ahaa nielsen upscale_2 0 webinar_5-20_w_appendix_final

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A RENEWED OUTLOOK FOR HIGH-END MARKETERS

UPSCALE LATINOS 2.0

Long versionMay, 2014

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Horacio Gavilan Monica GilStacie de Armas

Lara ColtonJuan Carlos DavilaMaria Monistere

Ron MulderScott Willoth

Carlos Santiago Gabriela A. Diaz

ACKNOWLEDGEMENTS

We appreciate the vision and dedication of the study working group, thank you:

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MARKET SIZING, UPSCALE LATINOS 1.0

Source: America’s new upscale segment, LATINOS © Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: Nielsen People Meter Universe Estimate, P2+ Hispanic, Q4 2012.

29%

15 Million within

Upscale homes

SIZEABLE SEGMENT WITH RESOURCEFUL POCKETS

37%

2015 20502010

BUILDING LOYALTIES

$500 Billion annual

spent out of $1.3 Trillion

35 Million strong by 2050

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UPSCALE LATINOS 2.0

2014

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UPSCALE LATINOS 2.0The objective of AHAA’s Upscale Latino 2.0 study, co-authored by Nielsen, is to further understand the Latino

Upscale Household behaviors, what drives them towards upscale-luxury purchases in mid-to-high-end

brands/formats, and what drivers & detractors they share, or not, with Non-Hispanic Upscale households

UPSCALE PURCHASE BEHAVIOR

OPTIMISM

PAST PURCHASES

FUTURE PLANS

LUXURY VALUES & REWARDS SEGMENTS

DRIVERS & DETRACTORS COMMON & NUANCED

DEPT STORES

PRESTIGE COSMETICS

CASUAL DINING

MEDIA HABITS

SCARBOROUGH

NIELSEN MOBILE MARKETSIGHT

NIELSEN NPOWER

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HIGHER EDUCATION & PROFESSIONAL ATTAINMENTUpscale Hispanics

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1

32% some college

20% college graduate

44% white collar

17% sales/office

56% 1 or more child vs.

36% Upscale non-Hispanic

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UPSCALE LUXURY SEGMENTS

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LUXURY SEGMENTS INFLUENCING SHOPPING

Bernard Dobois, “Attitudes towards the Concept of Luxury” in Asia Pacific Advances in Consumer Research, 1994.© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

LUXURY SEEKERS

Feel strongly drawn to luxury, feeling good about themselves,

individual rewards

• In my opinion, luxury is pleasant

• One buys luxury goods primarily for one’s pleasure

• In my opinion, luxury is good taste

• The luxury products we buy reveal a little bit about who we are

SOCIAL SEEKERS

See luxury as refined, seek recognition and social status

• In my opinion, luxury is old fashioned

• I could talk about luxury for hours

• Those who buy luxury are refined people

SENSIBLE SEEKERS

Pragmatic about luxury, making high-end decisions as it makes

sense

• I would not feel at ease in a luxury shop

• In my opinion, luxury is flashy

• People who buy luxury products try to differentiate themselves from others

• I don’t know about the luxury of the world

• Luxury does not make me dream

3 KEY UPSCALE SEGMENTS FOR TOTAL UPSCALE ADULTS AGES 18+ ($50-99K)

35% 18% 47%

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40%

18%

42%

UPSCALE HISPANICS, LUXURY AND SENSIBLE SEEKERS

Upscale – Luxury Attitudinal segments:

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

48%

18%

34%

47%

18%

35%

UPSCALEADULTS

UPSCALENON HISPANICS

UPSCALEHISPANICS

SENSIBLE SEEKERS 83

SOCIAL SEEKERS 100

LUXURY SEEKER 124

INDICES VS. UPSCALE NON-HISPANICS

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HISPANIC UPSCALE CONSUMERS, YOUNG & BICULTURAL

Across all luxury segments, About 60% have strong ties to the Latino Culture; 30% - 40% voice a strong cultural duality

