Go West Summit
Latin America Marketplace Today
Pete C. Garcia
Consultant U.S. Hispanic and Latin American Marketing
Las Vegas, Nevada
2.6.2012
Latin America
Latin America
Area
21,069,501 km2
(8,134,980 sq mi)
Population 572,039,894
Countries 20
Languages
Spanish, Portuguese, Quechua, Mayan languages, Guaraní,
French, Aymara, Nahuatl, Italian and English.
Time Zones
UTC-2 to UTC-8
[1]
Largest
cities
1. Mexico City……...Los Angeles
2. São Paulo
3. Buenos Aires…….New York
4. Rio de Janeiro
5. Lima………………Chicago
6. Bogotá
7. Santiago…………..Houston
8. Belo Horizonte
9. Guadalajara……….Miami
10. Caracas
The Latin America Marketplace
• So where do you start ?
Mexico?
Brazil?
USA ???
First let’s talk culture
• Latin American culture is the formal
or informal expression of the peoples
of Latin America, and includes both
high culture (literature, high art) and
popular culture (music, folk art and
dance) as well as religion and other
customary practices
Historically speaking
• Starting in the late 16th century, a large
number of African slaves were brought to
Latin America, the majority of whom were
sent to the Caribbean and Brazil.
• Today, this ethnic group makes up the
majority of the population in most
Caribbean countries.
• Many of the African slaves in Latin America
mixed with the Europeans thus the
Mulattoes.
History
• Large amounts of European immigrants arrived in
Latin America as did in the USA in the late 19th
and early 20th centuries. Most of settled in the
Southern Cone.
• Nowadays the Southern Cone has a large majority
of people of European descent and in all more than
80% of Latin America's white population, which is
in turn more than 90% composed of the top five
groups of immigrants, which were: Italians,
Spaniards, Portuguese, Germans and, to a much
smaller extent, Irish, Poles, Russians, Welsh,
Ukrainians, French, etc.
More on the history of Latin America
• In this same period, many immigrants came from
the Middle East and Asia, including Lebanese,
Syrians, and, more recently, Koreans, Chinese and
Japanese (mainly in Brazil).
• This racial diversity has profoundly influenced
religion, music and politics. This opaque cultural
heritage is (arguably improperly) called Latin or
Latino in United States' English. Outside of the
U.S., and in many languages "Latino" just means
"Latin", referring to cultures and peoples that can
trace their heritage back to the ancient Roman
Empire. Latin American is the proper term.
Where are the Latin Americans in the USA?
U.S. Hispanic Market at a Glance
US Hispanic/Latin American Marketplace
• According to a recent Fox News article, the U.S.
Hispanic market will soon be the 11th largest
economy in the world , putting it in the same
category as Brazil, Russia, India, and China .
•
In fact, U.S. Hispanics actually have more per
capita purchasing power than the BRIC
countries, as well as the G-20 member nations
South Africa, Mexico, Argentina, Korea, Indonesia,
Saudi Arabia, Turkey, and Australia.
Growth 1990 to 2013 by Ethnicity/Race
“The Non-Hispanic White population is forming a decreasing proportion of the U.S. population
while Asians, Blacks and especially Hispanics are forming a larger part of our nation.”
80.0%
75.8%
69.1%
70.0%
65.5%
63.3%
60.0%
50.0%
40.0%
30.0%
20.0%
17.0%
15.5%
12.5%
12.0%
11.8%
12.3%
12.4%
8.8%
10.0%
4.6%
3.7%
2.8%
4.7%
0.0%
1990
2000
N-H White
N-H Black
2008
N-H Asia & N-HPI
Hispanic
*Source: Latin Force Group LLC, American Marketscape
DataStream: 2008 Series
2013
The Hispanic Boom in the USA
• From 2000 to 2010
– Nearly 14 million additional Hispanics
– 34% growth during period
– 50% of the total USA population growth
– 2010 Census 51 million = 16.3 % of
311 Million USA total population
• From 2008 to 2013:
– 1,440,087 new Hispanic Americans per year
• 120,073 per month
– 3,943 per day
» 164 per hour
Mexicanos in the big Manzana(Apple)?
