Frida Kahlo’s vibrant packaging captures the essence of the Latino culture.

Speaking the Same Language

Whether reaching out to Latinos via Spanish or English, marketers must go beyond words to show consumers they’re on the same page.

By Jamie Matusow
Editor

When the U.S. Census Bureau designated Latinos as the nation’s largest minority group in 2003, it became clear that the Spanish language and multiple Hispanic cultures would be integral to the future of the country. In just over 20 years, the Latino population in the U.S. had expanded from about 22 million in 1990 to 35.3 million in 2000, a 58% growth, nearly 4.5 times greater than that of the general U.S. population. In 2004, one of every eight residents in the U.S. was Latino, and projections point to this figure rising to 1 in 5 by 2035, 1 in 4 by 2055 and 1 in 3 by 2100.
   
Spanish/Hispanic/Latino is considered an ethnic category rather than a racial group. For purposes of tabulation, the Census included 28 Hispanic or Latino categories. As Latinos’ cultures vary greatly according to country of origin, it is the Spanish language that ultimately unites them.
   
Successfully connecting with the multidimensional Latino population can be challenging. A report from the Seig Center for Economic Growth, notes, “as the U.S. consumer market becomes more diverse, advertising, products and media must be tailored to each market segment.” The results are well worth the effort. The Seig Report estimated that in 2007, U.S. Hispanics controlled about $862 billion in spending power—larger than the entire economies of all but nine countries in the world. And with increased educational and employment opportunities, Latinos’ influence and purchasing power will continue to swell.
   
It’s a purchasing floodgate that hasn’t gone unnoticed. According to Research and Markets, advertisers have upped their spending over the last few years, allocating more than $3 billion in 2005 to market their products and services to U.S. Hispanics. One of their chief strategies has been the use of language, but that approach, says the researcher, has become more complicated. The Research and Markets report, “U.S. Hispanic Media Market Projections to 2010,” says that while Spanish language advertising has been the norm when it comes to reaching Hispanics, new data indicate second- and third-generation Hispanics may prefer English. As a result, the report states, “ad-spending growth is slowing as advertisers try to determine which demographic to appeal to.” The report suggests that with Latino advertising expenditures expected to increase to over $4 billion by 2010, advertisers must exercise caution not to treat all Hispanics in the same way. Recent data suggest that Latino consumers differ not only in language preference, but also in terms of media use, education, occupation, income and generation.
   
There are now essentially two Latino markets, according to Research and Markets: a more traditional Spanish language market and a newer, rapidly growing English-speaking or bilingual second- and third-generation market.

Spanish? English? or Both?

How do marketers determine which language to use? Acculturation may be one key. The most indicative measure of level of acculturation is the language spoken at home. According to the 2005 American Community Survey, more than 32 million U.S. household residents age 5 and older speak Spanish at home. Spanish speakers constitute nearly 1 in 8 U.S. household residents. Among those who speak Spanish at home (78%), more than half say they speak English very well.
   

Henkel’s Smooth ‘n Shine sells in stores serving large Hispanic populations.

Media access is another factor. New research just released from Fleishman-Hillard on issues of importance to Hispanics across the country, found “significant crossover in use between English- and Spanish- language media among consumers, regardless of their language preference.” Fleishman-Hillard found that even in households where Spanish was the predominant language, only one-third of respondents relied only on Spanish broadcast media. When it came to print, 84% of Hispanics polled said that although they speak predominantly Spanish at home, they read English-language publications.
   
The Fleishman-Hillard study also revealed that second-generation Hispanics tend to follow the same interests as non-Hispanics. And a recent report from Focalyst added to the complexities of addressing this community: It found that second- and third- generation Latinos often identify with aspects of both cultures.

A Younger, Changing Population

Age is another critical determinant when striving to connect with the Latino market. The Seig Center report points out that the U.S. Hispanic population is younger than the U.S. population as a whole; in 2004, 34% of the Hispanic population was under age 18, compared to 22% of non-Hispanic whites. Median age of the U.S. Latino population in 2006 was 27.4 years, compared with 36.4 years for the U.S. population as a whole. The U.S. Latino population was also shown to be male-heavy, with 107 males per every 100 Hispanic females, as opposed to the overall population, with 97 males per every 100 females.
   
