In today’s diverse marketplace, understanding and embracing cultural differences is not just a trend but a necessity for brands aiming to connect with their audience. When exploring the importance of the Latino community as segment within the broader US consumer landscape, brands must understand the complexity and the potential for growth among this segment. The Latino population accounts for nearly 20% of the population – nearly 65 million people - and have a buying power of over $2.5 trillion. Recent insights from the PDG Insights’ US Latino Pulse Study, fielded in collaboration with Digame Consulting, highlights the significant impact of cultural representation on Latino consumers’ purchasing behavior.
Latino consumers show a higher level of trust in brands that recognize and respect cultural differences. According to the study, 57% of Hispanic respondents trust brands that acknowledge their cultural uniqueness, compared to 45% of the general population. This trust translates into a stronger brand loyalty and increased purchase intent. The study also reveals that 56% of Latino consumers prioritize products featuring culturally relevant flavors, ingredients, or cuisines. This preference underscores the importance for brands to incorporate cultural elements into their product offerings to resonate with Hispanic consumers.
Latino consumers are also more likely to choose brands that reflect their cultural heritage. About 45% of Hispanic respondents prefer products that celebrate their cultural background, compared to 35% of the general population. This preference highlights the need for brands to authentically represent cultural narratives in their marketing strategies. Hispanic consumers are proactive in supporting brands that advocate for cultural causes. In addition, 43% of Latino respondents are willing to buy products from brands that contribute to organizations focusing on their culture. This behavior indicates a strong alignment between cultural advocacy and consumer loyalty. Interestingly, 39% of Hispanic consumers are willing to pay a premium for products that align with their cultural values. This willingness suggests that cultural alignment can justify higher price points, providing an opportunity for brands to enhance their value proposition.
The impact of cultural representation varies across different age groups within the Latino community. Younger consumers, aged 18-24, show the highest levels of trust and preference for culturally relevant products, with 64% trusting brands that recognize cultural differences and 61% valuing culturally relevant products. Consumers, aged 25-34, also show strong trust and preference, with 63% trusting culturally aware brands and a similar percentage valuing relevant product. However, trust and preference for culturally relevant products decrease with age, with only 45% and 42% respectively among consumers aged 55 and older.
These insights emphasize the importance of tailoring marketing strategies to different age demographics within the Latino community to maximize engagement and loyalty. For brands aiming to connect with Latino consumers, recognizing and authentically representing cultural differences is crucial. By incorporating culturally relevant elements into their products and marketing strategies, brands can build trust, foster loyalty, and drive purchase intent among Hispanic consumers. As the marketplace continues to diversify, the ability to resonate with cultural nuances will be a key differentiator for successful brands.
The study also highlights the importance of cultural representation in marketing for younger Latino consumers. Younger consumers are more likely to trust brands that recognize cultural differences and value culturally relevant products. This trend suggests that brands targeting younger Latino consumers should prioritize cultural representation in their marketing strategies to build trust and loyalty. Middle-aged consumers also show strong trust and preference for culturally relevant products, indicating that cultural representation is important across different age groups within the Latino community.
Culturally Customized Marketing in Action
While many companies struggle to effectively identify authentic strategies to reach Latino consumers, some companies are doing things well.
For years, Walmart has built marketing campaigns focused on reaching the US Latino consumer. One annual initiative the retailer invests in each year is built around the Latin Grammys. In 2023, the Hispanic Marketing council highlighted their campaign in a case study illustrating the multi-channel approach to authentically reaching Latino consumers online, in-store, and elsewhere both in Spanish and English. One key element of the campaign was a 60-second ad featuring the musician Camilo tying into the music of the Latin Grammys and including content focused on social media and Walmart.com.
American Express is another brand that effectively highlights Latino cultural values in its marketing by emphasizing themes like family, community, and shared experiences, which are central to many Latino households. This approach resonates with acculturated and bicultural Latinos who cherish their heritage. Additionally, American Express ensures accessibility through Spanish-language marketing and bilingual customer support, removing language barriers for Latino customers, especially in financial matters. The brand’s strategic partnerships with Latino-focused events and influencers further enhance its visibility and trust within the community, promoting a sense of exclusivity and prestige. Notably, actress and entrepreneur Jessica Alba, a bicultural Latina, has partnered with American Express for various campaigns. Her success with the Honest Company and her relatable background makes her an ideal ambassador for Latino consumers who value both their heritage and modern entrepreneurship.
Lexus is another example of a brand effectively tailoring its marketing strategies to resonate with bicultural Latinos by incorporating bilingual and bicultural campaigns. Their advertisements feature both Spanish and English language options, with messaging that appeals to cultural pride and luxury aspirations, aligning well with the values of high-quality, premium brands cherished by this demographic. Additionally, Lexus emphasizes cultural relevance in its imagery and storytelling, often highlighting themes of family, celebration, and achievement, which strongly appeal to Latino consumers. The brand’s commitment to community engagement is evident through its sponsorship of events and initiatives popular among U.S. Latinos, such as the Hispanicize event, which celebrates Latino influencers and leaders. This positions Lexus as a brand that values and supports the Latino community. Furthermore, Lexus recently partnered with MJ Rodriguez, an Afro-Latina trans actress known for her groundbreaking role on “Pose,” to promote the Lexus IS sport sedan. Her involvement underscores diversity and resonates with younger, bicultural Latino audiences who value inclusivity and cultural pride.
What Does This Mean for Brands
Brands that recognize and respect cultural differences, incorporate culturally relevant elements into their products, and support cultural causes are more likely to build trust, foster loyalty, and drive purchase intent among Hispanic consumers. As the marketplace continues to diversify, the ability to resonate with cultural nuances will be a key differentiator for successful brands. By understanding and embracing cultural differences, brands can connect with their audience on a deeper level and create lasting relationships with Latino consumers.
PDG Insights fields ongoing thematic thought leadership throughout the year. This study was fielded by PDG Insights and sponsored by the team at Digame Consulting. Please reach out to Diana Sheehan with PDG Insights to learn more about what is available or to explore consumer or shopper insights needs that you might have.