By Glenn LlopisMarch 2012 Center for Hispanic Leadership

What Top-Tier Industries Are Telling Us About BuildingRelationships Through Social Media, Mobile Solutions, BigData, Interactive Technology and Online Marketing

Unlocking the Hispanic Super-Consumer Opportunity

Copyright © 2012 Center for Hispanic Leadership

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UNLOCKING THE HISPANIC “SUPER CONSUMER” OPPORTUNITY:

What Top-Tier Industries Are Telling Us About Building Relationships

Through Social Media, Mobile Solutions, Big Data, Interactive Technology and Online Marketing

Prepared by Center for Hispanic Leadership

8 Corporate Park, 300 Irvine CA, 92606

www.CenterforHispanicLeadership.com

Copyright © 2012 Center for Hispanic Leadership

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UNLOCKING THE HISPANIC “SUPER CONSUMER” OPPORTUNITY: What Top-Tier Industries Are Telling Us About Building Relationships Through Social

Media, Mobile Solutions, Big Data, Interactive Technology and Online Marketing

Executive Summary The Hispanic community is one of the greatest untapped markets we have ever seen. Already the largest minority in the U.S., their numbers continue to grow faster than any other group. Between 2000 and 2010, the Hispanic population grew by 43 percent, or four times the nation's 9.7 percent growth rate. In real numbers, this was an increase of 15.2 million people of Hispanic descent and accounted for more than half of the total U.S. population increase of 27.3 million. The total number of Hispanics in the United States today is 50.5 million people strong – and climbing. Hispanics are also one of the most optimistic groups: most believe the struggling economy has hit them the hardest, yet conversely, they have the highest hopes for the future. According to a Pew Research survey conducted in January, two-thirds of Hispanics expect to improve their financial status in 2012, while just over half can say the same in the general population.

Their optimism is tempered with a good deal of skepticism, however. Ideas such as financial planning and insurance coverage can be foreign concepts to those from families or home countries where it was not common. The institutions that offer these services are just beginning to broach this skepticism by getting past their own preconceived notions to truly understand the Hispanic consumer.

The emergence of Hispanics as a consumer force is growing rapidly, with a purchasing power expected to reach $1.5 trillion dollars in 2015. Dubbed “super consumers,” Latinos in the U.S. are blowing past the mainstream and other minority groups in this regard. In fact, the U.S. is seeing an increase in buying power not happening in other countries, and that is because of Hispanic growth here.

This growth is not confined to the Hispanic consumer either. According to a recent article on Forbes.com, the recovery is being spearheaded by Latino – and Latina – business owners and suppliers. These businesses are growing at twice the national average. Over the last measured five-year period, Latino-owned business revenue grew 55% and reached nearly $350 billion.

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Such businesses, with their built-in connection to the Hispanic consumer, are serious competition to many industries looking for a toehold into the market. But if you recognize them as more than competitors – for example, by partnering with Latino business owners and forging relationships with Latino suppliers – you will be building an important base from which to develop your cultural intelligence.

As Hispanics rise as consumers and business owners, we also have to acknowledge the growing pains, or “tension points” between the community and major industries in the U.S. Hispanics expect companies they do business with to understand and address their unique and diverse needs, and research indicates common themes across industries looking to build relationships with Hispanic consumers. Many of these themes tie into the growing prevalence of social media, mobile solutions, big data, and interactive technology – and the spotlight all of these developments put on the importance of relationship building.

Hispanic online and mobile usage is among the highest of any group and continues to increase faster than the general marketplace. This makes them an important, if not the most important category of consumers for retailers and other industries. What’s behind all of this usage and consumption? Consider these statistics:

Hispanics account for more than half of U.S. population growth over the past ten years. In one state, Illinois, 90% of the growth was Hispanic.

The number of U.S.-born Hispanics has reached more than a million a year, for the first time surpassing immigration as the leading cause of growth.

Many Hispanic groups have doubled their population in the U.S. in the last ten years.

