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Hispanic Buying Power
The immense buying power of the nation’s Hispanic consumers continues to energize the nation’s consumer market, and Selig Center projections reveal that Hispanics will control $951 billion in spending power in 2008. The 2006 American Community Survey showed that one out of every seven who lives in the U.S. is of Hispanic origin, and the U.S. Hispanic population continues to grow much faster than the non-Hispanic population. By 2013, one person out of every six in the U.S. will be Hispanic.
Over the 24-year period, 1990-2013, the nation’s Hispanic buying power will grow dynamically. In sheer dollar power, Hispanics’ economic clout will rise from $212 billion in 1990, to $490 billion in 2000, to $951 billion in 2008, and to almost $1.4 trillion in 2013.
The 2008 value will exceed the 1990 value by 349 percent--a percentage gain that surpasses both the 141 percent increase in non-Hispanic buying power and the 151 percent increase in the buying power of all consumers. U.S. Hispanic buying power will grow faster than African American buying power (187 percent), Native American buying power (213 percent), and Asian buying power (337 percent).
In 2008, Hispanics account for 8.9 percent of all U.S. buying power, up from only 5 percent in 1990. Due to this brisk growth, Hispanic buying power essentially pulled even with African American buying power in 2006, and surpassed it in 2007. The estimates show that gap between the two groups’ total buying power expanded in 2008 and will widen further in future years.
Of the myriad forces supporting this substantial and continued growth, the most important is favorable demographics.
Because of both higher rates of natural increase and strong immigration, the Hispanic population is growing much faster than the total population, a trend that is expected to continue. Between 1990 and 2008, the Hispanic population increased by 107 percent compared to 14 percent for the non-Hispanic population and the 22 percent gain for the total population.
The relatively young Hispanic population, with proportionally more of them either entering the workforce for the first time or moving up in their careers, also argues for additional gains in buying power.
Hispanics’ spending patterns already help to determine the success or failure of many youth-oriented products and services. According to the 2006 American Community Survey, 33.8 percent of the Hispanic population is under age 18 compared to 21.3 percent of the non-Hispanic white population. Also, in 2006, only 5.3 percent of Hispanics were over 65, compared to 15.2 percent of non-Hispanic whites.
The increasing number of Hispanic business owners is another potent force powering this consumer market. Census Bureau data released in 2006 showed that the number of Hispanic firms grew by 31 percent between 1997 and 2002, which is more than three times faster than the 10 percent increase in the number of all U.S. firms. This jump in entrepreneurial activity, coupled with a rising level of educational attainment, illustrates Hispanics’ upward mobility.
The 2006 American Community Survey indicates that 60 percent of Hispanics over age 25 had a high school diploma, compared to only 56 percent in 1999 and to 53 percent in 1993. The proportion with a bachelor’s degree or more increased from 9 percent in 1993 to percent 11 percent in 1999 to 12 percent in 2006. The Census Bureau cautions, however, that levels of educational attainment for Hispanics are lower than those for non-Hispanic whites, blacks, and Asians largely because of the vast number of less educated foreign-born Hispanics.
Hispanic refers to a person of Mexican, Puerto Rican, Cuban or other Spanish/Hispanic/Latino culture or origin, and is considered an ethnic category rather than a racial group. Persons of Hispanic origin therefore may be of any race, and since their culture varies with the country of origin, the Spanish language often is the uniting factor. Three out of every five Hispanics living in the U.S. are born here, and among the foreign born the vast majority are Mexican (64 percent), which suggests that a great many Hispanics share similar backgrounds and cultural experiences. Nonetheless, spending patterns differ significantly based on country of origin, and the composition of the nation’s Hispanic population is changing.
Hispanics will comprise 15.3 percent of the country’s population in 2008, and will have $951 billion in disposable income. The ten states with the largest Hispanic markets, in order, are California ($249 billion), Texas ($171 billion), Florida ($101 billion), New York ($75 billion), Illinois ($41 billion), New Jersey ($36 billion), Arizona ($31 billion), Colorado ($21 billion), New Mexico ($18 billion), and Georgia ($15 billion).
Hispanics and their buying power are much more geographically concentrated than non-Hispanics. California alone accounts for 26 percent of Hispanic buying power. The five states and the ten states with the largest Hispanic markets account for 67 percent and 80 percent of Hispanic buying power, respectively. In contrast, the five states with the largest non-Hispanic markets account for only 39 percent of total buying power and the ten largest non-Hispanic markets account for only 56 percent of total buying power.