New York DMA Hispanic Origin Pop
Puerto Rican
Dominican
Cuban
Colombian
Ecuadorian
Mexican
Salvadoran
Peruvian
Other Hispanic
Total
1990
1,247,544
406,774
160,015
159,711
117,554
99,974
63,866
56,692
412,783
2,724,913
% of Hispanic
46%
15%
6%
6%
4%
4%
2%
2%
15%
100%
2013
1,488,866
848,083
237,926
331,231
311,000
586,809
211,868
148,571
551,996
4,716,349
% of Hispanic
32%
18%
5%
7%
7%
12%
4%
3%
12%
100%
% Growth
19%
108%
49%
107%
165%
487%
232%
162%
34%
73%
Growth Index
0.26
1.48
0.67
1.47
2.25
6.66
3.17
2.22
0.46
1.00
Chiflando(Whistling) Dixie
State
Alabama
Georgia
Kentucky
North Carolina
South Carolina
Tennessee
Total
TotPop90
4,040,590
6,478,215
3,685,292
6,628,627
3,486,690
4,877,192
29,196,606
HispPop90
23,548
101,388
20,356
69,004
28,316
31,062
273,674
% of Total
1%
2%
1%
1%
1%
1%
1%
TotPop13
4,706,709
10,382,063
4,385,052
9,901,885
4,645,155
6,492,727
40,513,590
HispPop13
150,786
936,750
113,322
830,616
208,485
271,498
2,511,456
% of Total
3%
9%
3%
8%
4%
4%
6%
% Hispanic Growth
540%
824%
457%
1104%
636%
774%
818%
Growth Index
87.16
132.91
73.67
178.05
102.64
124.87
131.90
Hispanics in Florida are Cuban, right?
Hispanic Origin Pop 2008 % of Hispanic
Cuban
1,192,355
30.0%
Puerto Rican
746,346
18.8%
Mexican
737,131
18.5%
Colombian
314,728
7.9%
Dominican
153,656
3.9%
Nicaraguan
137,433
3.5%
Peruvian
100,231
2.5%
Honduran
98,947
2.5%
Venezuelan
93,824
2.4%
Guatemalan
68,607
1.7%
Argentinean
64,604
1.6%
Salvadoran
52,831
1.3%
Ecuadorian
51,577
1.3%
Panamanian
37,510
0.9%
Chilean
28,250
0.7%
Costa Rican
25,934
0.7%
Other Hispanic
70,450
1.8%
Total 3,974,414
100%
Population by State in 2008: Top 25 States
“The Non-Hispanic White
population is the minority in
CA, TX, NM, HI plus DC.”
State
Total Population
TOTAL
CA
TX
NY
FL
IL
PA
OH
MI
GA
NC
NJ
VA
WA
AZ
MA
IN
TN
MO
MD
WI
MN
CO
AL
SC
LA
305,404,133
37,117,133
24,445,647
19,348,942
18,801,900
12,953,283
12,501,596
11,504,082
10,112,157
9,771,845
9,158,932
8,786,597
7,818,632
6,572,850
6,554,910
6,438,907
6,397,180
6,177,103
5,928,290
5,690,132
5,615,446
5,240,085
4,894,547
4,671,153
4,441,183
4,381,527
Average Household Size
NH-White is Minority in
the two largest states
Non Hispanic
% Non Hispanic
White
White Population
Population
199,935,729
65.5%
15,535,835
41.9%
11,507,936
47.1%
11,579,601
59.8%
11,276,349
60.0%
8,343,916
64.4%
10,180,217
81.4%
9,486,946
82.5%
7,819,395
77.3%
5,639,875
57.7%
6,168,747
67.4%
5,388,233
61.3%
5,221,471
66.8%
4,979,885
75.8%
3,835,069
58.5%
5,097,158
79.2%
5,325,047
83.2%
4,760,338
77.1%
4,874,082
82.2%
3,249,796
57.1%
4,782,954
85.2%
4,466,061
85.2%
3,479,231
71.1%
3,208,243
68.7%
2,900,888
65.3%
2,734,052
62.4%
Asian & PI
Population
14,505,641