Upscale Hispanic Luxury Seekers are more likely to be Millennials and Bicultural, they are twice as likely to be Gen Y than Upscale non-Hispanics Luxury Seekers

Upscale Hispanics Social Seekers tend to be Gen X

Upscale Hispanics Sensible Seekers are Gen Y and X and more likely to be Latino Culture Oriented


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2

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OPTIMISM AMONG UPSCALE CONSUMERS

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CONFIDENCE IN FAMILY FINANCES, PAYING OFF DEBT

% by Upscale Hispanic segment & Indices vs. Upscale non-Hispanic


47% to pay my rent/mortgage vs. 44% Upscale non-Hispanics

18% Qualify for a mortgage vs.13% Upscale non-Hispanics

33% pay off credit card debt vs. 26% Upscale non-Hispanics (127 index)

% of Upscale Hispanics that have sufficient resources in next 12 months to…

55%

40% 41%

20% 19% 15%

37%27%

32%

LuxurySeekers

SocialSeekers

SensibleSeekers

LuxurySeekers

SocialSeekers

SensibleSeekers

LuxurySeekers

SocialSeekers

SensibleSeekers

Indices vs. Upscale

non-Hispanic

112 108 98 167 136 115 132 100 128

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PLANNING FOR A BRIGHTER TOMORROW…

% of Upscale Hispanics that will definitely save in the next 12 months for…

43% retirement, pension fund vs. 45% Upscale non-Hispanic

24% children’s college fund vs. 15% Upscale non-Hispanic

23% investing in life insurance/annuities vs. 16% upscale non-Hispanic

Savings allocation prioritized differently based on upscale segment


51%

32%41%

24%15%

29% 33%

15% 16%

LuxurySeekers

SocialSeekers

SensibleSeekers

LuxurySeekers

SocialSeekers

SensibleSeekers

LuxurySeekers

SocialSeekers

SensibleSeekers

Indices vs. Upscale

non-Hispanic

93 94 95 141 115 207 183 107 107

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FAMILY FIRST, INCLUDING ELDER PARENTS% of Upscale Hispanics that have enough money in next 12 months…

13% to provide share of support elderly parents require vs. 7% Upscale non-Hispanic

38% for my entire family’s health coverage vs. 34% Upscale non-Hispanic

47% to eat healthy vs. 42% Upscale non-Hispanic


12%18%

13%

44%37% 33%

52%

38%45%

LuxurySeekers

SocialSeekers

SensibleSeekers

LuxurySeekers

SocialSeekers

SensibleSeekers

LuxurySeekers

SocialSeekers

SensibleSeekers

Indices vs. Upscale

non-Hispanic

171 200 217 110 137 100 104 123 115

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KEY UPSCALE PURCHASE BEHAVIOR

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CHILDREN & ADULT FASHION TOP OF MINDLuxury Seekers leading the way with highest incidence of purchasing…


57%CHILDREN’S CLOTHING

DESIGNER SHOES, CLOTHING,

ACCESSORIES

43%

65%52% 51% 56%

47%

26%

39%35% 32% 33%

24%

9%

LuxurySeekers

SocialSeekers

SensibleSeekers

LuxurySeekers

SocialSeekers

SensibleSeekers

Upscale non-Hispanic

Upscale Hispanic

% of Upscale Hispanics making select purchases in past 12 months & Index against Upscale non-Hispanic

163 215

288 index!

