What #Goyaway Means for Hispanic and Multicultural Marketing in 2020

What #Goyaway Means for Hispanic and Multicultural Marketing in 2020
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Public support for the Trump Administration risks serious consumer backlash across multicultural segments. Here’s what brands need to know about multicultural politics in 2020.

On July 9, 2020, in a White House event with other Hispanic leaders, Goya Foods CEO Robert Unanue said he felt “truly blessed” to have a leader like President Trump.

Soon after, liberal Hispanic political figures like Julián Castro and Alexandria Ocasio-Cortez took to Twitter with the hashtags #Goyaway and #BoycottGoya to call for a boycott of Goya Foods. Anti-Trump Republican strategist Ana Navarro-Cárdenas also weighed in, encouraging her Twitter followers to support alternative Hispanic heritage brands like Badia and Conchita.

It is unclear what effect this will have on Goya’s popularity with Hispanic consumers or other segments; what is clear, however, is that the controversy merits a closer look at the politics of U.S. multicultural consumers.

In June 2020, Collage Group asked a nationally representative sample of over 2300 respondents where they stood on personal ideology and, for our 18+ respondents, who they intend to vote for in the presidential election this November.

And it’s the latter question that probably motivated President Trump’s meeting yesterday with Hispanic leaders like Unanue. Our research shows that multicultural consumers, including the Hispanic segment, have a decisive preference for presumptive democratic nominee Joe Biden.

Black consumers have the strongest support for Biden, with 71% intending to vote for the Democratic front-runner come November. A little over half of the Hispanic and Asian segments say they will most likely vote for Biden as well. These within-segment majorities may seem fragile, but it holds a solid lead over the mere 20 percent of Hispanic and Asian consumers who plan to vote for President Trump.

Additionally, we see no indication in our data that Hispanic Acculturation or heritage country influences these voting intentions. While Hispanic consumers of Mexican and Cuban heritage do tend to be more conservative, and those of Puerto Rican or South American heritage tend to be more liberal, these patterns do not show up in Hispanic 2020 election preferences.

This may be because most Hispanic consumers perceive the Trump Administration to have had a negative impact on their personal lives. From our most recent data on racism in the United States, we see that 70 percent of Hispanic consumers agree that discrimination against the Hispanic/Latino community has gotten worse since the 2016 election.

Overall, Hispanic consumers today tend to be less conservative, but not necessarily more liberal, than the White segment. Asian consumers as well are less likely to be conservative than White consumers, and they are also more likely to identify as moderates. The Black segment, however, is significantly more likely to identify as liberal.

So, what can brands do with this information? First, recognize that President Trump is deeply unpopular with multicultural consumers. Any signals of support for the Trump Administration threatens substantial backlash across multicultural communities. For the Hispanic community specifically, President Trump’s history of anti-Hispanic sentiment and action has turned off consumers who historically share a preference for conservative politics.

At the same time, you need to recognize that most multicultural consumers do not actively identify with liberal politics either. To best navigate the coming months, you need to identify the specific issue areas multicultural consumers want brands like you to act. 

Learn more about Collage Group’s hispanic marketing insights

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The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

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Celebrating Pride Month in the Age of #BlackLivesMatter

Celebrating Pride Month in the Age of #BlackLivesMatter
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Ongoing protests against racism and police violence in America have refocused Pride Month on its protest roots. Read on to discover how the LGBTQ+ community is engaging in support of #BlackLivesMatter.

June is Pride Month. And there is plenty for the LGBTQ+ community to celebrate – earlier this month, for example, the Supreme Court ruled that federal employment protections cover LGBTQ+ people. While only 8% of respondents to a 2019 Collage Group survey say they celebrate Pride Month regularly, this figure jumps to 18% for Gen Z. Young people are more likely than ever to be supportive of LGBTQ+ rights, and are far more likely than older generations to personally identify as LGBTQ+.