4,862,395
885,659
1,411,206
456,780
582,564
320,237
193,813
255,848
298,940
186,444
697,956
400,142
485,303
181,176
338,021
94,163
90,652
94,450
299,865
119,038
195,372
141,024
47,433
56,546
64,473
% Asian & PI
Population
4.7%
13.1%
3.6%
7.3%
2.4%
4.5%
2.6%
1.7%
2.5%
3.1%
2.0%
7.9%
5.1%
7.4%
2.8%
5.2%
1.5%
1.5%
1.6%
5.3%
2.1%
3.7%
2.9%
1.0%
1.3%
1.5%
Black
Population
39,388,302
2,457,487
2,977,350
3,339,817
3,021,896
1,934,305
1,362,662
1,392,359
1,442,545
2,965,196
1,986,111
1,275,325
1,557,775
238,606
259,297
458,168
579,744
1,050,493
685,958
1,698,403
338,631
248,237
203,630
1,236,276
1,277,415
1,406,270
2.95
2.60
3.41
2.40
Asian
Black
Hispanic
NH-White
% Black
Population
12.9%
6.6%
12.2%
17.3%
16.1%
14.9%
10.9%
12.1%
14.3%
30.3%
21.7%
14.5%
19.9%
3.6%
4.0%
7.1%
9.1%
17.0%
11.6%
29.8%
6.0%
4.7%
4.2%
26.5%
28.8%
32.1%
Hispanic
Population
47,202,030
13,669,540
8,959,512
3,199,035
3,974,414
1,992,628
574,884
282,796
411,485
798,774
671,798
1,434,636
528,435
630,539
1,993,453
534,158
331,657
221,323
179,568
375,197
279,696
211,994
995,429
128,386
171,644
130,799
% Hispanic
Population
15.5%
36.8%
36.7%
16.5%
21.1%
15.4%
4.6%
2.5%
4.1%
8.2%
7.3%
16.3%
6.8%
9.6%
30.4%
8.3%
5.2%
3.6%
3.0%
6.6%
5.0%
4.0%
20.3%
2.7%
3.9%
3.0%
Language Use in 2008: Hispanic
“The vast majority of Hispanics are Bi-Lingual to some degree; and nearly equal
quantities are dependent on either English or Spanish.”
English Dependent
19.2%
Spanish Dependent
20.6%
Bi-Lingual Spanish Preferred
19.0%
Bi-Lingual English Preferred
26.5%
Bi-Lingual English & Spanish
14.7%
Code
HL1
HL2
HL3
HL4
HL5
Language Segment
English Dependent
Bi-Lingual English Preferred
Bi-Lingual English & Spanish
Bi-Lingual Spanish Preferred
Spanish Dependent
Total
Hispanics Age 5+
8,089,402
11,190,225
6,205,170
8,031,954
8,686,334
42,203,085
Language Segment
English Dominant
Bi-Lingual
Spanish Dominant
Hispanics Age 5+
19,279,627
6,205,170
16,718,288
%
45.7%
14.7%
39.6%
33,516,751
34,113,683
79.4%
80.8%
English Capable
Spanish Capable
*Source: Latin Force Group LLC, American Marketscape
DataStream: 2008 Series
Hispanic Income by Ranges: 2008
“Over one-third of Hispanic households earn over $50,000 per year and twothirds earn over $25,000 per year.”
$100,000 to $149,999
6.4%
$75,000 to $99,999
9.1%
$150,000 or more
3.2%
less than $15,000
16.2%
$15,000 to $24,999
15.2%
$50,000 to $74,999
18.2%
$35,000 to $49,999
17.6%
$25,000 to $34,999
13.9%
*Source: Latin Force Group LLC, American Marketscape
DataStream: 2008 Series
Hispanic Consumer Expenditures: 2008
“Hispanic spending is quite substantial in all major categories, especially due to
their relative youth and larger average household size.”