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OUT-PURCHASING TECHNOLOGY Across all computer, laptop, tablet and home entertainment within all sub-segments


56%

39%

52% 52%

38%32%

39%34% 31%

36%31% 28%

LuxurySeekers

SocialSeekers

SensibleSeekers

LuxurySeekers

SocialSeekers

SensibleSeekers

Upscale Hispanic


% of Upscale Hispanics making select purchases in past 12 months & Index against Upscale non-Hispanic

COMPUTER, LAPTOP, TABLET HOME THEATRE, FLAT SCREEN TV, GAME CONSOLE

51%

150

42%

135

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AND ACTIVELY ENGAGING IN E-COMMERCEUpscale Hispanics spent $3.7BB in online purchases in the past 12 months

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: Source: Nielsen Mobile Marketsight Q2 2013, Hispanic Latinas A18-54 Indexes based on NON Hispanic Latinas A18-54; Scarborough Hispanic Multimarket PLUS, 2013 Release 1

151

155

91

CLOTHING/ACCESSORIES 31%

AIRLINE TICKETS 24%

HOTELS/CAR RENTALS 16%

HEALTH & BEAUTY 11%

HOME ACCESSORIES 10%

Items purchased past 12 months online:

Index vs. Upscale non-Hispanics

65%ONLINE

SHOPPING

51%MOBILE

BANKING

42%MOBILE

SHOPPING

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HOME FURNISHING & DURABLES OPPORTUNITY For Hispanic Luxury and Social Seekers

40% of Upscale Hispanics purchased

home furnishings/appliances in past 12 months; 18% more likely vs.

Upscale non-Hispanics (34%)

48%

41%

32%

39%

31%

32%

Upscale Hispanic Upscale non-Hispanic

LUXURY SEEKERS

SOCIAL SEEKERS

SENSIBLE SEEKERS


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RESTAURANT DINING

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RESTAURANTS MEASURED IN STUDY


Applebee’sBlack Angus

BJ’sCalifornia Pizza Kitchen

Chili’sOlive Garden

Ruby Tuesday’s

OutbackChevy’sCoco’s

El ToritoFuddruckers

TGIF

Hooter’sHoulihan’s

Macaroni & GrillRed LobsterRed Robin

Tony Roma’s

CORE CASUAL DINING

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MORE LIKELY TO HAVE DINED AT CASUAL RESTAURANT


UPSCALE HISPANICSUPSCALE NON-HISPANICS

90%DINED

82%DINED

DINED AT ONE OR MORE OF THE RESTAURANTS LISTED

PAST 12 MONTHS

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WITH HIGHER INTENT TO CONTINUE DINING OUT

Hispanic Social Seekers have greater intent to dine out vs. their non-Hispanic counterparts


91% 100% 84%

99 111 90

% OF UPSCALE HISPANICS THAT INTEND TO DINE AT CORE CASUAL RESTAURANTS IN NEXT 12 MONTHS

LUXURY SEEKERS SOCIAL SEEKERS SENSIBLE SEEKERS

Indices vs. Upscale non-Hispanic

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INFLUENCED BY NEW & IN STYLE RESTAURANTSWhile Upscale non-Hispanics are driven by locations that make them feel better

Regression Beta Coefficient,BASE: Dined at restaurant past 12 months and intends to dine at a restaurant next 12 months© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

• Makes me feel better about myself

• Makes me feel better about myself

• Aesthetics are important


• Represents what’s new & in style

• Represent what’s new & in style

• Effect my self-confidence

• Effect my self-confidence

UP

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PAN

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PSC

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PAN

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KEY DRIVERS THAT LEAD UPSCALE HISPANICS TO EAT OUT AT CORE CASUAL RESTAURANTS…

DRIVERS INDIFFERENT DETRACTORS

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DEPARTMENT STORES MIDDLE-MARKET AND HIGH-END

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DEPARTMENT STORE CATEGORIES


HIGH-END

Barney’sBergdorff GoodmanBloomingdalesLord & Taylor

Neiman MarcusNordstromSaks Fifth Avenue

PRICE DEPARTMENT STORES

SearsJC PenneyKohl’s

MIDDLE MARKET

Dillard’sMacy’s

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UPSCALE HISPANICS, HIGHER PURCHASING INCIDENCES


UPSCALE HISPANICS

UPSCALE NON-HISPANICS

78%PURCHASED

71%PURCHASED

PURCHASED AT ONE OR MORE OF THE DEPARTMENT STORES

LISTED PAST 12 MONTHS

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WITH INTENT TO CONTINUE PURCHASING

