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MARKET SIZING, UPSCALE LATINOS 1.0
Source: America’s new upscale segment, LATINOS
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Nielsen People Meter Universe Estimate, P2+ Hispanic, Q4 2012.
29%
15 Million within
Upscale homes
SIZEABLE SEGMENT WITH RESOURCEFUL POCKETS
37%
2015 20502010
BUILDING LOYALTIES
$500 Billion annual
spent out of $1.3 Trillion
35 Million
strong by 2050
5. 5
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
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UPSCALE LATINOS 2.0
The objective of AHAA’s Upscale Latino 2.0 study, co-authored by Nielsen, is to further understand the Latino
Upscale Household behaviors, what drives them towards upscale-luxury purchases in mid-to-high-end
brands/formats, and what drivers & detractors they share, or not, with Non-Hispanic Upscale households
UPSCALE PURCHASE
BEHAVIOR
OPTIMISM
PAST PURCHASES
FUTURE PLANS
LUXURY VALUES &
REWARDS SEGMENTS
DRIVERS & DETRACTORS
COMMON & NUANCED
DEPT STORES
PRESTIGE COSMETICS
CASUAL DINING
MEDIA HABITS
SCARBOROUGH
NIELSEN MOBILE
MARKETSIGHT
NIELSEN NPOWER
6. 6
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HIGHER EDUCATION & PROFESSIONAL ATTAINMENT
Upscale Hispanics
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1
32% some college
20% college graduate
44% white collar
17% sales/office
56% 1 or more child vs.
36% Upscale non-Hispanic
8. 8
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LUXURY SEGMENTS INFLUENCING SHOPPING
Bernard Dobois, “Attitudes towards the Concept of Luxury” in Asia Pacific Advances in Consumer Research, 1994.
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
LUXURY SEEKERS
Feel strongly drawn to luxury,
feeling good about themselves,
individual rewards
• In my opinion, luxury is pleasant
• One buys luxury goods primarily
for one’s pleasure
• In my opinion, luxury is good taste
• The luxury products we buy
reveal a little bit about who we
are
SOCIAL SEEKERS
See luxury as refined, seek
recognition and social status
• In my opinion, luxury is old
fashioned
• I could talk about luxury for hours
• Those who buy luxury are refined
people
SENSIBLE SEEKERS
Pragmatic about luxury, making
high-end decisions as it makes
sense
• I would not feel at ease in a
luxury shop
• In my opinion, luxury is flashy
• People who buy luxury products
try to differentiate themselves
from others
• I don’t know about the luxury of
the world
• Luxury does not make me dream
3 KEY UPSCALE SEGMENTS FOR TOTAL UPSCALE ADULTS AGES 18+ ($50-99K)
35% 18% 47%
9. 9
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40%
18%
42%
UPSCALE HISPANICS, LUXURY AND SENSIBLE SEEKERS
Upscale – Luxury Attitudinal segments:
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
48%
18%
34%
47%
18%
35%
UPSCALE
ADULTS
UPSCALE
NON HISPANICS
UPSCALE
HISPANICS
SENSIBLE SEEKERS 83
SOCIAL SEEKERS 100
LUXURY SEEKER 124
INDICES VS.
UPSCALE NON-HISPANICS
10. 10
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HISPANIC UPSCALE CONSUMERS, YOUNG &
BICULTURAL
Across all luxury segments, About 60% have strong ties to the Latino
Culture; 30% - 40% voice a strong cultural duality
Upscale Hispanic Luxury Seekers are more likely to be Millennials and
Bicultural, they are twice as likely to be Gen Y than Upscale non-
Hispanics Luxury Seekers
Upscale Hispanics Social Seekers tend to be Gen X
Upscale Hispanics Sensible Seekers are Gen Y and X and more likely to
be Latino Culture Oriented
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1
1
2
3
4
12. 12
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CONFIDENCE IN FAMILY FINANCES, PAYING OFF DEBT
% by Upscale Hispanic segment & Indices vs. Upscale non-Hispanic
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
47% to pay my rent/mortgage vs.
