The Growth Majority - Nielsen influential segment of the Hispanic market ... Hispanic - Spanish ......

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Copyright © 2012 The Nielsen Company. Confidential and proprietary. Copyright © 2012 The Nielsen Company. Confidential and proprietary.

The Growth Majority: Insights into the buying behavior of Multicultural consumers

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Copyright © 2012 The Nielsen Company. Confidential and proprietary.

The Growth

Majority

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Ethnic Households will be the Majority by

2050 Distribution of the U.S. Population

70%

4%

13%

13%

35%

65%

5%

14%

16%

35%

60%

6%

14%

19%

60%

7%

14%

23%

51%

8%

15%

27%

54%

46%

9%

15%

30%

54%

2050 2040 2030 2020 2010 2000

Hispanic Black Asian White Non-Hispanic

Source: US Census

4


The White Non-Hispanic Population Skews

Much Older Today

5%

13%

15%

68%

5%

16%

22%

56%

5%

17%

18%

60%

6%

14%

19%

60%

5%

12%

13%

68%

4%

9%

7%

79%

Population Age By Ethnicity

55+ 35-54 18-34 12-17 Under 12 Total

Asian Black Hispanic White Non-Hispanic

Source: US Census

5


Nearly 92% of the nation’s population growth

came from minorities of all types

Source: USA TODAY / U.S. Census Bureau

Hispanics

Blacks

Whites

Asians

2010 versus 2000

6


“Non-Whites & Hispanics accounted for 98%

of the population growth in large metro areas”

71

63

57

82 77

73

86 82 80

'90 '00 '10 '90 '00 '10 '90 '00 '10

Source: State of Metropolitan America - Brookings

Large metros Small metros Non-metro areas

% U.S. White Population

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And some other amazing factoids to drive

your multicultural engagements

7163

57

8277

73

8682 80

'90 '00 '10 '90 '00 '10 '90 '00 '10

Source: State of Metropolitan America - Brookings

Large metros Small metros Non-metro areas

“42 of 100 largest

metros lost white

population & 22 are

“majority minority”

populations”

“Nearly half of

Hispanics live in

just 10 large

metros, but those

accounted for only

36% of Hispanic

growth”

“Asians even more

concentrated with

1/3rd living in just

three metros: Los

Angeles, New York,

& San Francisco”

“Atlanta, Dallas &

Houston led all

metros in Black

population gains,

while populations

dropped in New

York, Chicago &

Detroit”

% U.S. White Population

8


“Hispanic shoppers bring increased buying

power as numbers rise”

$1.3

$1.0 Trillio

ns

2010 2015

9%

4%

1980 2009

Hispanic Buying Power

Latinos of Mexican heritage represent the single

most influential segment of the Hispanic market

w/ $616 billion in buying power

Source: Package Facts (estimates) via Convenience Store News

9


$40

$45

$50

$55

Hispanic - Spanish

Prefered

Hispanic English

Preferred

White Non-Hispanic

140

145

150

Hispanic - Spanish

Prefered

Hispanic - English

Preferred

White Non-Hispanic

$6,500

$6,750

$7,000

$7,250

$7,500

Hispanic - Spanish

Prefered

Hispanic - English

Preferred

White Non-Hispanic

22%

28%

Hispanic - Spanish

Prefered

Hispanic - English

Preferred

White Non-Hispanic

Total Retail Channels

Shopping Trips Per Household Basket Ring Dollars Per Trip

Basket Ring Dollars Per Household % Dollars on Deal

Source: Nielsen Homescan;

Total U.S. 52 weeks ending 12/31/2011;

excludes gas only or Rx only trips

Hispanics shop less often, but spend more

per trip & annually, and less deal prone

10


African Americans shop often, spend less

per trip & overall, and less deal prone

$30

$35

$40

$45

African American Non-African American

140

145

150

155

160

165

170


$5,500

$6,000

$6,500

$7,000


15%

20%

25%

30%




% Dollars on Deal




Basket Ring Dollars Per Household

11


Asians shop more often, spend slightly less

per trip & are more deal prone

$42

$44

$46

$48

Asian White Non-Hispanic

140

145

150

155


$6,500

$6,750

$7,000


22%

26%

30%

34%




% Dollars on Deal




Basket Ring Dollars Per Household

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English-preferred exhibit trip preference within

