It is evident that Hispanics in the US are often referred to as ‘Latinx,’ which is a big group for companies to ignore. Many US-based companies can create new revenue streams by effectively target this segment of the market. To make things easier, there are nearly 60 million Hispanics in the US, making them the largest group of multicultural Americans.
When you take into account that nearly one in every five Americans identifies as Hispanic, it becomes so much clearer why this group needs more representation and importance. Being a relatively younger group of people (average age of 28, versus 42 of Americans), they are probably one of the most attractive consumer groups for companies.
Unfortunately, it has been noticed that most American companies simply do not consider this group’s massive spending power when designing their products or marketing them. And the few companies that do are just not that good at it because they often ignore the “Hypercultural Latinx”, undoubtedly the most valuable member of this community.
According to market experts and investors, a company that successfully addresses this problem and includes the Hypercultural Latinx into its business model will have the potential to earn massive returns. This is because Hispanics are just generally way ahead of Americans in terms of adapting to newer products and technology.
When a company introduces a new product or a technology, the most significant challenge is to attract customers to try it out. This is where Hispanics can be very helpful to new startups, considering they are so much more tempted to try out new products and be early adopters.
Regardless of all these factors, companies are still uncertain about how to target this group of people. Several factors add to it, for example, the fear of offending them because they do not entirely understand their culture.
Some legacy companies who do try to market to Latinx fail miserably because they don’t influence to lure young Hispanic people. Lastly, most US companies are founded by Americans, and they just don’t have the right insight, or even the interest, to engage with this group.