But things are changing, and new patterns of growth are likely to affect marketing and purchasing, as well as U.S. culture. Market researcher Mintel notes that 2004 was a turning point in Hispanic population growth—for the first time, Hispanic births outnumbered Hispanic immigrants. According to the company’s predictions for 2006 through 2011,  “this shift will become more pronounced in the next decade, as the projected gain from second-generation and later Hispanics will outpace the growth from immigration.”
   
Mintel notes that the shifting population growth and the increasing percentage of U.S.-born Hispanics may also prompt media to become more segmented in order to capture a wider range of Hispanic groups. For example, the change is likely to mean more females and thus more personal care users.
   
While long regarded as brand-loyal, the Hispanic consumer may be less attached to brands and products than previously thought, according to Mintel. In fact, the company’s research shows that Latinos may be more willing than the general population when it comes to trying new products, and may be more receptive to advertising and media in general.

Shoppers Prove Internet Savvy

While research shows Hispanics tend to enjoy shopping at malls, many are also purchasing through the Internet. According to Mintel, nearly half (46%) of Hispanic respondents to the Simmons National Hispanic Consumer Survey (NHCS) said they had ordered something online in the previous 12 months, compared to 58% of all respondents. Not surprisingly, native-born Hispanics were much more likely than immigrants to have shopped online, due to higher income levels and computer ownership. Mintel predicts that as Hispanics rapidly acquire broadband connections, they are poised to become one of the fastest-growing demographics in online purchasing during 2006-2010.
Still, while they may be buying more online, their purchases may come via word of mouth. Mintel says at least two thirds of Hispanics surveyed say that family and friends influence which personal care products they buy. For those 18-24, that increases to nearly eight in 10.

Spending’s Up

According to the Conference Board’s 2006 report on household spending, there were 10,859,933 Hispanic households in the U.S., with a market potential of more than $1.5 billion—and a per household annual expenditure of $141.76 on personal care products and services including cosmetics, perfume and bath products. For hair care products, average annual household expenditure in 2006 was estimated at $67.44. Oral hygiene, shaving and feminine hygiene were not included.
   
With Hispanic population growth projected at 71% from 2000-2020, Mintel estimates that the number of Hispanic personal care users could grow 71% for hair care, 73% for skin care and 77% for cosmetics during the same period, simply because the number of females in the population—who have higher usage levels of personal care products—will grow slightly faster than the population as a whole.
   
Despite incomes 27% lower than non-Hispanic whites, Hispanics do not skimp on personal care products. In fact, according to Mintel, they spend more than non-Hispanics.

Niche or Mainstream?

Felipe Korzenny. Ph.D., coauthor of Hispanic Marketing: A Cultural Perspective, and head of the Center for Hispanic Marketing Communication at Florida State University, says that in general, newer immigrants prefer large, global brands, but as acculturation progresses, preferences may change. Likewise with Hispanic-targeted brands: “Hispanic-targeted brands such as Colgate and Avon,” according to Mintel, “are strongly preferred by Spanish-speaking and first-generation Hispanics, but the influence of media softens among later generations.”
  

Blended Beauty is on target in reaching the Latino market, with a website, word-of-mouth advertising and products that address curly hair needs.

However, Mintel also points out that there are a number of manufacturers, such as Alberto Culver, that spent very little on Hispanic-targeted media in 2004 (the most current year available at the time) yet have large product usage indexes of Hispanic vs. non-Hispanics. This, according to the researcher, implies that while media are effective, Hispanics are also responsive to product positioning that speaks directly to their needs—in Alberto V05’s case, dry or damaged hair—and not just their culture. Mintel says this challenges the assumption that Hispanic-targeted media, while effective, are absolutely essential to win Hispanic consumers.
   
According to Mintel, Avon, Colgate, L’Oréal and Pantene Pro-V, are also brands that index high for Hispanics, yet still have mainstream appeal.
   
Meanwhile, as many mainstream brands have succeeded in capturing the Latino market, many ethnic brands have struggled. Mintel says that while interest exists for ethnic products, particularly among the least acculturated, rising economic status and increased number of ethnic consumers do not easily translate into rising ethnic sales.
   
