The study is a roadmap that helps advertisers avoid wasteful spending by analyzing the best strategies to sell to Latino consumers, including demographics, media usage, language abilities, attitudes, and points of distribution -- that is, it expands their cultural intelligence.
Dallas, TX (PRWEB) July 18, 2007
The Dallas/Ft. Worth-Arlington Metropolitan Area is experiencing a substantial Latino population boom that is helping many area retailers remain profitable in a tough economy. According to the Census Bureau, the Dallas/Ft. Worth-Arlington Metropolitan Area was the second-fast growing metropolitan area in the United States, adding an estimated 601,242 residents since the year 2000. Hispanics comprised 60 percent of these new residents, whose estimated buying power of $20 billion has benefited the bottom-line for area retailers.
The Dallas/Ft. Worth Latino Trendline, conducted by Dallas-based Rincon & Associates, identified some of the local businesses that are benefiting significantly from this surge in Latino consumers.
- Wal-Mart and Fiesta Mart captured nearly half of the estimated $2.3 billion that Latinos spend annually on groceries.
- Bank of America has become a strong leader in serving the financial needs of DFW Latinos. One-quarter of Latinos, however, remained un-banked.
- Nearly 3 in 10 Latinos - about 300,000 -- plan to buy a home in the DFW area within the next 5 years in various cities throughout the Metroplex, translating to a potential $30 billion dollars for the housing industry.
- Nearly one-quarter of Latinos plan to buy an automobile in the next 12 months - a potential investment of $3.6 billion assuming an average price of $15,000. Nearly two-thirds of these purchases are planned for just three automobile brands: Chevrolet, Ford, and Honda.
- Latinos primarily shopped at Rooms-To-Go and FAMSA for home furniture. FAMSA's buy U.S./deliver in Mexico concept appears to be working well among Metroplex Latinos.
- Sears-Roebuck was the preferred destination for home appliances, while Wal-Mart was generally preferred for men's, women's, and children's clothing.
"Brands that are doing the best job of attracting Latino consumers are not just lucky, but regularly utilize credible research to understand how to best satisfy the needs of their potential customers," explains Dr. Edward T. Rincón, principal investigator of the study. "The study is a roadmap that helps advertisers avoid wasteful spending by analyzing the best strategies to sell to Latino consumers, including demographics, media usage, language abilities, attitudes, and points of distribution -- that is, it expands their cultural intelligence."
Other key findings related to usage of media by Latinos were:
- Broadcast Spanish-language television stations continue to capture large audiences, especially the foreign-born;
- Cable and satellite penetration rates improved less than ten percent since 2005;
- Internet access has not changed since 2005 and remains at 42 percent. Native-born Latinos were twice as likely to have Internet access as the foreign-born;
- Seven of the top ten radio stations used Spanish-language formats;
- Only 45 percent of Hispanic adults read an English or Spanish-language magazine. Native-born Latinos read magazines more often than foreign-born Latinos;
- Despite an abundance of English and Spanish-language newspapers, 39 percent of Hispanic adults did not read any local newspapers - an increase from 2005 (32%).
The study also pointed to various barriers that discourage interested marketers from initiating or expanding Latino marketing plans, such as industry studies that are biased and self-serving; insufficient information about the size and composition of media audiences; and industry reliance on a language segmentation model that has limited relevance to the buying behavior of Latinos.
The Dallas/Ft. Worth Latino Trendline is an annual syndicated study conducted by Rincón & Associates since 1988 with a random sample of 600 Latino adults. The study tracks Latino usage of English and Spanish-language media, language abilities, shopping destinations, culturally-related attitudes, purchase intentions, and socio-demographic characteristics. For further information about the study, please visit http://www.rinconassoc.com/dfw07.html.