The objective now is to improve relationships and communication with Hispanic consumers, influence their buying behaviors online, and leave a targeted value impression that creates customer conversions. Increasing conversions means building brand loyalty and bolstering the Hispanic community with reassurances that their needs are being understood and addressed. This can be as simple as adding a targeted Hispanic value-added message and impression to an existing web page in order to establish an association between a company, their products or services, and the Hispanic community. Research shows that the Hispanic consumer in particular is influenced by value-added impressions that target them specifically.

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These consumers are also more likely to make spontaneous, “impulse” decisions. This opens up more opportunities for businesses in the Hispanic marketplace, and those capitalizing on the power and scope of digital technologies will have a competitive edge. One example: creating a rich user experience that is easy to navigate and transferable to mobile devices. Another is enabling your Hispanic customers to engage with your brand through social media; in particular, young Hispanics want to join the conversation, but they also want to change it and make good on the progress made from previous generations. Hispanics want to engage in an experience that empowers them and gives meaning to their voice, opinions and attitudes. Data integration and management strategies are also needed to measure Hispanic buying power and trends in their behavior as consumers so that companies can allocate resources properly and measure their return on investment. Several examples have clear connections to the Retail industry, but can also be applied across the board to other industries, including Healthcare, Insurance, Banking & Finance, Media & Entertainment, and more. These industries are already looking to one retail giant online, Amazon, as they retool themselves to become more consumer-focused. Taking it to the next level – to zero in on and serve the largest and fastest-growing minority consumer group - is a natural progression. Whatever the industry, the common themes that emerge with regards to the Hispanic community include:

The Hispanic community is underrepresented (in the media), “unbanked” (in finance), and underserved by all industries.

Companies need to do a better job of reaching out to the Hispanic community, targeting them with culturally-appropriate messages and language, providing education, showing care for the community beyond just selling to them, and understanding their diversity (i.e., not treating them as a single bloc of consumers).

Hispanic consumers are fast and furious adopters of new technology, providing myriad opportunities to reach them online, via mobile devices, and through social media.

Companies must get past preconceptions about the Hispanic consumer; those who strategize now to understand and capture this large and fast-growing market will be gaining a huge competitive advantage.

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The important take-away fact to remember is: success will come to those who embrace the immigrant perspective. Companies must not force the Hispanic consumer to see through their lens, but rather, they must adapt and seize new opportunities by looking through the lens of the Hispanic consumer. Herewith, a gathering of relevant articles, events and advocacy group websites listed by vertical, along with relevant tension points that we can help to alleviate. As a prelude, please watch the following video, The Shift: Hispanics in America, at http://vimeo.com/26085366 THE HEALTHCARE INDUSTRY Hispanics and Healthcare in the United States: Access, Information and Knowledge (Pew Hispanic Center Report) http://pewhispanic.org/files/reports/91.pdf Tension point: The Hispanic community is not getting the information they need, targeted to them. Most of those without a usual healthcare provider don’t perceive themselves as getting sick or needing healthcare. It is true that Hispanic adults have a lower prevalence of some chronic health conditions, but there are exceptions, the most notable being diabetes. Yet even those with health insurance or a usual healthcare provider score low on the diabetes knowledge index. This shows that the Hispanic community is not being served with appropriate content, i.e. the importance of preventive medicine and check-ups, not just healthcare for the sick, and especially in regards to diabetes knowledge and prevention. Tension point: The medical community is not reaching out directly to Hispanics. More than eight in 10 receive their health information not from medical personnel but from alternative sources, such as television and radio (non-medical sources). More than half heard the message in Spanish or a mix of Spanish and English. When coming from these sources, almost 80% acted upon it. The medical community needs to become more active in reaching out to this audience instead of letting healthcare information be passively delivered and consumed. The growing prevalence of social media and mobile devices (since this report was published in 2008) offers unprecedented opportunities for reaching out to specific consumers, in this case the Spanish-speaking and bilingual Hispanic community.

