One of the fastest growing subcultures in the U.S. is the Hispanic subculture, which already represents 16.7% of the entire U.S. population and over $1.5 trillion in buying power. Buying power, sometimes called purchasing power is the value of money, as measured by the amount and quality of products and services that can be purchased. Because the Hispanic subculture has such tremendous buying power, there is no wonder why they receive a large amount of attention from consumer marketing professionals.
Diverse Cultures from North and South America
The Hispanic subculture actually comprises a number of diverse cultures from North and South America, the Gulf of Mexico and the Caribbean Sea. Therefore, when targeting Hispanics, marketers must be mindful that the Hispanic subculture consists of many nationalities and cultures from a large geographic range. Each nationality, has its own customs and history that can influence their purchase decisions. Furthermore, the Hispanic subculture can refer to a number of races and is therefore considered an ethic classification, instead of a racial classification. Another factor that is critical for marketers to understand is that Hispanics spend a greater percentage of their earnings on necessities such as food, automobile payments, rent and utilities, as well as clothing, phone services and shoes. They are also likely to spend less on healthcare, education and entertainment.
Targeting the Hispanic Subculture
In terms of advertising budgets, marketers still seem to be undervaluing the size of the Hispanic market. For example, many companies only spend 5-6% of their advertising budgets marketing directly to Hispanics, even though they now represent 18% of the U.S. population and more than 20% of children, teens and young adults. Some marketers have found creative ways to attract the Hispanic subculture. For instance, older shopping malls that other demographics now ignore are being retargeted to Hispanic clientele. These malls attract Hispanic shoppers with Hispanic style retailers, Spanish translated signage and Hispanic themed storefronts. Some malls even feature Mariachi bands and very festive events and promotions.