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Pretty Revenue Picture Ahead for Beauty Brands That Target Latinas
By: Peter Filiaci
Posted: November 29, 2011, from the December 2011 issue of GCI Magazine.
- Latina consumers represent an opportunity that can make or break domestic sales growth over the next decade and beyond.
- Latinas feel that getting exactly the beauty products they need is more important than price, and they are much more likely to equate brands that are expensive with brands that work.
- IHS Global Insight projects Hispanics will contribute 37% of all spending growth in the personal care category in the next five years.
- Latina faces, cultural relevance and Spanish-language are all keys to connecting with this consumer and harnessing that spending power.
The recent U.S. census results have proven the Latino Explosion is very real, with the Hispanic population growing more than 40% over the past 10 years to surpass the 50 million mark. Its growth was so robust, in fact, that Hispanics accounted for more than half of the total U.S. population increase from 2000 to 2010. And that growth shows no signs of slowing down.
Over the next 10 years, Latinas 18–49 will grow by another 3.2 million while non-Hispanic women in that age group will actually decline by more than a million. Latinas—currently one of every six women 18–49 in the U.S.—will represent one of every five women in that demographic by 2020.
Those numbers are enough to get any marketer’s attention. But for beauty marketers, specifically, the Latina consumer represents an opportunity that can make or break domestic sales growth over the next decade and beyond. In addition to being a demographic force, the Latina consumer’s habits and practices in regard to personal appearance make her a veritable beauty enthusiast.
Mintel tells us that this consumer over-indexes versus non-Hispanics in average expenditure on personal care products—including cosmetics, fragrances, skin care and hair care. In an effort to better understand what was driving this disproportionate category spending, Univision, in conjunction with Roslow Research Group, conducted consumer research with Latinas across the country. Through a mix of traditional focus groups along with in-home visits, these consumers revealed insights that help explain the cultural importance of appearance while shedding light on the key drivers that influence purchase decisions.