Indices of Upscale Hispanics that intend to purchase at the following store types vs. Upscale non-Hispanics

BASE: Purchased at Department Store past 12 months and Intends to purchase at Department Store next 12 months© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

HIGH-END 200 PRICE DEPT. STORES 105MIDDLE-MARKET 165

Indices of intent for key upscale Hispanic sub-segments vs. non-Hispanic Upscale sub-segments

146

241

128

201

106

103

Luxury Seekers

Sensible Seekers

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AND INCREASED SPENDINGUpscale Hispanics twice as likely to plan to spend more, led by Luxury Seekers

23% 61% 16%

230 82 100

26%

58%

16% 17%

69%

14%14%

72%

14%6%

77%

17%

More* About the same Less** More* About the same Less**

More* About the same Less**

Luxury Seekers Sensible Seekers

Compared to the last 12 months, % of Upscale Hispanics that plan to spend in next 12 months at department stores…

Index vs. non-

Hispanic

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A DESIRE TO DIFFERENTIATE THEMSELVES…and a willingness to pay more

Regression Beta Coefficient,BASE: Purchased at Department Store past 12 months and Intends to purchase at Department Store next 12 months© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

UP

SCA

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HIS

PAN

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PAN

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KEY DRIVERS THAT LEAD UPSCALE HISPANICS TO SHOP AT HIGH-END DEPARTMENT STORES

• Willing to pay more for best quality


• Purchase because of quality


• Sign of social standing

• Sign of social standing

• Aesthetics important

• Aesthetics important

• Differentiate myself

• Differentiate myself

• Feel better about myself

• Feel better about myself

• Represent what’s new & in-style

• Represent what’s new in style

• Increase my quality of life

• Increase my quality of Life


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IMAGE AND QUALITY APPEAL TO HISPANICS

Regression Beta Coefficient,BASE: Purchased at Department Store past 12 months and Intends to purchase at Department Store next 12 months© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

• Connotes degrees of success

• Connotes degrees of success





• Makes my life better

• Makes my life better



• Makes me feel more valuable

• Makes me feel more valuable

UP

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PAN

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PAN

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KEY DRIVERS THAT LEAD UPSCALE HISPANICS TO SHOP AT MIDDLE MARKET DEPT. STORES


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MID-HIGH END COSMETICS

2014

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MID-HIGH END COSMETIC BRANDS IN STUDY

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.

This information may not be used for other purposes without written permission from Nielsen.

Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

100% PureAnastasia Beverly HillsBare MineralsBenefit CosmeticsBiothermBobbi BrownBuxon

ChannelCliniqueDiorElizabeth ArdenEstee LauderFashion FairGlo Professional

GuerlainHourglassIT CosmeticsJosie MaranLancomeKat Von DKorres

Laura MercierLotus Base-MineralM.A.C.Make up ForeverMerle NormanNARSOrigins

SephoraShiseidoSmashboxStilaTarteYves Saint Lauren

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HISPANICS KEY TO PRESTIGE COSMETIC SALES


UPSCALE HISPANICSUPSCALE NON-HISPANICS

38%Purchased 1+

cosmetics brand

16%Purchased 1+

cosmetics brand

PURCHASED 1+ OF THE COSMETICS BRANDS IN THE

PAST 12 MONTHS

137% more likely to have purchased high-end cosmetics vs. Upscale non-Hispanic

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TWICE AS LIKELY TO SPEND MORE ON PRESTIGE BRANDS

Compared to the last 12 months, do you plan to spend more, less, or the same in the next 12 months on premium cosmetics/make-up?