The top ten states, as ranked by the rate of growth of Hispanic buying power over 1990-2008, are Arkansas (1,536 percent), North Carolina (1,314 percent), Tennessee (1,053 percent), Georgia (1,037 percent), Nevada (965 percent), Alabama (890 percent), South Carolina (797 percent), Minnesota (768 percent), South Dakota (768 percent), and North Dakota (755 percent). In market size, Georgia, Nevada, and North Carolina also rank tenth, eleventh, and fourteenth, respectively, so, these states are three of the most attractive Hispanic markets in the nation.
Between 1990 and 2008, the share of buying power controlled by Hispanic consumers will rise from 5 percent to 8.9 percent, and the group’s share will rise in every state. In 2008, the ten states with the largest Hispanic market shares will be New Mexico (30.2 percent), Texas (20.1 percent), California (18.1 percent), Arizona (15.8 percent), Florida (15.4 percent), Nevada (14.8 percent), Colorado (11.3 percent), New York (9.4 percent), New Jersey (9.3 percent), and Illinois (8.7 percent). Nevada’s 8.5 percent shift in Hispanic market share, from 6.2 percent in 1990 to 14.8 percent in 2008 is the nation’s largest. Texas will see its Hispanic market share climb from 12.4 percent to 20.1 percent, a gain of 7.6 percent, which is a remarkable for a state with such a large, established market. Hispanics’ share of Florida’s market will rise by 6.7 percent, from 8.7 percent to 15.4 percent. Arizona’s Hispanics will claim 15.8 percent of the state’s buying power, up 6 percentage points from their 9.8 percent share in 1990. New Mexico’s Hispanic population will claim 30.2 percent of that state’s buying power, a 5.8 percent advance over their 24.4 percent share in 1990. Similarly, Hispanics’ share of California’s market will rise by 5.8 percent (from 12.3 percent in 1990 to 18.1 percent in 2008).
Because of differences in per capita income, wealth, demographics, and culture, the spending habits of Hispanics as a group are not the same as those of the average U.S. consumer. The most recent Consumer Expenditure Survey indicates that Hispanic consumers spent in total only about 88 percent as much as the average non-Hispanic consumer.
Hispanic households spent more on groceries, telephone services, clothing, footwear, and gas and motor oil. Also, Hispanics spent a higher proportion of their money on housing and vehicle purchases. They spent about the same proportion of their total outlays as non-Hispanics on restaurants, housekeeping supplies, furniture, appliances, household textiles, public transportation, and personal care products and services.
Compared to non-Hispanics, Hispanics spent substantially smaller proportions of total outlays (and substantially less money) on health care, entertainment, education, and personal insurance and pensions.
The same survey found that Hispanic households are substantially larger than non-Hispanic households (3.2 persons per household versus 2.4 persons for non-Hispanics), and have nearly twice as many children under 18. On average, there are 1.6 vehicles per Hispanic household compared to 2 vehicles per non-Hispanic household. According to the 2006 American Community Survey, 13 percent of Hispanic households do not own or lease at least one vehicle compared to 8.3 percent of non-Hispanic households.
The 2006 American Community Survey indicates that 49.3 percent of Hispanics are homeowners compared to 69.4 percent of non-Hispanics.
Once the current housing recession ends, this substantial gap in homeownership rates represents an opportunity for market expansion. The median value of Hispanic-owned homes is $208,100, which is 13 percent higher than the $183,700 median value reported for the non-Hispanic population, however.
Entre Latinos was created by a group of entrepreneurs with years of experience on the marketing and technology fields. The goal of Entre Latinos is to help the Latino community integrate with the main stream culture by fomenting the following areas; education, health, technology, legal, business, finances and events.
Entre Latinos is always looking to innovate the how to market to Latinos as well as helping Latino business learn hot to market to the American public. We strongly believe that educating the Latino community in the 7 areas previously mentioned, we can increase the various Latino skills to benefit businesses though Utah and the United States.
Entre Latinos is using as the main tool a 30 minute informative TV program sharing relevant information from our 7 topics of emphasis. The TV show has proven to be a success due to the quality of information presented on it. We receive an average of 80 phone calls each time the show is broadcast. Our second most important tool is www.entrelatinos.com. This website offers a place for the community to list their businesses, classifieds, car listings and a job board. It also offers more than 10,000 pages with articles relevant to our 7 topics of emphasis. The website receives more than 30,000 visits per month with more than 497,000 page views.
