Miami is quickly becoming the next Silicon Valley. Fueled by the tech explosion permeating South America and corporate America’s waning interest in settling out west, Miami has become a bustling hub for upwardly mobile Hispanics.
Tech companies looking to put down roots in the coastal city are either looking to secure tech talent or are scouting locations to set up shop, or both. The result, an empowered Hispanic base with the disposable income to buy what they want and need to support multigenerational households or, in some cases, extended family in their countries of origin.
While household incomes of upscale Hispanics are higher than average, it often takes a two-income household to reach this milestone, unlike their White counterparts. Across the board, other economic factors like homeownership are also trending up among Latinos.
Some high-end marketers incorrectly assume that once Hispanics reach a certain income level, they assimilate to U.S. culture and can be targeted like a Total Market consumer. However, despite their socioeconomic status and due to their multifaceted culture, Hispanics are unique in how they spend their income and with whom. Many affluent Hispanics are bilingual. Brands need to understand that as Hispanics become more wealthy, speaking Spanish and English becomes a status symbol. This is attractive to employers and should be equally as important to brands.
U.S. born Hispanics – Millennials and Gen Z – present the biggest opportunities for growth for brands. Unlike their parents, who were less likely to be vocal consumers due to factors like immigration status, younger Hispanic generations exercise their ability to choose the language they speak and how they identify, which often determines which brands they support and the content they consume.
Gabriela Alcantara-Diaz, Founder and President of Semilla Multicultural, joins us on The New Mainstream podcast to discuss the importance of understanding upwardly mobile Hispanic American culture and how it’s impacting niche markets.