*Much or somewhat more, **Much or somewhat lessBASE: Purchased 1+ brands of cosmetics past 12 months, Intends to purchase 1+ brands of cosmetics next 12 months© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

33% 51% 16%

207 74 106

Less**About the sameMore*

Indices vs. Upscale non-Hispanic

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35% 34%

22% 22%

9% 10%8%

12%

These brands make me feelbetter about myself

These brands represent what isnew and in style

These brands have an effect onmy self-confidence

These brands match with mypersonal ideas

Upscale Hispanics Upscale non-Hispanics

INNER BEAUTY DRIVERS WITH STYLE APPEAL

% of Upscale Hispanics and Upscale non-Hispanics that strongly agree on key drivers that lead them to purchasing mid-High end Cosmetic brands

BASE: Purchased 1+ brands of cosmetics past 12 months, Intends to purchase 1+ brands of cosmetics next 12 months© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

3.8X 3.4X

2.8X

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SOCIAL DRIVERS UNFAVORABLY SEEN BY HISPANICS% of Upscale Hispanics who strongly disagree with drivers below...

People who buy these brands are

more respected by others

In my opinion, these brands are a

sign of social standing

These brands show society the degree

of success in my life

I think my life would

be better by buying these brands

These brands allow me

to differentiate myself

from others

-40% -38%-35%

-31% -30%-31%-25% -26%

-18% -16%

Upscale Hispanics Upscale non-hispanics

BASE: Purchased 1+ brands of cosmetics past 12 months, Intends to purchase 1+ brands of cosmetics next 12 months© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

1.7X 1.8X

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KEY FINDINGS

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UPSCALE LATINO 2.0, KEY FINDINGS

Marketers have an opportunity with Upscale Hispanics spending $500BB annually

Cultural duality is strong and generational differences must be recognized

Have resources, are optimistic about their financial opportunities along with a willingness to spend more

It is not all about the kids or family – opportunity in leisure and entertainment industries:

hotel vacationspersonal designer brandsdigital/entertainment technology home amenities

Source: Nielsen Latina Power Shift Report August 2013

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2

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4

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UPSCALE LATINO 2.0, KEY FINDINGS

More likely to be Luxury Seekers, compared to Upscale non-Hispanics, Sensible Seekers are second largest

Purchase mid-to-high end brands

Share similarities with Upscale non-Hispanics, yet maintain their uniqueness in important luxury product and retail drivers

Have acquired an affinity toward mid-market & high-end retailers, prestige cosmetics and core casual restaurants

• that fit their emotional and functional needs

• drivers that attract them are very different from Upscale non-Hispanics




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UPSCALE LATINO MEDIA SUMMARY

Radio and digital video displays key platforms to reach Upscale Hispanics

• 34% listening to radio online, driven by smartphones and computers

• The internet, OOH and newspaper performs well compared to total Hispanics

Readership of newspaper grows with increased income

• 22% of Upscale Hispanics reading via their mobile devices, more likely compared to Upscale non-Hispanics

Paid and premium TV among the preferred services

Nearly 40% stream TV content, sports or movies

• PC still primary device used but smart phone more likely compared to Upscale non-Hispanics and total Hispanics

Greater out of home opportunity as commutes are longer

Smartphones have become indispensible



Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1

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Q & A

For the Conference. Webinar or full reports decks, go to www.ahaa.org

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APPENDIX

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STUDY METHODOLOGY




• Interviews were conducted with 9,736 respondents on a wide variety of shopping behavior and attitudes

Total Hispanic 2,814

Total Non-Hispanic 6,922

• Study results presented herein are exclusively from the upscale portion of the market defined as those earning between $50,000 and $99,000 annually

• Interviews were conducted from respondents participating in Nielsen’s HomeScan panel

• This survey reflects attitudes of the primary shopper within the household and data has been adjusted to reflect correct proportions within census regions, age, language spoken in the home, and household income

• Based on Bernard Dobois’s “Attitudes towards the Concept of Luxury” in Asia Pacific Advances in Consumer Research, 1994

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APPENDIX: DETAILED METHODOLOGY

• The survey was fielded on the Nielsen Homescan panel, which is a longitudinal panel representative of total US households.

