Consumer Communication Key to Private Label Success with Hispanics: Study

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Consumer Communication Key to Private Label Success with Hispanics: Study

BALTIMORE -- The language barrier may be key to private label acceptance among Hispanic consumers, according to the latest Customer Focus Opiniones survey by marketing services provider Vertis Communications here.

The survey found that while 78 percent of all Hispanics in the U.S. have a positive perception of private label store brands, only 61 percent of those speaking only Spanish at home had a similar outlook. Conversely, 88 percent of Hispanics who speak English at home have a positive outlook on private label brands.

"Customer Focus Opiniones indicates that 27 percent of Spanish-speaking Hispanics believe they don't know enough about private label store brands to want to try them," said Jim Litwin, v.p. of market insights at Vertis. "This data indicates that retailers with private label brands have an opportunity to market to Spanish-speaking Hispanic audiences by communicating to them in their native language. Incorporating relevant communication in marketing campaigns is imperative to establishing a connection with this influential audience."

While 27 percent of Spanish-speaking Hispanics indicate they have an insufficient amount of knowledge about generic store brands to want to try them, the survey revealed only 14 percent of non-Hispanic adults stated the same lack of knowledge, furthering the evidence that English-specific marketing and communications efforts are much more thorough for these consumers. Of total non-Hispanic adults, 84 percent had positive comments about the brands, which included references to a product's value, quality and availability as a good alternative to other brands. Young women 25-34 possessed the highest number of positive comments about private label brands, with 91 percent responding.

The study, which surveyed 2,500 consumers via telephone, also provides insight into how Hispanic consumers react to private label products.