supercenters & mass-merchandisers

202122232425262728

Hispanic - Spanish

Prefered

Hispanic - English

Preferred

White Non-Hispanic

46

51

56

Hispanic - Spanish

Prefered

Hispanic - English

Preferred

White Non-Hispanic

10

11

12

13

14

15

Hispanic - Spanish

Prefered

Hispanic - English

Preferred

White Non-Hispanic

12

13

14

Hispanic - Spanish

Prefered

Hispanic - English

Preferred

White Non-Hispanic

Shopping Trips Per Household

Grocery Stores Supercenters

Mass Merchandisers Drug Stores




13


Except for drugstores, African Americans

make fewer trips to major channels

20

21

22

23

24

25

26


50

55

60


10

11

12

13


12

13

14

15

16








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Asian households more frequent shoppers

in all major channels but supercenters

16

18

20

22

24

26

28


56

57

58

59

60


10

12

14

16


12

13

14

15

16








15


$55

$60

$65

$70

Hispanic - Spanish

Preferred

Hispanic - English

Preferred

White Non-Hispanic

$42

$43

$44

$45

$46

$47

$48

Hispanic - Spanish

Preferred

Hispanic - English

Preferred

White Non-Hispanic

$45

$50

$55

Hispanic - Spanish

Preferred

Hispanic - English

Preferred

White Non-Hispanic

$23

$24

$25

$26

Hispanic - Spanish

Preferred

Hispanic - English

Preferred

White Non-Hispanic

Basket Ring Dollars Per Trip


Drug Stores Mass Merchandisers

Hispanics offset less frequent shopping by

spending more per trip




16


$50

$55

$60

$65


$30

$35

$40

$45


$40

$45

$50


$20

$21

$22

$23

$24

$25





African Americans spend less per trip in

major retail channels




17


$50

$55

$60

$65


$30

$35

$40

$45


$40

$45

$50


$20

$22

$24

$26

$28





Asians offset their frequent shopping by

spending less per trip




18


5

10

15

Hispanic - Spanish

Preferred

Hispanic - English

Preferred

White Non-Hispanic

5

10

15

Hispanic - Spanish

Preferred

Hispanic - English

Preferred

White Non-Hispanic

5

10

15

Hispanic - Spanish

Preferred

Hispanic - English

Preferred

White Non-Hispanic


Warehouse Clubs Dollar Stores

Convenience/Gas




Hispanics measure up well to White Non-

Hispanics in these channels

19


5

10

15

20

25


5

10

15


5

10

15

20




Convenience/Gas




African Americans are more frequent

shoppers in dollar stores & c-stores

20


5

10

15


5

10

15


5

10

15




Convenience/Gas




Asians very frequent club shoppers, but not

in dollar or convenience/gas

21


Hispanic households spend more on basic

food ingredients Hispanic Nielsen Edible Category Dollar Index

Dried Vegetables & Grains 221

Shortening Oil 152

Baby Food 150

Shortening Oil 138

Canned Milk & Creamers 134

Shelf-Stable Juices & Drinks 133

Eggs 130

Refrigerated Juices & Drinks 129

Shortening Oil 129

Gum 127

Purchase index:

share of Hispanic $

sales divided by U.S.

household $ share

X 100

Source: Nielsen Homescan,

52 Weeks Ending 12/31/2011;

UPC-coded

22


Hispanic households spend more on beauty

care & categories for babies Hispanic Nielsen Non-Edible Category Dollar Index

Hair Care 154

Women’s Fragrances 149

Grooming Aids 144

Disposable Diapers 144

Family Planning 142

Photographic Supplies 142

Baby Needs 137

Sanitary Protection 129

Cosmetics 127

Laundry Supplies 124



UPC-coded

Purchase index:

share of Hispanic $


household $ share

X 100

23


Language preference tied to category spending

Dried Vegetables & Grains

Shortening Oil

Men's Toiletries

Baby Food

Prepared Foods – Dry Mix

All Nielsen Categories

Charcoal & Accessories

Pet Food

Fzn Pizza & Snacks

Diet Aids

Wine

Spanish-Preferred HouseholdsEnglish-Preferred Households

Share of Hispanic dollars

by preferred language

English-

preferred

households

spend more on

general population

categories

important



UPC-coded

24


African American households spend more

on basic food ingredients & beverages African American Nielsen Edible Category Dollar Index

