who maintain strong ties to their Latino cultures perform better academically and adjust more easily socially,” Smokowski said. “When we repeated the survey a year later, for every 1-point increase in involvement in their Latino cultures, we saw a 13 percent rise in self-esteem and a 12 to 13 percent decrease in hopelessness, social problems and aggressive behavior.

“Also, the study showed parents who develop a strong bicultural perspective have teen children who are less likely to feel anxiety and face fewer social problems,” he said. “For every increase in a parent’s involvement in United States culture, we saw a 15 to 18 percent decrease in adolescent social problems, aggression and anxiety one year later. Parents who were more involved in U.S. culture were in a better position to proactively help their adolescents with peer relations, forming friendships and staying engaged in school. This decreases the chances of social problems arising.”

“Such results suggest that Latino youth and their parents benefit from biculturalism,” Smokowski said.

The findings are presented as part of a series of articles featured next month in a special issue of The Journal of Primary Prevention, a collaborative initiative between UNC and the CDC. The special issue presents the latest research on how cultural adaptation influences Latino youth behaviors – including involvement in violence, smoking and substance use, as well as overall emotional well-being – and offers suggestions for primary prevention programs that support minority families.

“Bicultural adolescents tend to do better in school, report higher self esteem, and experience less anxiety, depression and aggression,” said study co-author Martica Bacallao, Ph.D., an assistant professor at the University of North Carolina at Greensboro, whose work is also featured in the special issue. “It is interesting that, in order to obtain these benefits of biculturalism, adolescents and parents often need to do the opposite of what their natural tendencies tell them. Parents who are strongly tied to their native cultures must reach out to learn skills in the new culture. Adolescents who quickly soak up new cultural behaviors should slow down and cultivate the richness in their native cultures.”

Smokowski added: “The burgeoning size of the Latino population and the increasingly important roles that Latino youth will play in American culture are worthy of community attention. Communities can either invest in prevention to nurture Latino youth as a national resource or pay a heavy price later in trying to help these youth address social problems such as substance use, aggression or dropping out of school; all of which often results from the stress of acculturation.”

Along with Smokowski and Bacallao, Rachel L. Buchanan, Ph.D., assistant professor of social work at Salisbury University in Maryland, was a co-author of the study, titled “Acculturation and Adjustment in Latino Adolescents: How Cultural Risk Factors and Assets Influence Multiple Domains of Adolescent Mental Health.”

To learn more about the Latino Acculturation and Health Project, go to: http://www.unc.edu/~smokowsk/Main_Page.html

 

Source: Newswise

How is the recession changing Hispanics as consumers?

By David Morse and Maria Gracia Inglessis

How is the economy affecting the Hispanic market? The answer, at this time, may be inconclusive. In a recent article by Terry Soto, president & CEO of About Marketing Solutions, she cites data from Experian and concludes that Hispanics may be "recession proof" or at least "recession aloof." For example, 34 percent of Hispanics are optimistic about their finances in the coming year (compared to 25 percent of non-Hispanics), and 29 percent of Hispanics are more positive about the U.S economy (compared to 21 percent of non-Hispanics).

Hispanics may also be less burdened with financial difficulties because they are not as involved in some of the most problematic areas. According to Packaged Facts' analysis of Experian Simmons Summer 2008 National Consumer Survey data, 46 percent of Hispanics use credit cards compared to 72 percent among non-Hispanics, and only 15 percent of Hispanics own investments (compared to 43 percent of non-Hispanics). The Simmons data also highlight that Hispanics are more likely to rent their homes than non-Hispanics. This makes them less likely to be affected by the mortgage foreclosure.

There are some categories in which Hispanics are spending more than their non-Hispanic counterparts. According to the Packaged Fact Study, Hispanics spend more in:

-Food at home (8.3 percent vs. 6.8 percent - of total annual expenditure)

-Poultry (0.5 percent vs. 0.3 percent)

-Fresh vegetables (0.6 percent vs. 0.4 percent)

That Hispanics spend more in food is not surprising. They have bigger households and like to cook from scratch. But interestingly enough they are also spending more in less expected areas, for example, in apparel and services (4.8 percent vs. 3.7 percent). What is more, Hispanic men are more likely to keep up with the latest fashion (25 percent vs. 17 percent). Also...

-They like to experiment with new styles (26 percent vs. 14 percent)

-Buy the latest fashion every season (17 percent vs. seven percent)

-Enjoy any kind of shopping (28 percent vs. 13 percent)

 More Hispanics say they buy recycled paper products (men 40 percent vs. 34 percent and women 45 percent vs. 39 percent). Also, Hispanics are more likely to claim that they would pay more for environmental friendly products (men 42 percent vs. 35 percent and women 47 percent vs. 40 percent).

But additional data from the Nielsen Homescan Hispanic Panel present a less positive view on how Hispanics perceive that the current downturn is affecting their lives. The data show that about half of Hispanics feel that their household is somewhat or much worse financially now than a year ago, and 37 percent feel that their or their spouse's job is not too secure or not secure at all. More than 70 percent feel that their level of savings to deal with potential disasters is not secure.

 According to this study, not only do Hispanics have a less positive outlook, they have changed some of their consumer habits; for example, in the past three months they are eating at fast food restaurants less often (64 percent vs. 47.9 percent of non-Hispanics), and close to 45 percent are bringing lunch to work more often (compared to 36 percent of non-Hispanics).

