Hispanics & Retailers:
Relevant Dichotomies
August 26, 2016
MULTICULTURAL RETAIL 360 SUMMIT
Presenters
Oliver Perez
Senior Brand Manager
Our Brands
Tom Krause
Director of Insights
2
Hispanic households consume
more cereal
82%
of Hispanic children eat
cereal at least once every
other day
39%
of Hispanic households with
children have eaten 21-plus
servings of cereal in a month
Sources: Univision/Cultural Research/Casanova study; Packaged Facts; Simmons; Latinum Analysis
MULTICULTURAL RETAIL 360 SUMMIT
Our brands index high among Hispanics
Hispanic $ share index
7.9
172
122
Hispanic $ share for top cereal brands
6.7
6.0
5.1
4.7
3.8
3.1
3.1
119
Source: Nielsen Total U.S. Hispanic XAOC, FYTD 2016 (M) Oct thru 5wks ending 07/02/16
Source: Nielsen Total U.S. Hispanic XAOC, FYTD 2016 (M) Oct thru 5wks ending 07/02/16
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MULTICULTURAL RETAIL 360 SUMMIT
Post Consumer Brands Hispanic ShopperPlex™ Study
To deepen our understanding of how
Hispanics’ shopping behavior and
breakfast preferences are evolving
To assess retailers’ awareness of
Hispanic shopping behavior and
breakfast preferences
5
How are Hispanics’
circumstances and
attitudes changing?
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MULTICULTURAL RETAIL 360 SUMMIT
Younger generations are increasingly acculturated but
continue to embrace Hispanic family and cultural traditions
Nonacculturated
Semiacculturated
Fully
acculturated
Language
usage,
capability
Spanish
speakers,
stronger Spanish
language skills
Mixed usage,
proficient in
English
Usually use
English, very
strong English
skills
Self identity
Identify as
Hispanic over
American
A shared identity
More
American
Source: Latinum Network Analysis
25%
35%
40%
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MULTICULTURAL RETAIL 360 SUMMIT
Hispanics were hit very hard during the recession
Latinos Lost the Most Wealth During Recession
(Politic365, May 2, 2013)
Hispanics Believe They Were Hit Harder
In Bad Economy, Pew Reports
(Huffington Post, January 27, 2012)
Recession Study Finds Hispanics Hit the Hardest
(The New York Times, July 26, 2011)
Hispanic families
accounted for the
largest single decline in
wealth of any ethnic
and racial group in the
country during the
recession.
“
- New York Times
July 26, 2011
Hit Hard by the Recession, Hispanics Still Much
More
Upbeat on the Economy
(The Wall Street Journal, June 8, 2016)
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MULTICULTURAL RETAIL 360 SUMMIT
The numbers are dramatic!
0%
-10%
-20%
-30%
Wealth
-11%
-24%
Home Equity
-24%
-28%
-40%
-44%
-50%
-60%
White Non-Hispanic
Source: Urban Institute, April 26, 2013)
-49%
Black Non-Hispanic
Hispanic
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MULTICULTURAL RETAIL 360 SUMMIT
Yet! - Hispanic buying power stayed and remains strong…
and is predicted to grow
Hispanic reported the
same level of spending
adjustments as others
If U.S. Hispanics were a
country, they would be the
12th largest economy in the
world – ahead of Australia
Sources: U.S. MarketWatch; Morgan Stanley; Carbonview Post Hispanic Breakfast Trends 072616
By 2020, Hispanics will
surpass Millennials as the
group with the most
spending power
10
And, Hispanics are more
upbeat than others about their futures
47%
say their spending
has increased in the
past 2-3 years
73%
feel their standard of
living will improve,
Compared to 46% of
non-Hispanics
Sources: Pew Hispanic Center; Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
MULTICULTURAL RETAIL 360 SUMMIT
But many retailers are underestimating Hispanics’
increased spending
7%
34%
GROCERY RETAILERS
In the past 2-3 years, spending
among our Hispanic shoppers has…
Increased significantly
or somewhat
Has not changed
Decreased somewhat
or significantly
Source: Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
12
How is the use of
technology impacting
Hispanic shopping
behavior?
