Seven Hispanic Market Stories to Watch in 2016

January 8, 2016

Posted by Jose Villa

As we begin 2016, we anticipate what the New Year has in store for our industry. I have never been afraid of making predictions, but I think 2016 will be unpredictable. So I’ll instead highlight important stories and trends to track.

Latin American Immigration
This topic has the most direct impact on Hispanic marketing – both in the short- and long-term. Since 2008, net immigration from Mexico has steadily decreased, to where the most recent figures show net negative immigration. In 2016, it’s important to watch net immigration from Central America, the Caribbean and South America, not just Mexico. So many factors influence immigration trends. It’s hard to know how and what effect U.S. and Latin American geo-political and economic factors will have. The 2016 U.S. presidential election, global economic trends, rising interest rates and the Obama Administration’s immigration policies can push immigration in different directions.

Fusion
The struggling joint venture cable and digital news network aimed at Hispanic Millennials has been in the news recently, as Disney looks to exit. Univision appears to be doubling down on the venture. Fusion will no doubt change its business model and evolve its strategy. This year is likely “do or die” for Fusion. It could be a harbinger for the future of Hispanic media in general.

“Total Market”
The phrase has entered into the core lexicon of most marketers, ad agencies, and media companies. However, the exact definition of “total market” continues to be debated and how it works is even more nebulous. The phrase’s evolution in 2016 will have significant implications for multicultural marketing and how it lives both inside brands and advertising agencies into the future.

Hispanic Advertising Agencies
There is no better barometer for the state of Hispanic marketing than the health of Hispanic advertising agencies. Will there be further consolidation in 2016 of fewer and fewer major Hispanic assignments with a handful of large Hispanic ad agencies? Will new upstarts disrupt the industry in 2016? Will there be any new high-profile Hispanic-focused ad shops in 2016?

LIBRE Initiative
Unless you’re a DC-based politico, you’ve probably never heard of the LIBRE Initiative. This non-partisan, right-leaning non-profit is rewriting the rules for engaging Hispanics nationwide. Regardless of where you stand on its message of economic freedom and empowerment for Hispanics, LIBRE could have a major impact on the 2016 elections at all levels. If effective, its tactics and approach could provide a new model for influencing the hearts, minds, votes (and eventually purchases) of diverse Hispanic populations across the U.S.

Independent Hispanic Grocers
As my colleague Karla Fernandez-Parker has noted, these grocers are big business among the growing Hispanic market. Grocery chains like Northgate in Southern California and Fiesta Mart Supermarkets in Texas have seen astronomical growth during the last 10 years, providing an in-culture alternative to the big box stores and traditional grocers. However, most face a demographic challenge as the Hispanic population gets younger and more native-born. Will they be able to attract younger Hispanic and other Millennial groups? Retail, CPG, food, beverage, beer and spirits brands should pay close attention in 2016.

Hispanic Gen Z
As Gen Z comes into greater focus in 2016, will we come to understand the nearly one quarter of Gen Z who are Hispanic? As the largest generational cohort of Hispanics alive in the U.S. today, they will have an immediate impact on the higher education, financial services, QSR, entertainment & media, and food & beverage sectors. More broadly, they will have a profound impact on the future of the Hispanic market.

An edited version of this blog post originally ran on MediaPost Engage:Hispanic on January 7, 2016.

Is Hispanic Marketing Dying or Maturing?

December 4, 2015

Posted by Jose Villa

All industries go through cycles and evolve. Most follow a common trajectory that begins with rapid growth, then slows down, matures and ultimately faces creative destruction (which J. Schumpeter coined the “ultimate fact of capitalism.”) I’ve been thinking about this in relation to the state of the Hispanic marketing industry, as the industry trade association READ MORE…

Replacing the Acculturation Model

October 1, 2015

Posted by Jose Villa

Hispanic marketing started out in the 1960s as an industry built around language – Spanish language media and advertising to reach recent immigrants to the U.S. During the late 1980s the concept of culture began to replace language as a key strategic foundation of most Hispanic and multicultural marketing. What is culture? According to Wikipedia, READ MORE…

Multiracial Gen Z and the Future of Marketing

September 4, 2015

Posted by Jose Villa

Millennials are generally believed to be the most ethnically and racially diverse generation in American history. Hispanics (20%), African-Americans (14%) and Asians (6%) make up 40% of the total millennial population. This diversity underpins the notion of the bicultural millennial, a young consumer straddling two worlds, balancing their cultural lives with their mainstream integration into READ MORE…

The Media, Entertainment and Technology World of Crosscultural Millennials

August 6, 2015

Posted by Jose Villa

Millennials are the most heavily researched and analyzed group in America. Yet most of this research has failed to understand the roles ethnicity and culture play on this highly diverse generational cohort (43% of millennials are either Hispanic, African-American, Asian or of mixed race). This has been impetus behind the Hispanic Millennial Project initiative. This READ MORE…