44% Upscale non-Hispanics
18% Qualify for a mortgage vs.
13% Upscale non-Hispanics
33% pay off credit card debt vs.
26% Upscale non-Hispanics (127 index)
% of Upscale Hispanics that have sufficient resources in next 12 months to…
55%
40% 41%
20% 19% 15%
37%
27%
32%
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Indices
vs. Upscale
non-
Hispanic
112 108 98 167 136 115 132 100 128
13. 13
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© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
PLANNING FOR A BRIGHTER TOMORROW…
% of Upscale Hispanics that will definitely save in the next 12 months for…
43% retirement, pension fund vs.
45% Upscale non-Hispanic
24% children’s college fund vs.
15% Upscale non-Hispanic
23% investing in life insurance/annuities vs.
16% upscale non-Hispanic
Savings allocation prioritized differently based on upscale segment
% by Upscale Hispanic segment & Indices vs. Upscale non-Hispanic
51%
32%
41%
24%
15%
29% 33%
15% 16%
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Indices
vs. Upscale
non-
Hispanic
93 94 95 141 115 207 183 107 107
14. 14
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FAMILY FIRST, INCLUDING ELDER PARENTS
% of Upscale Hispanics that have enough money in next 12 months…
13% to provide share of support
elderly parents require vs.
7% Upscale non-Hispanic
38% for my entire family’s
health coverage vs.
34% Upscale non-Hispanic
47% to eat healthy vs.
42% Upscale non-Hispanic
% by Upscale Hispanic segment & Indices vs. Upscale non-Hispanic
12%
18%
13%
44%
37% 33%
52%
38%
45%
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Indices
vs. Upscale
non-
Hispanic
171 200 217 110 137 100 104 123 115
16. 16
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CHILDREN & ADULT FASHION TOP OF MIND
Luxury Seekers leading the way with highest incidence of purchasing…
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
57%
CHILDREN’S
CLOTHING
DESIGNER SHOES,
CLOTHING,
ACCESSORIES
43%
65%
52% 51% 56%
47%
26%
39%
35% 32% 33%
24%
9%
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Upscale non-Hispanic
Upscale Hispanic
% of Upscale Hispanics making select purchases in past 12 months & Index against Upscale non-Hispanic
163 215
288
index!
17. 17
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OUT-PURCHASING TECHNOLOGY
Across all computer, laptop, tablet and home entertainment within all sub-segments
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
56%
39%
52% 52%
38%
32%
39%
34% 31%
36%
31% 28%
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Luxury
Seekers
Social
Seekers
Sensible
Seekers
Upscale Hispanic
Upscale non-Hispanic
% of Upscale Hispanics making select purchases in past 12 months & Index against Upscale non-Hispanic
COMPUTER, LAPTOP, TABLET HOME THEATRE, FLAT
SCREEN TV, GAME CONSOLE
51%
150
42%
135
18. 18
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AND ACTIVELY ENGAGING IN E-COMMERCE
Upscale Hispanics spent $3.7BB in online purchases in the past 12 months
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Source: Nielsen Mobile Marketsight Q2 2013, Hispanic Latinas A18-54 Indexes based on NON Hispanic Latinas A18-54; Scarborough Hispanic
Multimarket PLUS, 2013 Release 1
151
155
91
CLOTHING/ACCESSORIES 31%
AIRLINE TICKETS 24%
HOTELS/CAR RENTALS 16%
HEALTH & BEAUTY 11%
HOME ACCESSORIES 10%
Items purchased past 12 months online:
Index vs. Upscale non-Hispanics
65%
ONLINE
SHOPPING
51%
MOBILE
BANKING
42%
MOBILE
SHOPPING
19. 19
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HOME FURNISHING & DURABLES OPPORTUNITY
For Hispanic Luxury and Social Seekers
40% of Upscale Hispanics purchased
home furnishings/appliances in past
12 months; 18% more likely vs.