Hispanics are technologically savvy,
favor use of mobile
2x
as likely to say they are
interested in receiving ads
on their phone
Sources: Experian; Ipsos MediaCT; Latinum Network
2x
share information
online twice as often
…And they are most likely to use their mobile
devices to inform purchase decisions
58%
more likely to purchase
products they see
advertised on their phone
Sources: Experian; Ipsos MediaCT; Latinum Network
83%
of Hispanics who
access the internet on
a mobile device use it
while in a store to
inform a purchase in
real time
MULTICULTURAL RETAIL 360 SUMMIT
Interestingly, the use of technology really doesn’t vary by
acculturation levels
53%
58%
58%
Fully acculturated
Semi-acculturated
Non-acculturated
(speak primarily English)
Sources: Experian; Ipsos MediaCT; Latinum Network
(speak English/Spanish)
(speak primarily Spanish)
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MULTICULTURAL RETAIL 360 SUMMIT
Yet retailers may not fully appreciate Hispanics’ affinity for
mobile…
HISPANIC SHOPPERS
GROCERY RETAILERS
I frequently use my cell phone while shopping to look
up prices, nutritional information, get coupons, etc.….
Our Hispanic shoppers are more likely to use
their cell phones while shopping
Strongly or
somewhat
agree
55%
10%
Neither agree
nor disagree
Strongly or
somewhat
disagree
Source: Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
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MULTICULTURAL RETAIL 360 SUMMIT
…and their rate of adoption of technology
HISPANIC SHOPPERS
GROCERY RETAILERS
In the past 2-3 years, my use of technology while
shopping has…
In the past 2-3 years, Hispanic shoppers use of technology
while shopping has…
Increased
significantly or
somewhat
58%
20%
Has not
changed
Decreased
somewhat or
significantly
Source: Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
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How successful are
grocery retailers in
terms of engaging &
supporting Hispanic
shoppers?
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MULTICULTURAL RETAIL 360 SUMMIT
Hispanic shoppers have noticed retailers’ efforts to appeal
to them
37%
Increased a little or a lot
Stayed the same
Decreased a little or a lot
Source: Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
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MULTICULTURAL RETAIL 360 SUMMIT
But that awareness varies by acculturation
Non-acculturated and semi-acculturated Hispanics are
most likely to notice the enhanced support
Top 2
boxes
32%
45%
50%
Fully acculturated
Semi-acculturated
Non-acculturated
(speak primarily English)
(speak English/Spanish)
Source: Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
(speak primarily Spanish)
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MULTICULTURAL RETAIL 360 SUMMIT
Although nearly 70% of retailers are very or extremely
satisfied with their efforts to attract, engage and support
Hispanics, less than half of Hispanic shoppers feel the same
Grocery retailers
Hispanic shoppers
Satisfaction with stores’ efforts to
attract, engage & support
Hispanic shoppers
68%
Very or extremely satisfied
Somewhat satisfied
45%
Not very or not at all satisfied
Source: Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
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MULTICULTURAL RETAIL 360 SUMMIT
Non-acculturated Hispanics are most likely to be very
satisfied with retailers’ efforts
Non-acculturated and semi-acculturated Hispanics are
most satisfied with the enhanced support
Top 2
boxes
40%
54%
65%
Fully acculturated
Semi-acculturated
Non-acculturated
(speak primarily English)
(speak English/Spanish)
Source: Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
(speak primarily Spanish)
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MULTICULTURAL RETAIL 360 SUMMIT
Retailers are overestimating the importance of certain
strategies in garnering Hispanic loyalty
76%
61%
54%
57%
Top 2 box
scores
49%
41%
Retailers
Hispanics
Offer a separate section for
Hispanic food items
Offer in-store promotions targeted
specifically towards Hispanic
shoppers
Source: Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
Employ customer-facing
personnel who speak Spanish
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MULTICULTURAL RETAIL 360 SUMMIT
In terms of communications efforts, the views of retailers
and Hispanics are much more aligned
35%
38%
33%
36%
36%
32%
33%
Top 2 box
scores
38%
Retailers
Hispanics
Provide Spanish or bilingual instore signage
Provide Spanish or bilingual
versions of marketing
communications
Source: Post Consumer Brands Hispanic ShopperPlex™ Study, June 2016
Offer Spanish or bilingual
coupons (digital or paper)
Offer a Spanish or bilingual
version of digital platforms
(website, apps, etc.)
