Salad Bowl Branding

U.S. Hispanic Market: a force to reckon with...and a boon to savvy marketers

An article from The Wall Street Journal (May 1st) titled Surge in U.S. Hispanic Population Driven by Births, Not Immigration, illuminates just how profoundly the U.S. demographic shifts that are currently taking place will forever change the nation -- and the breakneck speeds at which those changes are occurring.

The 45.5 million Hispanics currently in the U.S. are up from 35.7 million in 2000, with the growth among Hispanics responsible for half of the U.S. population gains between 2000 and 2007. While that increase is nothing short of astronomical, what is most surprising is how it's happened. According the article:

"Hispanics now account for more than 15% of the U.S. population, and their surge is largely the result of births among people already in the country--not immigration. In the 1990s, a flood of Hispanic immigrants explained most of the group's population rise. That has changed in recent years. Between 2006 and 2007, about 62% of the increase in Hispanics came from births."

Hispanic families tend to have more children, while white families are having less. But what is also increasing is Hispanics' purchasing power. As the article states:

"Growth in spending by Hispanics is likely to outstrip that of the general population in coming years. Hispanics control more disposable income than any other minority group. The figure stands at $860 billion a year and is expected to hit $1.3 trillion by 2012, according to Jeffrey Humphreys, who monitors Hispanic demographic and economic trends at the University of Georgia's Selig Center.

Between their numbers and disposable income, Hispanics are already a vital market for politicians and marketers. But these numbers point to how they'll only become more so. And while Hispanics are quickly redefining mainstream America, they're also fragmenting into many micro-niches (read more on micro-niches here) who seek products that align with their cultural heritage as well as the country they now call home.

That only leaves the door open for more innovations across many industries including television programs, music, fashion and, most notably, specialty foods. After all, our markets are changing, so too must our branding. Some reading that covers these new "tastemakers" that are influencing their growing market's preferences--as well as those of the mainstream--is located here. And a three-minute video by The Wall Street Journal on the Hispanic market's dramatic growth and its implications is located below (RSS and email subscribers, please click through to the blog to view).

If multiculturalism is mainstream...why is Hollywood behind the trend?

"I feel like Hollywood is a little behind the curve usually in terms of what America is ready to accept from a cultural standpoint," said Jon Hurwitz  [co-writer and co-director of the Harold and Kumar film franchise]. "Film-goers are a bit savvier than they are given credit for."

In an insightful take on the comedic sequel to "Harold and Kumar go to White Castle," the film that developed a strong cult-like following,  LA Times writer Mark Olsen begs an interesting question on whether cinematic media is ahead of the trends, or behind them.

In both films, the lead characters, who are Indian American and Korean American, have strong ethnic and cultural identities, which marks a departure for mainstream movies. But, what is more telling is how the characters perceive themselves--namely, as mainstream Americans.

And they should. Because they are. After all, America is not a melting pot of one unified culture but a rich "salad bowl" of many cultural segments.

"The theme in these movies is that Harold and Kumar are sort of beyond race," said Hayden Schlossberg [co-writer and co-director of the films]. "They don't really care that much about their own identities; it's the people around them that sort of haven't gotten it yet."

The culturally diverse market segments in America share a common bond through their set of values--like freedom, equality and prosperity--but are unique in their respective heritages. And with one in three Americans already of minority status and forecasts for those numbers set to explode, the fact is, our diverse cultures are no longer minorities...they are, in every sense of the word, mainstream Americans.

What's the key takeaway for film studios? Just as specialty foods are reflecting these cultural influences, so too should our media. It's not only a question of adequately reflecting our nation's demographic makeup...but serving its multi-cultural markets (markets who happen to be avid movie-goers). On the other hand, major television networks have been making some smart casting choices as of late to more adequately reflect diversity. Shows like Lost, Grey's Anatomy and House feature Asian, African-American and Indian actors in lead roles--to much acclaim, loyal audiences and high ratings.

According to Kal Penn, the actor who plays Kumar, "It's probably too soon to say, but hopefully you're seeing a shift where the real America is actually being reflected in all its diversity. I find it really refreshing and more interesting to watch when things are more fleshed out."

We couldn't agree more. If Hollywood needs more assurance that audiences will embrace diversity, they need only look at the growth of the specialty foods industry (17%) compared to overall food sales (4%). The growth rates of multicultural markets, coupled with the surging demand for more specialty foods and the high ratings of TV shows featuring culturally diverse casts make it all too clear: promoting diversity--be it through movies or consumer packaged goods--is a profitable venture for the savvy companies who are reflecting and building upon today's trends in their offerings.