Upscale non-Hispanics (34%)
48%
41%
32%
39%
31%
32%
Upscale Hispanic Upscale non-Hispanic
LUXURY SEEKERS
SOCIAL SEEKERS
SENSIBLE SEEKERS
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
21. 21
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RESTAURANTS MEASURED IN STUDY
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
Applebee’s
Black Angus
BJ’s
California Pizza Kitchen
Chili’s
Olive Garden
Ruby Tuesday’s
Outback
Chevy’s
Coco’s
El Torito
Fuddruckers
TGIF
Hooter’s
Houlihan’s
Macaroni & Grill
Red Lobster
Red Robin
Tony Roma’s
CORE CASUAL DINING
22. 22
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MORE LIKELY TO HAVE DINED AT CASUAL RESTAURANT
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
UPSCALE HISPANICS
UPSCALE NON-HISPANICS
90%
DINED
82%
DINED
DINED AT ONE OR MORE OF
THE RESTAURANTS LISTED
PAST 12 MONTHS
23. 23
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WITH HIGHER INTENT TO CONTINUE DINING OUT
Hispanic Social Seekers have greater intent to dine out vs. their non-Hispanic
counterparts
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
91% 100% 84%
99 111 90
% OF UPSCALE HISPANICS THAT INTEND TO DINE AT CORE CASUAL RESTAURANTS IN NEXT 12 MONTHS
LUXURY SEEKERS SOCIAL SEEKERS SENSIBLE SEEKERS
Indices vs. Upscale non-Hispanic
24. 24
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INFLUENCED BY NEW & IN STYLE RESTAURANTS
While Upscale non-Hispanics are driven by locations that make them feel better
Regression Beta Coefficient,
BASE: Dined at restaurant past 12 months and intends to dine at a restaurant next 12 months
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
• Makes me feel better about
myself
• Makes me feel better about
myself
• Aesthetics are important
• Aesthetics are important
• Represents what’s new & in
style
• Represent what’s new & in
style
• Effect my self-confidence
• Effect my self-confidence
UPSCALE
HISPANIC
UPSCALE
NON-HISPANIC
KEY DRIVERS THAT LEAD UPSCALE HISPANICS TO EAT OUT AT CORE CASUAL RESTAURANTS…
DRIVERS INDIFFERENT DETRACTORS
26. 26
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DEPARTMENT STORE CATEGORIES
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
HIGH-END
Barney’s
Bergdorff Goodman
Bloomingdales
Lord & Taylor
Neiman Marcus
Nordstrom
Saks Fifth Avenue
PRICE DEPARTMENT STORES
Sears
JC Penney
Kohl’s
MIDDLE MARKET
Dillard’s
Macy’s
27. 27
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UPSCALE HISPANICS, HIGHER PURCHASING INCIDENCES
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
UPSCALE HISPANICS
UPSCALE NON-HISPANICS
78%
PURCHASED
71%
PURCHASED
PURCHASED AT ONE OR MORE
OF THE DEPARTMENT STORES
LISTED PAST 12 MONTHS
28. 28
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WITH INTENT TO CONTINUE PURCHASING
Indices of Upscale Hispanics that intend to purchase at the following store types vs. Upscale non-Hispanics
BASE: Purchased at Department Store past 12 months and Intends to purchase at Department Store next 12 months
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
HIGH-END 200 PRICE DEPT. STORES 105MIDDLE-MARKET 165
Indices of intent for key upscale Hispanic sub-segments vs. non-Hispanic Upscale sub-segments
146
241
128
201
106
103
Luxury
Seekers
Sensible
Seekers
29. 29
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AND INCREASED SPENDING
Upscale Hispanics twice as likely to plan to spend more, led by Luxury Seekers
23% 61% 16%
230 82 100
26%
58%
16% 17%
69%
14%14%
72%
14%
6%
77%
17%
More* About the same Less** More* About the same Less**
More* About the same Less**
Luxury Seekers Sensible Seekers
Compared to the last 12 months, % of Upscale Hispanics that plan to spend in next 12 months at
department stores…
Index vs.
