Hispanic shoppers present a burgeoning opportunity
CHICAGO — Products and services targeting the Hispanic market will realize much success in the coming years, noted a recently published SymphonyIRI Group “Point of View” report that outlined the growing opportunity in targeting that demographic.
And this rapidly growing group is expected to wield $1.3 trillion in purchasing power through the end of this year.
Hispanics, as a group, spend nearly 8% more on consumer packaged goods than any other population, and have particularly strong spending in the mass merchandise and club channels, the report noted.
Hispanics spend 20% and 36% more in club and mass merchandise outlets, respectively, than the general population. In the supercenter channel, however, Hispanic and non-Hispanic spending per trip is about the same. Hispanics spend less per trip in other CPG outlets than non-Hispanic shoppers.
Hispanic spending growth is strongest in dollar and club channels.
Hispanic shoppers, like any shopper in the current economic climate, are attracted to value and make channel decisions heavily based on price and proximity to their home. But Hispanic shoppers also are more brand-loyal than the overall population, and gravitate toward those retailers who actively engage them in their native dialect, such as through store signage or bilingual customer service representatives. Shelves stocked with products and brands from their countries of origin also are key store selection criteria.
“Establishing and building strong brand relationships with these shoppers early in the acculturation process is key,” the report noted. “With more than three-quarters of unacculturated Hispanics preferring to consistently purchase the same brands, investing the time, money and effort necessary to break into the Hispanic shopping basket … often will provide long-standing rewards.”
Another factor to consider, according to the report: “Hispanic families often shop as families, and that means children tend to have a particularly strong influence on purchasing decisions.”
What role can your brand play in drug stores’ future?
A mile high here at NACDS Marketplace 2012, spirits are riding about as high. All things considered, this is a pretty good time to be in the drug store business.
Pharmacy dollars and scripts are ahead of the overall trend, and on the front-end, dollars and trips are up considerably as consumers are trading trips to the big boxes for more quick trips to the drug store.
There is no denying the role that fresh food is playing in all of this, but in general, drug stores have done a good job of giving consumers one more reason to shop their stores. And that’s going to mean more and more in the future, when the drug store will have to be known for something more than just a place to fill a script.
The drug store of the future will be a place that fills specific and pronounced needs for local shoppers — more food in food deserts; more beauty in high-fashion areas; stores segmented for Hispanic communities, seniors, high-income and low-income. It also will be a place where customers come for unique services; where specially trained health and beauty advisers help shoppers navigate the store and identify new product needs; and where brands help the retailers create a unique experience that shoppers can only get there.
What role can your brand play?
Q&A: TSE – Trade shows’ next gen
The next generation of trade shows is nearly upon us. Enter NACDS Total Store Expo, which debuts Aug. 10 to 13, 2013. Jim Whitman, SVP member programs and services, and Steve Perlowski, VP industry affairs and member relations, talked with Drug Store News about this new concept, which will combine the Marketplace, Pharmacy and Technology, and Supply Chain and Logistics conferences.
DSN: TSE has been described as a “true laboratory of innovation.” Can you elaborate?
Jim Whitman: [The innovation] will come about in a couple of areas. It is coming out in the expansion, most likely in the [Digital Learning Center]. That is why we are introducing [the center] at the 2012 Marketplace, but you will see it in a different form and format in 2013. … No. 2, if you went online and looked at the floor plan, it shows what we are calling, as a working title right now, … “Centers for Excellence.”
Steve Perlowski: The other thing we are working [on] with a couple of manufacturers is, instead of coming to TSE selling [only] a product or a line, they are coming to sell an idea or a concept. [For example], if a food company has a vision of what health and wellness is, they should come to TSE to share their vision with their customers.
Whitman: Obviously, a company, to a certain extent, has a product [they are selling] and that should be part of TSE. But, what Steve and I are eluding to is, let’s say you are working on obesity, or health and wellness, or nutrition, just to take an area, … we believe it would be ideal for one of these Centers for Excellence or an innovation laboratory or a learning center or a freestanding approach. … Remember, TSE, by the definition itself, is encompassing the total store.
DSN: How can suppliers and retailers prepare for TSE?
Whitman: At Marketplace we are going to have a TSE booth, and we will have a series of meetings going on with people to get them prepared for the ideas and possibilities that can happen at TSE. You’ll see resources on the website. … We want to give everyone as many tools as possible to be successful.
DSN: Anything else you would like to share about TSE?
Whitman: There will be [business] sessions that are somewhat front-end focused, pharmacy and technology focused, and supply chain focused. You’ll be able to pick and choose which ones you want to go to. … There is going to be a very lively, interactive kind of calendar that will be created.