The United States has become a colorful palette of people from wonderfully different cultures and ethnic backgrounds. Diversity is now more than a mere topic being discussed in corporate America’s boardrooms. It defines who we truly are as a nation.  

Statistics from the Securities Industry Association, U.S. Census Bureau, indicate that the demographics of the U.S. are shifting. In 1980, less than 20 percent of the nation was multiethnic. By 1995, it was about 25 percent; five years from now, about one-third of this nation will be multiethnic, and by 2040, the Bureau believes that half of what all Americans now refer to as “minorities” will be multiethnic.

Of those who are currently multiethnic, MSNBC reported in June that the Hispanic growth rate from July 2003 to July 2004 was 3.6 percent; for Asians it was 3.4 percent; native Hawaiians and other Pacific Islanders had a growth rate of 1.7 percent; blacks and Alaskans experienced 1-percent growth and whites grew .8 percent. (Whites include those who have origins from Europe, North Africa or the Middle East.)

Parts distributors that fail to recognize the diversity in their surrounding areas may not be reaching an untapped well of potential new customers (and employees). Market outreach to different ethnic groups won’t only reap rewards, but it will help your company grow and transform as your market demands it.

Fastest growing ethnic group

Etnia de más rápido crecimiento

According to the report from MSNBC, one out of every seven people in the United States is Hispanic, “a record number that probably will keep rising because of immigration and a birth rate outstripping that of non-Hispanic blacks and whites.” Hispanic culture can no longer be referred to as a “niche.” Its size warrants mainstream attention.

Frank Gomez of LatinInsights, a market research and strategic communications firm, tells us that purchasing power of Hispanics in 2005 was estimated at more than $700 billion and is growing rapidly.

“Ignore the Hispanic community at your own peril,” he says.

The Census Bureau suggests that Hispanics accounted for half of the population growth between July 2003 and July 2004. They also said they refer to “Hispanics” or “Latinos” interchangeably and as an ethnicity rather than a race, since it comprises many people from various parts of the world.

The office of equal opportunity and diversity, University of California, Irvine, defines a Hispanic as a person of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish culture or origin, regardless of race.

Additional research from the Bureau says that Hispanics are more likely to reside in the West and South than non-Hispanic whites and less likely to live in the Northeast and Midwest. California is home to 11.9 million Hispanics and Texas has 7.3 million. More than three out of four Hispanics live in seven states, which have Hispanic populations of 1 million or more: California, Texas, New York, Florida, Illinois, Arizona and New Jersey, according to the Census Bureau, but there are pockets of Hispanic communities all over the country.

Buying behaviors

Comportamiento de compra

R.L. Polk’s Lonnie Miller, director of industry analysis, says that U.S. Census data outlines that 13.3 percent of the U.S. population is now Hispanic, followed by 13-percent African American and 4.4-percent Asian. He also affirms that Hispanics account for 8.2 percent of new vehicle registrations (retail sales, January though November 2004). African Americans and Asians accounted for 2.8 percent each.

“To put that in perspective,” says Miller, “from 1999 to 2004, there was a 59-percent growth in terms of number of units acquired by the Hispanic population.” In 1999, Hispanics accounted for 540,000 new vehicle registrations. In 2004, they were responsible for 858,486. Additionally, about 35 percent said that they buy a new vehicle every two to three years.  

Miller tells us that Toyota and Nissan are well-liked companies within the Hispanic marketplace because Hispanics align themselves “with companies involved in their communities,” says Miller. GM and Ford are also known for their Hispanic outreach efforts.

Polk recently conducted a study to determine some of the new vehicle buying motivators among Hispanic customers and found that there is “a real strong sense of feeling good about the product they are acquiring and how it makes them feel about themselves,” says Miller, who adds that this may carry over to aftermarket parts and service as well.

The Polk research also suggests that though Hispanics are a loyal group, they are also “fickle and want to be sure they are getting fed what they are looking for,” so there is a risk of switching brands if a product doesn’t meet their expectations. 

Because of this, sampling may be a useful tool, advises Evan Gordon, president and CEO of Hispanicity, a Hispanic marketing communications firm in Chicago. Sampling will give individuals an opportunity to try new products or services. Maybe it’s worth sending coupons or “free cash” as a way to introduce yourself to the market. 

