Univision’s Ceppi: It’s time to tap into power of Hispanic consumer
PHILADELPHIA — For marketers of OTC products, the time to incorporate the Hispanic shopper into your marketing plans is now. It’s urgent to reach these shoppers, but not just because the Hispanic demographic, as a group, represents $5.9 billion in the sale of non-prescription products (12% of the total U.S. spend), nor is it just because sales of OTC products among Hispanic consumers is up more than 8% versus more than 5% among non-Hispanic companies.
The time is now because there is a significant messaging vacuum that specifically targets Hispanic audiences, according to Ana Ceppi, VP business development for Univision Communications, who spoke at the 8th Annual Emerson Group Retail Industry Day.
“If year over year you’re seeing declines in your share and you’re not addressing the Hispanic market, … you might not have a business within two years if you are not growing with Hispanics,” she said. “The Hispanic opportunity is not an ‘if.’ You saw the numbers; it’s a ‘when.’”
Some of the bigger growth opportunities within OTC include cough, cold and flu, a category that saw a 14% lift in sales among Hispanic consumers for the 52 weeks ended Aug. 8, according to Nielsen, versus a 9% lift in sales among non-Hispanic consumers. Similarly, allergy remedies saw a 13% lift in sales among Hispanics versus 9% among non-Hispanics and family planning realized 9% growth among Hispanics versus 3% among non-Hispanics.
And even as Hispanic shoppers, especially younger Hispanics, have embraced the American culture, they still embrace speaking Spanish at home. Citing IHS Economics, more than 70% of Hispanic consumers will continue to speak Spanish at home well into the future. By 2019, 41.5 million Hispanics will speak Spanish at home. By 2034, 55.4 million Hispanics will speak Spanish at home.
“It’s not surprising that Hispanic families have multi-generational households,” Ceppi said. “When we go shopping, we go shopping for multiple generations at the same time,” she added, noting that the average number of people living in a Hispanic household is 3.4 versus 2.4 in an average non-Hispanic household. “The familia that lives together — we shop together,” Ceppi added. For health and beauty products, Hispanic shoppers buy 2.8 items per trip versus 2.5 for non-Hispanics, make 29 trips per buyer versus 27.8 for non-Hispanics and spend $14.60 per trip versus $14 for non-Hispanics.
Even though sales of OTC medicines are up among Hispanic shoppers and the growth track is significant, there aren’t many health retailers or health marketers who are successfully connecting to the Hispanic community today, according tp Ceppi. “There aren’t many pharmacies that are really talking to them,” Ceppi said. “There aren’t really many healthcare institutions; Rx and OTC traditionally has not invested in the market, so [Hispanics] go back to their place of comfort, which is their place of origin,” she said.
“We are vibrant; we are vital; we are valuable. We are waiting for you to talk to us,” Ceppi said.
Kantar’s Gildenberg offers tips on adapting to disruption
PHILADELPHIA — E-commerce’s endless aisle, click-and-collect shopping and the increasing prevalence of value-based retailing all have one thing in common — they’re disruptive to the traditional shopping trip where mass retailers deploy their best in-store merchandising tactics in an effort to generate a larger basket. And traditional tactics don’t work if the shopper isn’t walking through the door — whether it’s because their purchases are being delivered to them or because they’re shopping in a discount box.
“You’re going to get increasing pressure from retailers on the analytic capability to reach specific segments,” Bryan Gildenberg, Kantar Retail’s chief knowledge officer, said during the 8th Annual Emerson Group Retail Industry Day held here last week. “If only Emerson sold niche, targeted brands that could help the retailer define the environment that they’re in with incredible clarity and transformational elegance, this would be awesome, right?” Gildenberg asked facetiously. It’s actually a good thing that Emerson does exactly that, Gildenberg said. “This entity, which is Emerson and the collection of brands it supports, is unbelievably well-positioned to take advantage of this stuff.”
Retailers who are adapting to disruption in the marketplace are going after at least one of four buckets, Gildenberg said. They’re either re-inventing the store format to make the shopping trip more experiential, re-engaging shoppers on social media and mobile platforms to entice them into their stores, re-evaluating their approach to value-based shoppers or they’re retooling their digital commerce capacity in an effort to grow top-line sales in a more bottom-line-friendly venue.
All of that gets the shopper in front of the retail brand, but what happens if those shoppers don’t want to spend any more than they have in the past? That’s a big challenge for retailers today, Gildenberg explained, noting that much of the economic growth today is coming from shoppers who in the past had planned to spend less in the coming year, and who are now transitioning into shoppers who don’t want to spend more in the coming year.
That's a subtle, but significant difference.
“Here’s the trick. Retailers are good at selling stuff to people who want to spend more. I can trade you up. … They’re good at selling stuff to people who want to spend less, that’s all discounting and pricing,” he said. “What most of you have found over the last year or two, is that the shoppers are going to become much more sporadically reactive to promotions than they were historically — this is why. Basically, your shopper has turned from a deal-seeking coupon hound into every middle manager in America — ‘I’ve got my expense budget, I’ve just got to deliver it.’”
All of that creates a critical arena for suppliers attempting to use a more traditional model to sell into retail.
“Your battle as a [CPG] company, is against the endless aisle,” Gildenberg said. “A lot of the brands [that approach retailers] without a compelling economic argument, the retailer is going to try to sell them in the endless aisle. “If you’re a drug store, having 9,000 stores with 10,000 pieces of inventory that turn less than twice per year is at some basic level an idiotic economic model. No one would build a store that way today from scratch.”
Daily Diversion: Pee wee football dance party
Football is hard. Professional athletes train constantly to stay on top of their game. So we can forgive the pee wee football players in the video above for getting distracted and busting a move every time Silentó's “Watch Me (Whip/Nae Nae)” plays. It makes for a really bad game, but a really great video.