Recent years have seen ever-growing Pride Month celebrations, including parades across the world and recognition from many of the world’s biggest brands. In 2020, both the COVID-19 pandemic and ongoing anti-racism protests make it impossible to celebrate Pride Month like usual. As gay rights have expanded and acceptance of the LGBTQ+ community has grown, Pride Month has become something more akin to a party than a protest. This year, however, advocates encouraged people to remember that Pride has its roots in the struggle between marginalized communities, including communities of color, and the police.

On June 28, 1969, police raided the Stonewall Inn, a gay bar in Greenwich Village, New York City. The patrons resisted, and protests grew violent. Stonewall attracted a diverse clientele of people across the LGBTQ+ spectrum. While the exact sequence of events is fuzzy, many credit Black and Hispanic transgender women, including activists Marsha P. Johnson, Sylvia Rivera, and Stormé DeLarverie with leading the fight that evening. LGBTQ+ people and allies from the surrounding neighborhoods flocked to join the protests, which lasted five days. The Stonewall Riots represented a turning point in the gay rights movement. Afterward, gay rights organizations and publications sprang up around the country. In 1970, the LGBTQ+ community marched through New York City on the anniversary of the riots, participating in what is widely thought of as the first Pride Parade.

Recognition of this history has led to increased activism. In our recent survey on racism and current events, we found that LGBTQ+ consumers are significantly more likely than non-LGBTQ+ consumers to have engaged in direct action in support of the #BlackLivesMatter movement in recent weeks.

This segment’s activism has direct implications for brands and corporations. LGBTQ+ consumers are significantly more likely than non-LGBTQ+ consumers to believe companies have a responsibility to speak out against racism and advocate for changes in government policy.

And they are more willing to support those brands that do take a stand. 64 percent of LGBTQ+ respondents said they would be “more likely to buy products from brands and companies that take a stand against police violence,” in comparison to 47 percent of non-LGBTQ+ consumers.

If your brand wants to capture market share with the LGBTQ+ segment, remember that their fight for equality and civil rights has always existed in parallel, and often hand-in-hand, with the struggle for racial justice. That’s a strategy you can employ every month, not just in June.

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The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

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On the Use of The Terms “Black” and “Hispanic”

On the Use of The Terms “Black” and “Hispanic”
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Members often approach us to ask about the terminology used to refer to a few of the segments we cover. Should we say Black or African-American? Are people moving to Latinx and away from Hispanic? Read on for our own view on these issues.

Black vs African-American

Over the past few years, we’ve engaged in extensive conversation both internally and externally with members on which term—”Black” or “African American”—is most appropriate when referring to black individuals and African-American individuals. In the past, we’ve defaulted to the adjective “African-American” to describe the segment and also used “African Americans” as shorthand for the segment.

Recently, however, we’ve seen a shift toward the use of “black” as the primary modifier in many organizations and within academic centers and policy organizations (e.g., black Americans, black consumers). For example, Pew Charitable Trust generally uses the term “Black” as do Brookings InstituteUrban InstituteP&G and many other highly respected organizations.  Thus, we now use “black” as a modifier (e.g., black segment, black Americans) and “Black” as shorthand for the segment.

Our decision to use the term “b/Black” also issues from the fact that it is technically more correct as this term can apply to all individuals descended from the African diaspora, including those that do not identify with African or American heritage. Consider for example recent black immigrants from Africa may not identify with American heritage, or recent black immigrants from the Caribbean who may not identify with either African or American heritage.

Additionally, we’ve seen indicators that this term is more associated with the move among many black Americans to re-appropriate “blackness,” an appearance and expression the mainstream historically viewed as negative, in order to invert that dynamic, as well as empower and celebrate.  Look no further than “Black Panther,” “Black Twitter” and the show “Blackish” for examples.

It is important to note, however, that there are still many views on what terminology is the best to use. This short video from PBS’s program on black culture Say It Out Loud does a great job of drawing out all the challenges of settling on a single term to refer to a group that is internally quite diverse. And this article from economist Margaret Simms at the Urban Institute highlights the importance of acknowledging structural racism regardless of the terminology one ultimately decides on.

