Hispanic Buying Power: Will it Continue in 2009?

You may think it strange to discuss the growth of Hispanic buying power as the United States is in the midst of one of the deepest economic downturns in recent history.  But when times were flush, a few oft-quoted reports came out about the expected increase in Hispanic wealth-accumulation and buying power.   The Selig Center for Economic Growth’s The Multicultural Economy is a rich source of data.  To access the entire report, click here.  A key piece of information from the report finds that Hispanic buying power is projected to grow to $1.1 trillion by 2009 and $12.4 trillion by 2011.   United States residents may be buying less overall, and Latinos certainly have been hit hard by the sub-prime mortgage crisis, but with the surge in the Latino population, they will continue to buy goods and services.  Granted, most families are cutting back on purchases, but as the U.S. economy moves out of the recession, many marketing pros are counting on Latinos jumping back into the purchasing frame of mind.   A report from Experian Consumer Research indicates that Hispanics may be less affected by the recession due to certain cultural factors, including less reliance on credit for purchases and the pooling of resources among extended family.  And companies may be cutting their advertising budget and outreach to preserve jobs and keep their doors open, but Latinos are one demographic that should not be ignored.   This recession is too new to tell whether Hispanics have curtailed buying at the same rate as other ethnic groups, but article from the last recession in the early 21^st century showed that Hispanics were less affected by the downturn.  Regardless, savvy marketing pros will continue to tailor their message to the demographic that shows the most promise whether that message is in Spanish or in English with a Latino flair.