CommentsLATINO PERSPECTIVE-A recent study released by Beacon Economics for the Los Angeles Latino Chamber of Commerce found the number of Hispanic households earning between $100,000 and $200,000 in 2014, jumped 10.2 percent increase from 2000, leading to $72.4 billion in spending across heavily-marketed consumer categories, including electronics, food, and clothing.
According to Theresa Martinez, the Chamber’s chairman, Latinos are a consumer powerhouse. This study does a remarkable job at really looking at and quantifying the enormous “spending power" of Latinos in Los Angeles.
The increase in Latino aggregate spending to $72.4 billion has been driven by significant demographic and income growth. This has allowed Latino consumers to outspend other ethnic groups in most consumer segments.
The Latino community in Los Angeles County that continues to grow and spend its dollars well over other ethnic groups is creating opportunity for many businesses.
Latinos accounted for a large proportion of spending in various categories, including food at home, laundry and cleaning supplies, cellular phone service, audio and visual equipment and used cars and trucks.
Spending on housing by Latinos totaled $29 billion and $10.9 billion on food in 2014. In comparison, African American, Asian and other non-white households spent a combined $8.5 billion on food that year.
Latino spending on eggs, poultry, beef, and pork combined is estimated at $1.3 billion. Approximately $11 billion in transportation spending in 2014 coming from Latinos included purchases of new and used automobiles. If corporate America is looking to invest in the most dynamic Latino market in the United States, the findings of this study clearly suggest that they should bring their marketing and advertising dollars to the City of Angels, the Chairman argues.
Mrs. Martinez also said that by isolating these numbers in the county, marketers now have a snapshot of Latino consumer buying power in Los Angeles, which she believes is the most important Latino market in the country.
Advertising firms aren't the only ones who can potentially benefit for the ever-growing Latino population. Presidential candidates are courting the Hispanic vote like never before, creating bilingual TV ads and courting Latino leaders to endorse them in potential swing states.
Latinos participating in the 2016 presidential election are expected to hit the ballot box in record numbers, particularly in response to proposed immigration reform views shared by Republican candidates.
A recent USC Dornside/ Los Angeles Times poll found California Republicans are split on who to vote for, siding with party front-runner Donald Trump over Texas Sen. Ted Cruz by a 37-30 margin.
Immigration is a hot topic among many Latinos in the Golden State and the hardline anti-immigration reform stance some have taken has softened over time. In the Chamber survey, about 65 percent said undocumented immigrants should have a chance to stay, compared to 16 percent who said they should leave the country outright.
Latinos in Los Angeles are an integral part of the economic engine of the city, county, and the state of California. Immigrants documented and undocumented are part of this equation as well. Let’s never forget that.
(Fred Mariscal came to Los Angeles from Mexico City in 1992 to study at the University of Southern California and has been in LA ever since. He is a community leader who serves as Vice Chair of the Los Angeles Neighborhood Council Coalition and sits on the board of the Greater Wilshire Neighborhood Council representing Larchmont Village. He was a candidate for Los Angeles City Council in District 4. Fred writes Latino Perspective for CityWatch and can be reached at: [email protected].) Edited for CityWatch by Linda Abrams.
LA’s Economy: Hispanics in Los Angeles are Billion Dollar Spenders