• All active Hispanic households were invited to participate and a representative sample of 10K non-Hispanic HHs were invited.

• Methodology was online and paper survey.

• Survey Dates:

• Online survey: November 27, 2013 – December 26, 2013

• Paper survey: December 27, 2013 – February 4, 2014

• Sample sizes

• Invited: Online 17,383

• Invited: Paper 1,635

• Total Respondents: Online 8,872

• Total Respondents: Paper 865

• Total Hispanic 2814

• Total Non-Hispanic 6922

• Total English: 9,076

• Total Spanish: 660

• Selected Homescan purchasing data was appended to the respondents as well.

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.

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APPENDIX: DETAILED METHODOLOGY (CON’T)

• Respondents to this survey were calibrated to match overall population of United States residents using Scarborough estimates of population. Because this survey reflects “primary shoppers”, the gender balance was left at 30%:%70% male:female ratio

• Luxury segments were developed using Sawtooth Softwares, Convergent Cluster Analysis program with a K-means solution

• Drivers of department stores and restaurants were estimated with logistic regression with specific drivers of shopping/restaurant dining used as predictors of choosing a particular brand location as one of their “favorites”

• Hispanic media slides are from Scarborough’s Hispanic Multi-market Plus, 2013 Release 1 and Release 1 Current data

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.

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UPSCALE LATINO 1.0, KEY TAKEAWAYSContribute to nearly 40% of Hispanic spending power!

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen/Nielsen America’s New Upscale Segment: ¡Latinos! 2013 Conference Webinar

Viable and sophisticated market of enormous proportion-$500 Billion spent annually

A force behind new businesses with higher educational and professional attainment

Young with larger households, providing a higher lifetime value and upside opportunities for many high-end & luxury brands

Over-index compared to total Hispanics in Investments and Personal Care categories

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UPSCALE LATINO 1.0, KEY TAKEAWAYSShaping technology trends and leading usage of key mobile apps

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: AHAA/Nielsen/Nielsen America’s New Upscale Segment: ¡Latinos! 2013 Conference Webinar

Expenditures in-line with Upscale non-Hispanics across

two-thirds of food sub-categories, exceeding in one quarter

of sub-categories

Shaping technology trends, leading usage of mobile devices for

key services like financial services

Latino identity with one foot in each culture - their fully

BILINGUAL tendencies are reflected in their pervasive use of

language, and media consumption

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CONCLUSIONSUpscale Latinos will drive shifts in category consideration, purchasing behavior and brand relationship

MARKETERS HAVE A UNIQUE OPPORTUNITY TO IDENTIFY THE NEEDS OF AN EVOLVING UPSCALE HISPANIC HOUSEHOLD:



Source: AHAA/Nielsen/Nielsen America’s New Upscale Segment: ¡Latinos! 2013 Conference Webinar

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• With an interest in building net worth

• Simplifying their lives

• While benefiting from a bicultural lifestyle

• Streamlining their multi-generational responsibilities

• Enriching their American Dream

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59% Of Upscale Hispanic Luxury Seekers are

Hispanic Millennials

Source: Ethnifacts Latino + Identity Project , 2013, The term , Latino eco-niches is attributed to Ethnifacts, LLC 2013

At least 60% of each upscale segment is U.S. born

YOUNG, U.S. BORN AND BICULTURAL


60% of each segment has strong ties to Latino culture

30%-40% voice a strong cultural duality

WITHIN ALL 3 KEY UPSCALE HISPANIC SEGMENTS:

vs. 31% of Upscale

non-Hispanics Luxury seekers

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OPTIMISM AMONG UPSCALE CONSUMERS

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UPSCALE HISPANICS BEAMING WITH OPTIMISM

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen. Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013

13%

18%

33%

38%

39%

47%

47%

% of Upscale Hispanics that say that in the next 12 months they have sufficient resources to….