Thus, we think one of the best approaches companies can take when deciding which terminology they use is to be informed and thoughtful, and to remain open to candid discussion about why they’ve made the choice they make.

Hispanic/Latino-a/LatinX

Over the past few years, there has been increased discussion and controversy over the use of specific terms referring to the Hispanic population. It has long been the Collage standard to use the word “Hispanic,” but we now have data to support your own decisions in this space.

As you can see, the most popular way for Hispanic consumers to self-identify is in direct reference to their heritage country – as Mexican, Cuban, Bolivian, etc. About one third of Hispanic consumers identify in this way, but it is much more popular for the Unacculturated Hispanic segment. The second most popular term to use is “Latino” or “Latina.” These two options together have a slight plurality for Bicultural Hispanic consumers. For the Acculturated Hispanic segment, the most popular term to use is “Hispanic.” If your target Hispanic consumers have a variety of heritage countries, then your best bet will be “Hispanic” when communicating in English and “Latino” or “Latina” for communicating in Spanish.

Despite the popularity of the term “Latinx” in young, progressive, and especially queer Hispanic spaces, only one percent of Hispanic consumers opt for that term. This finding aligns with others’ research on the subject, but we wanted to dig deeper. We asked Hispanic consumers whether they felt positively, negatively, or neutral towards the use of various terms to describe people of their background, and we found that “Latinx” only has a net positive response for younger Hispanic consumers. But this margin is quite narrow, suggesting that the term is highly controversial even for the Millennial and Gen Z Hispanic segments.

And this makes sense for a few key reasons. First, the term “Latinx” is still relatively fresh in the public consciousness, and it takes time for communities to accept new terms, especially if they seem to be more popular outside of the community than inside. Second, notice that Hispanic women are more positive towards the term “Latina” than Hispanic men are towards “Latino.” We see a distinct Latina pride in the modern Hispanic consciousness, and for many “Latinx” threatens to erase that progress.

Finally, and most importantly, “Latinx” is a term of, by, and for individuals who do not feel represented by gendered language. If your consumers explicitly identify as Latinx, or if you yourself feel a connection with the term, use it! But Latinx is not your only option for non-gendered language, and despite its cache on college campuses, it is not currently a preferred or even appreciated term for most Hispanic consumers.

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The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

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Juneteenth 2020: What Black Consumers Expect of Brands and Corporations Today

Juneteenth 2020: What Black Consumers Expect of Brands and Corporations Today
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As we commemorate the end of slavery this Juneteenth, let us make clear our commitments to racial justice and equality.

On June 19th, we commemorate the final enforcement of the Emancipation Proclamation. Black communities across the country gather in Juneteenth celebrations to honor the promise that all formerly enslaved people in this country would henceforth live as free citizens. But American institutions still maintain and reinforce inequalities along racial lines, such as wealth disparities between Black and White households, fewer housing opportunities being offered to Black consumers, over-policing based on skin color, and racial disparities in the health impacts of COVID-19.

Most Americans know this to be true. In our recent survey of over 2,300 U.S. consumers, 53 percent agreed that systemic racism permeates American society today. Black consumers were the most likely to agree, at 62 percent. Does that mean almost half the country is in denial about systemic racism? No – over a quarter of the total population, including more than a fifth of the Black segment, is still unsure.

This finding suggests there is still room for brands and companies to educate both their consumers and employees on the realities of our current system.

But education is only a first step. All industries must reckon with the fact that they have for too long been part of the problem. And no one is exempt. The lion’s share of Black consumers sees room for a lot of change across various institutions and aspects of daily life to address racial inequalities. Over the past few weeks, we have seen brands take action, reconsidering mascots, cutting ties with police departments, and supporting minority-owned small businesses, to just scratch the surface.