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National Alliance for Hispanic Health http://www.hispanichealth.org/ Tension point: Disproportionate burden of preventable disease, death, and injury among Hispanics. There is a need to promote health and quality of life by providing cultural proficiency training and technical assistance to local and state health agencies that serve Hispanic communities. Also need programs to deliver culturally and linguistically-appropriate public health services, including updates to The National Hispanic Family Health Helpline database of providers, with an emphasis on cultural and language appropriateness of available services. Tension point: Hispanic consumers need to receive health information in a more timely manner. Actions that can help: Adapt current materials for use in the Hispanic community. Develop a Spanish language web presence with special health topics for the Hispanic community. Quickly adapt and disseminate crucial consumer health information, such as food and drug warnings and recalls, to Hispanic communities. Media dissemination should include wide placement on wire services serving Spanish language media and community newspapers. National Hispanic Medical Association http://www.nhmamd.org/ Tension point: Efforts to protect Hispanic adults from preventable diseases are falling short because they have low vaccination rates.

Low vaccination rates leave Hispanic adults vulnerable to influenza, pneumococcal disease and other illnesses. Health care reform efforts should prioritize wellness and prevention services, including vaccinations, within the Hispanic community. A doctor’s recommendation for vaccination is a leading motivator, and this is especially true for Hispanic medical professionals who share common cultural experiences, language and values with their Hispanic patients. Approaches to promote vaccination need to be integrated across practices, and efforts also need to be extended beyond clinic walls to engage the larger Hispanic community.

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Hispanic Health Information Portal http://www.hispanichealth.info/ Tension point: The obesity epidemic hit the Hispanic population fast and hard, fueled by their assimilation into the modern American diet and lifestyle. Pursuing the American Dream can have detrimental effects on physical health, as it can lead to a fast food diet and sedentary lifestyle. This must be addressed in the Hispanic community, as the obesity epidemic is leading to increased rates of diabetes and other diseases. Healthcare professionals serving the Hispanic community must put a strong emphasis on promoting nutrition, physical activity, and healthy habits in children as well as adults. THE RETAIL INDUSTRY Hispanic Retail 360 Summit http://www.hispanicretail360.com/ Tension point: The Hispanic consumer market represents a significant growth opportunity for retailers and suppliers, but it is a complex market for researchers, marketers, buyers and sales professionals to understand. Selling to Latino shoppers in the U.S. and maximizing their business requires retailers to effectively target, segment, and execute merchandising and marketing plans aimed at the complex Hispanic market. Retailers and suppliers marketing to this population have to address Hispanic consumer interests, trends and other topics across multiple channels, including food merchandising, department store merchandising, specialty retailers, and more. Reach Hispanic (What Retailers Should Know About Hispanics) http://tinyurl.com/7yet762 Tension point: Only some retailers, such as WalMart, are aware of the need to focus on the Hispanic consumer, limiting where this important and diverse market shops.

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Retailers have been slow to realize and act on some interesting statistics regarding the Hispanic consumer:

U.S. Hispanic spending power is growing faster than non-Hispanics.

Food plays an important role in Hispanic culture, and that is reflected in their purchasing of consumer packaged goods (13% greater than the general population).

Hispanics are more likely to spread out their food purchases, typically frequenting grocery stores several times per week; marketing programs can be tweaked or designed around this predictable buying pattern.

Advertising works: Hispanics remember advertised products while shopping and actively seek new and improved products.

Hispanics enjoy shopping more than non-Hispanics, and the experience is extending to online shopping, which is growing faster than the general market; 62% of Hispanic Internet users make online purchases.

Social Media Spanish (US Retailers’ Outreach to the Online Hispanic Retail

Consumer)

http://socialmediaspanish.com/blog/hispanic-retail-marketing/

Tension point: As the fastest growing ethnic group in the U.S., many retailers oversimplify the Hispanic community as a large homogenous bloc instead of a diverse group with deep roots in Latin traditions. Hispanics want and expect greater understanding when they are the target of retail marketing. They are strong proponents of online interactions and actively engage with their favorite retail brands through social media. The retail industry can see this as an opportunity to build ongoing relationships with the Hispanic community and gain greater insight into their unique and diverse needs. For example, some consumers may prefer their content in Spanish; retailers can cater to this audience by launching versions of their websites in Spanish, at the same time rewriting/redesigning them to resonate with Hispanic cultural values and alleviate industry tension points.

