Archive for the ‘Hispanic/Latino Affluents’ Category

The Magic of Q1

Tuesday, January 10th, 2017

First, I hope you had a Merry BIG Christmas. I am overjoyed that so many of our Wealth Window clients reported a strong season!

As you begin 2017, I suggest you take advantage of what I call, “The Magic of Q1.”

Our experience shows that Q1 is a terrific time to test: a new strategy, a new audience, and a new channel. In fact, January and February are two of the best performing months for marketing. Additionally, if your new strategies prove successful in Q1, you can benefit all year. Conversely, if they underperform, you can cut your losses quickly.

When it comes to testing, we suggest a “Structured Spending” approach for many luxury brands: 70% of your dollars go to what has proven to work; 20% is invested behind strategies that show real promise; and 10% is allocated to dramatically different approaches that have the potential to deliver vast improvements.

Here are a couple of exciting ideas we’ve seen work for our clients:

 

Thankfully, as we enter 2017 things are looking bright. The market remains strong. Consumer optimism is high. And government policy should be advantageous for luxury brands.

Yet since markets and consumers can be fickle, you won’t want to lose any time testing innovative strategies in Q1. I’m happy to help in any way I can to ensure you experience a magical first quarter.

Follow the Money to Cuba

Friday, January 16th, 2015

Wealthy Americans will capitalize on softening relations with Cuba in travel, real estate and import/export.

Wealthy Americans will capitalize on softening relations with Cuba.

With the loosening of the US embargo on Cuba and the removal of many travel restrictions, you can be sure that wealthy Americans will quickly take advantage of new opportunities. First off, many are clamoring to travel there right away. According to an article published by the Associated Press, “The few US companies facilitating travel to Cuba say inquiries have exploded since December.”

Additionally, with the easing of restrictions to certain sectors of trade and investments, Cuba will be attracting investors who want to get in on the ground floor of what could become a complete lifting of the embargo in the future.

Other Financial Implications of the Softening of Relations Include:

 

The News Has the Art World Buzzing

This formerly isolated nation simply bursting at the seams with creativity is seen as the next hot market in art. In a recent two-week period, a record $2.3 billion of Cuban art was just auctioned. According to Alberto Magnan, a Cuba-born NYC Gallery owner, thawed relations will have a huge impact because Cuba was a limited market in terms of who was even able to see the art. “That number now will become huge,” he said.

Opening the Flow of Luxury Goods

Trade restrictions with Cuba have been eased allowing agricultural equipment, building materials and goods for private-sector Cuban entrepreneurs to be exported from the US. Import restrictions have also loosened, with licensed US travelers authorized to bring Cuban goods (read: cigars) back to America, purchased with their US credit and debit cards. You can bet that wealthy opportunists will capitalize on the friendlier relations between Cuba and the United States.

Real Estate Investment Will Surge

It’s just a matter of time when Cuba opens up completely to American tourists and accommodates their penchant for luxury accommodations. “You’re going to see American hoteliers doing their best to find potential properties in Cuba,” says Steve Loucks, Chief Communications Officer of the Travel Leaders Group. “Four-star resorts don’t go up in a day…but we’re very positive about the potential.”

The good news for marketers is that Cuba is close and now you can have the cigar. You just need to get that message into the hands of wealthy travelers and affluent investors.

Affluent Blacks and Latinos are Prime for Relevant Brand Marketing

Wednesday, May 21st, 2014

Luxury Brand Marketing to Affluent Blacks and Latinos Hispanics

Luxury Brand Marketing to Affluent Blacks and Latinos Must Be Relevant

As the percentage of the Hispanic and African American populations continues to outpace Whites in America, their ranks of six-figure earners are rising with it. Yet luxury brands are slow to recognize their growing numbers and failing to seize the opportunity to earn their business through targeted, relevant marketing.

The nation’s largest minority is rapidly gaining affluence:

 

African Americans constitute a major growth market:

 

While wealthy Blacks and Latinos may seemingly belong to the affluent mainstream, luxury marketers must:

  1. Develop strategies for directly reaching these segments of affluence and…
  2. Engage them in a culturally relevant manner.

 

By our count, there are 578,000 African Americans and 1,083,000 Hispanic Americans of very high income and net worth that luxury brands should be targeting with personalized marketing. When you acknowledge your ethnic audience with messaging and imaging that they can relate to, you can establish an emotional connection that is so essential for achieving high-end brand loyalty.

¿Hablas español? In Targeting Hispanic Affluents, it’s a Good Idea

Thursday, October 31st, 2013

target marketing to affluent hispanic latino american consumers with mailing list database

The number of ultra affluent Hispanic American consumers is steadily rising.

A recent Engage: Affluent blog notes that nearly one-fourth of Affluents can be described as multi-cultural, with Hispanics, African-Americans and Asians constituting the highest percentages. Nearly one-in-ten Affluents were born outside the U.S. Of those who speak a foreign language at home, nearly half speak Spanish. I just read that the affluent Latino market is growing 8% faster than the rest of the affluent market.

Which made me think — I’ve seen a lot of marketing geared to the luxury sector over the years, and most of it treats the audience as a homogenous group of wealthy consumers. Very few campaigns strive for relationship-building within a minority affluent audience. But nowhere is this easier to do than with the Hispanic Market.

We count nearly a million very high net worth Affluent Hispanic Americans in the U.S.

You’ve no doubt heard a lot about the rising spending power of the American Hispanic market. Well this is where that power would be concentrated. It’s comprised of college educated, second and third generation, bilingual/bicultural professionals, immigrant entrepreneurs, and established small business owners.

“Speaking” to wealthy Hispanic Americans in a language they understand with imaging they can relate to is about as relevant as it can get. It may also be as lucrative as it gets in targeting this minority market. According to Culturally Relevant, Hispanics with a household income of $100K+ represent over 12% of all U.S. Hispanic households.

Based on their affluence, one could safely assume that this audience speaks English and therefore no need to message them with a different version of the creative. But there is a bigger phenomenon going on here. As branding expert Carlos Ulibarri points out in a recent column,  “This segment represents a unique blend of two cultures. Not only Hispanic or simply American, this is the Hispanization of North America and the Americanization of Latin American.”

Therefore, add a bit of Latino flair to your American luxury marketing and it will go a long way with this bi-cultural group. But first, ensure that you’re targeting right Hispanics with the power to buy luxury brands.

¡Buena Suerte!

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