112

107

106

112

126

139

186

Index to Upscale non-Hispanic

…to eat healthy

…to pay rent/mortgage

…to live in safe neighborhood w good public schools

…for my entire family health coverage

…to pay off credit card debt

…to qualify for a mortgage

…to provide the share of support that my elderly parents require

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DURABLE GOODS & UPSCALE PURCHASE BEHAVIOR

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OPTIMISM PREVAILS WITH UPSCALE LATINOS… where both family and financial take center stage


• Afford to live in safe neighborhoods and lead healthier lifestyles

• Provide health coverage for entire family

• Obtain additional borrowing capacity is central

• Determine to invest in their children’s advanced education

• Likely to plan for retirement as Upscale non-Hispanic

• Continue to support/care for elderly parents/grandparents

UPSCALE HISPANICS OPTIMISTIC ABOUT SAFETY, FAMILY WELL-BEING AND WEALTH CREATION TO LIVING THEIR ASPIRATIONS

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HIGHER PURCHASING FOR KEY CATEGORIES

*(roof, flooring, landscape), home remodel of your kitchen or bath, or a room addition




% UPSCALE HISPANIC

INDEX TO UPSCALE NON-HISPANIC

SHOP AT CHILDREN'S STORE 57% 163

PURCHASE COMPUTER, LAPTOP AND/OR TABLET 51% 150

STAY IN A HOTEL WHILE ON VACATION 51% 113

PURCHASE DESIGNER SHOES, CLOTHING AND/OR ACCESSORIES

43% 215

PURCHASE ELECTRONICS SUCH AS FLAT SCREEN TV, HOME THEATER AND/OR GAME CONSOLE

42% 135

PURCHASE HOME FURNISHING AND/OR APPLIANCES 40% 118

MAJOR HOME IMPROVEMENT* 20% 125

PURCHASE A PRIMARY HOME 12% 171

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THE UPSCALE HISPANIC OPPORTUNITY IS HIGHERFor many key categories


• Hotel accommodations for family vacations

• Convenient and modern home improvements

• Upkeep children appearance

• Designer everything for adults

• Family digital and entertainment technology

• Clothing/accessories top online category

UPSCALE HISPANIC TOP DURABLE EXPENDITURES:

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MEDIA OVERVIEWHow do media behaviors across Upscale Hispanics compare

to total Hispanics and Upscale Non – Hispanics?

RADIO ONLINE NEWSPAPER OUT OF HOME

DIGITAL DISPLAY

TV

Media heaviness

for Upscale Hispanics

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RADIO & DIGITAL DISPLAY KEY MEDIA PLATFORMS



Source: Scarborough Hispanic Multimarket PLUS, 2013 Release h

49% 48% 43% 43% 33% 35%

109 114 130 119 114 97

117 117 96 93 77 92

RADIO DIGITAL DISPLAY INTERNET OUT OF HOME NEWSPAPER TV

Quintiles I & II by Media for Upscale Hispanics

UPSCALE HISPANICS

TOTAL HISPANICS

UPSCALE NH

Upscale Hispanic indices vs. total Hispanics and Upscale non-Hispanics

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AT LEAST ONE THIRD TUNING TO RADIO VIA ONLINEUpscale Hispanics leveraging mobile devices to access online radio

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 *Current

% of Upscale Hispanics accessing radio online,

39% more likely vs. Upscale non-Hispanics

53%

59%

14%

Computer

Smartphone

Tablet

Total Hispanics

Upscale non Hispanic

88 85

125 132

97 98

% Upscale Hispanics listening by device

34%

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SMARTPHONES INDISPENSABLE, TABLETS GROWING

Download newspaper,TV, radio App

Local or National News

9% 18%

14% 25%

19% more than Upscale non-Hispanics (70%)

80% growth from 2012 Upscale non-Hispanics (41%)

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: Nielsen Mobile Marketsight Q2 2013, Smartphone Analytics, Hispanics A1834/ In NON Hispanic Men 18-54,Scarborough Hispanic Multimarket PLUS, 2013 Release 1 Current

83%

38%

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TEXTINGSOCIAL

NETWORKINGAPP USAGE GPS VIDEO

ENTHUSIASTIC MOBILE MEDIA USERS

% OF USE FOR UPSCALE HISPANICS AND INDICES

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: Nielsen Mobile Marketsight Q2 2013, Hispanic Latinas A18-54 Indexes based on NON Hispanic Latinas A18-54

Total Hispanics 105 111 120 124 118


109 138 129 139 177

indices vs.

