It’s looking like 2013 will be the year in which Hispanics, the fastest growing segment of the U.S. population, will flex their considerable spending muscle like never before.
Hispanics represent 16.7 percent of the U.S. population, and in Texas that percentage is even higher – 38.1 percent. By 2050, it’s estimated that there will be 132.8 million Hispanics in the U.S. – or 38.1 percent of the population.
With a projected buying power of $1.5 trillion by 2015, Hispanics are a fundamental component of future business success.
According to a report by MarketingForecast, when asked about specific big-ticket purchases made in 2012 vs. what they plan to buy in 2013:
35.4 plan to purchase home electronics;
32.6 percent plan to buy a new car or truck;
32.6 percent plan to buy a smart phone with Internet;
32.4 percent plan to buy a computer or laptop;
32.4 percent plan to purchase a Tablet such as an iPad or Kindle Fire;
22 percent plan to buy a large kitchen appliance; and
20.6 percent plan to purchase a home or condominium.
There were also some interesting anomalies that popped-up among the results:
When asked about their expectations for their personal finances for the coming year, part-time workers were as or slightly more optimistic than full-time workers (61.3 percent vs. 59.4 percent).
For those planning on purchasing a home or condominium in the coming year, the less-acculturated will be doing most of the buying (24.7 percent), compared to the highly-acculturated, which will be the smallest buying group (11.7 percent), a trend possibly reflective of pent-up demand.
When asked about their own personal financial situation and how it would fare in the coming year, 51 percent of all respondents said they anticipated it would improve (vs. 2012), with only 9.2 percent feeling that it would be worse.
That optimism was pretty evenly split across gender lines. However, when it came to age groups, younger Hispanic (18-34) were the most optimistic (with 61 percent anticipating an improvement in the financial standing), while the oldest group (55+) were the most pessimistic (with 19.7 percent fearing that their situation would worsen). This age-related trend was consistent across the several categories discussed in the survey.
Credit unions seeking to take advantage of the growth opportunity that exists within the Hispanic market are encouraged to learn more about the Texas Credit Union League’s (TCUL) Juntos Avanzamos – or Together we Advance – program. Information on the program is available online, at https://www.tcul.coop/juntos_avanzamos.html.
Not sure what is your potential growth opportunity in the Hispanic market? Download the “Hispanic Opportunity Report,” also available online, at https://www.tcul.coop/2012_texas_hispanic_opportunity_report.html.
TCUL commissioned Iowa-based Coopera Consulting to complete the report that profiles the Hispanic community - the largest, fastest growing, youngest, and most underserved market in the United States. The “Hispanic Opportunity Report” is available at no charge to all TCUL affiliated credit unions.
The 92-page report examines among other things, Hispanic population characteristics, affluence and purchasing power of Hispanics, financial institution utilization, as well as value for Texas credit unions. Authored by the late Warren Morrow, the report discusses what serving Hispanics means for Texas, which of the state’s credit unions are best positioned to serve the Hispanic community, and characteristics of the community that merit consideration.
Credit unions are also encouraged to take advantage of TCUL’s new Hispanic outreach forum – it’s an opportunity to share ideas and best practices. The forum is available online, at https://www.tcul.coop/hispanic_outreach_forum.html.
Please note that much of the information on TCUL’s website, including the Hispanic Opportunity Report and the forum, is password protected, so having log-in credentials will gain you access to a wealth of tools, information and resources. If you do not have log-in credentials on TCUL’s web site, it is in your best interest to complete the short online web site registration, at https://www.tcul.coop/crm/newMember.aspx.