Hispanics Embrace All Aspects Of Ecommerce In Grocery
Key categories include cosmetics, fragrances and general household goods.
From product research to purchasing, both online and off, Hispanics are significantly more engaged throughout the grocery shopping journey than other groups, indicated the latest HispanicLink study from Chicago-based market researcher IRI.
Before making a shopping trip, 38 percent of Hispanics search for sales and promotional deals online, primarily through retailers’ web sites. Twenty-four percent compare prices offline. However, Hispanics are more likely to shop without a list. Hence, their product choices are less likely to be driven by habit than among non-Hispanics.
IRI’s study also revealed that dollars spent per grocery shopping trip continue to be higher among Hispanics versus non-Hispanics and are growing at a faster rate. In addition, Hispanics make substantially fewer shopping trips. But the decline is reversing itself.
Survey results showed that English-preferred Hispanics spend the most per trip while Spanish-preferred make the fewest number of trips. These figures indicate stock-up trips to larger format stores and demonstrate the need for CPG manufacturers and retailers to make the most of every trip when targeting Hispanic shoppers.
Hispanics are also significantly more influenced than non-Hispanics by social media, a favorite blog and TV advertisements across grocery categories. When buying beauty/skin care products, for example, 33 percent read a favorite blog, 33 percent got information from social media and 21 percent were influenced by TV ads. Hispanics tend to shop these categories online more often than non-Latinos.
“Every year, we do an in-depth study on Hispanics’ shopping behaviors, and our most recent research takes a closer look at their shopper journey, including specific insights about channels they shop, products they purchase as well as their adoption of ecommerce as a convenient and affordable means to do their shopping,” said Larry Levin, executive vice president of Consumer and Shopper Marketing for IRI. “Hispanic Millennials in particular are a very large consumer segment and are very digitally savvy, so our research will help CPGs customize marketing efforts to achieve optimal results.”
On average, Hispanics are younger than the general population. This in itself increases their interest level in ecommerce. Of the 55 million Latinos living in the U.S., 60 percent are Millennials or younger, and they account for 80 percent of segment growth. This makes Hispanic shoppers vital for any manufacturer or retailer eager to grow sales and market share.
Key findings from HispanicLink indicate that Hispanic shoppers plan to increase their online purchases of grocery products from large retailers at a significantly faster pace than non-Hispanic shoppers. At Amazon, the increase is projected to be more than 40 percent. However, Spanish-preferred Hispanics are more resistant to doing so.
Overall, Hispanics are more likely to make comparisons across retailers when buying groceries online, especially those who are bilingual. Because of its convenience factor, Hispanics also have a higher proclivity for retailers that offer multi-channel options, such as “click & collect.”
IRI’s HispanicLink suggests four core go-forward strategies for taking advantage of trends among Hispanic shoppers:
- Make a connection early: Target young Hispanics, “Hispennials,” who tend to seek out large amounts of brand information and engage with them early.
- Embrace Hispanic biculturalism: Make it easy for shoppers to switch between English and Spanish by adapting product packaging, advertising and marketing. Targeting Latinos is not just about language, it is about creating relevant content.
- Create an engaging experience: Offer the opportunity to touch product, design visually interesting displays and promote interaction with in-store personnel.
- Encourage connection throughout the shopper journey: Promote online and offline feedback, provide opportunities to connect with brands and retailers, solicit product and shopping experience reviews and make customer service a priority.
The latest HispanicLink survey closely examined the path to purchase for the following categories: food; nonalcoholic beverages; beer, wine and spirits; beauty; health care/over-the-counter medicines; and household cleaning. IRI has been releasing Hispanic insights reports since 2006. The goal is to equip CPG leaders with the key insights needed to achieve significant growth through highly effective targeting and activation of Hispanic shoppers.
For more information, please contact Staci Covkin, principal of Consumer and Shopper Marketing for IRI, at Staci.Covkin@IRIworldwide.com.
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