Hispanics and Big Ticket Purchases: Electronics and Appliances - US

Value-driven

The Hispanic population in the U.S. is highly concentrated in a few states and metropolitan areas. For high ticket items, like major appliances and furniture where advertising budgets have been limited, this level of concentration can be used to the advantage of advertisers. Although the Hispanic population comprises only about 15% of the population, this group can be reached through less expensive local and regional advertising, and even through sub-branded stores (like Walmart’s Supermercado de Walmart if it was expanded to non-grocery items) in markets with large numbers of Hispanics. The great level of population concentration affords a more cost-effective opportunity than a national campaign. It also allows for effective test marketing. Once a campaign has proven effective in one region, it can be rolled out to other Hispanic markets.

For several high ticket items, both the share of households that purchased the item and the share of households spending at the highest level ($1,000+) jumped significantly at the $50K income level or more. Identifying and marketing to these households should prove fruitful. They are more willing to spend at the highest levels and appear to purchase the item more frequently than one would expect based on income alone.

SCOPE AND THEMES

What you need to know

Definition

Sources

Consumer survey data

Advertising Creative

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Hispanics’ purchasing power and home-ownership are growing

Despite being ripe for growth, big ticket spending was down

Hispanics are just as likely as non-Hispanics to buy a major appliance

Hispanics are more likely to have purchased any household furnishing

Electronics are a mixed bag

The retail decision

Big ticket retailing

Understanding the consumer

Demographics

Acculturation

MARKET DRIVERS

Hispanics’ purchasing power

Figure 1: U.S. buying power, Hispanics and non-Hispanics, 2008-13

Figure 2: Hispanics’ buying power, ranked by state, 2008

Figure 3: Purchasing power, by race/Hispanic origin, 2008

Hispanics’ income levels

Figure 4: Hispanic households, by total money income, 1998-2008

Hispanics’ economic growth

Home-ownership rates among Hispanics

Figure 5: Home-ownership rates, by race/Hispanic orgin of householder, 2003-08

Home improvement expenditures

Figure 6: Total home improvement expenditures in inflation-adjusted dollars (2007 dollars), by race/Hispanic origin, 2001-07

CATEGORY EXPENDITURE

Historic household expenditure by category

Figure 7: Total expenditures on key categories, Hispanic and non-Hispanic, 2001-07

Estimated household expenditure by category

Figure 8: Average household expenditures on key categories, Hispanic and non-Hispanic, 2007-09

Estimated household expenditure for “big ticket” categories

Figure 9: Big ticket average annual expenditures, by Hispanic origin of consumer unit reference person, 2001 and 2007

CEA says Hispanics spend more on consumer electronics

THE HISPANIC CONSUMER AND APPLIANCES

Key points

Hispanics’ and non-Hispanics’ trended appliance purchases

Figure 10: Any major appliance bought in last 12 months, Hispanics vs. non-Hispanics, trended January 2003-March 2009

Hispanics and appliances

Hispanics vs. non-Hispanics

Figure 11: Appliances bought in last 12 months, Hispanics vs. non-Hispanics, February 2008-March 2009

By household income

Figure 12: Appliances bought in last 12 months, by household income, February 2008-March 2009

By household size

Figure 13: Appliances bought in last 12 months, by household size, February 2008-March 2009

HISPANICS AND HOUSEHOLD FURNISHINGS

Key points

HOUSEHOLD FURNISHINGS

Hispanics’ and non-Hispanics’ purchasing frequency

Figure 14: Household furnishings bought in the last 12 months, Hispanics vs. non-Hispanics, February 2008-March 2009

Hispanics and household furnishings

By language

Figure 15: Household furnishings bought in last 12 months, by language spoken at home, February 2008-March 2009

By household income

Figure 16: Household furnishings bought in last 12 months, by household income, February 2008-March 2009

By household size

Figure 17: Household furnishings bought in last 12 months, by Hispanic household size, February 2008-March 2009

THE BEDROOM

Bedroom furniture—Hispanics’ and non-Hispanics’ expenditures

Figure 18: Amount spent on bedroom furnishings in the last 12 months, Hispanics vs. non-Hispanics, February 2008-March 2009

Bedroom furniture

By language

Figure 19: Amount spent on bedroom furnishings in the last 12 months, by language spoken at home, February 2008-March 2009

By household income

Figure 20: Amount spent on bedroom furnishings in the last 12 months, by household income, February 2008-March 2009

By household size

Figure 21: Amount spent on bedroom furnishings in the last 12 months, by household size, February 2008-March 2009

THE CHILDREN’S ROOM

Children’s room furnishings—Hispanics’ and non-Hispanics’ expenditures

Figure 22: Amount spent on children’s room furnishings in the last 12 months, Hispanic and non-Hispanic, May 2009

