Habla Espanol? That's Spanish for 'Want to survive?' - Spanish-speaking customers provide an opportunity for retailers - Column

What are you waiting for? Today, more than 10% of the U.S. population is Hispanic. And by the year 2010, the Census Bureau projects that one out of every four Americans will be of Hispanic origin.

What does this mean? It means that there is a growing consumer group that has not yet built allegiance to any specific retailer or retail format.

In 1995, U.S. Hispanics spent more than $200 billion in goods and services. This figure grows every month. By the year 2030, Hispanics will produce more than 48% of this country's total consumer growth.

This is an unprecedented demographic shift, presenting our industry with a pivotal challenge. Those of us who grapple with this reality get to stay in the game. And those who don't have chosen their fate.

Of course, if you only have stores in Vermont or only distribute products in North Dakota, there is no need to read on. However if you do business in California, Illinois, Florida, the Southwest and/or the New York region, this is your call to action.

So what can we do? Well, we're going to have to do more than speak Spanish. Don't misunderstand me--language is critical with this consumer group. More than 70% of Hispanic households speak Spanish at home, and 51% prefer the Spanish language exclusively in all media. But language alone will not address the cultural gap that stands between us and our future capacity to win.

In a message-cluttered world, our efforts will have to go beyond literal translation of sales events or product information. Capturing this growing consumer group will require designing and inventing new practices to ensure that our efforts are culturally relevant. We will have to listen and look for the different standards of customer satisfaction that will emerge, then adapt, adapt, adapt.

Recently, the Wall Street Journal ran a story about the California Milk Processors' national campaign, "Got Milk?" When looking to expand this successful campaign to target California Hispanics, they discovered that the literal translation was "Are you lactating?" Fortunately, they changed it to "Have you given them enough milk today?" This change produced a 91% recognition level and one of the most successful ad campaigns ever.

To deliver this kind of success in our industry, we will have to consider that the adaptation of Hispanic immigrants to the American way of life may be distinctly different than that of their European predecessors.

Hispanics are in close proximity to their countries of origin. Cheap air travel and phone services facilitate frequent contact with friends and family "back home." There is a proliferation of Spanish language television, radio and print media, all of which serve to strengthen cultural bonds.

As we get closer to the 21st century, a new competitive space is unfolding. Will you get to play?

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