Entre Latinos will do joint ventures with the most important newspapers, magazines, billboards, and radio stations originating from Utah in order to generate the mass impact for the media. Broadcasting throughout all media sites, “Entre Latinos” can become a vibrant partner with local businesses. The goal is to increase the capacity to work together, taking mutual advantage of resources and skills in order to afford high efficiency with low risk thus prospering all communities in a professional manner.
We would like Latinos to become vibrant partners with their local communities, increase productivity within Utah, and reach outward to populations throughout the United States. For these reasons, Entre Latinos has set up a TV program called Entre Latinos.
The Target Marketing Audience is Spanish speaking populations originating in Utah and expanding to include Latino populations throughout the United States.
The purpose of Entre Latinos is to integrate the Latinos with local communities
1) by creating a communication bridge that leads Utah in education, business, finance, technology, medical services, immigration, legal services, and events (fairs, politics, family);
2) by increasing various Latino skills to benefit all businesses throughout Salt Lake County and the United States; and
3) by prospering international businesses world-wide.
We would like to introduce this unique TV program, Entre Latinos, to you. Its purpose is to build business efficiency, investments, sales, and the well-being for Latino Community throughout Salt Lake County and eventually beyond. RC Willey, Salt Lake Community College and Zion’s Bank are among our supporters and sponsors
Entre Latinos Target Marketing Audience:
The target marketing audience for the TV programs is the Latino cultures in the state of Utah with the vision of extending to national and international viewers in the future.
Entre Latinos Staff:
Our staff has been selected for their expertise and experience both in and outside the United States. The efficiency of the staff qualifications are embedded in areas of teamwork, customer service, behavior psychology, and increasing sales from the companies they work for. Our philosophy is: If you are better than you were yesterday, you are allowed to continue working here. Our staff has skills in the multiple dimensions of finance, business, marketing, administration, motivation, computer technology, and sales management. The expertise includes 10 years experience producing videos, shows, spots, etc. simultaneously on TV and radio. Our anchor man has years of broadcasting in Latin America and world-wide connections. The camera men are some of the best in the state of Utah while the producers use current technology with their years of experience to broadcast materials relating to the seven topics listed on the following chart.
Entre Latinos Production:
Entre Latinos began broadcasting 30 minute TV Programs on Saturday, and Sunday March 15, 2008, via Telemundo and other Spanish broadcast, running through Sunday, December 27, 2009 (with future newspaper, magazine, and radio).
The Entre Latinos TV programs disseminate the above topics to viewers via high quality, varied content, and educational means. Interviews include businessmen, government officials, consuls, and other professionals in small and large community businesses, political groups, Utah State Chamber of Commerce, and other related federal agencies. The programs coordinate these interviews with local educational institutions for the purpose of educating Latino cultures by increasing their knowledge and awareness of the above topics and related skills.
Entre Latinos is a unique TV program presenting scenarios from daily living in the real world of today found in community, home, social, and workplace situations. These programs are brought to Latino viewers to teach basic strategies for improving relationships with neighbors, coworkers, business savvy, and employment laws. These programs are designed to serve two purposes: 1) educate Latinos to meet the basic requirements of living as respected, contributing members of local communities and 2) assist in the economic growth of Utah.
Entre Latinos broadcasts programs and spots on Spanish broadcast stations, including programs and advertisements via TV, radio, magazines, newspapers, and billboards. Everyone who wants to participate can call 801-654-6597 to leave a message or send a text message. People can send suggestions and requests for information and programs they want to see on the network. Viewers can visit the website for more information and to send questions and comments to www.entrelatinos.com.
Entre Latinos Web Page Description:
EntreLatinos.com is a Latino Internet Portal in Spanish that provides different services to the Latino community in the United States. At the present time it serves the state of Utah, but the Latino community throughout the U.S. is embracing the Internet at an accelerated pace. The Pew/Internet & American life Project on March 14, 2007 reported that “Latinos comprise 14% of the U.S. adult population and about half of this growing group (56%) goes online…” Some estimates place the number of Latinos in Utah between 300,000 and 350,000. If 56% of these Hispanics go online, that means EntreLatinos.com has a potential to serve 168,000 to 196,000 in the state of Utah alone.