Frozen Meat, Poultry, Seafood 167


Coolers 160

Shelf-Stable Juices & Drinks 156


Seasonings & Spices 153

Sugar & Sweeteners 150

Shortening & Oil 150

Non-Carbonated Soft Drinks 140

Cookware 134

Purchase index:

share of AA $


household $ share

X 100



UPC-coded

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African American households spend more

on personal & beauty care African American Nielsen Non-Edible Category Dollar Index

Ethnic HBC 946

Feminine Hygiene 181

Fresheners & Deodorizers 179

Men’s Toiletries 171

Personal Soap & Bath 164

Women’s Fragrances 162

Cookware 134


Charcoal 129


Purchase index:

share of AA $


household $ share

X 100



UPC-coded

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Asian households spend more on foods that

fit their dietary habits Asian Nielsen Edible Category Dollar Index


Baby Food 203


Fresh Produce 139

Snacks, Dips – Dairy 137

Yogurt 128

Pasta 127

Dried Fruit 127

Shortening & Oil 126

Soup 124

Purchase index:

share of Asian $


household $ share

X 100



UPC-coded

27


Asian households spend more on baby

categories and personal & beauty care Asian Nielsen Non-Edible Category Dollar Index


Family Planning 284

Baby Needs 216

Skin Care 192

Disposable Diapers 165

Oral Hygiene 161


Kitchen Gadgets 140

Hair Care 135

Vitamins 133

Purchase index:

share of Asian $


household $ share

X 100



UPC-coded

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H-E-B meets w/ customers, asks “what

would you love to see?” and delivers!

Source: H-E-B & Alberto Martinez /Austin American-Statesman (photo)

“They wanted more things

that remind them of home.”

“The $7 million remodeling

project — which added 6,000

square feet and about 40

employees to the store —

includes a masa factory that

grinds corn daily, a tortilleria

that will turn that masa into

tortillas, a carniceria (Latino-

focused butcher shop) and a

deli with fresh salsas and

cremas.”

North Lamar Boulevard and Rundberg Lane, North Austin, Texas

29


Winn-Dixie’s Miami store transforms—bilingual

décor, made-to-order Cuban café & more!

Source: Winn-Dixie

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Pathmark catering to demographics of the

neighborhood

Source: Pathmark, Progressive Gorcer & NJ.com

Progressive Grocer reported on Mar. 16, 2012—

“Our remodeled Weehawken store…offers shoppers

products that match their needs and cultural preferences,”

said Sam Martin, president and CEO of Montvale, N.J.-based

A&P. “With more diverse offerings and a friendlier, more

modern atmosphere, this renovation is a prime example of

our goal to enhance our customers’ shopping experience.”

31


“General Mills pilots Hispanic online sampling…

try-before-you-can-buy offer”

Source: General Mills

“Qué Rica Vida

will ship to

consumers’

doors a sampling

of General Mills

products before

they're available

on shelf, a $30

value. Plus they

will receive $8 in

coupon savings

to purchase them

at their local

store.”

32


“Hormel Foods introduces MegaMex Foods,

where you can find all the flavors of Mexico”

Source: http://www.hormelfoods.com/brands/MegaMex/default.aspx

33


Website lends understanding of the power of

the African-American consumers

Source: The New York Times & ReachingBlackCosumers.com

The New York Times reported on Nov. 6, 2011—

“We know that there is a significant

business opportunity in reaching

African-American consumers, who

comprise 13 percent of the population

and have a spending power of over

$957 billion,” Rudy Rodriguez, the

director for multicultural marketing at

General Mills, said in an e-mail.”

34


Macy's partners with Latina Magazine & the

Hispanic Scholarship Fund

Source: Macy’s

35


Manufacturer Hispanic websites & apps

Source: Company websites

36


General Mills’ Spanish language app for

Apple iPad

Source: Company website

Instant access

to more than 900

Latin-inspired

recipes, in 12

different

categories

37


P&G’s Gain expanding to reach Hispanics

Photo: P&G Gain

38


Campbell invests in innovation

Source: Campbell’s Soup news release (02/22/2012)

Campbell aligning with the

“New American Family –

nontraditional, multi-

generational, single-parent

and multi-cultural”

“Simply put, our mission is to

reinvent our products and

our company for a new era.”

39


Ethnic diversity impacting general population

Source: MultiAd Kwikee

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Copyright © 2012 The Nielsen Company. Confidential and proprietary. Copyright © 2012 The Nielsen Company. Confidential and proprietary.

The Growth Majority: Insights into the buying behavior of Multicultural consumers

The Growth Majority - Nielsen influential segment of the Hispanic market ... Hispanic - Spanish ......

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