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NEW BRUNSWICK, NJ–Hispanics and Latinos have “impressive” purchasing power and are reshaping consumer markets in the United States, according to a report titled "Understanding the Hispanic Market."
With an average age of 28, they are the nation’s youngest consumers, “and tend to be brand-loyal consumers, especially when culturally-sensitive marketing and advertising are used to target them,” says the report, which tapped various census data and statistics.
And, the Garden State is among nine states comprising roughly “63% of Hispanic/Latino population growth between 2010 and 2015,” according to the report.
The nine states represent the residences of about three-quarters of the Hispanic/Latino population in 2015, and also include: California, Texas, Florida, New York, Illinois, Arizona, Colorado and New Mexico.
Additionally, a good deal of the Hispanic/Latino communities in New Jersey and the other eight states are “long-established… mature markets.”
This group, whose population amounted to 56.5 million, or 18% of the total United States population, according to the report, had the ability to buy $1.5 trillion in goods and services in 2015, says the report, citing estimates.
But in order to “garner a greater share of these dollars” store owners must understand the “diversity that exists with the Hispanic/Latino population.”
For instance, supermarket and convenience store owners should design their stores to accommodate this market while constantly increasing their assortment of products and services, according to the report.
What’s more, two years ago, the growth of the United States Hispanic/Latino population was 12.2%, and “outpaced” the population growth of the United States nearly 4% for a five-year period ending in 2015, according to the report.
“In absolute numbers, the Hispanic/Latino population increased by 6.2 million during [2010-2015]. Nearly three quarters of this growth (74%) was the result of natural population change, that is, more births than deaths,” reads the report.
International migration, or an "influx of Hispanic/Latino newcomers from abroad," set the trend, according to the report.
Hispanics and Latinos value “family orientation,” and stores need to be “true shopping destinations… for healthy food and basic household items that align with group specific cultural tastes and preferences,” says the report, adding that services benefiting the social and health needs of the group should also be included.
“Hispanic/Latino new urbanism [is] a form of community development that aligns with the unique family, cultural and community orientations of Hispanics/Latinos.
And the “model is likely to work well in food deserts,” where there aren’t many grocery stores or places to buy healthy food.
After New Brunswick opened a new downtown supermarket in 2012, many criticized the store for not catering to the city's Hispanics and Latinos, including David Harris, who runs the Greater New Brunswick Day Care Council.
After the market changed names for a second time in January, David Harris said the owners of the store "need to develop a hybrid model in order to address the very unique and special needs of [New Brunswick's] rapidly growing [Latino] population."
“Key Food leaders must begin a strong tilt toward the Hispanic Community and their consumer preferences. In addition to the products, Spanish speakers must play central staff roles," said Harris in comments on a popular Brunswick-based Yahoo! group.
"Yes, there are taxi trips to Walmart but the real competition is the neighborhood store,” wrote Harris noting the success of two "successful neighborhood enterprises: New Brunswick Farmers Market at 139 French Street and Daisy's at the corner of Remsen and Suydam.
"When driving around town visiting my day care families, I take what I call card board box and delivery truck surveys. There are frequent traffic jams involving delivery trucks around many neighborhood stores."
The Hispanic/Latino population is expected to grow more than any other race or ethnic group, by 34.8 million, or 59%, of the projected population growth in the United States by 2040, says the report, citing projections.
"Almost 57 million strong, Hispanics represent almost 18% of the U.S. population, and they’re expected to continue showing growth, reaching 24% of the population by 2040 and 29% by 2060," wrote Nielsen last year.
"Despite slowing immigration and reduced birth rates, Hispanics will drive the majority of all U.S. future growth for the foreseeable future. The U.S. Census projects Latinos to account for a full 65% of the nation’s population growth over the next 45 years. This means the U.S. Latino population will more than double, adding 62 million people, and will reach more than 119 million people by 2060,"