84% 65% 59% 53% 34%

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STREAMING TV CONTENT VIA ONLINE, GROWING39% of Upscale Hispanics stream TV content online, 49% growth year over year

© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies. This information may not be used for other purposes without written permission from Nielsen.Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 *Current

57% 24% 16%INDICES VS.

% USED BY DEVICE FOR UPSCALE HISPANICS STREAMING TV CONTENT

Total Hispanic 102 115 107

Upscale non-Hispanic 93 153 85

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OUT OF HOME OPPORTUNITY


12% 20% 16% 25% 27%

LESS 10MIN 10-19MIN 20-29MIN 30+MIN DON’T COMMUTE

14% more likely to travel 20-29

minutes than Upscale non-Hispanics

32% more likely to travel 30+

minutes than Upscale non-Hispanics

TIME SPENT TRAVELING TO WORK ONE WAY

41% of Upscale Hispanics travel 20 minutes or more one way to work,

this is more than both Upscale non-Hispanics and total Hispanics

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PRINT NEWSPAPER POTENTIAL GROWS WITH INCOMESmartphones primary digital device for upscale Hispanics to access their newspaper


45%52%

56%

Hispanics < $50K Hispanics $50-$99K Hispanics $100k+

73 81 84

Index vs. non-Hispanic

80% 33%

22% of Upscale Hispanics used a

mobile device to read a newspaper

NEWSPAPER READERSHIP VIA MOBILE DEVICES WEEKLY PRINT NEWSPAPER READERSHIP

23% more likely vs. Upscale non-Hispanics

28% more than total Hispanics

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HIGHER PREFERENCE FOR SELECTIVE PROGRAMMING Children programming and music videos popular, and opportunity for advertisers via local news


1%

10%

20%

15%

23%

35%

21%

22%

23%

25%

32%

39%

Novelas

Music videos

Science fiction

Kids shows

Local news - late

Documentaries

Upscale Hispanic Upscale Non-Hispanic

Type of program typically watch

(regardless of language)

137 index

164 index

218 index

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PAY AND PREMIUM AMONGST FAVORITE SELECTIONS


40% PREMIUM CHANNELS

30% 1+ PAY PER VIEW

32%SATELLITE TV

28% ON DEMAND

10% 19% 27%

MORE THAN UPSCALE NON-HISPANIC

MORE THAN TOTAL HISPANICS

-12%

50%SUBSCRIBE TO

HDTV

-5%

24% 8% 21% 35%33%

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DRIVING GROWTH OF PRESTIGE COSMETIC BRANDS

two times more likely to purchase mid-high end cosmetics vs. Upscale non-Hispanics

2-4 times more likely to use these brands based on ‘inner’ rewards and nearly 2x more likely to be deterred by status rewards

3x as likely to seek the latest style


UPSCALE HISPANICS ARE:

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OUT-PURCHASING AND PLANNING TO SPEND MORE

With a slightly higher incidence to purchase at department stores they are twice as likely to plan to increase their immediate spending and spread their discretionary spending across all different classes of retailers.


• Twice as likely to shop in high-end department store brands that allow them to differentiate, even at premium price

• 50% more likely to shop in middle market stores like Macy’s and Dillard’s that help them project success

• Just as likely to shop at price retailers as their Upscale non-Hispanic counterparts

LED BY UPSCALE HISPANIC LUXURY SEEKERS

ahaa nielsen upscale_2 0 webinar_5-20_w_appendix_final

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