Store Brands Need to Communicate with Spanish Speakers
A new study from Vertis Communications reveals that English-speaking Hispanics are open to trial of store brands but there remains some reluctance on the part of Spanish speakers.
According to the Customer Focus Opiniones research, 88 percent of Hispanics that speak English at home have a “positive reception” of private label but a much smaller percentage (61 percent) of Spanish speakers share the sentiment.
Of all Spanish speakers, 27 percent said they didn’t know enough about private labels to want to try them. As a point of comparison, only 14 percent of non-Hispanics answered the same way.
Jim Litwin, vice president of market insights at Vertis Communications, said in a company press release, “This data indicates that retailers with private label brands have an opportunity to market to Spanish-speaking Hispanic audiences by communicating to them in their native language. Incorporating relevant communication in marketing campaigns is imperative to establishing a connection with this influential audience.”
Interestingly, Hispanic consumers’ perception of private label improved along with their household income. Forty-four percent of adults earning less than $20,000 a year have a negative perception of store brands while 89 percent of those with household incomes between $50,000-$75,000 have positive perceptions of private label.
Store brand marketers appear to have an opportunity to reach Hispanic consumers, both English and Spanish-speaking, through the use of direct mail. Seventy-one percent of all Hispanic adults in the U.S. read direct mail advertising. Of those, 64 percent said they responded to a direct mail ad in the past 30 days. Responses were made by mail, phone, online or in-person.
Discussion Questions: Does the need for store brands to communicate with Spanish-speakers mean that private label packaging, for example, will increasingly be in Spanish? What do you see as the opportunity here and the means to realize it? How do you explain the more favorable view of private label based on income levels?