Gomez believes that as Hispanics become more sophisticated in their decision-making, their buying habits may change. He explains that the 40 percent of Hispanics who were foreign born will continue to be extremely loyal to particular brands used in their homeland, but if they find out the company doesn’t have a good reputation among U.S. Hispanics, they will change their buying behavior.

Polk’s data also suggest that there’s a much stronger sense of the maternal presence in the Hispanic household. “The mother is the sense of stability,” says Miller, who adds that almost half of the Hispanic population would agree that other family members’ opinions matter in their purchasing decisions. Similar numbers are present for African Americans. Asians show the highest level of family interest during purchases.

Miller emphasizes that aftermarketers need to pay attention to any and all cultural cues and preferences like these when reaching out. “We strongly believe that customer retention crosses all walks of life but it’s not a one-shoe fits-all.”

Unfortunately, though, the “blanket” approach is ever prevalent, as many companies have tried and failed to sell products to certain groups only to find out they didn’t do their homework first. When the Chevy Nova wasn’t selling in Mexico after GM introduced it, the giant automaker quickly learned that in Spanish, Nova meant “no go.” Several stateside campaigns have failed as well. 

You must be knowledgeable, careful and sensitive whenever you are trying to reach a group of individuals, regardless of their race or ethnic background.

“Unless you begin with research, you may be misspending dollars on advertising or communications efforts,” says Gomez, who adds that they’ve seen many companies develop marketing programs without having the sufficient knowledge that’s gained through research. 

Talk and they will come

Hable y vendrán

One of the most important steps in reaching the Latino community is communication. Many companies don’t even make an effort to reach out to them. “That’s been the problem over the years,” says Gordon.

Marcel Miguel Berland, Gomez’s partner at LatinInsights, thinks two dangerous mistakes can be made when trying to reach the Hispanic market. “Some people go to one extreme thinking that Hispanics all look and think the same, and another group thinks they are so different that it’s so impossible to reach them.” But both get you nowhere as a marketer.

She explains that if you just look at the market strategically, you’ll find variables that can bring people together. Therefore, you can be successful and still approach a broader base of Hispanics if that is your goal.

This concept works better than past efforts since, traditionally, companies would use language as the main means of reaching a market. The assumption was if an ad was published in Spanish, then Hispanics would be able to relate to it. But that’s really not the case, says Berland. “I speak Spanish fluently, but I’m more acculturated. I tend to read in English and I watch the main television networks. Just because I speak Spanish doesn’t tell you much about myself.” 

So, what is the protocol with regard to language use? Most experts recommend both. In an article titled, “Language in Hispanic Ads: Who is Right?” written by Gomez and Berland (published in Hispanic Marketing 101, April 27, 2005) it says, “Ask 10 Hispanics what languages are best to reach Latinos and you will get 15 different answers. Why? Because little research has been devoted to the subject, and most opinions are based on anecdotes, vested interests, outdated or unscientific data or hunches.”

Part of the challenge with American marketers is that the U.S. is home to people from every Spanish-speaking country and each one has its own variation, explain the authors. For those wishing to target a local group, they recommend researching how many people there are of one background. For example, “Houston Latinos, with a large immigrant population, including many Central Americans, is 73 percent Spanish dominant. San Antonio, however, has a much more established, largely bilingual Mexican-American community.”

David Scher, an owner at Auto Supply Co., in Los Angeles, which has the nation’s largest Hispanic population, says, “We are in a world where 95 percent of the people that walk through our door have Spanish as a first language,” therefore, he adds, almost every one of his employees speaks Spanish and all their flyers and policies are bilingual. Auto Supply Co. has been in business since 1932 and has changed with its surroundings. Scher explains that the area went from being a predominately English-speaking African American area to a community of Spanish-speaking Hispanics from Central America.

But he’s quick to point out that they have to be careful not to alienate the English-speaking Hispanic customers since most of his counterpeople speak Spanish as a first language. “It’s a reverse situation not to exclude English speakers.”

Gordon notes that about 60 percent of the Hispanic market is bilingual or English dominant, but there is still a “huge market that is Spanish dominant.”

For larger campaigns, most experts recommend using what Berland and Gomez refer to as “neutral Spanish,” along with English, in an effort not to overlook the millions of English-speaking Latinos.

Gomez warns, however, that some ads won’t resonate if they are simply straight translations rather than adapted messages, in which different variations of the Spanish language are incorporated. “Our studies indicate that people notice if an ad is a translation of an English ad rather than tailored.”