Besides wanting companies to tackle the historical issues within their own industries, Black consumers also want to see brands taking active stances against racial inequality in other spheres. Across generations, there is high support for companies leveraging their power to change government policies and support racial justice (72%), as well as taking public stands against police violence (69%). Older Black consumers, for whom the current protests may echo previous struggles towards racial justice, tend to be even more supportive of these actions.

If your brand is not able to address these issues head-on, there is always room to support other organizations which take more active roles. We surveyed consumers on a selection of organizations fighting for racial justice, and we found that Black consumers see #BlackLivesMatter and the NAACP as the most prominent and highly regarded institutions focused on the Black community itself.

These data points provide a clearer understanding of how Black consumers perceive a variety of categories in the context of systemic racism, and some options available for you to act. But there is so much more to learn as part of your journey to becoming an agent of change. In the coming weeks, Collage will continue to release more data and external resources on consumer perceptions of racism, responses to the nationwide protests for racial justice, and actions you can take to create a more just and fair society.

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The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

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Hispanic Acculturation in 2020

Hispanic Acculturation in 2020
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The Road to Cultural Fluency begins with Collage Group. Fill out the form to download a sample of the Hispanic Acculturation insights. And, don’t miss our next webinar:

By 2030, one in every five Americans will be Hispanic. 

The larger the Hispanic population grows, the more important it becomes to understand, appreciate, and activate on the diversity found within. It is therefore imperative for brands and marketers to understand how this segment varies internally, and not just in comparison to other multicultural segments. To do this, the Collage Group provides an Acculturation Model to evaluate differences within this segment. Our model centers on language usage and cultural self-perception, with the general breakdown as follows:
  1. Acculturated Hispanic: More likely to use English across language contexts, and to identify as American over Hispanic
  2. Bicultural Hispanic: More likely to use a mix of English and Spanish across language contexts, and to identify as both American and Hispanic
  3. Unacculturated Hispanic: More likely to use Spanish across language contexts, and to identify as Hispanic over American

Just at the demographic level, we see tremendous differences across these Hispanic acculturation segments. For example, Acculturated and Bicultural Hispanic consumers are younger, more highly educated and affluent, and more likely to have been born in the United States.

But these demographic differences only go so far. To give our members a better picture, we fielded a survey in January 2020 to a representative sample of 1553 Hispanic consumers. The survey focused on answering three key questions for marketing across Hispanic acculturation segments:

  1. Language Usage – Should I Communicate in Spanish or English?
  2. Cultural Affinity – Which Cultural Cues Should I Activate On?
  3. Preferred Labels – How Should I Refer to My Consumers?

Keep reading to see what we learned about each of these topics and download the attached documents for a selection of our summary findings.

Language Usage – Should I Communicate in Spanish or English?

When it comes to language, there are two things to consider. First, the ability to speak English. We see that three quarters of the U.S. Hispanic population speak English “well” or “very well,” but this does vary by acculturation. Only six percent of Unacculturated Hispanic consumers say they speak English “very well,” while over two thirds admit they do not speak English well or even at all.

This explains why we see that Unacculturated Hispanic consumers to interact with Spanish-speaking Hispanic professionals, particularly when it comes to health care and financial services…

Cultural Affinity – Which Cultural Cues Should I Activate On?

Of course, language is not the sole differentiator across Hispanic Acculturation segments. It is also important to understand how connected Hispanic consumers feel with their cultural heritage. Over three quarters of U.S. Hispanic consumers say that they take pride in their Hispanic traditions and the influence Hispanic culture has had on America, and that it is important to keep that heritage a part of their lives.

And about the same number agree that it is important to support Hispanic-owned companies, as well as those which hire and promote Hispanic workers, stand up for the Hispanic community, and represent Hispanics authentically. There are no differences across Hispanic Acculturation for these sentiments, which means that brands showing up in these ways can cut across language barriers to resonate with the broader Hispanic community.

