Does your business understand the Hispanic F&B shopper?

Food & Beverages (F&B) for Hispanics have an emotional and cultural significance that extends beyond eating and drinking. Thus, Hispanic shoppers think about every aspect of food shopping and preparation. Accordingly, she plans her shopping trips well, more so than the general market. And she does so not only around what she has athome and what she needs, but the value she can attain.

This is why a full 56% of her trips are planned and periodic vs. only 26% of the general market, as revealed by Unilever Behavior-Based research. Of note, 20% of these routine trips are deliberately taken to satisfy her family’s needs today, vs. zero for the general market. However, her trip frequency (9.6 times per month) is comparable to non-Hispanics (10.2 times). Her routine trips can be of four varieties: General Quick-Trips, Quick-Trips for F&B, Fill-in Trips and Major Stock-up Trips.

Quick Trips account for 44% of Hispanics’ shopping experience, significantly lees than the general market at 42%. Even these quick trips are planned, with only 2% of them being the result of an urgent need (compared to 19% for non-Hispanics). Hispanics spend more time in these quick trips but less money than the general market ($22 vs. $32). This is aided by Hispanics’ greater awareness of specials (48% vs. 36%), even before going to the store.

Quick Trips motivated by F&B needs are comparable between Hispanics and others (17% vs. 20%) but Hispanics spend significantly less ($22 vs. $36). Quick Trips for General Groceries have essentially the same spending profile but their frequency is far more differentiated (27% Hispanics / 42% general market).

Fill-in Trips are favored by Hispanics, accounting for 37% of their shopping experience. This compares with just 25% for the general market and probably reflects the smaller pantry space Hispanic homes tend to have. Children’s needs (baby-related products, dairy, frozen desserts) drive many of her Fill-In Trips. She spends up to 42 minutes in each of them, where she is 2 ½ times more likely to pick up a ready-to-eat item than non-Hispanics. Yet, she spends $32 per Fill-In Trip vs. $42 for non-Hispanics.

Only when it is time to stock-up do Hispanics outspend the general market: $72 vs. $56. However, Stock-Up Trips account for only 16% of occasions (vs. 13% in the case of non-Hispanics). Again, this reflects strong F&B planning.

Proximity is the top reason for store selection. This reflects that 25% of Hispanic shoppers walk to their store while 22% use public transportation. Price is next top reason.

Most Hispanics (67%) shop in Supermarkets. This is however slightly below the general market (73%) as Hispanics are more open to shop in less traditional retail channels. Indeed, they visit more Mass Merchandisers, Convenience, Dollar, Health stores and the neighborhood ‘bodegas’ more than the general market does.

Take Health Food Stores. Hispanics shop here at about twice the rate as the general market. They are willing to pay a price for the ready-to-eat, organic foods and quality produce that may be hard to find elsewhere. Most trips are centered on quick general grocery items and ready to eat foods. Like Club Stores, Health Food Stores generate trips for fun among Hispanics.

A fun place to shop (53%) is in fact one of the strongest drivers of in-store satisfaction for Hispanic shoppers. Others drivers are: Friendly Staff (55%), Ambience Music (39%), Help in Purchase Decisions (39%), Items in Stock (38%) and Shuttle Service (38%).

Hispanics tend to shop more in stores that feature: lowest prices (44%), food ideas (41%), unique items (40%), easy layout (31%), makes fresh products (29%), bakery (20%).

Hispanics’ in-store routines are quite unique. More than half (59%) of Hispanics use cash, 28% use debit cards and only 11% pays with a credit card. Also, 35% of Hispanic shopping trips are after 6 pm, compared to only 18% in the general market. Hispanics make far fewer trips (18%) in the morning than general market consumers.

Net, the Hispanic shopper is a highly food-involved, smart, efficient and value-oriented shopper. More importantly, she is unique in her behaviors and motivators. Tailored programs are necessary to leverage these and other insights to win part of her $995 Billion buying power.

Expertise is at hand. “Renaissance Growth Advisory” is a consulting firm made up of Hispanic, hands-on operators who have managed Fortune 500 subsidiaries at the C+ level. They are experts in marketing, selling and distributing products to US Hispanics. Call Pedro Medina at +1-561-843-3150 or visit www.growthconsultants.com.

Plans that try to capture the rising Hispanic market often miss a key element:understanding and leveraging their shoppers’ unique profile and motivations

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