In fact, out of all personal care products surveyed in Mintel’s NCHS panel, not a single ethnic brand was used by more than 3% of respondents. Most Hispanics, it seems, purchase the same mainstream products that non-Hispanics do—even though their preferences may lean toward specific brands or formulations. Another possible reason for these results is that ethnic brands tend to be smaller and marketed more regionally.
   
Dr. Korzenny emphasizes, “It is not the Hispanic brand that sells but the approach to selling and the variety of products that match the coloring and aesthetic perspective of Hispanics. Demonstrations of products and the ability to try colors and textures are very appealing to Hispanics.” That’s why, he says, although it’s difficult to generalize about brands, those “like Avon and Revlon have had a very strong following among Hispanics.”
 

Skin Care and Cosmetics

“There’s a tremendous opportunity in skin care and cosmetics,” says Leigh Anne Rowinski, IRI Beauty Expert, “as there are not a lot of brands that have been formulated for women of color.” She says there needs to be a balance between smaller brands that meet specific requirements along with greater solutions that all women are searching for, such as anti-aging, sunspots and acne.
   

Joico’s Silk Result hair collection promises to transform frizzy, unruly strands into soft, glossy hair.

International supermodel Iman achieved these ideals when she launched IMAN Cosmetics in 1994, after being unable to find products that fit her particular needs. Until then, terms such as “women of color” and “ethnic” had been associated only with products developed for African-American women. “I believe women of all different skin tones are the women of the world,” says Iman: “Multicultural, Native American, Hispanic, Asian, Indian, African and Middle Eastern. These women make up a great portion of the population worldwide.” The company offers 16 different foundation shades sold throughout the world. In 2004, Iman announced an alliance with P&G, which expanded the prestige brand into mass-market retailers such as Target, Wal-Mart and Walgreens.
   
Iman’s philosophy extends to skin care and fragrance. With the recognition that women with skin of color age differently and have specialized skin challenges compared to the general market, she has formulated her Time Control skin care line to address specific concerns such as hyper-pigmentation, scarring, dullness and uneven texture.
   
Bobbi Brown cosmetics were also designed to appeal to all women. “Bobbi is for every woman, every skin tone, every age. Women come in all shades and sizes and Latinas are no exception,” says Rogelio Reyna, education executive for Bobbi Brown. “All women want the same thing in the world, they want to feel and look beautiful,” he says, “and Bobbi is committed to giving every woman her personalized look. Latinas take pride in enhancing their inner beauty through fashion and beauty.
   
“It is a proven fact,” says Reyna, “that Latinas start to ‘play’ with cosmetics at a younger age than their Anglo counterparts. Also, Latinas tend to like a more dramatic look. However, in the past years and because of the huge crossovers of several Latinas [i.e, J. Lo, Salma Hayek, Penelope Cruz, Paz Vega (“Spanglish”), Sara Ramirez (“Grey’s Anatomy”)], Latinas no longer try to cover up their beauty with makeup, but instead are celebrating their differences.”
 

Top Spokesmodels in the Market

Others in the Latina celebrity beauty lineup include actress Eva Mendes (Revlon; and recently announced for fall 2008 Calvin Klein Fragrance ads); Eva Longoria (who became the new face of L’Oréal in 2005); Adriana Lima (the Victoria’s Secret model who became the face of Maybelline); and Shakira (the multiple Grammy-award-winning Colombian artist who stars with Madonna and Marilyn Monroe in the new Sunsilk campaign that kicked off during this year’s Super Bowl; she has also just announced a partnership with Puig Group, based in Spain, to develop a range of beauty products and fragrances).
   

Eva Mendes is a powerful spokesmodel.

Latina spokesmodels such as these “have gone beyond appealing to Latinas and have become mainstream icons,” says IRI’s Rowinski.
   
Rebecca Herrera, president and founder of beauty consulting firm Speaking of Beauty, agrees: “ I think they bring a cross-cultural mix to the table…they are Latinas, yet are from the U.S. They are relatable to many Latinos whether newly arrived, first generation, or fifth generation; connected to the culture, yet relate to the non-Latino as well. They give a broad picture of what reflects a changing U.S. culture.”
When the Jennifer Lopez fragrance was launched in prestige department stores, says Rowinski, “the power of a more urban style broke the mold, showing that people with authenticity can take off in the mainstream market.”  In February, Lopez’s eighth scent, Deseo hit store counters, just six years after Glow launched to great success.
   