non-
Hispanic
30. 30
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
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A DESIRE TO DIFFERENTIATE THEMSELVES
…and a willingness to pay more
Regression Beta Coefficient,
BASE: Purchased at Department Store past 12 months and Intends to purchase at Department Store next 12 months
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
UPSCALE
HISPANIC
UPSCALE
NON-HISPANIC
KEY DRIVERS THAT LEAD UPSCALE HISPANICS TO SHOP AT HIGH-END DEPARTMENT STORES
• Willing to pay more for
best quality
• Willing to pay more for best
quality
• Purchase because of quality
• Purchase because of quality
• Sign of social standing
• Sign of social standing
• Aesthetics important
• Aesthetics important
• Differentiate myself
• Differentiate myself
• Feel better about myself
• Feel better about myself
• Represent what’s new & in-style
• Represent what’s new in style
• Increase my quality of life
• Increase my quality of Life
DRIVERS INDIFFERENT DETRACTORS
31. 31
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IMAGE AND QUALITY APPEAL TO HISPANICS
Regression Beta Coefficient,
BASE: Purchased at Department Store past 12 months and Intends to purchase at Department Store next 12 months
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
• Connotes degrees of success
• Connotes degrees of success
• Purchase because of quality
• Purchase because of quality
• Willing to pay more for best
quality
• Willing to pay more for best
quality
• Makes my life better
• Makes my life better
• Aesthetics are important
• Aesthetics are important
• Makes me feel more
valuable
• Makes me feel more
valuable
UPSCALE
HISPANIC
UPSCALE
NON-HISPANIC
KEY DRIVERS THAT LEAD UPSCALE HISPANICS TO SHOP AT MIDDLE MARKET DEPT. STORES
DRIVERS INDIFFERENT DETRACTORS
33. 33
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
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MID-HIGH END COSMETIC BRANDS IN STUDY
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
100% Pure
Anastasia Beverly Hills
Bare Minerals
Benefit Cosmetics
Biotherm
Bobbi Brown
Buxon
Channel
Clinique
Dior
Elizabeth Arden
Estee Lauder
Fashion Fair
Glo Professional
Guerlain
Hourglass
IT Cosmetics
Josie Maran
Lancome
Kat Von D
Korres
Laura Mercier
Lotus Base-Mineral
M.A.C.
Make up Forever
Merle Norman
NARS
Origins
Sephora
Shiseido
Smashbox
Stila
Tarte
Yves Saint Lauren
34. 34
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
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HISPANICS KEY TO PRESTIGE COSMETIC SALES
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
UPSCALE HISPANICS
UPSCALE NON-HISPANICS
38%
Purchased 1+
cosmetics
brand
16%
Purchased 1+
cosmetics
brand
PURCHASED 1+ OF THE
COSMETICS BRANDS IN THE
PAST 12 MONTHS
137% more likely to have purchased high-end cosmetics vs. Upscale non-Hispanic
35. 35
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
+
TWICE AS LIKELY TO SPEND MORE ON PRESTIGE BRANDS
Compared to the last 12 months, do you plan to spend more, less, or the same in the next 12 months on
premium cosmetics/make-up?
*Much or somewhat more, **Much or somewhat less
BASE: Purchased 1+ brands of cosmetics past 12 months, Intends to purchase 1+ brands of cosmetics next 12 months
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
33% 51% 16%
207 74 106
Less**About the sameMore*
Indices vs. Upscale non-Hispanic
36. 36
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
+
35% 34%
22% 22%
9% 10%
8%
12%
These brands make me feel
better about myself
These brands represent what is
new and in style
These brands have an effect on
my self-confidence
These brands match with my
personal ideas
Upscale Hispanics Upscale non-Hispanics
INNER BEAUTY DRIVERS WITH STYLE APPEAL
% of Upscale Hispanics and Upscale non-Hispanics that strongly agree on key
drivers that lead them to purchasing mid-High end Cosmetic brands
BASE: Purchased 1+ brands of cosmetics past 12 months, Intends to purchase 1+ brands of cosmetics next 12 months
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
3.8X 3.4X
2.8X
37. 37
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
+
SOCIAL DRIVERS UNFAVORABLY SEEN BY HISPANICS
% of Upscale Hispanics who strongly disagree with drivers below...