Children’s room furnishings

By household income

Figure 23: Amount spent on children’s furniture in the last 12 months, by household income, February 2008-March 2009

THE LIVING ROOM AND DINING ROOM

Living and dining room furniture—Hispanics’ and non-Hispanics’ expenditures

Figure 24: Amount spent on living room and dining room furniture in the last 12 months, Hispanics vs. non-Hispanics, February 2008-March 2009

By household income

Figure 25: Amount spent on living room and dining room furniture in the last 12 months, by household income, February 2008-March 2009

By household size

Figure 26: Amount spent on living room or dining room furniture in the last 12 months, by household size, February 2008-March 2009

THE GREAT OUTDOORS

The great outdoors—Hispanics’ and non-Hispanics’ expenditures

Figure 27: Amount spent on lawn and patio furniture in the last 12 months, Hispanics vs. non-Hispanics, February 2008-March 2009

The great outdoors

By language

Figure 28: Amount spent on lawn, porch and patio furniture in the last 12 months, by language spoken at home, February 2008-March 2009

ELECTRONICS IN THE HOME

Key points

Electronics—Hispanics’ and non-Hispanics’ ownership

Figure 29: Ownership of consumer electronic products, Hispanics vs. non-Hispanics, February 2008-March 2009

Hispanics and electronics

By language

Figure 30: Hispanic ownership of consumer electronic products, by language spoken at home, February 2008-March 2009

By household income

Figure 31: Hispanic ownership of consumer electronic products, by household income, February 2008-March 2009

By household size

Figure 32: Hispanic ownership of consumer electronic products, by household size, February 2008-March 2009

Camcorders and video cameras—Hispanics’ and non-Hispanics’ expenditures

Figure 33: Average amount spent on camcorder/video camera, Hispanics vs. non-Hispanics, February 2008-March 2009

By household income

Figure 34: Average amount spent on camcorder/video camera, by Hispanic household income, February 2008-March 2009

Television sets—Hispanics’ and non-Hispanics’ ownership

Figure 35: Type of television owned - by most recent purchase, Hispanics vs. non-Hispanics, February 2008-March 2009

Television sets—Hispanics’ and non-Hispanics’ expenditures

Figure 36: Amount spent on most recent television set purchase, Hispanics vs. non-Hispanics, February 2008-March 2009

By language

Figure 37: Average amount on most recent television purchase, by language preferred when watching television, February 2008-March 2009

By household income

Figure 38: Average amount spent on most recent television purchase, by household income, February 2008-March 2009

PCs—Hispanics’ and non-Hispanics’ ownership

Figure 39: Number of pcs owned by the household, Hispanics vs. non-Hispanics, February 2008-March 2009

PCs—Hispanics’ and non-Hispanics’ expenditures

Figure 40: Total cost of most recent PC purchase, Hispanics vs. non-Hispanics, February 2008-March 2009

By language

Figure 41: Total cost of most recent PC purchase, by language spoken at home, February 2008-March 2009

By household income

Figure 42: Total cost of most recent pc purchase, by household income, February 2008-March 2009

PC expenditures—by children in the home

Figure 43: Total cost of most recent pc purchase, by presence of children, February 2008-March 2009

SHOPPING FOR ELECTRONICS

Key points

Willingness to travel to a home electronics/improvement store

Figure 44: Hispanic distance tolerance, by store type, May 2009

Factors that influence purchase decisions

Figure 45: Factors that influence electronic and appliance purchases, May 2009

By place of birth

Figure 46: Factors that influence electronic and appliance purchases, by place of birth, May 2009

Sources of information

Figure 47: Information sources used when purchasing electronics or appliances, by age, May 2009

By educational attainment

Figure 48: Information sources used when purchasing electronics or appliances, by educational attainment, May 2009

By place of birth

Figure 49: Information sources used when purchasing electronics or appliances, by place of birth, May 2009

HISPANICS AND “BIG TICKET” RETAILING

Key points

Appliances and electronics

Major appliance retailers

Figure 50: U.S. Leading major appliance retailers, ranked by major appliance sales, 2007 and 2008

Consumer electronics retailers

Figure 51: U.S. Leading consumer electronics retailers, ranked by consumer electronic sales, 2007 and 2008

Retailer preferences for appliances/electronics—Hispanic and non-Hispanic

Figure 52: Non-specialist retailers where purchased appliances/electronics/computers in last three months, Hispanics and non-Hispanics February 2008-March 2009

Figure 53: Home electronic stores where purchases were conducted in last four weeks, Hispanics and non-Hispanics February 2008-March 2009

Home furnishing

Home furnishing retailers

Figure 54: U.S. Leading home furnishing retailers, ranked by home furnishing revenue, 2007 and 2008

Home furnishing stores shopped

Figure 55: Home furnishing stores shopped at in the last three months, Hispanics and non-Hispanics, February 2008-March 2009