 

Source: RetailWire

Survey: Hispanic Women Still Spending, Despite Economic Worries

By Lucia Moses

Hispanic women report they’re very stressed about the economy and losing their jobs, but far from snapping shut their purses, many of them are still spending, according to a new survey from People en Español.

The Time Inc. magazine’s annual HOT study, which stands for Hispanic Opinion Tracker, found 43 percent of Hispanic women, versus 36 percent of the general market, are very stressed about the economy.

Yet nearly half—47 percent—say they’re spending the same or more, compared with 38 percent of the general market.

“At the core is the staples and their family,” said Lucia Ballas-Traynor, publisher of Español. “They’ve increased their spending on groceries because they’re spending more time cooking at home. They’re inceasing spending on beauty products, because when you’re surrounded by doom and gloom, beauty is at the core of Latina women, and it makes them feel happy.”

Español’s reliance on the auto and retail ad categories has hurt it as the economy has soured. This year through June, ad pages fell 32.7 percent to 266, per the Mediaweek Monitor.

Ballas-Traynor hopes the survey will help her appeal to marketers in those categories where Hispanic women reportedly are still spending. “This market could present an opportunity for brands that haven’t been talking to us before,” she said.

Due out June 17, the study was conducted by phone for People en Español by Cheskin Added Value. Cheskin polled 1,500 women ages 18-54, including 1,000 Hispanic and 500 general market consumers, in March and April.

Source: MediaWeek

Ethnic Power Fuels Store Growth

Desperate developers and mall owners are benefiting from the population trend.

By Laura Kennedy

Stores catering to ethnic groups are a hot commodity for mall owners. As thousands of storefronts go empty, ethnic targeted retailers and services are providing glimmers of hope for struggling real estate owners and developers. Mall owners desperate to fill space will offer low-rent deals to such retailers.

The new ethnic stores can transform an entire shopping center. For one thing, the fast growing group of retailers can attract customers from far away. And once they’re at the mall, those shoppers tend to stay and make purchases at neighboring stores, too.

“What’s unique about ethnic centers is they can become destination centers,” says Reza Etedali, CEO and founder of Reza Investment Group, a retail real estate investment advisory firm that puts a special focus on ethnic retail developments. “People reach [out] to go look for them. Sometimes you don’t need to be in a high-profile location as long as you have the right tenants.”

La Gran Plaza in Fort Worth, Texas, is a prime example. Five years ago, The Legaspi Company developers bought the 1.1 million square foot mall when it was only 10% occupied. Now, after redevelopment and repositioning to the Hispanic market, the mall is 85% full.

The mall houses Hispanic targeted retailers, such as grocery stores and Mexican apparel stores, as well as a Radio Shack, Foot Locker and Burlington Coat Factory. Jose Legaspi, who runs the Legaspi Company, says that the primary market for the center is customers who live 20 to 30 miles away. “At a regular mall, they’re lucky if they can pull from five miles,” he says.

Ethnic targeted grocery stores also tend to have more-loyal customers than their broader-based supermarket counterparts, says Ian Brown, a senior vice president in California with Grubb & Ellis, the commercial real estate advisory firm. Meanwhile, “the traditional supermarkets are really having problems trying to figure out what their niche is,” he says.

Consumer loyalty is good for other retailers and service providers looking to drum up business in the same area. For instance, in California, Charles Schwab locates its investment services offices in the same shopping centers where popular Asian retailer 99 Ranch Market sets up shop; travel agencies, restaurants and others do the same.

Many ethnic retailers can stay busy amid downturns because they sell necessities, such as food and sundries, or provide basic services. Immigrants in particular have downshifted during the recession with more ease than other groups, according to Emil Morales, senior vice president of the multicultural sector at TNS, a market research firm. “They know how to be thrifty shoppers” at all types of stores, he says.

Owners will offer the new mall tenants low rents and perks. Look for mostly Asian and Hispanic stores to spur the growth, but some Middle Eastern retailers and restaurants also drive traffic in certain areas.

The expansion of the American palate is driving a more diverse clientele to the stores, buttressing the strong growth from the ethnic groups themselves. Developers can also capitalize on Americans’ and immigrants’ growing support of multiethnic offerings. Diamond Jamboree, a shopping center in Irvine, Calif., that opened last September, is distinctive in that it caters to many different Asian markets.

“Unlike other ‘ethnic’ plazas that cater to a specific immigrant group, by virtue of the fact [that the center is in] Irvine, it’s very pan-Asian,” says Thomas Tseng, a principal and cofounder of New American Dimensions, a multicultural marketing research firm. The center is anchored by Asian grocer HMart and features a Taiwanese coffee shop next to a Korean tofu restaurant, among other stores. Tseng and Etedali, both based in California, see the multiethnic trend spreading countrywide. “We’re seeing melting pot concepts where one grocer is not particularly focused on one ethnic group, but is focusing on a variety of ethnic groups,” says Etedali.

Ethnic buying power is rising, so the investments are good long-term bets. Hispanic buying power in the U.S. is set to grow by 46% over the next five years, while for Asians, the number will leap close to 48%, according to the Selig Center for Economic Growth at the University of Georgia. That compares with a likely 30% increase for the total U.S. population over that span.

Ethnic enclaves in California, Las Vegas, Atlanta and Chicago are particularly ripe for growth. Hispanic buying power in North Carolina as well as in Georgia will grow almost 60% in the next five years, and Asian buying power in each of those two states will increase around 55%.

 

Source: Kiplinger Business Resource Center