advertisement
advertisement

Hispanic Shoppers Tend To Be Younger And To Crave Mobile More, Report Says, But Taking Wise Action From That Data Is A Lot Trickier Than It Seems

Written by Evan Schuman
May 29th, 2013

A new study finds that Hispanic shoppers are more likely than their non-Hispanic counterparts to use mobile and that’s partially because the average Hispanic shopper today is 10 years younger. The report from the Integer Group also suggests that Hispanic customers are more likely to embrace mobile’s interactive capabilities with friends and family—and to do so in greater numbers.

Like many reports, the statistics here do not strongly support the report’s conclusions. The report found that “16 percent of Hispanic shoppers are using their mobile device to make purchases compared to 12 percent of general market shoppers” and the report had a margin of error of plus or minus 3 percentage points, making such a distinction razor-thin at best. But the group has done enough reports in this area and has found this distinction consistently shows up when doing head-to-head comparisons.

Martin Ferro, a senior account planner for Integer and one of the researchers of the report, said the differences make sense given what he has seen in other reports about U.S. Hispanic shoppers. “They are for sure younger. It’s really the new generation of (Hispanics) that are U.S.-born,” Ferro said. “They tend to be the very early adopters of mobile technology. Besides the youth, the culture is a lot more comfortable with connectivity.”

Ferro discussed statistics that reinforce political trends that show this demographic projected to grow sharply. “If you look at the population growth, for whites, the growth is pretty much zero,” meaning that the number of non-Hispanics who die in a typical year are about the same number as those who are born.

Part of this is because Hispanic families tend to have slightly more children. “For whites, it’s around two” children per family, Ferro said. “For Hispanics, it’s between two-point-something and three. We’re talking about one more kid per family on average.”

For retailers and e-tailers, the bottom line is that this group—nationally—is going to be a steadily increasing percentage of your shoppers and that they, in general, have different mobile preferences. The key difference, Ferro said, is an interest in interacting with others while in the store, just prior to deciding on a purchase.

And although that inclination exists across almost all demographics who are in their teens and early 20s, Ferro argues that it’s more pronounced with Hispanic shoppers. That means both that they’ll be more likely to interact and, separately, that they’re more likely to interact with a larger number of friends/families. The idea is that although a non-Hispanic teen might check in with one or two of her friends, her Hispanic counterpart would reach out to several more friends or family members.

Such insights are useful to consider, but it’s not clear what different paths this suggests for retailers. This kind of interactivity should clearly be enabled, but any attempt to discern ethnic background and cause that to change how an app functions is a disaster waiting to happen.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.