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How are Hispanics
approaching
shopping for food?
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Determining what is healthy is confusing
What was once good is bad and vice versa
• Eggs bad; now good
• Dark Chocolate good; now bad
• Red Wine good; now bad
• Low Carb Diet good; now bad
• Red Meat good; now bad
• Sugar bad; now not so sure
Consumers are seeking clear communication on taste and health benefits
MULTICULTURAL RETAIL 360 SUMMIT
Taste continues to reign supreme when it comes to
consumer purchase decisions
100%
90%
85%
88%
84%
72%
70%
74%
87%
73%
65%
58%
50%
73%
55%
62%
55%
48%
61%
52%
58%
56%
58%
52%
30%
20%
87%
89%
90%
83%
2006
71%
66%
64%
60%
40%
86%
79%
80%
70%
87%
2007
2008
2009
2010
2011
61%
53%
64%
73%
68%
2012
2013
Source: International Food Information Council Foundation, 2016 Food and Health Survey
38%
2014
Taste
Price
60%
51%
36%
71%
71%
56%
35%
84%
52%
64%
52%
Healthfulness
Convenience
Sustainability
41%
35%
2015
2016
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MULTICULTURAL RETAIL 360 SUMMIT
…but it’s not one-size-fits-all
Hispanic adults and children are more likely
fruit flavors, as well as
peanut and chia
to prefer
Source: Post Consumer Brands Hispanic ShopperPlex Study, June 2016
whole
wheat, brown sugar
and maple flavors
Non-Hispanics tend to prefer
How do Hispanics
view private label?
30
Hispanics establish more emotional bonds with brands
they support
60%
of Hispanics say “it is risky
to buy a brand you are
not familiar with,”
compared with 49% of
non-Hispanics
31% vs. 39%
Hispanics are less likely
to be always looking for
a good deal than
non-Hispanics
Sources: The Futures Co.; Post Consumer Brands Hispanic ShopperPlex Study, June 2016
MULTICULTURAL RETAIL 360 SUMMIT
Hispanics spend slightly less on private brands than nonHispanic whites
$3,120
$3,079
$766
Non-Hispanic white
Branded
•
•
$729
Hispanic
Private label
This gap between Hispanics and Non-Hispanics may be widening…
• 15% of Hispanic shoppers say their interest in store brands declined recently (vs. 10% of NonHispanics).
Many retailers may be unaware of this declining interest among Hispanics
Source: Nielsen Homescan, Total U.S., 52 weeks ending 4/2/2016; Carbonview Post Hispanic Breakfast Trends 072616
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How are Hispanics
approaching
breakfast?
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MULTICULTURAL RETAIL 360 SUMMIT
Mornings…and breakfast have special challenges
Mornings are the most timedemanding part of the day
Parents have a whole-day view of
nutrition that de-emphasizes breakfast
Parents don’t pressure themselves
to be “Supermom” in the morning
Source: PCB 2016 Kids Cereal Attitude & Usage Research
MULTICULTURAL RETAIL 360 SUMMIT
What does this mean for you
1.
2.
3.
