By Armando Martín | As Published on Progressive Grocer
The first set of 2010 Census results is out and ready for viewing. The hype with which marketers and merchandisers have surrounded the latest census is similar to that of the 2000 Census, which reported that the Hispanic population had soared by 58 percent from 1990, while the Asian population experienced a stunning 83 percent surge during that same decade.
It certainly seems like getting on board with a Hispanic program would be a slam-dunk, considering that the non-Hispanic population grew by 5 percent in comparison. What’s more, within the non-Hispanic group, those who identified themselves as white grew even more slowly, at 1 percent, or from 194.6 million to 196.8 million.
Meanwhile, during the same time frame, Hispanics grew from 35.6 million to more than 50 million, accounting for 16 percent of the entire U.S. population. When you overlay the Hispanic population throughout many of the top U.S. markets, Hispanic growth is even more strategic.
Investing at least 90 percent of marketing and merchandising resources in a white market that’s growing at 1 percent defies logic. Many major markets are even posting negative growth for whites. As you assess your store footprint, you’ll see the same trends. For instance, the white population of California, the country’s bellwether state, is down 7 percent over the past 10 years.
The problem is that there isn’t enough research, insight, rationale or logic to persuade people to invest in the Hispanic initiative if their minds are made up against it. Many of those who say no have neither rationale nor justification to support their position, because there isn’t any rationale or logic not to pursue the Hispanic market in a bullish way. Like any other significant initiative, it takes rigorous commitment from the organization at large. Hispanic marketing and merchandising are everyone’s business. On its own, the general market can no longer deliver the growth of past years if more money is invested into it. It’s a case of diminishing returns. The general market has shifted, and there’s a new mainstream emerging.
If you’re looking for growth, try reaching out to the Hispanic shopper. Hispanic Mom is the prototypical customer: She shops more frequently; has a larger, younger family; spends more money per basket; cooks with fresh ingredients; is more responsive to advertising; watches more television and listens to more radio; and has a higher propensity to engage in social media. If you invite her to participate in your business, she’ll tell her friends that you treat her respectfully, and they’ll reward you for years to come.
SECRET SAUCE
The “secret sauce” in building a long-term sustainable Hispanic franchise has little to do with media selection, catchy jingles, clever taglines, assortment mix, pricing, or paint and fixtures.
It has everything to do with hiring and promoting practices. Hire and promote more minorities in key P&L roles. People who reflect the market in which you operate from top to bottom will make and keep you more relevant and welcoming to America’s broader population. Organizations generally look at the rank and file of their companies to measure diversity, and that’s been a great start for the past 40 years. But we can do better. The time has come for the rank and file be given the opportunity to run P&L throughout the organization.
I know people of color who are ready right now to make significant contributions at the senior-executive level, not because they’re more brilliant or work harder, but because they offer perspectives not always heard within current executive teams, ones filled with generations of wisdom, energy, hope, belief and insight, not unlike those of their white counterparts, but the American experience is different for different ethnic groups. And it’s those various experiences that bring value and authenticity to the job.
Those missing additional voices are the cause of the misfires in the development and execution of current operations, merchandise and marketing plans. On behalf of all those minority executives who are ready, willing and able, make a difference. Make the call.
Armando L. Martín is the co-founder of XL Edge and a managing partner of the XL Alliance, a network of companies dedicated to helping business executives maximize their profits. He will serve as emcee at the 2011 Hispanic Retail 360 Summit at Torrey Pines in San Diego, Aug. 10-12. For more information, visit www.xledge.com
