Chicago home to the 3rd.- largest Hispanic population in the US

Chicago's Hispanic market untapped

Canada Export---March 23, 2009

As Canadian companies look for ways to bring their products and services to the Chicago market, they may want to consider the rapidly rising Hispanic demographic.

While the Hispanic community is vibrant all across the U.S., Canadian companies looking closer to home may want to consider the Chicago area which boasts the third-largest Hispanic population in the U.S. This group accounts for 26% of the population in the Chicago area, and their numbers continue to climb.

Named the fastest-growing group in America by the U.S. Census Bureau, the Hispanic population grew more than 61% between 1990 and 2003. According to Canadian trade commissioners, this demographic holds great potential as consumers of Canadian products and services but it remains largely untapped.

“The Chicago Hispanic market is young, conscious of changing trends, has a higher than average disposable income and holds a buying power of over $11 billion per year in Chicago and $19 billion in Illinois,” says Ann F. Rosen, Trade Commissioner at the Canadian Consulate General in Chicago. “For Canadian companies looking to expand into the Midwest U.S. market, this is a group that cannot be ignored. To be competitive, Canadian companies must learn about how to reach this booming section of the market.”

According to the Association of Hispanic Advertising Agencies, most American companies only allot an average of 2.4% of their advertising resources to targeting the Hispanic market. They also point out that a minimum 8% allotment is necessary to effectively begin to reach the market. This leaves the field wide open to opportunities for Canadian companies.

“Companies looking to enter this market must be aware of its cultural differences, the varying levels of acculturation to American customs, the nuances of language as seen through Hispanic eyes and the impact of packaging,” says Rosen.

For the Canadian company this might mean packaging products with a knowledge of what styles, fonts and colours appeal most to this market. Companies might need to carefully consider wording their packaging to reach out to this specific consumer who may have different needs, values and desires than other consumers. Also, the use of both English and Spanish on all materials is another key tool.

However, the research cannot stop there. In fact, this is where the Canadian Trade Commissioner Service can assist. Trade commissioners can help companies go beyond a superficial approach to targeting this market and move towards an educated, culturally relevant method of promoting their products.

“By discovering the personality and pulse point of this expanding market—which we know well—Canadian companies can find ways to make their products more appealing to this group and, in turn, secure a firm position in Chicago's Hispanic market,” says Rosen.