120,000,000,000
100,000,000,000
80,000,000,000
60,000,000,000
40,000,000,000
20,000,000,000
-
Food & Beverages
Shelter &
Insurance
Utilities
Housekeeping
supplies
Furnishings And
Equipment
Apparel
Transportation &
Insurance
Health Care
Entertainment
Annual Expenditures Per Household in USD
*Source: Latin Force Group LLC, American Marketscape
DataStream: 2008 Series
Personal Care
Products &
Services
Personal
Insurance &
Pensions
Latin America Market at a Glance
GLOBAL POPULATION- 6.6 Billion
Top 15 countries of the globe’s population include :
•
Two in Latin America: Brazil, Mexico
•
572 MILLION LATIN AMERICANS , GROWING AT 9% EACH YEAR
•
MEXICO 110 million in population
•
Central America 84 million population, 6 countries
•
South America 375 million
•
186 million population Brazil – 20 million in Sao Paolo alone
•
40 million population Colombia and another
•
40 million population in Argentina
•
Caribbean 30+ Million population in the market
How to Market to Latin Americans?
• Story of Continental Airlines, the Latinization of its product
and services
– Identify what Latin Americans prefer and don’t prefer
– What was discovered & what was done to react to marketplace
Clients prefer to speak their own language ..AHA !
The airline chose to make changes by having TRI-LINGUAL
–
–
–
–
–
–
–
flight attendants
airport service representatives
signage at airports
reservation centers
screens e-Kiosks
Website in español
Dedicated Sales Staff throughout USA
Is language enough ?
– Translation alone will not get you there!
• How much should you know about your Latin
Customer?
• Who in your organization should know what they
prefer and more importantly what they don’t prefer?
• How can you spread this knowledge?
How to Market to Latin Americans? (cont.)
– Clients prefer their regional cuisine
– Created a congress of chefs
• Continental Airlines counts with awarded culinary
chefs for the Latin, Asian and European markets
– Clients prefer personal touch and understanding of
their culture
– Created training courses of our customer service, in-flight,
reservation services to address not only differences with
the Anglo markets, but most importantly differences
amongst Latinos themselves.
How to Market to Latin Americans? (cont.)
• Latinization also required specific advertising and
public relations campaigns to let Latinos know that
Continental understood their needs and was now
providing services especially designed for them.
How to Market to Latin Americans? (cont.)
• Latinization was a marketing concept that could enhance not
only customer services, but revenues and profits
• In 10 years Continental grew from $250 million in revenues
to $2.5 billion and from serving 25 destinations to serving 75
destinations
• Providing a product and service that communicates speech,
taste, sound, touch and visibility meant that the could touch
on all their five senses
• The Latinization program provided the guideline as
Continental grew globally thus..the Globalization marketing
concept
How to Market to Latin Americans? (cont.)
• Not only Continental, look at AT&T’s experiences
with new stores in Hispanic neighborhoods and in
a few countries in Latin America
• In Texas, HEB stores now markets “Mi Tienda” just
like Central Markets in upscale neighborhoods
• Toyota chose to market its Scion product to
Hispanics right in their own neighborhoods and
choosing selected locations where young
Hispanics chose to congregate
How to Market to Latin Americans? (cont.)
• Marketing to US Hispanics and Latin Americans requires an
understanding of the languages and cultures, but most of
all ensuring your leadership understands the value of
marketing to them
• We must first understand the Latin American, then ensure
organizational understanding
• This is accomplished by learning to respect differences and
then embracing the differences
• Marketing diversity makes dollars and sense
• So teach your staff how to say “Hola” and “more”
So how much do I spend on this market?
• Take a look at your overall budgets and determine what gives
you the most return on your investment?
• What is the percentage of your overall spend for the Latin
Ameircan market?
• What is the airlift capacity from the global markets you need
to invest in?
• What is the proximity to my market?
• What do other cities do to garner the Latin market?
Future of Latin American Market Place
• ALTA, the Latin American Association of Airlines reports
quarterly growth in the 9-11% ranges on a consistent basis
• Latin America is the one place in the world where air travel
continues to grow
• Latin countries continue to grow politically and financially as
amongst the most successful emerging markets on the globe
• There is much opportunity today to continue developing ties
with this huge marketplace
•
BUT, do your homework, FIRST!
• Then make the decision on where to place your bet!
Thank you !
Muchas gracias !
Muito Obrigado !
Pete Garcia International Inc
• [email protected]
• 1-713-854-1577
•
•
•
•
www.petegarciainternational.com
www.airlinemarketdata.com
www.extreme-blue.com
www.usmcocgc.org
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