Consumer goods companies target $1.2tn US Hispanic market
( source: http://www.ft.com)
The world’s biggest consumer goods companies are applying lessons from Latin America to their sales strategies in the US, as they try to woo the country’s 53m Hispanic consumers, whose spending power now tops $1tn.
Products ranging from Clorox bleach to Kimberly-Clark’s Huggies nappies and Nestlé hot chocolate are now being tailored to Hispanic tastes using knowledge the companies have gleaned in Mexico and elsewhere.
Hispanic people are the US’s largest ethnic minority, accounting for 17 per cent of the population, according to the Census Bureau. They are expected to reach 31 per cent – or 129m people – by 2060.
Until recently, many companies had sold generic products to US Hispanics without doing anything specific to cultivate them.
But as economic growth in the developing world slows, companies are becoming more eager to win extra business from the group, which some see as an emerging market within the world’s biggest economy.
After Clorox research found that many Hispanics favour fragranced household products, which they associate with cleanliness, it introduced the heavily scented Fraganzia cleaning range in the US last year.
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