More than 66 percent of Latinos in America would be more inclined to buy products and services from companies and 64.7 percent would be even more loyal to companies that demonstrate a strong and visible commitment to the Hispanic community.
That’s according to a recent national telephone survey of 1,100 employed adult Hispanic consumers conducted on behalf of management consulting firm Garcia Trujillo LLC.
The survey also revealed that, although Hispanics would like to see companies develop or adapt more products and services that are culturally relevant to them, greater community involvement and increasing the number of Hispanics in key management positions are far more important.
“Although many companies continue to make investments in building their brands and their business strategically in the Hispanic market, our survey shows a significant gap in companies’ ability to engage and build equity with the fastest growing demographic in America,” said Charles Garcia, Garcia Trujillo CEO and a director of Winn-Dixie Stores.
The objective of the study was to explore Hispanic perception about how U.S. companies – broadly defined as large corporations and brands— treat U.S. Hispanic consumers. Given the growth of the Hispanic population in the United States, which is currently estimated at 50 million people, and the concomitant growth in a Hispanic consumer market, this study explores whether perceptions about the way in which large U.S. companies and brands treat Hispanics affects their ability to attract them as consumers.
- Although 59.3 percent of the consumers surveyed believe that the Hispanic market is important to U.S. companies and brands, nearly 42 percent believe U.S. companies have little respect for them as consumers.
- 94 percent of those surveyed want companies, products or brands in this country to have Spanish-speaking spokesmen in their advertising and information campaigns.
- 15.5 percent would like to see products and services specifically created for the Latino consumer.
- More than 60 percent believe that Hispanic workers face serious obstacles to advancement, with only 42 percent claiming U.S. companies provide very few opportunities for growth; nearly 60 percent believe language and 21.7 percent a college degree are the biggest obstacles to moving up.
- 60 percent believe companies are committed to their Hispanic employees; however, when asked how many Hispanics (in their best estimate) are currently in management or in leadership roles in companies in the United States, most Hispanics thought that less than 10 percent.
“This data demonstrates the strategic opportunities for companies and brands to connect with Latinos in meaningful ways,” said Sol Trujillo, Garcia Trujillo chairman and a member of the board of Target and WPP Group, the global marketing conglomerate.
This study reveals that a majority of Hispanics have a very negative perception about their own personal chances of growing professionally, with 42 percent claiming that U.S. companies provide very few opportunities for growth. According to the analysis done by Newlink Research, the absence of English language skills and low educational attainment are the most serious obstacles to Hispanic advancement.
“Considering that Hispanics make up about 16 percent of the population of the United States and that over the next four decades they will represent the largest growing market segment, U.S. companies should begin to take into account this enormous gap and begin to structure responses that prepare them for the future,” said Eduardo Gamarra, Newlink Research managing partner and professor at Florida International University. “Hispanic human capital already represents an enormous underutilized resource.”
The study was conducted by Newlink Research; a copy of the full study is available at www.garciatrujillo.com.
Garcia Trujillo Holdings helps Fortune 500 and multinational companies and their management teams to significantly grow their market share in the global Hispanic market by focusing on strategy, execution, organization, and mergers and acquisitions. Founded by top Hispanic business leaders, the firm also operates a merchant bank and venture capital firm.