People who buy
these brands are
more respected by
others
In my opinion,
these brands are a
sign of
social standing
These brands show
society the degree
of success in my life
I think my life
would
be better by buying
these brands
These brands allow
me
to differentiate
myself
from others
-40% -38%
-35%
-31% -30%-31%
-25% -26%
-18% -16%
Upscale Hispanics Upscale non-hispanics
BASE: Purchased 1+ brands of cosmetics past 12 months, Intends to purchase 1+ brands of cosmetics next 12 months
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
1.7X 1.8X
39. 39
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
+
UPSCALE LATINO 2.0, KEY FINDINGS
Marketers have an opportunity with Upscale Hispanics spending
$500BB annually
Cultural duality is strong and generational differences must be
recognized
Have resources, are optimistic about their financial opportunities
along with a willingness to spend more
It is not all about the kids or family – opportunity in leisure and
entertainment industries:
hotel vacations
personal designer brands
digital/entertainment technology
home amenities
Source: Nielsen Latina Power Shift Report August 2013
1
2
3
4
40. 40
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
+
UPSCALE LATINO 2.0, KEY FINDINGS
More likely to be Luxury Seekers, compared to Upscale non-Hispanics,
Sensible Seekers are second largest
Purchase mid-to-high end brands
Share similarities with Upscale non-Hispanics, yet maintain their
uniqueness in important luxury product and retail drivers
Have acquired an affinity toward mid-market & high-end retailers,
prestige cosmetics and core casual restaurants
• that fit their emotional and functional needs
• drivers that attract them are very different from Upscale non-
Hispanics
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
5
6
7
8
41. 41
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
+
UPSCALE LATINO MEDIA SUMMARY
Radio and digital video displays key platforms to reach Upscale Hispanics
• 34% listening to radio online, driven by smartphones and computers
• The internet, OOH and newspaper performs well compared to total
Hispanics
Readership of newspaper grows with increased income
• 22% of Upscale Hispanics reading via their mobile devices, more likely
compared to Upscale non-Hispanics
Paid and premium TV among the preferred services
Nearly 40% stream TV content, sports or movies
• PC still primary device used but smart phone more likely compared to
Upscale non-Hispanics and total Hispanics
Greater out of home opportunity as commutes are longer
Smartphones have become indispensible
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1
1
2
3
4
5
6
45. 45
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
+
STUDY METHODOLOGY
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
• Interviews were conducted with 9,736 respondents on a wide variety of shopping behavior and attitudes
Total Hispanic 2,814
Total Non-Hispanic 6,922
• Study results presented herein are exclusively from the upscale portion of the market defined as those
earning between $50,000 and $99,000 annually
• Interviews were conducted from respondents participating in Nielsen’s HomeScan panel
• This survey reflects attitudes of the primary shopper within the household and data has been adjusted to
reflect correct proportions within census regions, age, language spoken in the home, and household
income
• Based on Bernard Dobois’s “Attitudes towards the Concept of Luxury” in Asia Pacific Advances in Consumer
Research, 1994
46. Copyright©2014TheNielsenCompany.Confidentialandproprietary.
46
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APPENDIX: DETAILED METHODOLOGY
• The survey was fielded on the Nielsen Homescan panel, which is a longitudinal panel
representative of total US households.
• All active Hispanic households were invited to participate and a representative sample of
10K non-Hispanic HHs were invited.
• Methodology was online and paper survey.
• Survey Dates:
• Online survey: November 27, 2013 – December 26, 2013
• Paper survey: December 27, 2013 – February 4, 2014
• Sample sizes
• Invited: Online 17,383
• Invited: Paper 1,635
• Total Respondents: Online 8,872
• Total Respondents: Paper 865
• Total Hispanic 2814
• Total Non-Hispanic 6922
• Total English: 9,076
• Total Spanish: 660
• Selected Homescan purchasing data was appended to the respondents as well.