Recognize
the impact
acculturation is
having on the
U.S. Hispanic
population
Embrace
technology
Continue to offer
great taste
and variety
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MULTICULTURAL RETAIL 360 SUMMIT
Survey answers
Question
Answer
1. What percentage of Hispanics believe that their personal finances will improve
in the coming year?
d. More than 80%
2. What percentage of Hispanic shoppers say they have increased their spending
somewhat or significantly in the past 2-3 years?
b. About 50%
3. What percentage of Hispanics say their use of technology while shopping (e.g.,
to visit store websites, use store apps, look up prices, nutritional information, get
coupons, etc.) has increased somewhat or significantly in the past 2-3 years?
c. Nearly 60%
4. What percentage of Hispanic shoppers are very or extremely satisfied with
retailers’ efforts to attract, engage and support them?
b. 45%
5. In terms of spending on private-label brands, how do Hispanic shoppers
compare with non-Hispanic whites?
c. They spend
slightly less
6. What percentage of Hispanics say their interest in private bands has decreased
somewhat or significantly?
b. 15%
7. What percentage of Hispanic households with children consumes 21 or more
servings of cereal a month?
b. Nearly 40%
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Thank you!
MULTICULTURAL RETAIL 360 SUMMIT
Survey answers
Question
Answer
1. What percentage of Hispanics believe that their personal finances will improve
in the coming year?
d. More than 80%
2. What percentage of Hispanic shoppers say they have increased their spending
somewhat or significantly in the past 2-3 years?
b. About 50%
3. What percentage of Hispanics say their use of technology while shopping (e.g.,
to visit store websites, use store apps, look up prices, nutritional information, get
coupons, etc.) has increased somewhat or significantly in the past 2-3 years?
c. Nearly 60%
4. What percentage of Hispanic shoppers are very or extremely satisfied with
retailers’ efforts to attract, engage and support them?
b. 45%
5. In terms of spending on private-label brands, how do Hispanic shoppers
compare with non-Hispanic whites?
c. They spend
slightly less
6. What percentage of Hispanics say their interest in private bands has decreased
somewhat or significantly?
b. 15%
7. What percentage of Hispanic households with children consumes 21 or more
servings of cereal a month?
b. Nearly 40%
38
Methodology
1
Retailer Quantitative
METHOD:
Quantitative questionnaire was
completed online or by phone
2
Consumer Quantitative
SAMPLE DEFINITION:
Participants included:
• Influencers and decision makers
within the cereal category
• Mix of headquarter and store level
employees (category managers,
buyers, store managers, etc.)
METHOD:
Online questionnaire
SAMPLE SIZE: N=1801
• 901 Hispanics
• 900 Non-Hispanics
SAMPLE DEFINITION:
Participants included:
• Multi-cultural consumers who purchase
products in the cereal category
• Aged 18-65
• Demographically balanced
• Purchased RTE cereal in past 3 months
• Eat breakfast at least once a week
SAMPLE SOURCE:
Progressive Grocer subscriber list
SAMPLE SOURCE:
Consumer Research Panel
SAMPLE SIZE: N=99 grocery retailers
Carbonview Post Hispanic Breakfast Trends 072616
3
Retailer Qualitative
METHOD:
30-45 minute telephone interviews
SAMPLE SIZE: N=10
SAMPLE DEFINITION:
Participants included:
• Influencers and decision makers
within the cereal category
• Mix of headquarter and store level
employees (category managers,
buyers, store managers, etc.)
SAMPLE SOURCE:
Progressive Grocer subscriber list
• Retailers who participated in phase 1
were asked if they would be willing to
participate in a follow-up interview
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MULTICULTURAL RETAIL 360 SUMMIT
The share of foreign born Hispanic adults is declining;
Hispanics represent a growing share of younger generations
U.S. Hispanic population
by nativity
Gen Z ethnicity,
compared with U.S. population
60
Hispanics
40
Non-Hispanic whites
African Americans
Asian Americans
20
Other
0
1960
1970
1980
U.S. born
1990
2000
2010
Gen Z
Total population
Foreign born
Sources: Pew Research Center; U.S. Census Bureau
40