Mexican American Consumers | Hispanic Market Research by ThinkNow Research

Mexican American Consumers A Demographic Profile

Mexican Origin Historical Presence Hispanics of Mexican Descent have a long history of residing in the U.S. Hispanics of Mexican Descent have been living in California, Nevada, Utah, Texas, Arizona, New Mexico, and parts of Colorado, Wyoming, Oklahoma and Kansas since prior to losing these territories to the U.S. in 1848. Source: Chart - Mexican Immigrants in the United States, 2008, compiled from sources listed below graph

Mexican Immigration & Births Mexican Americans currently make up 63% of the 50.4 million Hispanics living in the U.S. Immigration to the U.S. spiked upwards in the 1970’s. U.S. births now outpaces immigration accounting for 63% of U.S. Mexican population growth between 2000-2010 MEXICAN-AMERICAN POPULATION GROWTH 1980-2010 7.2 In Millions 4.7 4.2 3.1 4.7 Births during decade 2.7 New inmigrants during decade 1980-1990 1990-2000 2000-2010 SOURCE: Pew Hispanic Center - The Mexican- American Boom: Births Overtake Immigration

MEXICAN-AMERICAN POPULATION GROWTH 1980-2010Births have surpassed immigration as the main driver of the dynamic growth in the U.S.Hispanic population. This is especially evident among Mexican-Americans.In the decade from 2000 to 2010, the Mexican-American population grew by 7.2 million as aresult of births and 4.2 million as a result of new immigrant arrivals. This is a change from theprevious two decades when the number of new immigrants either matched or exceeded thenumber of births.Meanwhile, the number of new immigrant arrivals from Mexico has fallen off steeply in recentyearsThe causes of fewer immigrants we can find at least two scenarios:a) the high rate of unemployment in the United States amounting to 9.2 percent (in June werecreated just 18,000 new jobs)b) the increase in the enactment of anti-immigrant laws in states like Arizona, Alabama andGeorgia (La Opinion, July 14, 2011). Implications for Marketers: Children of Mexican immigrants help guide purchasing decisions in the household. Be sure to target them in addition to their parentsSOURCE: Pew Hispanic Center - The Mexican-American Boom: Births Overtake Immigration

HISPANICS OF MEXICAN ORIGIN IN THE U.S. Implications for Marketers: Using U.S. cultural references prior to the 1990s may not be a good idea among Hispanics. Referencing the U.S. in the 60s in a commercial for example will be unrelatable to 64% of Mexicans so be careful with time travel.Most immigrants from Mexico (64%) arrived in the U.S. in 1990 or later.SOURCE: Pew Hispanic Center, Hispanics of Mexican Origin in the U.S., 2009

FIVE LARGEST HISPANIC POPULATIONS: 2010 CENSUS (AS A PERCENT OF THE TOTAL HISPANIC POPULATION) 63.0% Implications for Marketers: Any product or service that is looking to target the Hispanic consumer MUST make an effort to reach people of Mexican origin as they are the largest Hispanic group in the U.S. 9.2% 3.5% 3.3% 2.8% Mexican Puerto Rican Cuban Salvadoran DominicanPeople of Mexican origin comprised the largest Hispanic group, representing 63 % of the total Hispanic population in theU.S (up from 58% in 2000).The examination of ethnic group distributions nationally shows that the Mexican population is still numerically andproportionally the largest Hispanic group in the U.S.Although Mexicans were the largest Hispanic group, they grew at a rate slower than many of the other detailed Hispanicgroups.SOURCE: The Hispanic Population: 2010 - 2010 Census Briefs

Mexican Origin Hispanics are Majority of Hispanics in most States Mexican Americans are a majority of Hispanics in 40 States Hispanics of Mexican Descent helped grow the U.S. Hispanic Population Four Times Faster than the Total U.S. Population from 2000-2010. Source: U.S. Census 2010 - http://2010.census.gov/news/releases/operations/cb11-cn146.html

HISPANICS OF MEXICAN ORIGIN IN THE U.S. More than one-half (61 percent) of the Mexican origin population in the United States resided in California (11.4 million) and Texas (8.0 million) alone. Implications for Marketers: For products targeting Mexicans in the U.S., the majority of your ad dollars should be spent in these two states. SOURCE: The Hispanic Population: 2010 - 2010 Census BriefsSource: PEW Hispanic Center, Hispanics of Mexican Origin in the U.S., 2009

HISPANICS OF MEXICAN ORIGIN IN THE U.S. Implications for Marketers: There are still strong ties to Mexico among Mexicans in the U.S. This is important to know when crafting campaigns as ties to the home country could be used to create brand affinity.36% of Mexicans in the United States are foreign born, compared with37% of Hispanics and 13% of the U.S. population overall.More than two-in-ten Mexican immigrants (23%) are U.S. citizensSOURCE: Pew Hispanic Center, Hispanics of Mexican Origin in the U.S., 2009

Income & Purchasing Power  The median annual personal income for Mexican Descent Hispanics ages 16+ was $20,000 in 2009; the median income for the U.S. population was $28,900.  The median annual household income for Mexican Descent Hispanics was $40,647 in 2008; the median income for the U.S. population was $52,029.  The buying power of Hispanics exceeded $1 trillion in 2010, and the population includes a significant number of high-income households. With an estimated buying power of $616 billion, Latinos of Mexican heritage represent the single most influential segment of the Hispanic market.Source: The Pew Hispanic Center - Hispanics of Mexican Origin in the United States, 2009

Purchase Behavior – Technology Their youthfulness, as compared to other demographic groups, makes Hispanics as a whole and Mexican Descent Hispanics in particular prime Technology Purchasers. This table shows technology purchasing behavior by all Hispanics. However, since Mexican Descent Hispanics are the largest U.S. Hispanic group and slightly younger than other Hispanic groups their purchase behaviors are driving the numbers in Source: Ad Age – US Hispanics Lead in Technology Purchases, Dec., 23, 2010 this area.

Age, Gender and Family Size  Hispanics of Mexican Descent are 25.7 years old on average. This compares to 27 years of age for all Hispanics and 36.9 years for the population as a whole.  The average size of a Mexican origin Household is 4.1 Implications for Marketers: Their youthfulness and larger family people. The average size for all families is 3.2 people. size means U.S. Hispanics also over index in the purchase of infant/children  Mexican Descent Males outnumber Females. related items as well most household consumables.. Avg. Age Avg. HH Gender 100 60 10 Size 9 80 8 40 36.9 7 60 52.4 6 47.6 25.7 5 4.1 40 4 3.2 20 3 2 20 1 0 0 0 Mex. Descent Total Pop Mex. Descent Mex. Descent Mex. Descent Total Pop Males FemalesSource: U.S. Census Bureau 2010

Language Use 76% of Mexican origin Hispanics speak Spanish at Home; among these, 38% speak English less than very well. Implications for Marketers: One language does not always Conversely, 63% of work. A mixture of Spanish and English communications will Mexican Descent yield more positive results. Hispanics report speaking English proficiently. Spanish Language spoken at home by all U.S. Hispanics varies considerably by region.Source: U.S. Census Bureau 2010

AppendixSource: The Pew Hispanic Center - Hispanics of Mexican Origin in the United States, 2009

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Mexican American Consumers | Hispanic Market Research by ThinkNow Research

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