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
47. Copyright©2014TheNielsenCompany.Confidentialandproprietary.
47
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APPENDIX: DETAILED METHODOLOGY (CON’T)
• Respondents to this survey were calibrated to match overall population of United States
residents using Scarborough estimates of population. Because this survey reflects “primary
shoppers”, the gender balance was left at 30%:%70% male:female ratio
• Luxury segments were developed using Sawtooth Softwares, Convergent Cluster Analysis
program with a K-means solution
• Drivers of department stores and restaurants were estimated with logistic regression with
specific drivers of shopping/restaurant dining used as predictors of choosing a particular
brand location as one of their “favorites”
• Hispanic media slides are from Scarborough’s Hispanic Multi-market Plus, 2013 Release 1
and Release 1 Current data
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
48. 48
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UPSCALE LATINO 1.0, KEY TAKEAWAYS
Contribute to nearly 40% of Hispanic spending power!
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen/Nielsen America’s New Upscale Segment: ¡Latinos! 2013 Conference Webinar
Viable and sophisticated market of enormous proportion-
$500 Billion spent annually
A force behind new businesses with higher educational and
professional attainment
Young with larger households, providing a higher lifetime value
and upside opportunities for many high-end & luxury brands
Over-index compared to total Hispanics in Investments and
Personal Care categories
1
2
3
4
49. 49
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UPSCALE LATINO 1.0, KEY TAKEAWAYS
Shaping technology trends and leading usage of key mobile apps
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen/Nielsen America’s New Upscale Segment: ¡Latinos! 2013 Conference Webinar
Expenditures in-line with Upscale non-Hispanics across
two-thirds of food sub-categories, exceeding in one quarter
of sub-categories
Shaping technology trends, leading usage of mobile devices for
key services like financial services
Latino identity with one foot in each culture - their fully
BILINGUAL tendencies are reflected in their pervasive use of
language, and media consumption
6
7
8
50. 50
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+
CONCLUSIONS
Upscale Latinos will drive shifts in category consideration, purchasing
behavior and brand relationship
MARKETERS HAVE A UNIQUE OPPORTUNITY TO IDENTIFY THE
NEEDS OF AN EVOLVING UPSCALE HISPANIC HOUSEHOLD:
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen/Nielsen America’s New Upscale Segment: ¡Latinos! 2013 Conference Webinar
50
• With an interest in building net worth
• Simplifying their lives
• While benefiting from a bicultural lifestyle
• Streamlining their multi-generational responsibilities
• Enriching their American Dream
51. 51
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59%
Of Upscale Hispanic
Luxury Seekers are
Hispanic Millennials
Source: Ethnifacts Latino + Identity Project , 2013, The term , Latino eco-niches is attributed to Ethnifacts, LLC 2013
At least 60% of each upscale segment is U.S. born
YOUNG, U.S. BORN AND BICULTURAL
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
60% of each segment has strong ties to Latino culture
30%-40% voice a strong cultural duality
WITHIN ALL 3 KEY UPSCALE HISPANIC SEGMENTS:
vs. 31% of Upscale
non-Hispanics Luxury seekers
53. 53
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UPSCALE HISPANICS BEAMING WITH OPTIMISM
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
13%
18%
33%
38%
39%
47%
47%
% of Upscale Hispanics that say that in the next 12 months they have sufficient resources to….