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Also see: Latino-Owned Businesses: Leading the Recovery Latino businesses are growing at twice the national average; over a five-year period, their revenue grew 55% and reached nearly $350 billion. http://tinyurl.com/cfbktzv THE INSURANCE INDUSTRY Trends in Marketing Insurance to Hispanics April 2006- Trends in Marketing Insurance to Hispanics.pdf Tension point: Hispanics represent the group most underserved by the insurance industry. Hispanics are the fastest growing minority in the United States, with the increasing buying power to match. Hispanics are using this buying power to purchase cars and homes at record rates, which has caught the attention of the insurance industry. Hispanics as a group have significantly lower insurance rates than non-Hispanic whites and other minority groups. Like the auto and real estate industries, the insurance industry needs to target the Hispanic consumer with culturally-specific marketing and websites, training programs for employees, and Hispanic-specific services. Tension point: There are many cultural and educational hurdles that insurance companies must leap as they target the Hispanic community. Because insurance is not mandatory or necessarily needed in most Latin American countries, its important role in U.S. society is not widely understood across the Hispanic population. There can be the perception that it is “a waste of money” or “something you can live without.” Insurance terminology is another problem, with financial terms that are difficult to explain or translate because they have no Spanish equivalent. Insurance companies must work to alleviate confusion through terminology that clearly explains how insurance works and why it is important to the U.S. Hispanic community. These consumers must be addressed uniquely because their backgrounds and motivations may be different from the mainstream. Insurance

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messages need to be tailored with respect to Hispanic cultural beliefs, e.g., the unpredictability of life and “live for today” mentality, as these can contradict the value in planning for the future. Understanding Hispanic and Latino Health and Life Insurance Buying Patterns

http://tinyurl.com/77vxqk7

Tension point: Learning about insurance can cause high levels of anxiety in the Hispanic community, especially among those without coverage. Even after learning about the need for insurance, most don’t act on it. The main reasons are insurance costs, the need for more knowledge about insurance coverage, or simply procrastination. Education is key to influencing Latino buying patterns in the insurance arena, and the Internet offers the greatest opportunity when it comes to providing insurance coverage to the Hispanic market. Health and life insurance providers must develop website tools in Spanish and English for small business owners and individuals, with the goal of developing a caring partner relationship that not only educates and understands the Hispanic community, but adds value to their personal dreams. Issues to consider when talking about insurance to the U.S. Hispanic population include: socioeconomic status, citizenship status, migration experience, length of time in the U.S., and the number of generations living in the U.S. Also important is the diverse nature of the Latino market, which includes many different racial backgrounds with different life experiences that will impact insurance decisions. Latinos for National Health Insurance http://www.latinosnhi.org/ Tension point: The Hispanic community suffers disproportionately because of lagging insurance coverage, which contributes to health disparities and mounting medical bills. Lack of health insurance is the biggest barrier to adequate healthcare in the Hispanic community, even more so than culture, language, and the absence of workforce diversity. Addressing the plight of the uninsured is the most important step in eliminating the health disparities and financial consequences found among Hispanics. The elimination of segregation under our current healthcare system is important to the Hispanic community, as it currently provides unequal access and imposes additional hurdles to acquire and maintain insurance

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coverage. This is an opportunity for providers to address the insurance crisis in the Hispanic community with a comprehensive approach to health insurance coverage that meets their unique needs. THE BANKING & FINANCE INDUSTRY Latino Branding Power (Taking Latinos to the Bank) http://tinyurl.com/7ajtcps Tension point: Latino populations have a general mistrust of banks, and financial institutions

are missing tremendous opportunities until they find a way to better connect with Hispanic

clients.