Offering additional resources to Hispanic customers once they’ve been targeted is also crucial, counsels Gordon. If you send out a flyer that is bilingual and start getting Spanish-speaking Hispanics in your store but don’t have anyone who can communicate with them, you will have immediately failed to capture new customers. “Have people that are knowledgeable, that can answer questions in Spanish…make sure you can service them.”

And service means more than just having a person who speaks Spanish on your staff.

Scher at Auto Supply Co. offers clinics in Spanish. In fact, other than one or two English-only seminars, almost all of his training programs are given in Spanish. “This is the population that is working on their cars out here,” he says, adding that he never has a problem filling the classrooms. 

If the product packages you stock or the point of purchase material isn’t bilingual — if no installation instructions are available in Spanish — then it doesn’t matter if you have a staffer who can speak Spanish, you are lacking sorely in other areas. So, look around your store and examine how much of what you have to offer really caters to this market, and find out what your vendors can do to help.

Finally, be sure you understand what else is important to them, recommends Gordon. For example, he says that many older Hispanics prefer paying cash and don’t carry credit cards.

Say hello to ‘bi-bi’s’

Salude a los “bi-bi's”

In every home, generational differences between the young, middle-aged and old are common. But within Hispanic households, there are even greater differences since often times parents or grandparents were raised in their homelands and their children were born in the United States.

Because of this, many Hispanic children and grandchildren are bilingual and bicultural, and have become an important group for marketers, explains Berland.

“This group, called ‘bi-bi’s’ typically range in age from 18 to 35 years old.”

With this audience, “the key word is bicultural,” Berland stresses. “This group easily navigates between mainstream culture and Hispanic culture. They still retain their Hispanic heritage but they feel very comfortable in mainstream America. You can reach them with a good campaign that emphasizes being Latino and being proud of who you are.”

Gordon of Hispanicity tells us, “Over half of the U.S. Hispanic population is under 27 and you have 1 million Hispanics being born every year.” 

This audience is looking to buy from companies that understand the Latino market, adds Gordon. They are turned off by simple translations from English to Spanish. “Hispanics, no matter how old or young, complain about advertising and communications from corporations being done as a translation,” points out Berland. They want to feel that they are really being spoken to. They want to see that an effort existed. 

Research already shows that the “bi-bi’s” think that most advertising catering to the Latino community is directed at the older generation, so there is a great need for more targeted messages. Gordon suggests radio formats aimed at young adults, the Internet, events and concerts and even mobile marketing campaigns.

Authenticity required

La autenticidad requerido

Gomez says that Hispanics are very perceptive so being genuine is a must. “They can tell when a company cares. They know if the company has or doesn’t have Hispanic management. They know by its communications whether they have invested the time and the resources to understand the market. It just isn’t enough to hire a Latino or a Latina and be able to point to them. It takes developing a culture of understanding within the company.”

O’Reilly Auto agrees with this premise and is doing what they can to reach out to their Hispanic customers. Wes Wise, director of marketing, explains that they are currently looking for a Hispanic market coordinator who can help them in their efforts to reach this growing population. In the meantime, they have printed bilingual sales inserts and signage. They also have a Spanish flyer that goes out to their installer base in certain areas, as well as a piece that focuses on tools and equipment.

“Any time we do a promotion, it has to be planned out in bilingual text so we aren’t leaving out any of our customers,” says Wise, who explains that his biggest challenge is ensuring that the right language is incorporated. They use a Tex Mex variation since they’re trying to cater to Hispanics in Texas. “That’s the hardest part since a computer can’t translate these things.”

O’Reilly also has Spanish-speaking employees to help customers who don’t speak English. They are even heavily involved in grass roots marketing. “In 2005, we participated in Hispanic festivals, Cinco de Mayo and various car and talent shows as a way to reach this audience,” says Wise. Most of the events were held in Houston, Dallas and San Antonio. As a result, there has been an “outpouring of people into our stores. It’s really word of mouth in the Hispanic community and it’s very loyal.”

Getting involved in the community is key, says Gordon. “That is a huge part of their culture.” They really appreciate companies that take the time to become a part of the community, to invest in it.

One final word: Efforts that are genuine will go a long way. “You don’t have to put the Mexican flag in your commercials or hang them from your stores, or put Mariachi bands in your radio or TV ads,” explains Gordon. Just be “culturally relevant.”