Relating, not translating, drives marketing to U.S. Latinos

CHICAGO — True or false: The Latino population is the fastest growing population in the United States today.

If you said "true," you're absolutely right. At last count, 43.5 million Latinos call the U.S. home – making the U.S. the second largest Hispanic country in the world.

"There are more Latinos in the U.S. than there are Canadians in Canada," says Kelly McDonald, president of McDonald Marketing, who spoke at the 2007 Global Automotive Aftermarket Symposium in Chicago. And while her statement may have provoked laughter from the crowd, it was meant to drive home an important point – the Latino market is a virtually untapped source of income for aftermarket professionals.

"Latinos are a marketer's dream," McDonald says. "They are brand conscious and brand loyal, and they place a high value on quality products."

According to McDonald, Latinos are the only population in the U.S. that consistently deliver on the "3 L's," meaning they are "large, lucrative and loyal." Take new vehicle sales as an example. Since 2000, new vehicle sales within the non-Latino market have been down 11 percent. But new vehicle sales within the Latino market have climbed 24 percent during the same time period. In other words, one out of 10 new vehicles sold in the U.S. has been sold to a Latino consumer.

A consumer profile
"Latinos pay for passion," McDonald says. And for many Latinos, that passion includes vehicle audio equipment. In fact, a recent survey McDonald sharedshows the Latino population spends 104 percent more on audio equipment than the non-Latino population. But they also spend 22 percent more than non-Latinos on parts and accessories, which is good news for the aftermarket.

"Hispanics will buy anything that's in," says McDonald. "They are very trend conscious. But at the same time, they value distinction. For them, a vehicle is more than transportation. It says "I've made it." And they will trick that vehicle out with aftermarket parts and accessories, because it is their claim to distinction."

On the other hand, McDonald points out that Latinos underspend in key areas, including miscellaneous service and repairs, bodywork, brake work and auto repair service policies. But instead of looking at this trend in a negative light, McDonald encourages the industry to consider it a huge opportunity for business growth – if they are savvy enough to tailor services directly to this growing population.

Rolling out the welcome mat
So, what exactly does it take to reach the Latino population? For McDonald, language is everything and will help business owners gain that edge over their competition.

"If you want to do business with the Latino population, you have to hire a bilingual staff," she notes. "This will put your customers at ease, which is critical to doing business with this population. For Latinos, it's all about being comfortable in the environment and feeling like they're valued — even if they have to pay a premium to get that service."

McDonald also suggests shops and stores create a Latino-friendly environment by displaying bilingual signage and presenting key information about products and services in both Spanish and English. But most importantly, encourage your customers to take the time to get to know their customers. This can include participating in grassroots events and recalibrating a product mix to better suit the client base.

Follow these general guidelines, and McDonald can guarantee your success.

"Face it, Latinos are the future," McDonald says. "They are not a fad, and they are not going away. Learn the market now and you'll gain competitive edge in the future."