The money transfer business is a prime example of the missed opportunities in the lucrative

Hispanic market. Many Hispanics in the U.S. send the fruits of their hard labor to families in

their home countries, a transfer of funds that could be handled by banks and credit unions.

Financial institutions could capture billions of dollars by connecting to “unbanked” Latino

households in the U.S. There is $53 billion attributed to unbanked Latino households, according

to “Lost in Translation: The Opportunity in Financial Services for Latinos,” a report based on a

year-long study conducted by a research arm of the University of Virginia’s Darden School of

Business. Capturing these Latino customers means: considering alternative locations for branch

offices; providing education, especially for recent arrivals who may not have experience

managing their money with a bank; offering culturally relevant services in Spanish with

bilingual/bicultural staff to build trust and credibility; and providing mobile banking to support

the growing numbers of Hispanics connecting to the web via mobile devices.

Hispanic Business (The Hispanic Wealthy: The Next Big Wave in Financial Services) http://tinyurl.com/82lr9xv

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Tension point: The misconception persists that only Hispanic celebrities and sports stars like J-Lo and A-Rod have money, and that most Hispanics are in service occupations with no need for financial planning. Hispanic High Net Worth Individuals (HHNWI) are one of the fastest-growing groups in the U.S., but only one-third have a financial plan or plan for retirement. This presents a great opportunity for financial organizations to educate and advise Hispanics about the risks and rewards of their products and services. Hispanic business owners and companies are another fast-growing group with a host of financial needs. Financial services companies are competing heavily for this market, but Merrill Lynch is doing it best with active involvement in local corporate communities, strategies to penetrate specific geographies, and sponsorship of Latin American events that attract affluent Hispanic clients. Latin Business Blog (Servicing unbanked Hispanics begins with financial literacy)

http://tinyurl.com/8xaf6yq

Tension point: There are multiple barriers between Hispanics and their use of conventional banking services, and financial institutions are not making enough of an effort to serve them with specialized outreach. There is a clear disconnect between Hispanics excluded from the banking system and the financial institutions that should be serving them. Few banks have made it a strategic priority and too many assume that doing business with this group will not be profitable; they also cite “regulatory impediments” and “fraud concerns.” On the flip side, Hispanics aren’t reaching out to financial institutions either, mainly because of a lack of financial literacy. Efforts to remedy the disconnect on both sides should focus on financial education as the primary outreach strategy. THE MEDIA & ENTERTAINMENT INDUSTRY New Generation Latino Consortium http://tinyurl.com/7sbvvj3

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Tension point: Media & Entertainment focuses on Spanish-dominant Hispanics, largely ignoring the uncharted territory of the bilingual/bicultural majority. In the world of media and entertainment, New Generation Latinos (NGLs) are the underserved majority of U.S. Hispanics. This market represents a huge opportunity for entertainment and content creators. As part of the fabric of mainstream America, this trendsetting group is ripe to be portrayed in the mainstream media. And because they’re more assimilated than previous generations, they’re more open to embracing their heritage and seeing it reflected in their entertainment choices. Attracting NGL viewers depends on casting choices, show themes, and other lifestyle connections. True and balanced content trumps trying too hard to single out the Hispanic demographic or being overtly Latino. A subtle, nuanced approach that’s culturally in tune with the NGL lifestyle and mindset will be more effective. The Digital Behavior of Latinos in Entertainment Consumption http://tinyurl.com/7w9v4tz Tension point: Media and Entertainment companies need to acknowledge that Hispanics are at the forefront of the digital consumer revolution, and act accordingly. Hispanics use mobile and online technologies at higher levels than the general public. In entertainment, they are more likely to experience videos and music on their mobile phones, and are the biggest wireless group in the U.S. Latinos engage in dynamic behavior while using new technologies for entertainment consumption. For example, nearly one-third of heavy movie goers in the U.S. are Latinos; as the youngest ethnic group in the country, they rely on smart phones and other digital mobile devices to choose films and theaters. Latinos also are quick to share opinions by text and social media, and are more open to mobile ads, banners and search results than the average consumer. Media Coverage of Hispanics (Pew Research Center Publications) http://pewresearch.org/pubs/1432/media-coverage-hispanics-sotomayor-lead-newsmaker

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Tension point: The general public’s knowledge of Hispanics is primarily colored by event-driven news stories and stereotypical portrayals instead of a more accurate and focused coverage of the community that portrays real individuals, their lives and experiences.