The key differentiator for the Acculturated Hispanic segment is that only a third of them regularly “feel Hispanic” in everyday life. Compare this to two thirds of Bicultural and 80 percent of Unacculturated Hispanic consumers. For more nuance, you can look to levels of engagement with Hispanic passion points across acculturation segments…

Preferred Labels – How Should I Refer to My Consumers?

Over the past few years, there has been increased discussion and controversy over the use of specific terms referring to the Hispanic population. It has long been the Collage standard to use the word “Hispanic,” but we now have data to support your own decisions in this space.

As you can see, the most popular way for Hispanic consumers to self-identify is in direct reference to their heritage country – as Mexican, Cuban, Bolivian, etc. About one third of Hispanic consumers identify in this way, but it is much more popular for the Unacculturated Hispanic segment. The second most popular term to use is “Latino” or “Latina.” These two options together have a slight plurality for Bicultural Hispanic consumers. For the Acculturated Hispanic segment, the most popular term to use is “Hispanic.” If your target Hispanic consumers have a variety of heritage countries, then your best bet will be “Hispanic” when communicating in English and “Latino” or “Latina” for communicating in Spanish.

Despite the popularity of the term “Latinx” in young, progressive, and especially queer Hispanic spaces, only one percent of Hispanic consumers opt for that term. This finding aligns with others’ research on the subject, but we wanted to dig deeper. We also asked Hispanic consumers whether they felt positively, negatively, or neutral towards the use of various terms to describe people of their background…

Discover More Insights

The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

Read More »

Engaging Gen Z and Millennials in a Time of Crisis

Engaging Gen Z and Millennials in a Time of Crisis
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Learn how the current pandemic is affecting Gen Z and Millennials and how you can connect with them both now and in the future. Fill out the form to unlock more GenYZ and Millennial Insights.

Five months in and 2020 is already proving to be a year of unprecedented change: the COVID-19 pandemic, an emerging recession, and a high-stakes election.

Now more than ever, brands and companies need to understand and stay connected and relevant with Gen Z and Millennials. These are the insights you need to connect with these young consumers now and throughout the rest of the year.

COVID-19 has forced all of us to reconsider how we interact with the world. The uncertainty about how the crisis will evolve and impact us – both as individuals and as a society – has left us without guiderails for how to plan for next month, let alone past 2020. No one can predict the future, but we must be ready for whatever comes next, whenever it comes.

We at Collage have done our best to assess this situation and provide you with answers to three key questions:

1.     How will COVID-19 impact young consumers in the near and medium term?

2.     How can brands, companies, and other organizations connect with young consumers right now?

3.     How can brands, companies, and other organizations connect with young consumers beyond the pandemic?

The Emerging Recession Will Likely Have Serious Long-Term Effects for Millennial and Gen Z Consumers

Make no mistake: economic downturns have an especially harsh impact on young consumers. For example, peak and average unemployment rates during the Great Recession were much higher for people ages 25-35 than for older segments. And with May 2020 national unemployment numbers expected to reach as high as 20%, we can expect young Americans – who are more likely to be employed in industries directly impacted by social distancing – to feel the brunt of the current slowdown.

The recession isn’t just a short-term issue—negative economic effects from recessions often linger for young people, such as stagnant wages, low levels of savings, and delayed life milestones. We saw this with older Millennials after the Great Recession.

Since the current picture for Gen Z looks a lot like that for Millennials during the Great Recession, it’s safe to assume they too will feel lingering effects of this recession for many years. And Millennials, facing their second economic disaster in two decades, will likely suffer again. But a scary economic outlook for young segments does not mean that brands should shift their marketing efforts away from Millennials and Gen Z.

Millennial and Gen Z consumers will continue to represent an ever-growing share of your target markets.  No consumer brand can afford to abandon these young segments now, no matter what happens in the near term. Their loyalty will be responsible for powering your return to normal growth in the recovery and beyond. It is in your immediate and long-term interest to let Gen Z and Millennial consumers know you are on their side during these difficult times.

Below are two insights from our recent genYZ study (attached above) that help you understand how to let young consumers know you value them and are on their side.