The main purpose of EntreLatinos.com is to provide an online service in the seven Latino vital areas for which Entre Latinos was created:education, medical services, technology, immigration & legal services, business, finances, and events. People and companies can access information in these seven areas and glean information from some of the most important companies in Utah, the United States, and around the world.
EntreLatinos.com comes as a marketing solution for small businesses. Most Latino-owned businesses have very limited resources, and they struggle to survive. They cannot afford to advertise in all the available printed or online business directories. For this reason, EntreLatinos.com is free of charge. We hope that by offering a free listing we can build the biggest and most complete directory with additional services in the future.
According to the 2005 Census Bureau, there are 5,177 Latinos-owned firms in the state of Utah. Our present business directory lists those businesses in Utah who offer services in Spanish; however, in the future we plan to list all non-Hispanic owned firms with the additional ability to provide services in Spanish. Our business directory will contain the following information about any given business: business name, address, website, phone #, fax #, email, hours of operation, promotions (these promotions can be changed at any time by the user), business description, logo, and a link to maps and directions. We are confident that most businesses will take part in the directory, yet there is a challenge to attract people to use the directory. EntreLatinos.com will provide other free services to attract users into the site; these services are as follows:
- Free online classifieds: In this section registered users can place ads to local buyers. The ad will contain the name of the item, price, a message or description, up to 5 images, and the contact information.
- Free car listings: In this section registered users can place an ad to sell used cars containing information, such as make, model, year, mileage, fuel type, engine, exterior color, interior color, transmission, drive type, body style, doors, VIN #, pictures (1-5), car description, message, and contact information.
- Free home listings: In this section Realtors® will be able to place listings with the ability to add multiple homes and a section to display all homes listed by the specific Realtor®. Listings will display contact information, address of the property, square footage, year built, bedrooms, baths, floors, garage size, price, type of property, up to five images, and other features.
- Free job listings: In this section companies looking for employees will be able to post a job opening. Listings will display company name, job title, code, location, description, education, experience, starting salary, closing date, benefits, contact information, and other pertinent information.
- Discussion forum: In this section users can participate in discussion forums of various topics, from sports to politics.
By providing all these services, Entrelatinos.com will become the online one-stop to find goods and services among the Latino community in Utah. As resources become available, we will add a calendar of events, news section, and a space for non-profit organizations to list their services, events, articles and more in the future.
Facts:
Education
· 59% - The percentage of Hispanics 25 and older who had at least a high school education
· 2010 Projection- estimated 48 million U.S. Hispanics.
· 2050 Projection- estimated over 100 million U.S. Hispanics.
Medical Services
· Hispanic/Latino Adults with diabetes were over four times as likely to report having been told by a health care professional that they had high cholesterol levels than those without diabetes.
· More than half of Utah adults are overweight or obese (57%) and an estimated 22.5% of elementary school students were overweight or at risk of becoming overweight
· 34.1% - The percentage of Hispanics who lacked health insurance in 2006, up from 32.3 percent in 2005. (Source: Income, Poverty, and Health Insurance Coverage in the United)
Legal Services & Immigration
· 22 - Number of states in which Hispanics are the largest minority group. These states are: Arizona, California, Colorado, Connecticut, Florida, Idaho, Iowa, Kansas, Maine, Massachusetts, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Oregon, Rhode Island, Texas, Utah, Vermont, Washington and Wyoming
Business
· 17% - The percentage of Hispanics 16 or older who work in management, professional and related occupations. Approximately 24 percent of Hispanics 16 or older work in service occupations; 22 percent in sales and office occupations; 2 percent in farming, fishing and forestry occupations; 16 percent in construction, extraction, maintenance and repair occupations; and 19 percent in production, transportation and material moving occupations.
· 45% of all Hispanic-owned firms were owned by Mexicans, Mexican-Americans and Chicanos.
· Bilingual marketing is on the verge of a breakout and is both important for those who speak English and appeals to the Hispanic culture
Events (Fair, Politics, Family)
· 7.6 million - The number of Hispanic citizens who reported voting in the 2004 presidential election. The percentage of Hispanic citizens voting -- about 47 percent -- did not change statistically from four years earlier. (Source: Voting and Registration in the Election of November 2004
Find all the information on www.entrelatinos.com
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