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Lower income Spanish speaking Latinos stick with name brands in spite of down economy

Posted by Elena del Valle on February 28, 2011

Spanish dominant Latinos continue to buy name brand personal care products, according to a 2010 survey

Photos: Procter and Gamble

Looking for a brand loyal market segment? While many consumers are cutting back on costs and choosing less expensive products during the recession lower income Spanish dominant Latinos continue to buy name brand personal care products; more than English dominant Latinos, according to a recent Mintel survey conducted online in August 2010 among 534 U.S. Hispanic respondents aged 18 and older.

Although many of the survey respondents had a lower-than-average household income level, they indexed higher than non-Hispanics in the consumption of personal care products in 2009. According to Mintel, over the last six years, Hispanics have consistently spent more on personal care products; although the researchers expect to find a less than 1 percent drop for 2010. Hispanics who responded to the survey index higher than non-Hispanics in the purchase of haircare products and bath products.

“Spanish-dominant Hispanics are most likely to stick to their favorite brand of hand soap, body soap and shower gel, signifying that less acculturated Hispanics remain loyal to the same brand despite the economy,” said Leylha Ahuile, senior multicultural analyst at Mintel, a research company. “English-dominant Hispanics tend to have higher household incomes and apparently are less concerned with brand name soaps and more focused on saving money.

Many of the Latino survey respondents said they favor multifunctional products

In spite of Hispanics’ lower-than-average household income level, they indexed higher than non-Hispanics in the consumption of personal care products in 2009. Over the last six years, Hispanics have consistently increased their spending on personal care products. And within personal care, Hispanics index higher than non-Hispanics in the subcategories of haircare products and bath products.”

Among the those surveyed by Mintel 64 percent of Hispanics who said they have an income between $25,000 and $49,999 said they still buy name brand body soaps or shower gels compared to 58 percent of English-dominant Hispanics who said they continue to buy name brand body soaps or shower gels even during the economic downturn.

Although they could switch to more affordable products Spanish-dominant consumers who responded to the survey said they are also more likely to stick to their favorite name brand lotions (51 percent versus 35 percent of English-dominant consumers), facial cleansers (27 percent versus 20 percent of English-dominant consumers) and toothpaste or mouthwash (69 percent versus 65% percent of English-dominant consumers).

Many of the lower-income Hispanics who participated in the survey indicated they are interested in saving money with multifunctional products. For example, 65 percent of those who earn between $25,000 and $49,999 said they are interested in two-in-one shampoo/conditioner, and 83 percent said they would be more inclined to purchase toothpaste that can also serve as a mouthwash and whitener.