CHICAGO—When times are tough, consumers usually opt for less-expensive products in order to save money and lower-income households are more likely to trade down; but one group breaks the mold—Spanish-dominant Hispanics. The latest research from Mintel found lower-income, Spanish-dominant Hispanics are still buying name-brand personal care products at a higher rate than their English-dominant counterparts.
Sixty-four percent of Hispanics surveyed who have an income of $25,000 to $49,999 said they still buy name-brand body soaps or shower gels. Meanwhile, 64 percent of Spanish-dominant Hispanics, compared to 58 percent of English-dominant Hispanics said they continue to buy name-brand body soaps or shower gels despite the economic downturn.
“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," said 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."
Spanish-dominant consumers are also more likely to stick to their favorite name-brand lotions (51 percent versus 35 percent of English-dominant consumers), facial cleansers (27 percent versus 20 percent of English-dominant consumers) and toothpaste or mouthwash (69 percent versus 65 percent of English-dominant consumers), refusing to trade down to more affordable private-label personal care products.
“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," Ahuile noted. “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."
However, lower-income Hispanics are still interested in saving a few dollars with multifunctional products—65 percent of those who earn $25,000 to $49,999 are interested in two-in-one shampoo/conditioner and 83 percent would be more inclined to purchase toothpaste that can also serve as a mouthwash and whitener.