Today’s economy is still felt by many. Last week, the U.S. Department of Labor announced that although the unemployment rate decreased by 0.4% in January 2011 compared to December 2010, 9% percent of the labor force in the U.S. is still unemployed. While most would expect consumers to make adjustments to their expenses to save cost, specifically those on the lower-income scale, Mintel shows Spanish-dominant Hispanics are not stepping down.
According to a new release by Mintel, when it comes to personal care, band names are still sought after by Hispanic consumers despite the current economic environment. Among that group, Spanish-dominant Hispanics are more likely to continue buying name brand personal care products than English-dominant Hispanics.
“Spanish-dominant Hispanics are most likely to stick to their favorite brand of hand soap, body soap and shower gel, signifying that less acculturated Hispanics remain loyal to the same brand despite the economy,” says Leylha Ahuile, senior multicultural analyst at Mintel. “English-dominant Hispanics tend to have higher household incomes and apparently are less concerned with brand name soaps and more focused on saving money.”
The survey found 51% of Spanish-dominant consumers continue buying their favorite name brand lotions compared to 35% for English-dominant Hispanics. 27% of Spanish–dominant Hispanics vs. 20% of English-dominant Hispanics remain loyal to their facial cleansers. Even when it comes to toothpaste or mouthwash, Spanish-dominant Hispanics are more likely to stick to their favorite brand compared to English-dominant Hispanics (69% vs. 65%).
While a recent Gallup poll asked people from January 7-9, 2011 to name the most important financial problem they face, the highest response was the lack of money or low wages. Yet 64% of Hispanics who were surveyed in the Mintel release had an income between $25,000 – $49,000 and even then, they claim they continue purchasing name brand products such as body soaps or shower gels.
Interestingly, this doesn’t mean Hispanics are not looking to save money, they are just not trading down on personal care products they have come to enjoy. One thing they are keeping an eye out for to save a few bucks in is multifunctional products. For example, 65% of those surveyed earning $25,000 – $49,000, show an interest in two-in-one shampoo/conditioners and 83% would lean towards toothpaste that can also whiten their teeth and can serve as mouthwash.
“In spite of Hispanics’ lower-than-average household income level, they indexed higher than non-Hispanics in the consumption of personal care products in 2009,” notes Leylha Ahuile. “Over the last six years, Hispanics have consistently increased their spending on personal care products. And within personal care, Hispanics index higher than non-Hispanics in the subcategories of hair care products and bath products.”
I don’t blame them, when I find a personal care product I truly like I also stick to it. I’m open to try new products but wouldn’t be too quick to test a downgrade on my hair, teeth or skin.