Considering that Hispanics are the largest minority group in the U.S. – and growing every day –

it is perplexing that their portrayal in mainstream media has such a limited range, from nearly

invisible to clearly stereotypical. Whether for entertainment or in the news, stories rarely

mention Hispanics, much less focus on their lives and experiences beyond the stereotypical

mold of preconceived notions. More than a third of all recent Hispanic-related coverage dealt

with Supreme Court Justice Sonia Sotomayor, a big news event but one that left the rest of the

Hispanic community largely ignored. Even coverage of the immigration issue has been dropped

or curtailed by the media. There is great potential here for media and entertainment companies

to provide a more thorough and focused portrayal, to both service the Hispanic community and

enlighten the general population.

Also see: Univision and Disney in Talks for an English-Language News Channel http://tinyurl.com/6o57ma2 Spanish-language broadcaster Univision is in talks with The Walt Disney Company to combine news division resources and start an English-language cable news channel. As the first channel specifically for English-speaking Hispanics in the U.S. – and one expected to compete with the likes of CNN, MSNBC and Fox News – this development acknowledges the growing numbers and influence of the Hispanic audience. Univision: The Hispanic Consumer http://corporate.univision.com/the-hispanic-consumer/ National Hispanic Media Coalition http://www.nhmc.org/about THE AUTOMOTIVE INDUSTRY

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Growing Hispanic Demographic Urges Bi-Lingual Marketing in Automotive Industry (Tier 10 News) http://tier10news.com/?p=201 Tension point: The Hispanic attitude toward purchasing a vehicle must be treated with more understanding and respect; more so than with non-Hispanics, it is “an event, a proud celebration” that elicits strong emotion. Companies marketing to Hispanics must understand what it means to them when they buy an automobile, the second largest purchase most of us make in our lifetime. It’s part of the American dream, but it’s more than that, too, as it reflects Hispanic values, the importance of family and providing for them. And this in turn is a reflection of their desire to not assimilate but “acculturate,” i.e. hold on to their culture, language, customs and traditions as they take part in what it means to be an American. Companies can show that they understand these emotional, cultural and traditional values in their marketing and advertising, but also by investing in the community and aligning themselves with non-profits and other groups that serve the Hispanic population.

Hispanics and the U.S. Auto Market (Polk View) http://www.brokendowndesign.com/hispanicsAndAuto.pdf Tension point: Domestic automakers are not connecting with Hispanic consumers, while their foreign counterparts are making greater efforts and winning market share. At #1 with Hispanic consumers, Toyota recognizes the diversity of the Latino market and gears millions in advertising, its Spanish-language online content, and event sponsorships to different segments of the community. #2 Honda also has a Spanish-language website as well as integrated advertising campaigns focusing on the Hispanic values of tradition and reliability. #3 Nissan courts Hispanic customers, especially the growing numbers of Hispanic youth, through advertising, sports related sponsorships and scholarship funds. Meanwhile, domestic automakers are seeing a decline in Hispanic market share and would do well to follow the successful lead of their foreign counterparts in reaching this important demographic. Domestic automakers will begin to see a turnaround when they embrace the immigrant perspective that foreign automakers already have.

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Engage:Hispanics – Automotive Moms http://www.mediapost.com/publications/article/126159/ Tension point: The industry doesn’t always get that women – and Hispanic moms in particular – have a vested interest in automobile purchases and a big say in vehicle selection.