112
107
106
112
126
139
186
Index to Upscale
non-Hispanic
…to eat healthy
…to pay rent/mortgage
…to live in safe neighborhood w
good public schools
…for my entire family health
coverage
…to pay off credit card debt
…to qualify for a mortgage
…to provide the share of support
that my elderly parents require
55. 55
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OPTIMISM PREVAILS WITH UPSCALE LATINOS
… where both family and financial take center stage
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
• Afford to live in safe neighborhoods and lead healthier lifestyles
• Provide health coverage for entire family
• Obtain additional borrowing capacity is central
• Determine to invest in their children’s advanced education
• Likely to plan for retirement as Upscale non-Hispanic
• Continue to support/care for elderly parents/grandparents
UPSCALE HISPANICS OPTIMISTIC ABOUT SAFETY, FAMILY
WELL-BEING AND WEALTH CREATION TO LIVING THEIR ASPIRATIONS
56. 56
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HIGHER PURCHASING FOR KEY CATEGORIES
*(roof, flooring, landscape), home remodel of your kitchen or bath, or a room addition
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
% UPSCALE
HISPANIC
INDEX TO UPSCALE
NON-HISPANIC
SHOP AT CHILDREN'S STORE 57% 163
PURCHASE COMPUTER, LAPTOP AND/OR TABLET 51% 150
STAY IN A HOTEL WHILE ON VACATION 51% 113
PURCHASE DESIGNER SHOES, CLOTHING AND/OR
ACCESSORIES
43% 215
PURCHASE ELECTRONICS SUCH AS FLAT SCREEN TV, HOME
THEATER AND/OR GAME CONSOLE
42% 135
PURCHASE HOME FURNISHING AND/OR APPLIANCES 40% 118
MAJOR HOME IMPROVEMENT* 20% 125
PURCHASE A PRIMARY HOME 12% 171
57. 57
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+
THE UPSCALE HISPANIC OPPORTUNITY IS HIGHER
For many key categories
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
• Hotel accommodations for family vacations
• Convenient and modern home improvements
• Upkeep children appearance
• Designer everything for adults
• Family digital and entertainment technology
• Clothing/accessories top online category
UPSCALE HISPANIC TOP DURABLE EXPENDITURES:
58. +
MEDIA OVERVIEW
How do media behaviors across Upscale Hispanics compare
to total Hispanics and Upscale Non – Hispanics?
RADIO ONLINE NEWSPAPER OUT OF
HOME
DIGITAL
DISPLAY
TV
Media
heaviness
for Upscale
Hispanics
59. 59
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RADIO & DIGITAL DISPLAY KEY MEDIA PLATFORMS
© Nielsen 2014. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release h
49% 48% 43% 43% 33% 35%
109 114 130 119 114 97
117 117 96 93 77 92
RADIO DIGITAL DISPLAY INTERNET OUT OF HOME NEWSPAPER TV
Quintiles I & II by Media for Upscale Hispanics
UPSCALE HISPANICS
TOTAL HISPANICS
UPSCALE NH
Upscale Hispanic indices vs. total Hispanics and Upscale non-Hispanics
60. 60
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AT LEAST ONE THIRD TUNING TO RADIO VIA ONLINE
Upscale Hispanics leveraging mobile devices to access online radio
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 *Current
% of Upscale Hispanics
accessing radio online,
39% more likely vs.
Upscale non-Hispanics
53%
59%
14%
Computer
Smartphone
Tablet
Total
Hispanics
Upscale non
Hispanic
88 85
125 132
97 98
% Upscale Hispanics listening by device
34%
61. 61
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
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SMARTPHONES INDISPENSABLE, TABLETS GROWING
Download newspaper,
TV, radio App
Local or
National News
9% 18%
14% 25%
19% more than Upscale
non-Hispanics (70%)
80% growth from 2012
Upscale non-Hispanics (41%)
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Nielsen Mobile Marketsight Q2 2013, Smartphone Analytics, Hispanics A1834/ In NON Hispanic Men 18-54,
Scarborough Hispanic Multimarket PLUS, 2013 Release 1 Current
83%
38%
62. 62
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TEXTING
SOCIAL
NETWORKING
APP USAGE GPS VIDEO
ENTHUSIASTIC MOBILE MEDIA USERS
% OF USE FOR UPSCALE HISPANICS AND INDICES
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Nielsen Mobile Marketsight Q2 2013, Hispanic Latinas A18-54 Indexes based on NON Hispanic Latinas A18-54
Total Hispanics 105 111 120 124 118
Upscale non-
Hispanic
109 138 129 139 177
indices vs.
