Running a business in the USA and staying profitable is nearly impossible without targeting the Latino audience.

This was not the case just a few years ago. In fact, despite being the largest minority, the Hispanic audience was neglected, treated as second-class citizens, and discriminated against based on buying power. From looking down at the Spanish-speaking expats to stereotyping Hispanics in media and never targeting them as a primary audience, we have seen it all. However, 2022 Census statistics are now helping businesses to reassess their business priorities if they want to become successful. How?

The report revealed that the U.S. population is now changing in two ways. It is becoming racially diverse and aging at the same time.  This report means that all the previous notions about the Hispanic population will change in the next few years. Moreover, it completely disregards all the old myths and stereotypes related to Latino consumers in the USA.

Keep reading as we debunk all these myths.

Tops Myths About the Latino Business Market in the USA

Myth: Latinos Are Expats with Low Buying Power

Hispanics living in the USA were generally expats coming from Mexico and other Latin American countries. These expats came for better job and education opportunities. While they were earning well, a majority were sending money back home and living on minimum wage.

However, things have changed now; nearly all Latino youth under age 18 (94%) are American-born and raised. These youngsters have their families here and do not have to spend money back. Moreover, the Latino community is now much more educated, which is the reason they have good-paying jobs, helping them enter a better tax bracket as well.

Impact:

To keep up and stay profitable, businesses now have to target Hispanics as well. This will help businesses earn more and broaden their overall consumer-based audience.

Myth: Latinos Do Not Need a Personalized Experience

In the business world, minorities are never accommodated. This is not a rule based on racial discrimination; instead, this concept is rooted in the profitability of a business. Nearly all the products manufactured by the companies are designed to meet the demands of the primary population.

For instance, the clothing size in China is much smaller compared to the size in the US or Europe. This is based on the general Asian population size. Similarly, in the USA, the majority of the products are designed as per the needs of the white population and not the Hispanics.

Impact:

With the rise in the Hispanic population, businesses are changing their strategy, trying to include the Latino community as well. Even prominent companies like Spectrum are accommodating their Spanish-speaking population in customer support. The brand has a dedicated Spectrum Servicio al Cliente en español, where Spanish-speaking customers can seek guidance on any brand-related topic.

Myth: Latinos Are Just a Niche Market

Currently, the Hispanic community is seen as the biggest minority in the USA, but this was not the case just a few years ago. In fact, the early 2000 consensus data shows that Hispanics were just 12% of the US population. While this can still be considered a good number, for businesses, Hispanics were just a niche.

Now, as the Hispanic population is touching a whopping 20%, businesses are customizing their products, making Hispanics feel included.

Impact

Billion-dollar, stable companies are willing to go above and beyond to help the Latino community feel included. Even small businesses need to step up if they want to stay profitable and successful in this economy.

Myth: Latinos Are Happy and Content with what’s Available

Hispanics, as immigrants, have long been considered a marginalized society. Most of the people were expats who were less educated and poor, and they moved to the USA to pursue their careers or business. These people were content with the opportunities they were getting. Moreover, their limited buying power was keeping them happy and content with what they were getting.

This has changed with the new generation. Young Latinos today have better educational opportunities, which is putting them in a position of power and helping them earn more money. With better buying power, they are now seeking ways to be accommodated. Youngsters today want brands to offer better products that are culturally appropriate and accept Hispanic values.

 Impact

Most of the global companies offering products in the USA are now customizing products to fit the skin, texture, taste, interests, and issues of the Hispanic community.

Myth: Latinos Don’t Want an Individual Identity

Most of the Latino expats who immigrated to the USA were shamed for their skin color, accent, education, and other personality features. This constant shaming made most people insecure about their Latino heritage. In fact, the majority chose to assimilate American culture instead.

However, the current Latino youth is not trying to blend into the American culture; instead, they want to stand out. The young Hispanics are bold, unapologetic, and a product of their heritage. This has a lot to do with the Hispanic culture becoming part of modern-day pop culture and getting center stage thanks to the music and online content.

Impact

Big production and communication brands like Disney, Pixar, etc., are now offering Hispanic stories and characters a platform to shine. There is more and more new content coming from mainstream media that depicts Hispanic culture without any stereotypes.

Global Brands Impressing Hispanic Youth

Here is a list of some brands that have already cracked the code and have successfully impressed the Hispanic youth so far:

• Netflix
• Youtube
• Dove
• Amazon
• Walmart