Fox Headlines Record-Setting Hispanic Retail 360 Summit

The former president of Mexico discussed leadership and government as more than 600 attendees gathered to share strategies, tactics and data on the Latino market.

Vicente Fox, former president of Mexico, gave a wide-ranging address touching on leadership, government, politics and partnerships as the keynote speaker of the 2011 Hispanic Retail 360 Summit, held in La Jolla, Calif, in August.

Calling for an expansion of NAFTA (North American Free Trade Agreement) to keep North America competitive with the rising economies of Asia, Fox said, “We need a new NAFTA vision, because no single nation by itself can succeed and be competitive while the rest of the world is forming blocs.”

The president of Mexico from 2000 to 2006, Fox said Canada, the United States and Mexico must be aware of the current shift of markets, financial resources and political power from the West to the East.

Fox, who worked in the private sector as a businessman, as well as in the political sector, didn't avoid controversy either — repeating a call he's made before that legalizing drugs would end the drug war along the U.S.-Mexico border. “Prohibition doesn't work,” he said.

Walls don't work, either, in his opinion. “I don't understand why this great country [the United States], which I love ... decided to build walls. Walls divide, walls isolate and walls don't work. The Berlin Wall couldn't [keep] out freedom, and the [Great Wall of China] could not stop foreign invaders.

“Migration is the greatest asset the [U.S.] nation has. Migration has been the strength, power and energy that have made the country so successful.”

A record audience of 605 retailers, suppliers, agencies and service providers participated in area store tours, nine general sessions and 16 concurrent sessions, as well as four smaller working groups, at the seventh annual Hispanic

Retail 360 Summit, hosted by Stagnito Media and sponsored by PepsiCo. Deerfield, Ill.-based Stagnito Media is a leading food industry media firm and publisher of Progressive Grocer and Convenience Store News, among other brands.

Also featured at the conference were Latino rapper, producer and entrepreneur Pitbull; Jose Luis Prado, president, Quaker Foods and Snacks North America, PepsiCo.; and speakers from retail powerhouses such as Sears/Kmart, Target, Safeway, The Home Depot and AutoZone, as well as a lengthy list of Hispanic marketing experts.

By far, though, the biggest surprise was Pitbull, whose talk on the importance of “keeping it real” enthralled the audience. “Remember the Taco Bell commercial with the little dog?” he asked. “That is not real.”

Pitbull (real name Armando Perez) is a first-generation Cuban-American who grew up in Miami. Empowering the Hispanic community is an important part of who he is, he explained. “Hispanics, Latinos, whatever you call us; I call us human beings,” he said. “We are hard workers who appreciate freedom and appreciate coming to a country that allows us to provide for our families.”

He further noted that the retail industry needs to combine the community's traditions, culture and an understanding of the struggles of people who stay true to their roots.

His advice was echoed by Jose Luis Prado of Chicago-based Quaker Foods and Snacks North America, who said that tapping into the Hispanic market and building brand loyalty among consumers in that market starts with being authentic. Companies, he explained, need to be open to diversity, understand the Hispanic identity, become part of the community and have a mutual respect for it.

In today's economic rollercoaster, capturing the Hispanic market just makes good business sense. “This is an area that can be the engine for growth that is so badly needed these days,” said Prado.

Specifically, PepsiCo tackles four points of action to reach the Hispanic consumer. The Purchase, N.Y.-based beverage and snack giant applies product innovation (bringing products from the consumer's former home to the new home); connects mainstream brands with the Hispanic consumer; uses its PepsiCo reach and strengths at the point of service; and becomes part of the community, not just a company that wants to sell to the community.

Retailers and CPG firms also have to realize that not all Hispanic consumers are the same. For example, the blue-collar Hispanic worker is loyal to brands and receptive to advertising, according to Kevin Kilpatrick, founder and publisher of Marietta, Ga.-based Constru-Guia al Día (Spanish for “Up-to-Date Construction Guide”), the largest circulating publication aimed at Hispanic male professionals in the United States. But retailers and merchandisers need to keep in mind that this particular segment prefers to communicate in its own language.

As for The Home Depot's experience, the company strives to connect with the Hispanic blue-collar worker through key passion points, said Alejandra Barron, senior manager of multicultural marketing.

“We really want to develop a relationship with them,” Barron said. “We want to engage in a conversation with them, ideally."

Phenomenal Growth

From 2009 to 2010, Hispanics accounted for 47 percent of U.S. consumer spending growth, according to Cesar Melgoza, founder and CEO of Miami-based Geoscape. However, to be successful in this rapidly growing market, retailers and manufacturers need to look beyond the numbers.

“The business case is so important, but it's not all in the data,” said Armando Martin, president of XL Edge and master of ceremonies for the three-day event. “Hispanics and non-Hispanics need to come together and ask, 'How can we help our leaders understand the changes in America?”'

According to Melgoza, Latinos are the new “growth majority,” making up 56 percent of the population growth since 2000. He added that this number is only going to increase. Currently, Hispanics total more than 50 million people in the United States.

The changing face of the population is reflected in what is considered “mainstream.” In 1960, Hispanics were “a fringe opportunity,” but in 2011, they make up the majority of spending growth.

Additionally, over the past 20 to 30 years, companies have moved from diversity as a way to mitigate legal liability toward the end goal of diversity as a strategic advantage, Melgoza said.

Workplace Diversity

A key to seizing that advantage is having a multicultural workforce, explained Alison Paul, vice chairman, U.S. retail leader and principal at New York-based Deloitte Consulting LLP. “Consumer insights come from those who share the consumer's cultural experience,” she said.

According to a joint study by Deloitte and the Chicago-based Network of Executive Women, Hispanic buying power stood at $212 billion in 1990 and is projected to jump 513 percent by 2014 to $1.3 trillion.

The retailer-vendor partnership is also a key to success. As Annie Zipfel, director, Target-owned brands at Minneapolis-based Target, explained, vendors need to let retailers know whether they have the right products on the shelves.

Marie Quintana, SVP, multicultural sales at PepsiCo, added: “Sometimes we make it harder than it needs to be. It's not a niche market; it is an integrated strategy.” PG

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