Hispanic Spending Rose Even as Economy Faltered
• While the U.S. economy floundered, and consumers as a whole tightened their belts, the growth in Hispanic spending was
twice the growth in general market spending, according to a December 2009 analysis of consumer expenditures and corporate growth
strategies by the Latinum Network. According to the Bethesda, MD organization, non-Hispanic consumer spending between 2005 to
2008 grew only 2.9%, while Hispanic consumer spending rose 6.4%.
Latinum’s report offers an in-depth analysis of the latest figures from the U.S. Bureau of Labor Statistics on spending behavior as it
relates to the Hispanic community. According to Latinum, significant commercial opportunities exist in major categories where Hispanic
consumer spending growth far outpaced the general market, including in the laundry and cleaning supplies sector.
“As companies look to accelerate growth in 2010, brands that ignore, or misread, the impact of cultural factors on purchasing behaviors
may leave the lion’s share of U.S. Hispanic buying power on the table,” noted Latinum principal David Wellisch.“This segment within
the Hispanic market represents an attractive growth opportunity for many companies which have traditionally targeted their incremental investments on the unacculturated consumer. They’re growing in number, they have the most money to spend, they behave
more like general market customers in terms of what products they buy and how much they spend, yet they still respond well to cul-turally-relevant messages.”
More info: www.latinumnetwork.com
Life’s Little Luxuries, Dispensed on Demand
• The recession has brought about a redefinition of luxury, especially in the currently moribund aspirational segment, ac-
cording to New York-based strategic consultancy Toniq ( www.toniq.com). While some luxury brands have responded to“luxury shame”
with more a discreet display of their logos, a key shift will be toward the creation of limited edition affordable designer artifacts, noted
managing partner Cheryl Swanson.
Sephora branded beauty vending machines can
be found in several U.S. airports.
Dubbed “lux-ifacts” by Toniq, these items represent the designers’level of quality prestige at friendlier price points—think fragrance or accessories—that allow consumers to indulge their need for quality, design and prestige with small, yet beautiful pieces.
According to Toniq, savvy marketers will seek to energize their lines with special collections in curated retail/gallery experiences, pop-up showcases and interactive applications
geared for mobile 24/7 shoppers—such as designer basics in branded vending machines
at private clubs, airports and restaurants. Products primed for “Lux-O-Vending” range
from comfort shoes to accessories to makeup to fragrance, according to Toniq.
Sephora is already there. The retailer has set up beauty vending machines at airports in Nashville, TN, Las Vegas, Indianapolis, Dallas, New York and Houston at which
travelers in need of a last-minute skin care, fragrance or cosmetics items can pick up
what they need while en route to their next destination.
The machines feature popular brands such as Bare Escentuals, Smashbox, Philosophy,
Peter Thomas Roth, Murad and StriVectin, to name a few. They have touch screen menus
that offer product information and pricing. Sephora may expand the dispensers into malls
and JCPenney stores this year, according to reports.
Brand Familiarity Ranks High in Beauty Business
• More than 90% of surveyed shoppers cite brand familiarity as the most important influencer when purchasing beauty prod-
ucts, far surpassing the 73% consumer packaged goods (CPG) benchmark, according to new research from Information Resources’
Beauty Shopper Report.
Price, while important for many decisions, was a distant second, according to the Chicago-based group’s report.
Brand preference, in addition to a continued focus on affordability, remains paramount and underscores the rapidly evolving and
unique nature of shopper attitudes and behaviors shaping the $11.5 billion U.S. beauty market.
“The beauty industry is characterized by significantly different dynamics than other CPG market sectors, creating a major opportunity for beauty marketers and retailers that can quickly and effectively leverage the nuances,” said John Deputato, senior vice president,
Client Solutions, IRI. “Even within the hair care, skin care and cosmetic segments of the industry, shoppers often exhibit behaviors
unique to each of those categories. Shopper behavior diverges a great deal among these segments particularly in times of changing economic climates, such as today’s emergence from the recession, where some consumers are exhibiting a new confidence, while others are
keeping their frugal practices in place.”
More info: http://us.infores.com