“Latinas want to see themselves represented and see mainstream acceptance—on the cover of Vogue, In Style, Bazaar, etc.,” says Rowinski. “They want to see that the global brands understand them. Many companies—such as L’Oréal, Coty, Maybelline, Cover Girl, have done that—but there’s plenty of room for growth,” she adds.
   
“Cover Girl Tru Blend, for one,” says Rowinski, “has more of an array of products, but there’s a great opportunity to address differences in pigmentation, requirements for sun protection, etc.”
   
L’Oréal’s HIP (High Intensity Pigments) cosmetic range features very vibrant colors and its True Match liquid foundations and powders cover a broad range of complexions.

Big Spenders on Hair Care

On average, Hispanics spend more on hair care than non-Hispanics, says Mintel—perhaps because many Hispanic women are unhappy with their hair and use a variety of products to tame and straighten it.
   
Even though Latinas have a variety of skin tones, ethnic backgrounds, and hair textures,” says Herrera, “a major concern is how to manage curly, thick hair. Moisturizing products that provide control and conditioning are a plus, as well as shine products to smooth the cuticle and control split ends.”
   
In February, fashion-forward, eco-friendly Aveda launched a hair care line called Be Curly. Formulated to address the needs of the Latino market, but suitable for anyone with curly hair, the products were introduced through several events held around the U.S. hosted by Aveda and Latina magazine. Editors and consumers were invited to learn about the line, which consists of a shampoo, conditioner, curl enhancer and curl control; all address frizz for curly and wavy hair while also adding shine. When used together as a four-step system, Aveda says Be Curly dramatically reduces frizz and defines curl by up to 57%  (compared to untreated hair). All of Be Curly’s packaging is bi-lingual.

Mainstream Brands are Popular

Joico, Redken and Revlon are mainstream brands popular with Latina consumers because the products are suited to the group’s specific hair needs. Joico’s Silk Result hair collection promises to transform any type of frizzy, unruly strands into soft, glossy hair. Redken’s Smooth Down line, particularly the detangling cream, was designed for stylists and clients looking to provide maximum smoothing and manageability for extremely coarse, unruly hair types. Revlon Amber Waves is a new line of styling tools designed to work with the special texture and makeup of ethnic hair.

Ethnically Appealing

Launched online in May 2005, Blended Beauty is a small hair care company that seems to be right on target when it comes to showing Latinos that they are understood and that their specific needs are being met. Similar to Iman, owner Stacey Canfield says she started the company because she couldn’t find the appropriate products for her own curly hair. Made with natural ingredients, the products address multiple needs by claiming to not aggravate acne and to actually help heal scalp conditions. There’s also a line for kids. Since Latinos have a wide range of curly hair types, there are no specific Blended Beauty products directed at Latinos, but a chart of hair types provides suggestions, and customers can purchase a $24 sample pack so they can try a variety of items before ordering full-size containers. There are also plenty of photos of hair types to guide them.
   
Canfield says, “I believe that Blended Beauty’s popularity with Latinos is growing due to ‘word of mouth’ among the community.” Blended Beauty is searchable on the Internet and mentioned in different curly hair forums, etc.
  
Canfield is currently responding to a new trend among her customers. “Now that people realize that products can be specifically made to suit their needs,” she says, “they’re voicing their opinions and needs more.” The next project due to demand, she says, is unscented products. “We’ve had many people requesting these.”
  
Blended Beauty is a Canadian company and currently its labels are bilingual English/French. But this year the French will be replaced with Spanish for products sold in the U.S. The company also offers a natural skin care line.

Marketing to a Diverse Group

As the Latino population continues to grow within the U.S., and acculturation spreads across generations, the diverse segments of the group can no longer be defined purely by language. While newer immigrants have been traditionally addressed through Spanish and Spanish media, and more acculturated segments have been reached out to in English and in mainstream channels, that approach may no longer be effective, as there are now so many additional determinants such as education, employment, media accessibility, Internet use and life experience.
   
Instead of relying on language or culture, many beauty companies are developing ranges that meet the needs of all consumers, and providing relevant products—and messages—to suit specific demographic needs.
   
While there may seem to be an overwhelming commonality across Latino cultures as far as language and values, there are also subtle demographic differences that marketers must address in order to succeed.