6/2006

Latino Boom!
Chiqui Cartagena discusses the growing Hispanic market and how architects can benefit
 
 

by Russell Boniface
Associate Editor

Chiqui Cartagena, a leading U.S. expert on the red-hot Hispanic market, addressed attendees on Friday, June 9, presenting “Latino Boom! Everything You Need to Know to Grow Your Business in the U.S. Hispanic Market.”

Cartagena, who has been dubbed a “Hispanic media war veteran,” is managing director of multicultural marketing and communications for New York-based Meredith Integrated Marketing. She has 20 years’ experience developing America’s most successful Spanish-language consumer magazines, including People en Español, TV Guide en Español, Advertising Age, Creativity, and Madison + Vine, as well as Web sites AdAge.com and AdCritic.com. A native of Madrid, Cartagena has received many honors for her pioneering work in Hispanic marketing and critical acclaim for her recently published business primer on the Hispanic market, Latino Boom! Everything You Need to Know to Grow Your Business in the U.S. Hispanic Market.

The perfect market
Cartagena gave attendees a compelling overview of the growing Hispanic market and how it presents an opportunity in home design for architects, calling it “the perfect market.” She said the Hispanic consumer is critical to future U.S. economic growth, citing these U.S. Census figures that show that the Hispanic population:

  • Grew by 57.9 percent from 1990 to 2000
  • At 42.7 million, currently composes 15 percent of the U.S. population
  • Is expected to rise to 103 million by 2050.

In fact, said Cartagena, the Hispanic market is expected to account for 46 percent of U.S. population growth from 2000-2020. This is based on what she referred to as a “Latino Baby Boom” because current figures show that 22 percent of nationwide births each year are Hispanic.

As a result of the growing Hispanic market, she expounded, Hispanics currently have $738 billion in buying power—a 347 percent increase since 1990—and that is expected to rise to $1 trillion by 2010. “Whether you are selling Pampers, credit cards, or building homes, this market will become the economic engine of our country,” Cartagena exclaimed.

Cartagena showed that 49 percent of Latinos own homes, 84 percent of Latino renters desire a home, and 56 percent plan to buy in the next five years, a 20 percent projected increase. She added that on average 37 percent of Hispanic spending goes to housing, which is more than the 32.7 percent for non-Hispanic spending. She projected that Hispanics will buy between 1.5 and 2.2 million homes between now and 2020.

Hispanic tastes are shaped “back home”
Cartagena pointed out that although the majority of the Hispanic market is Mexican, it is important that architects know the Hispanic market is not a homogeneous, monolithic market. “Latinos come from 22 different countries,” she explained. “We all have very different pride in our countries of origin. But, for example, there are differentiators among those from Mexico and Central American countries, or differentiators among those from the Caribbean, Cuba, Puerto Rico, and the Dominican Republic. So it is important that you know the country of origin of a Hispanic client and understand the composition of that local Hispanic market.”

When it comes to the style of Hispanic homes, Cartagena encouraged the audience to study Latin American architecture. “Hispanic tastes are shaped back home,” she noted. “Owning a home in the United States is the achievement of the American dream for Hispanics, which is now possible as more families enter the middle class. The home is, and always will be, a place for Hispanics to keep their culture alive, be a center for entertainment, and a place to blend Latin style with American tastes and trends.”

Cartagena referred to the blending of both Hispanic and American culture as acculturation, as opposed to assimilation. “Instead of completely shedding their heritage, which is called assimilation and is what older immigrants used to do, today’s Latinos come to America to get the best of both worlds—their culture and that of America. This is acculturation, and the reason for that is due to the proximity of Latin America to the United States. It allows Latinos to come and go a lot more easily, so they are still in touch with their country of origin and its culture. Plus, when they arrive here, they immediately get exposed to their own culture because of the very strong Spanish media presence. The older immigrants didn’t have either of those ties.”

One of the missions of Cartagena’s organization, Meredith Integrated Marketing, is to study how trends affect women, including home trends. Owning a home is paramount to Hispanic women, stressed Cartagena. She urged architects to know that Hispanic women play a much larger role than Hispanic men in the decisions related to the home. “For 71 percent of Hispanic women, owning a home is a source of pride. Her home is a reflection of herself and she wants to keep her home impeccable. She finds great satisfaction and comfort in decorating her home with items and symbols from her country of origin. For her, home is where the heart is, and, for her, it is a significant gathering place for her extended family and friends.”

What you need to know
Cartagena feels there is limited information in the United States on Hispanic home design, suggesting that builders and architects educate themselves in Hispanic design through books and by hiring an expert to help them with projects. “There is a lot more to it than just knowing the works of Santiago Calatrava,” she said.

Hispanics are enthusiastic about home improvements, she said. “Latinos are do-it-yourselfers. In the past month, 2.5 million Hispanic homeowners shopped at Home Depot, and 1.2 million shopped at Lowe’s. Home Depot is now offering new product lines, such as paint, specifically geared for Hispanics. In fact, Home Depot estimates that Hispanic home improvement is a $30 million market.”

Cartagena recommended to AIA attendees that they should know the following architectural elements common to Latin American homes:

  • Stucco exteriors
  • Red tile roofing
  • Stone columns and fountains
  • Pastel-colored exteriors
  • Arches
  • Brick or stone exterior accents
  • Plenty of room for the extended family.

For the high-end, Cartagena advised becoming familiar with Latin America’s Hacienda-style homes and elements, such as:

  • Stone floors
  • Wood beams
  • Ample gardens and terraces
  • Interior courtyards.

More home features that architects should consider, she says, include:

  • Finished garages to convert to additional rooms for extended families
  • Open floor plans so parents can watch children from the kitchen
  • Outdoor space for vegetable gardens and barbeques
  • Storage space for work-related tools
  • Extended driveways for multiple cars
  • Areas for the addition of terraces.

Cartagena also recommends that when building a home for a Latino client, it is important to consider that the home be near parks, plazas, soccer fields, and public transit. She added that it is likely a Latino client will want to build in a high-density, urban area due to the “youth and first-time buyer factors,” pointing out that “I don’t think suburban life is in their immediate future.”

She noted that Latinos also welcome sustainable features in their homes. “Because of the environments that Latinos had in their country of origin, they are predisposed not to think green, but be green … because they always were. Latinos are naturally very familiar with an organic environment.”

Get to know your Latino client
In closing, Cartagena added that it is imperative that you get to know your Hispanic client. “I call it high-touch, not high-tech,” she explained. “Hispanics want to get to know you, have face time with you, and trust you. Then, they will talk business. If they love you, their word of mouth will be a great asset to you. They will tell all their family members about you!”

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