Retail purchase preferences for home furnishings—Hispanic and non-Hispanic

Figure 56: Home furnishing/houseware retailers where purchases were conducted, Hispanics and non-Hispanics February 2008-March 2009

Figure 57: Non-specialist retailers where purchased home furnishings, Hispanics and non-Hispanics February 2008-March 2009

ADVERTISING AND PROMOTION

Key points

Home furnishings advertising

Figure 58: Television Spot, “Blue and white stars on Memorial Day,” May 2009

Figure 59: Television Spot, “Cindy Crawford colors,” August 2009

Figure 60: Television Spot, “Hot anniversary sale #30,” June 2009

Major appliance and electronics advertising

Figure 61: Television Spot, “Man wants to surprise his wife with a stove,” August 2009

Figure 62: Television Spot, “Luis’s mother-in-law comes to stay; sink and refrigerator are broke,” October 2008

Figure 63: Television Spot, “Lety will get samsung TV to watch super bowl with her friends,” January 2009

U.S. HISPANIC POPULATION

Key points

U.S. POPULATION BY RACE/HISPANIC ORIGIN

Figure 64: Population, by race/Hispanic origin, 1970-2020

Figure 65: Asian/Pacific Islander, Black, and Hispanic populations, 1940-2020

Figure 66: Population, by race and Hispanic origin, 2004-14

THE HISPANIC AND NON-HISPANIC POPULATION

The Hispanic and total U.S. population by age

Figure 67: U.S. Hispanic population, by age, 2004-14

Figure 68: Total U.S. population by age, 2004-14

Hispanics by generation

Figure 69: Generations, by Hispanic vs. non-Hispanic, 2008

Figure 70: Fertility rate, by race and Hispanic origin of mother, 1996-2006

The Hispanic household

Figure 71: Average household size, by Hispanic origin/race of householder, 2001 and 2008

Figure 72: Households, by number of persons in the household—Hispanics vs. non-Hispanics, 2008

Figure 73: Households, by presence of children—Hispanics vs. non-Hispanics, 2006

Hispanics by country of origin/heritage

Figure 74: Hispanic population, by country of origin/heritage, 2007

Figure 75: Graph: Hispanics, by country of origin/heritage, 2007

Hispanics by geographic concentration

Figure 76: Hispanic population, by region, by country of origin/heritage, 2007

Figure 77: Graph: Hispanic population, by region and by country of origin/heritage, 2007

Figure 78: Hispanic population in top five states, by country of origin, 2006

Figure 79: Hispanic population in top five states, by country of origin, 2006

States with greatest Hispanic population growth

Figure 80: Hispanic population, states with greatest percentage increase, 2000-06

Key Hispanic metropolitan areas

Figure 81: Metropolitan areas with the largest number of Hispanic residents, by country of origin, 2008

ACCULTURATION

What is acculturation?

Why is level of acculturation important?

Levels of acculturation

Unacculturated/Enculturated

Acculturated/Bicultural

Assimilated

Figure 82: Hispanics, by acculturation and assimilation level, 1998-2008

What is retro-acculturation?

Retro-acculturation

APPENDIX: OTHER USEFUL CONSUMER TABLES - PURCHASES AND EXPENDITURE

Appliances bought—Hispanic vs. non-Hispanic

Figure 83: Appliances bought in last 12 months, Hispanics vs. non-Hispanics, February 2008-March 2009

Appliances bought by language

Figure 84: Appliances bought in last 12 months, by language spoken at home, February 2008-March 2009

Appliances bought by place of birth

Figure 85: Appliances bought in last 12 months, by place of birth, February 2008-March 2009

Expenditures on camcorder/video camera by language

Figure 86: Average amount spent on camcorder/video camera, by language spoken at home, February 2008-March 2009

Figure 87: Number of televisions owned by a household, Hispanic vs. non-Hispanic, February 2008-March 2009

Amount spent on television purchase by household size

Figure 88: average amount spent on most recent television purchase, by household size, February 2008-March 2009

PC expenditures by place of birth

Figure 89: Total cost of most recent pc purchase, by place of birth, February 2008-March 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES - INFLUENCERS AND SOURCES

Factors that influence purchase decisions

Figure 90: Factors that influence electronic and appliance purchases, by gender, May 2009

By age

Figure 91: Factors that influence electronic and appliance purchases, by age, May 2009

By educational attainment

Figure 92: Factors that influence electronic and appliance purchases, by educational attainment, May 2009

By household income

Figure 93: factors that influence electronic and appliance purchases, by household income, May 2009

Sources of information

Figure 94: Information sources used when purchasing electronics or appliances, by gender, May 2009

By household income

Figure 95: Information sources used when purchasing electronics or appliances, by household income, May 2009

APPENDIX: TRADE ASSOCIATIONS