Young Consumers Want Brands to Be Practical, Not Preachy

About 4 in 5 consumers believe that brands have a responsibility to step up in response to COVID-19. Overall, consumers consider donating medical supplies and donating products and services to people in need to be the two most valuable actions brands can take response to the COVID-19 pandemic. Young consumers, in particular, respond well to brands that take well-rounded approaches to helping the community, their customers, and their employees.

If you decide to put out messaging around COVID-19, you need to make sure it speaks to the lived realities of your audience. Feel-good messages will fall on deaf ears in communities that feel like their tragedies are not being taken seriously. Young people are especially attuned to false or empty messaging. They want to see organizations put their money where their mouth is and take concrete action on issues of activism and community welfare.

 

Financial Stress, Inclusion, and Environmental Sustainability Remain Concerns

The COVID-19 pandemic has thrown into sharp relief other major concerns distinctly felt by young consumers. Rising unemployment feeds into longstanding and widespread concerns of not having enough money to keep up with monthly expenses. Disproportionate access to public and private resources reminds consumers of all the ways racism, sexism, and homophobia still influence societal outcomes. And seeing the effects of quarantine on air and water quality around the globe highlights the effect human activity has on global climate change and our environment.
These are issues that most Americans, but particularly young segments, are passionate about! Activating around these issues is an efficient and effective way to build and maintain resonance as the COVID-19 crisis evolves and consumer mindset shifts to the 2020 election and beyond.

Fill out the form and download the presentation to learn more about key issues facing today’s young consumers and how to activate on the topics they care about.

Discover More Insights

The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

Read More »

We Are At A Tipping Point

We Are At A Tipping Point
CEO and co-founder David Wellisch on the protests engulfing the nation and what we at Collage are doing to help our members address the challenge.
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This week, Collage Group staff came together to discuss the protests against the police brutality, systematic racism, and racial injustice plaguing our nation.

We held an open and honest conversation where our staff and leaders told personal stories echoing the patterns of injustice. Those of us who are Black recounted stories of racism as children, and gave accounts of the tragic and painful experiences that they continue to experience in daily life.  All of us shared in the hopelessness and helplessness felt by Black America.

Our hearts ache over the many recent tragedies, from the lynching of Ahmaud Arbery in Atlanta, to the police shooting of Breonna Taylor in Louisville, and to the murder of George Floyd by a police officer.  

We’re also reminded of the continued patterns of the less obvious manifestations of racism: a call to police from a white woman in Central Park announcing she was being threatened by “an African-American man,” as well as the disproportionate impact of COVID-19 on people of color.

Enough is enough.

But where do we start to break the cycle? How do we educate, inspire, and enact policies that support equal rights, justice, and humanity? We are starting from the inside.  I want to make sure that all Collagers understand the roots of racism and undertake efforts to lead by example.

The findings from our recent survey begins to illustrate the depth of the challenge ahead.

We asked Americans across racial and ethnic groups if they thought racism was a serious problem in the country today. As the chart below shows, less than 40% of white consumers recognize racism as a concern in this country.

The divergence in views may be driven by personal experience and conceptions of racism.

According to Pew Research Center, many white Americans have never been subject to the covert and implicit forms of racism that many people of color experience. Many may have an outdated understanding of racism that fails to recognize the structural issues that have never really been addressed.  School-to-prison pipelines, food deserts, mortgage discrimination, and redlining are just some of the institutional factors whose legacies have never been confronted by so many, especially older white Americans.

Overcoming structural racism will require intentional action and concerted effort by all stakeholders in American society. We each have a part to play in ensuring all Americans feel free, safe, and supported.

More than 10 years ago, Collage Group was founded to help leading consumer organizations better serve the diverse cultural fabric of America. In that spirit we are offering the following initiatives to support our members.

