The U.S. Hispanic population is now 59 million people—40% of which are millennials—and they spend more than $1.5 trillion a year.
According to technology company Viant’s report, “The Marketer’s Guide to Hispanic Millennials,” this demographic is more likely to shop at department store chains Nordstrom, JCPenney and Macy's than other millennials.
Hispanic millennials fall behind other millennials in the income categories, and the group definitely does their mobile research before a purchase. Forty percent of millennials report that finding coupons and comparing prices is the primary way they use their mobile devices while grocery shopping.
Plus, Hispanic millennials are embracing social media. Almost 50% of the group reported discussing a brand with someone via a hashtag on social media, versus 17% of the general millennial population.
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When it comes to brick-and-mortar department stores, Hispanic millennials are 26% more likely to shop at Nordstrom and JCPenney and 21% more likely to shop at Macy’s than other millennials.
"Clearly, these two department stores are on opposite sides of the retail value-versus-luxury spectrum. Given only more general knowledge like household income, a luxury retailer might not opt to pay much attention to this cohort," Jon Schulz, CMO of Viant, told FierceRetail. "This is just one reason why deterministic data is so important for brands. There's both a strong customer base and undoubtedly some untapped potential for new customers that could be missed if specific, consumer-centric information is unknown."
In addition, the report looked at U.S. Hispanic millennials' spending on Amazon and found that 1 in 5 shop the online marketplace, and 1.6 times as often as at Nordstrom, the segment’s top department store. However, non-Hispanic millennials are 39% more likely to shop on Amazon and spend 12% more than their Hispanic counterparts.
Schulz said that while it is curious that Hispanics are spending less than their counterparts on Amazon, it means that this group is most likely spending more than their fair share on other e-commerce destinations. In fact, Amazon quietly launched a shopping service this year geared toward Hispanics, noting that the marketplace needed to better serve this audience segment.
Moving forward, Schulz notes that marketers need to touch all channels in a cohesive manner in order to reach this key demographic.
"It's also important to take a bicultural approach to differentiate the brand. Hispanic millennials look for brands to invest in not just them, but more broadly in their culture and across generations," he said.
And while he believes the "what" is already known, it's the "how" that remains elusive.
"Many points in the report that some might peg as 'surprising,' highlight the importance of putting the Hispanic millennial consumer at the center of advertising initiatives. With data that is true to a specific consumer's traits and behaviors, like age, purchasing habits and media preferences, marketers can make their ad dollars work harder in reaching this important group," Schulz added.