A growing population, community focus on beauty and celebrity, and mainstream personal care brands marketing directly to Latinos all seem responsible for this market development.
Cologne for Men
Men’s grooming is increasingly important, and the fragrance segment is particularly relevant for brands looking to reach ethnically diverse shoppers.
“Fragrance purchases among Hispanic men surged 15.5 percent [in 2014], while among non-Hispanic men fragrance was up a more modest 5 percent,” Alexia Elejalde-Ruiz wrote in his article about the Hispanic beauty market for The Chicago Tribune.
And Nielsen notes a discrepancy in spending practices between US-born shoppers and others: “For example, U.S.-born Hispanics, who are the biggest beauty spenders across the board, spend the most money on cosmetics, while foreign-born Hispanics spend most on fragrance.”
There’s significant purchasing power here, and the consumer behaviour trend is toward not only fragrance but also “spending on hair spray, shaving cream, beard and mustache coloring and after-shave all grew among Hispanic men last year while declining among non-Hispanic men,” according to Nielsen data.
Young and beautiful community
The survey noted that 75% of Latinos born in the states are under 35 years old—“the coveted group of millennial shoppers, who are known to be heavy purchasers of beauty products,” emphasized James Russo, Nielsen's senior vice president of global consumer insight.
As a community, the Latino population is very interested in beauty. “Hispanics are more likely than non-Hispanics to try different hair styles; purchase a perfume after sampling it in a magazine; be influenced by a celebrity endorsement; and to use natural or organic beauty products,” Russo told the Tribune. Products for beautiful babies, like baby cologne, lotions and powders also sell well.
Advertising dollars
Statics from the survey show that cosmetic purchases dropped 1.2% among non-Hispanics, while growing nearly 7.5% among Hispanic consumers.
In an earlier Nielsen report considering how brands and retailers can best cater to Hispanic shoppers, the consumer research corporation proposed that “it will also be important for retailers to manage category changes so they don't over- or under-represent their consumers. For example, stores with strong Hispanic consumer bases continue to sell at or above the national average of African-American beauty products, which limits the development of Hispanic beauty products.”
Consequently, brands have been reaching out directly to Latino shoppers with both mainstream and specialized product lines and campaigns. “As beauty brands get savvy about Hispanic market trends, companies are hiring spokespeople and partnering with celebrities to ensure that the face of the industry looks more like the face of America,” wrote Cosmetics Design when L’Oreal teamed up with Genesis Rodriguez late last year.
"As a marketer who is trying to promote beauty and use beauty as a way to generate in-store sales and in-store traffic, you really can't win without the Hispanic consumer," told the Tribune.