84% 65% 59% 53% 34%
63. 63
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+
STREAMING TV CONTENT VIA ONLINE, GROWING
39% of Upscale Hispanics stream TV content online, 49% growth year over year
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1 *Current
57% 24% 16%INDICES VS.
% USED BY DEVICE FOR UPSCALE HISPANICS STREAMING TV CONTENT
Total Hispanic 102 115 107
Upscale non-
Hispanic 93 153 85
64. 64
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OUT OF HOME OPPORTUNITY
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1
12% 20% 16% 25% 27%
LESS 10MIN 10-19MIN 20-29MIN 30+MIN DON’T COMMUTE
14% more likely to travel 20-29
minutes than Upscale non-Hispanics
32% more likely to travel 30+
minutes than Upscale non-Hispanics
TIME SPENT TRAVELING TO WORK ONE WAY
41% of Upscale Hispanics travel 20 minutes or more one way to work,
this is more than both Upscale non-Hispanics and total Hispanics
65. 65
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PRINT NEWSPAPER POTENTIAL GROWS WITH INCOME
Smartphones primary digital device for upscale Hispanics to access their newspaper
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1
45%
52%
56%
Hispanics < $50K Hispanics $50-$99K Hispanics $100k+
73 81 84
Index vs. non-Hispanic
80% 33%
22% of Upscale Hispanics used a
mobile device to read a newspaper
NEWSPAPER READERSHIP VIA MOBILE DEVICESWEEKLY PRINT NEWSPAPER READERSHIP
23% more likely vs. Upscale non-Hispanics
28% more than total Hispanics
66. 66
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+
HIGHER PREFERENCE FOR SELECTIVE PROGRAMMING
Children programming and music videos popular, and opportunity for advertisers via local news
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1
1%
10%
20%
15%
23%
35%
21%
22%
23%
25%
32%
39%
Novelas
Music videos
Science fiction
Kids shows
Local news - late
Documentaries
Upscale Hispanic Upscale Non-Hispanic
Type of program typically watch
(regardless of language)
137 index
164 index
218 index
67. 67
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+
PAY AND PREMIUM AMONGST FAVORITE SELECTIONS
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: Scarborough Hispanic Multimarket PLUS, 2013 Release 1
40%
PREMIUM
CHANNELS
30% 1+
PAY PER VIEW
32%
SATELLITE TV
28%
ON DEMAND
10% 19% 27%
MORE THAN UPSCALE NON-HISPANIC
MORE THAN TOTAL HISPANICS
-12%
50%
SUBSCRIBE TO
HDTV
-5%
24% 8% 21% 35%33%
68. 68
Copyright©2014TheNielsenCompany.Confidentialandproprietary.
+
DRIVING GROWTH OF PRESTIGE COSMETIC BRANDS
two times more likely to purchase mid-high end cosmetics vs.
Upscale non-Hispanics
2-4 times more likely to use these brands based on ‘inner’
rewards and nearly 2x more likely to be deterred by status
rewards
3x as likely to seek the latest style
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
UPSCALE HISPANICS ARE:
1
2
3
69. 69
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+
OUT-PURCHASING AND PLANNING TO SPEND MORE
With a slightly higher incidence to purchase at department stores they are twice
as likely to plan to increase their immediate spending and spread their
discretionary spending across all different classes of retailers.
© Nielsen 2013. Prepared by Nielsen for the use of the Association of Hispanic Advertising Agencies.
This information may not be used for other purposes without written permission from Nielsen.
Source: AHAA/Nielsen Shopping and Dining Custom Recontact Survey, 2013
• Twice as likely to shop in high-end department store brands
that allow them to differentiate, even at premium price
• 50% more likely to shop in middle market stores like Macy’s
and Dillard’s that help them project success
• Just as likely to shop at price retailers as their Upscale non-
Hispanic counterparts
LED BY UPSCALE HISPANIC LUXURY SEEKERS