Hispanic consumers offer huge potential
By Powell Slaughter -- Furniture Today, February 18, 2002
GREENSBORO, N.C. — The fast-growing U.S. Hispanic population offers huge potential for the furniture industry, but the segment requires a different approach — and a different language — than the industry is used to.
Terry Laughlin, vice president of marketing and sales for the Spanish-language TV network Univision, and Pedro Capo, vice president of operations for El Dorado Furniture in Miami Gardens, Fla., spoke about the dos and don'ts of marketing to Hispanics at a meeting here of the American Furniture Manufacturers Assn.'s Marketing Division.
Citing several research sources, Laughlin described the Hispanic market:
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It is large and growing. In 1990, there were 22.3 million Hispanics in the United States, and by 2000 the number had grown 58% to 35.3 million, accounting for 40% of total U.S. population growth.
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"One out of every eight Americans is Hispanic," Laughlin said.
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Its buying power is on the rise. From 1979 to 1998, the number of middle-class Hispanic households increased by 80%. Now, 42% of Hispanic households are categorized as middle class.
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"Hispanic income has increased 30% since 1995, three times the national rate," Laughlin said.
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Its preferred language is Spanish. Some 89% of Hispanic households speak Spanish at home, and about half of those are Spanish-dominant. "The Spanish language is the key link to Hispanic culture.
Hispanics prefer to get information in Spanish, even bilingual Hispanics."
He said the preference for Spanish advertising among Hispanics has increased from 45% in 1994 to 64% in 2000.
"Television is the best way to connect with Hispanics," Laughlin said. "Even if you combine the hours a week they listen to radio and read magazines and newspapers, it doesn't equal the amount of television hours a week."
Furniture companies targeting Hispanics need to understand differences within the market and commit to Spanish-language advertising and support materials, said Capo, whose Hispanic-owned El Dorado Furniture has a 60% Spanish-speaking clientele.
"You say you're doing business in the United States, so English is all you need," Capo said. "Are you going to let your heart lead you or let your brain lead you to make a business decision?"
Capo also warned against cookie-cutter Spanish-language ads for national use, since some words have different meanings — often surprisingly earthy — among the various Hispanic subsets: Puerto Ricans in the East and Chicago, Cubans in South Florida, and Mexicans and Central Americans in the West.
He also cautioned English speakers not to try their own translations.
"At El Dorado, we first think the commercial in Spanish, then we think it in English," he said. "If you're serious about reaching the Hispanic market, you have to have someone who's thinking in Spanish."
Hispanic culture also comes into play.
"Hispanics are a very family-oriented group; the words for babysitter and convalescent or retirement home do not exist in Spanish," Capo said. "It's a matter of pride to have mom and dad with us at home. Family and the home are more valuable to Hispanics than anything in the world."
Advertisers also must keep in mind Hispanics' more traditional view of gender roles.
"Some English commercials portray the woman as the head of the household, and the man as someone who just comes home from work," Capo said. "If you do that in a Spanish commercial, you're offending the guy…. There also are a lot of 30%-off, 80%-off ads, but if you do that to a Hispanic audience you insult them. They don't believe it."
A couple of key points can make for successful marketing to Hispanics, he said.
"Find out which group of Hispanics you want to target, and make sure your message is related to their needs," he said.
And don't forget to liven things up.
"We like to be entertained," Capo said. "We want commercials to be humorous. Make it funny, and do it on television or radio, not print."
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