Research shows that Hispanic moms have great influence in automobile selection and purchase for their families. More than any other industry, communications can influence and should target the Hispanic Mom, even to the point of building marketing plans around her. In particular, messaging should convey an understanding of her unique needs and reflect the importance of family and children; clearly show features and functions and how they will benefit her; and be spread across as many different media outlets as possible to reach these busy and on-the-go moms. Building trust is especially important with this market segment, as she will share her brand loyalty with family, friends, and through social media.

Also see: Hispanics Accelerating Auto Industry Growth (Brand Solutions, Automotive at Univision Communications Inc.) http://tinyurl.com/7to9b5d Hispanic PR Wire: Hyundai Motor America Launches…Traffic Safety Campaign “Motor vehicle related crashes are the leading cause of death among Hispanics ages 1-34.” http://tinyurl.com/6om9ohs Nissan Español Twitter Feed Companies like Nissan are extending their brands in Spanish via Twitter to gauge their connection with the Hispanic audience. http://twitter.com/NissanEspanol

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THE TELECOMMUNICATIONS INDUSTRY Hispanic Technology & Telecommunications Partnership (Latino Innovation and the President’s State of the Union) http://tinyurl.com/4jhrkf2 Tension point: Though Hispanic Americans are leading users of mobile technology, only 1/3 use the Internet capabilities; they are not making up for it at home either, as less than half of mobile users have alternate sources of Internet broadband access. In the modern world, access to and usage of the latest technology is crucial to fulfilling the American dream. Hispanics must take advantage of the full range of broadband and wireless capabilities as they strive toward their economic and social goals. Broadband in particular is the platform that will enable the Hispanic community to connect to valuable resources and participate in important areas that affect their lives, such as healthcare, education, and employment opportunities. Broadband & Social Justice (‘Don’t Go to the Ghetto?’ Some Consider New Application a Digital Divider) http://tinyurl.com/79mqdps Tension point: Broadband technology can enable change and create opportunities for the Hispanic community, but companies need to be wary of creating a divisive environment. As the telecommunications industry targets the Hispanic community for more inclusion, it could leave them vulnerable to more unfair treatment by those who would use the information against them. Less than forward-thinking companies have been known to engage in questionable practices, such as pulling advertising and availability of products and services in minority communities or communities considered “high risk.” We’ve seen so called redlining in housing, banking, and insurance; now it is threatening the availability of broadband Internet service to Hispanic consumers. Incredibly, the FCC recently had to take action against a “No Urban/No Spanish” policy some companies tried to pull with their refusal to advertise on broadcast stations for Latinos and other minorities.

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The Americano: Hispanics Will Spend the Most on Telecommunication Services http://tinyurl.com/7lnbrav Tension point: Hispanic usage of telecommunications is growing faster than other groups, and with it they are demanding more services for their unique, diverse, and quickly evolving needs. Telecommunications providers are under the gun to understand and address the Hispanic American consumer and their rising purchasing power and influence. They must differentiate their spending patterns, usage habits for wire lines and cellular, calling cards and international services, as compared to the general population and other minority groups. For example, the Hispanic market spends double what the average household spends on wire line services, but they are also a greater consumer of mobile content, more connected than other groups with online usage growing faster, and a heavier user of social networks. THE DIRECT SALES INDUSTRY (MULTI-LEVEL MARKETING) Direct Selling News: How to Effectively Reach the U.S. Hispanic Market http://tinyurl.com/8237kfb Tension point: Companies can’t just jump on the bandwagon and start pushing sales on Hispanic consumers, they need a long-term strategy, starting with their top leaders, that shows they support the community and care about their issues.

Companies looking to attract Hispanic business must be prepared to advocate for their issues and make investments accordingly. Support from the highest levels of the company is key, and the management team would do well to add bilingual/bicultural leaders and staff to show their commitment to the community. Communications should not just be translated, but “transcreated,” i.e., adapted with culturally relevant words and tailored messages that convey awareness and caring about Hispanic lives and traditions – for example, the importance of family in Hispanic culture. Also important is promoting Hispanic leaders as mentors, role models, and a voice for the community.

