As we move into what we hope is the back end of the COVID-19 pandemic, conversations are increasing about how to reopen the economy and the eventual recovery. The good news is that discussions are about the shape of the recovery, which means that pundits agree the U.S. economy will recover. The big unknown, of course, is when.
U.S. Hispanics are optimistic that the recovery will come sooner than later. As we monitor the results of our COVID tracker in partnership with Civic Science, we see signs of the Hispanic resilience we had mentioned in previous emails. Our latest read of the data shows:
- 54% of Hispanics expect the crisis to last less than four months vs. 48% for non-Hispanics
- 62% of Hispanics are still getting paid, on par with non-Hispanics
- 34% of Hispanics say they are comfortable shopping in stores now vs. 25% for non-Hispanics
- 17% of Hispanics say they are spending more now vs. 8% for non-Hispanics (which is consistent with the fact Hispanics have larger families and more kids at home)
Additionally, the consensus is that consumers will be at the center of the rebound, because almost 70% of U.S. GDP is generated via consumption. And if you’ve been paying close attention the past decade or so, you know that U.S. Hispanics are “super consumers.” (Those are Nielsen’s words, not just mine.) Here are some proof points:
- Size: U.S. Hispanics are 61 million strong, and they will account for 83% of the country’s labor force growth through 2028.
- Scale: If U.S. Hispanics were their own country, they would have the 7th largest GDP in the world. And Hispanic GDP is growing 32% faster vs. non-Hispanics.
- Growing affluence: Hispanic affluence continues to grow, with the number of U.S. Hispanic households earning $100k+ growing 118% faster vs non-Hispanics.
- Lifetime consumer value: A combination of younger median age and higher life expectancy for Hispanics means brands will have on average 19 extra years of loyalty and consumption
- Life stage: With younger parents and younger kids, Hispanic families are much more likely to be in a “growth” life stage, spending a higher percentage of their income on consumer goods vs. older, non-Hispanic families
- Family size: With 3.2 people per household vs. only 2.3 for non-Hispanic white, Hispanic households will continue driving category growth across multiple key sectors, including food and personal care
If you combine current consumer sentiment, along with the fact that Hispanics have been driving outsized growth in the top-10 consumer categories for the past decade, you understand why I am so confident about the role our audience will play in the recovery.
Whether the recovery will be V-shaped or U-shaped, don’t discount the importance of this younger and growing Hispanic segment. Remember, one of the fastest ways for companies to reignite growth is to speak to new consumers who are energized and are prepared to spend. We at Univision are ready to help you connect with these super-consumers now, so you are in the best possible position whenever the recovery does arrive.
President of Advertising Sales and Marketing, Univision