  1. A new survey diving deep into the attitudes and expectations consumers are reporting now with implications for brands and companies.
  2. Compilation and distillation of authoritative third-party resources on the Black experience of structural racism, provided in the actionable language marketers need.
  3. A virtual Roundtable with some of our member companies across industries who are directly engaged as individuals and professionals in this crisis, to understand how their companies are mobilizing in response.
  4. Continue to evolve our thinking about ways to galvanize the Collage membership to act in concert in a transformative initiative.

We are always a phone call away if you are in need of any other support. In these trying times, social and political voids provide an opportunity for brands, companies and their leadership to step in to encourage the change that ensures all Americans experience the liberty, peace, and justice too few can rely on.

David Wellisch

CEO

Catch Up On These Insights

The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

Read More »

Spending Shifts and Social Values During COVID-19

Spending Shifts and Social Values During COVID-19
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A pandemic has upended your 2020 strategy, and you need to stay relevant with the consumers who will power your return to normal growth, regardless of how they are impacted today. These are the insights you need to resonate in response to the COVID-19 crisis and its aftermath. The document available for download provides an excerpt focused on Hispanic consumers.  Fill out the form to download detailed insight into the top issues prime for brand activation in the near and midterm for all consumers by race and ethnicity.

 

COVID-19 has forced all of us to reconsider how we interact with the world.

The uncertainty about how the crisis will evolve and impact us – both as individuals and as a society – has left us without guiderails for how to plan for next month, let alone past 2020. No one can predict the future, but we must be ready for whatever comes next, whenever it comes.
We at Collage have done our best to assess this situation and provide you with answers to three key questions:

1. How will COVID-19 and the public response impact consumer spending?

2. What do consumers expect right now from brands, companies, and other organizations?

3. Which issues remain resonant for consumers beyond the pandemic?

Multicultural Consumer Expenditure Share Grew During the Great Recession

Make no mistake: economic downturns have the harshest personal impacts on the most vulnerable consumers. Peak unemployment rates during the Great Recession were much higher for Hispanic and Black consumers (13.1% and 16.8%, respectively) than for other segments. And with April 2020 national unemployment numbers already expected to be between 15 and 20 percent, we can expect these same segments – which are also more likely to be employed in services directly impacted by social distancing – to feel the brunt of the slowdown.

But despite these setbacks, the Great Recession did not reverse the general historical trend towards increased multicultural share of total consumer expenditures. The key ingredients here are fourfold: (1) younger consumers have higher future earnings potential overall; (2) rising education rates increase the rate at which their future earnings will grow (3) larger families require more spending, and (4) immigration is bolstering household formation, especially for the Asian segments.

These trends guarantee continued and increasing multicultural contribution to expenditure growth even under the dire economic impacts of COVID-19. While individual multicultural households are more likely to see greater price sensitivity in the short term, their growth fundamentals continue to improve.

Multicultural consumers will continue to represent an ever-growing share of your target markets. No consumer brand can afford to abandon any multicultural segment now, no matter what happens in the near term. Their loyalty will be 100% responsible for powering your return to normal growth in the recovery. It is in your immediate interest to let these consumers know you are on their side during these difficult times.

So how do you make that happen? ​

Multicultural Consumers Want Brands to Be Practical, Not Preachy

About 4 in 5 consumers believe that brands have a responsibility to step up in response to COVID-19. The need for action is especially urgent for multicultural segments, who are receiving news about the pandemic with increasing urgency and concern that others are not taking the situation as seriously as they should.

Underlying this urgency is the reality of immediate financial hardship and health risk. Black and Hispanic communities are more vulnerable both to the pandemic itself and the resulting economic downturn. Given these strains, it is not surprising that donating products and services to those in need and educating people about the need for social distancing are the most valuable things multicultural segments say companies can do in response to COVID-19.

And if you decide to put out messaging around COVID-19, you need to make sure it speaks to the lived realities of your audience. Feel-good messages will fall on deaf ears in communities that feel like their tragedies are not being taken seriously. There are plenty of organizations already on the ground listening and responding to these struggles – so make sure you are really listening before you try to respond as well.

