Community, family and food are three high-profile values in many cultures, but particularly anchor Hispanic populations. They carry variances originating from wide geographical dispersions with different ethnic groups, customs, traditions and art forms. As marketers, we have seen the stats of the tremendous growth, success and spending power of Hispanic audiences. However, we also know that communication fluency is not enough; we also need to be authentic and inclusive. This need is amplified among U.S. Hispanics. They are rapidly becoming the multicultural majority, blending cultures and building on the past while creating their own identity for the future. These nuances can pose huge communication challenges as brands seek to create messages that resonate with audiences to grow customer segments while keeping costs down and maintaining scale.
New marketing paradigms require new marketing strategies. We need to look no further than community, family and food for an enduring gathering place that is ingrained and shaped by the communities in which it is located: the local corner grocery store. Uniquely reflecting the community it serves and grounded not just in proximity, the local store is a mirror to indigenous tastes and needs that are often underserved by mass-market outlets. Small ethnic retail stores are increasingly relied upon, while steeped in tradition.
In today’s hyperconnected world of denser urban locations, faster-paced lifestyles and more challenging working hours, convenience is the ultimate currency. Smaller-format convenience stores are tailored for today’s busy on-demand lifestyle, and according to the Nielsen Quest for Convenience Report, they now account for 25% of fast-moving consumer goods sales and 70% of shopping trips. Proximity to home, immediate consumption, speed and convenience continue to be major driving forces for consumers of all ages.
Consumers increasingly want it all, and they want it now. Convenience stores are built for today’s busy, on-demand lifestyle, providing more frequent, less expensive trips on items that may be ineffective for supermarket, online or delivery options. Proximity to home is the No. 1 factor for visitation over price, selection, service or store appearance considerations.
Hispanics are more likely than other ethnicities to be daily shoppers of convenience stores. They are more likely to be monthly shoppers as well.
Products sold are fast-moving, with 83% of store purchases being consumed within an hour and 65% consumed immediately.
Millennials overwhelmingly prefer convenience stores — 16% visit a convenience store daily, which is five percentage points higher than any other generational group, and just one percentage point less than the number of millennials who opt to shop e-commerce retailers such as Amazon every day.
Convenience stores are fertile marketing ground, delivering high concentrations of Hispanics and younger consumers with high visitation and purchase frequency to build brands, influence immediate consumption and encourage sampling and category conquesting.
Despite this channel’s significance, there exists a clear void with many marketing shortfalls and data blind spots within it, especially for independently owned locations, which make up an estimated 64% of the market.
Companies uniquely positioned in data and advertising can unlock value at previously “underground,” independent, small-format convenience stores to enable marketers to find, engage, understand and create value in this crucial channel.
- Engagement: Nothing captures consumer attention like their money. Checkout is a critical decision making time for consumers, when they formulate their final purchasing conclusions. They watch the register and are focused on it.
- Advertising is addressable at the store level and is fully customizable against requirements.
- First-party information: Use a data-first approach anchored in real-world, real-time, first-party information for continuous feedback, optimization and messaging.
- Dynamic ad insertion is based upon SKU level scan for trial, upsell, complementary categories and mobile retargeting based upon purchases.
Solid sales growth and performance are critical in driving long-term sustainability and corporate business success. In this increasingly competitive landscape, understanding retail measurement is critical to track and understand store activity. Companies today have a view into what is happening to their brands in the general market, but most of them have a blind spot in the urban convenience channel. With the rapid growth of multicultural households in America and their unparalleled influence on the marketplace, companies must consider new strategies to appeal to these critical consumers and leverage new growth opportunities.
A comprehensive view of what’s happening with brands in stores in the urban convenience channel can be gathered from data and related analytics to help manufacturers understand what is being purchased in this previously untapped channel. In-store data can offer clients actionable insights to assist with their business plans.
Business strategies must strongly consider multicultural consumers today. For manufacturers and advertisers looking to connect with this consumer segment, data and insights are essential for ensuring that their products and advertising resonate. Information on top categories, brands, SKUs or flavors in this channel can help companies better understand their consumers. Understanding how much consumers spend, the typical average basket size, what items are commonly being purchased together and how frequently can help advertisers craft strategies for reaching their ideal demographic.
By understanding product and brand trends, marketers can optimally reach and engage shoppers, maximizing ROI.