Debunking the Hispanic Store Brands Myth

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December 2, 2009

For years, marketers have taken for granted that Hispanic consumers have a strong affinity to national brands and are extremely brand loyal.

However, there are fissures in that theory as more Hispanics seek alternative choices such as store brands, according to Hispanic retailer roundtable hosted and moderated by Supermarket News during an ECRM (Efficient Collaborative Retail Marketing) event.

Many Hispanic shoppers are risk averse because they don’t want to waste money making poor choices. One way to combat that fear is through sampling programs that can verify quality and taste preferences, according to the roundtable as reported in Supermarket News.

Another avenue to increase trial is to gain the Hispanic customer’s trust by introducing them to economy and value tiers of store brands first and then expand their experience to include more premium categories over time, according to the report.

Roundtable participants also discussed the benefits of integrating Hispanic foods and other products into the mainline store instead of segregating them, which will increase awareness of store brands and trial.

One participant also noted that store brand marketers should focus on second- and third-generation Hispanic shoppers where the greatest opportunities lie because they are more acculturated and open to prepared take-out food, frozen food and other quick meal ingredients.

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