Discover More Insights

The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

Read More »

Online Qualitative Research Answers In-Person Fieldwork Disruptions

Online Qualitative Research Answers In-Person Fieldwork Disruptions
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With the coronavirus crisis disrupting most planned in-person fieldwork, our existing online qual expertise at Collage Group has allowed us to seamlessly support clients despite quarantines.

We have been able to continue tracking changes to consumer behavior through cost-competitive, online qualitative research services. Our comprehensive suite of tools makes it easy to engage with hard-to-reach segments across the nation, in multiple languages, wherever they are. Explore the benefits of leveraging our online research, including quicker turnaround times, in-the-moment feedback, rich insights and much more:

Online qualitative research is not a new concept for Collage Group. Our depth of experience goes back 8 years, with more than 60 online qualitative studies that apply more than 10 different online methodologies.

Our expertise and best practices allow us to implement highly engaging and insightful sessions.

Our RIVA-trained, in-language/in-culture moderators and analysts have extensive cross-cultural knowledge and unparalleled Hispanic expertise. We are equipped to uncover true drivers of behavior for any segment in any industry.

We use specific interview techniques that enable our responders from different ethnic groups to obtain breakthrough insights across segments.

We have the ability to engage some of the hardest-to-reach segments through a unique community of highly engaged consumers.

Our selection of online tools is powered by the best user-friendly platform providers, allowing you to innovate with different methodologies.

If you are interested in scheduling a scoping call or would like more information around our online research capabilities, please don’t hesitate to reach out to us.

Catch Up On The Latest Insights

The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

Read More »

Category Spend Patterns During COVID-19

Category Spend Patterns During COVID-19
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These times are uncertain, but you don’t have to be. Act on these category-specific insights to resonate with multicultural consumers during this period of change. The document available for download provides an excerpt focused on Hispanic consumers. Fill out the form to download detailed insight into the top issues prime for brand activation in the near and midterm for all consumers by race and ethnicity.
 

Our latest COVID-19 initiative takes an expansive look at consumer preferences and shopping behaviors during our time of crisis. The analysis uncovers how attitudes and spending patterns are shifting among the major racial and ethnic segments at a general and category-specific level. These insights will help you understand how to connect with consumers right now and in the near future.

You’ll find category-specific decks ready for download on this page, covering alcohol, mobile and electronics, entertainment and media, financial services, food and beverage, home care, and personal care. But before diving in, take note of these key insights…

Four High-Level Findings to Help You Navigate Marketing during the Pandemic:

1. The majority of consumers in each segment are being more mindful of their spending habits, especially Hispanic consumers. This means that the bar is raised for which brands and products make the cut. You’ll need to pay close attention to how behaviors and preferences are changing right now to stay relevant across segments.

2. 4 in 5 Americans expect brands to take positive action in response to the pandemic. This is not the time for your marketing efforts to go dark. Stay relevant by taking action and speaking out in ways consumers find valuable, like educating the public about social distancing, a strong want from multicultural consumers, especially Hispanics.

3. Changes in specific shopping behaviors are more pronounced for multicultural consumers. Hispanic and Black consumers have increased their shopping at both big box stores and drugstores. Take a look in our category-specific decks for a deep dive on changes in buying patterns within each industry.

4. Where consumers are making trade-offs is also noteworthy. Black consumers are notably less likely to cut spending on makeup and cosmetics.  Hispanics by contrast will defend spending in groceries, personal care and home care, but expect to cut spending in that category as well as toys and games, electronics and at home entertainment.

Though these times are uncertain, you can survive and thrive with these insights on how to connect with consumers right now and beyond the pandemic.

Discover More Insights

The Multicultural Growth Opportunity: 2020 Update

The multicultural population in the United States is transforming American culture. For the first time, the white population registered negative growth across the last five years of available data, meaning Multiculturals are now driving OVER 100% of growth and a major share of expenditure growth.

Read More »