Demand for Ethnic Products Growing, How Should Retail React? 6/11/2015
According to an infographic produced by Acosta Sales and Marketing, Hispanic shoppers spent about $30 more ($360) on groceries than the average respondent in the U.S. With this increase in dollars spent, it is essential for retailers to stock their shelves with Hispanic and other ethnic items. As the demand for ethnic products increases small and local manufacturers have more opportunity to break into national chains.
We are beginning to see many retailers develop diversity programs where they are focused on forming partnerships with local suppliers that produce ethnic or local items. Some retailers that have diversity programs include Walmart, Target and Southeastern Grocers and that is only naming a few.
According to an article written by Alyssa Riccardelli, Category Business Manager, Health & Beauty at Daymon Worldwide, Inc., “Bilingual associates, in store signage, and other marketing tactics such as bilingual ad circulars and store announcements can be particularly helpful in creating retailer loyalty.” Riccardelli makes a great point. Having a broad ethnic product selection does not automatically make a retailer’s diversity initiative successful. Rather connecting with their ethnic consumer through marketing campaigns and other promotional opportunities is essential in developing a well-rounded diversity program. Not only will those tactics increase customer loyalty but will also drive new business from customers who are willing to spend more.