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Market America Creates Hispanic Direct Selling Program http://tinyurl.com/c8yxe7 Tension point: The entrepreneurial spirit of the Hispanic community and natural fit of the Direct Selling industry may entice them to resign prematurely from more traditional and secure jobs. Hispanics are turning to the Direct Selling industry in pursuit of the American Dream. It is a natural fit, combining the Hispanic values of entrepreneurship and family. Hispanics also have a tradition of turning to informal sales during times of high unemployment, e.g. selling street wares or from home to make ends meet. Recognizing this, companies in the direct selling industry are gearing sales material, websites and even whole product lines toward Hispanic sellers and buyers. The Direct Selling Association even ran a 20-page insert in Latina magazine to entice the community. However, companies should practice restraint and not oversell the benefits when pitching Direct Selling to the Hispanic community. Direct sales companies fit into the culture in a way that other industries do not, and with that entry into the community comes the responsibility to respect individuals and set realistic expectations so that people can make informed decisions about their futures. Feet in 2 Worlds: Telling the Stories of Today’s Immigrants (Latino Immigrants Embrace Herbalife) http://tinyurl.com/7xhbloz Tension point: The direct sales industry provides an alternative source of income to the unemployed/underemployed Hispanic, but reaps most of the reward from increased sales to Hispanic consumers.

Hispanic consumers may do business with direct sales companies they perceive as helping Hispanics. But in reality they may just be lining the pockets of the parent company. Some companies may take advantage of those from small towns, the uneducated, or those merely desperate for work in the bad economy. Hispanics, with an employment rate of 11.5% nationwide according to the U.S. Bureau of Labor Statistics, will naturally gravitate toward an opportunity that looks promising. While low start-up costs and other advantages are attractive, the direct sales industry, so reliant on word-of-mouth, will also need to develop a fair long-term strategy.

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Embracing a Solution and the Immigrant Perspective

Hispanic community pain points are felt across many vertical industries. To transcend these tensions, the Hispanic consumer must live their cultural values and the natural characteristics that define their immigrant perspective. As mentioned in the introduction, industries reaching out to the Hispanic community – from their advertising to sales to customer care – must see the community through the lens from which they see themselves.

Providing a platform for Thought Leadership that speaks authentically to Hispanic users is critical to engagement with, loyalty to and post impression value of your business. Hispanics want to know that your organization has carefully invested in their needs and you can demonstrate this by associating with credible and reputable leaders in the Hispanic community. They also want to feel as if your brand is living and supporting the same cultural values that they themselves are fighting to hold onto and proudly seeking to live more frequently. Hispanics battle the gulf between “too much” assimilation and “not enough” authenticity. Brands have a unique opportunity to earn this incredibly valuable consumer – one that has yet to be fully unlocked – by empowering Hispanics to recognize that their cultural roots are not barriers to advancement, but deep sources of strength. Become a part of the solution by embracing the immigrant perspective, and you will win the hearts and minds, business and support, of the Hispanic community.

Additional Reading

For more on this opportunity, see “The Immigrant Perspective on Business Leadership” at

http://www.glennllopisgroup.com/download-wpaper.php. This informative white paper further

illustrates the changing face of America and how businesses can attract new consumer groups by

canvassing the multicultural landscape for new and exciting possibilities.

“The Six Reasons Why Hispanic Leadership Will Save America’s Corporations”

http://www.glennllopisgroup.com/free-book.php

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“Creating Cultural Relationships for Your Hispanic Business”

http://tinyurl.com/7kncjsb

“The Oscars Prove that Hollywood Must Place Diversity at the Center Stage to Survive Long Term” http://tinyurl.com/7mqj927 “Don't Sell to Me! Hispanics Buy Brands that Empower Their Cultural Relevancy” http://tinyurl.com/848sqa2

Visit the Center for Hispanic Leadership at:

http://www.centerforhispanicleadership.com/