gen z final report 08-25-16-posted

GEN Z 1.0HISPANICS VS WHITE NON-HISPANICS

Presented at Multicultural Retail 360By Carlos Santiago

Chief Strategist, SSG

SantiagoSolutionsGroup.comAugust 25, 2016

SantiagoSolutionsGroup.com©2016 Santiago Solutions Group, Inc.

Aspirations, Stress, Family& the Influence of Culture

@Carlos_SSG@MR360Summit

• Methodology

• Executive Summary

• Key Findings • Culture

• Family

• Marketing

• Implications

TABLE OF CONTENTS


2@Carlos_SSG@MR360Summit

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OBJECTIVES & METHODOLOGY



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BORN BETWEEN 1996 – 2013*; IN 2016 GEN Z ARE 3 TO 20 YEARS OLD

Source: SSG analysis for ACS 2014 1-year estimate

78 Million

* New York Times, WJSchroer (socialmarketing.org)

GENERATION Z: AMERICA’S MOST ETHNICALLY DIVERSE GENERATION

US Population: 319 M

Gen Z comprises 24% of US pop;

33% of Hispanics are Gen Z

24%

14%

5%5%

52%

24%This study focuses on

Gen Z ages 13-20 in

2016:

• 25 Million Total

• 6M Hispanics

• 13M White NH

Hisp

White NH

OtherAsian

AfAm

5


QUANTITATIVE METHODOLOGY

CULTURE

Family

Aspirations

Stressors

Influencers

TEEN MARKAnalyses of GfK MRI Teen study

identifying and grouping of statistically

significant differences (90-95%

Confidence Level) between Hispanics

& White NH

Total: 1,791

HISPANIC: 239

WNH: 1,033


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SSG’s Quantitative analyses identified 5 differentiators

QUALITATIVE METHODOLOGY

CULTURE

Family

Aspirations

Stressors

Influencers

VIRTUAL

FOCUS

GROUPS

Conducted in TX, NC, CA,

CT, & FL among

Upscale/Affluent HHs

TOTAL: 10 triad groups

HISPANIC: 5 groups

N = 15

WNH: 5 groups

N = 16

PRE-SURVEY

30 Closed & Open ended questions

targeting participants’ feelings towards the

future, their aspirations, their family, their

culture, etc.

TOTAL 31HISPANIC: 18

WNH: 13

COLLAGE

Participants collected

pictures of family,

goals, stressors,

social influences, and

culture

TOTAL 27

HISPANIC: 14

WNH: 13


7

SSG’s Qualitative delved into the 5 differentiators

PEER-BASED RESEARCH TEAM

CARLOS SANTIAGO

GEN Z GROUP LEADERS

North Carolina

GINA

Florida

PETU

California

NICHOLAS

Texas

MAYGENConnecticut

DAVID

MARLEY MORROWJ.C. ALVAREZ ARTURO ARZOLA TATIANA BONILLA

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KEY FINDINGS



9

CULTURE



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HISPANIC GEN Z ARE VERY PROUD OF THEIR ETHNICITY; THEY FEEL LATIN CULTURE HAS

SHAPED WHO THEY ARE AND MADE THEM UNIQUE

“I like that I have a

lot of cultural

backgrounds in my

family…It makes me

kinda unique.”

“The way people have been

raised in America…people get

what they want…how I was

raised, if you want it you have

to work for it… I have

definitely been raised

differently.”

“We were raised

on being hard

workers and not to

complain about

what we have.”

“Culture is

extremely important

to me…I don’t really

see many people

like me…”

SantiagoSolutionsGroup.com©2016 Santiago Solutions Group, Inc.11


HISPANIC GEN Z IDENTIFY WITH LATIN AND AMERICAN CULTURES BUT HAVE A

GREATER ATTACHMENT TO THEIR HISPANIC CULTURE

“I’m more than just American.”

“My culture has made me the person I am today. My parents

laid a strong foundation for my siblings and I, to ensure that

we were brought up with good morals.”

“My culture makes up who I am. It gives me a history of

past generations who I can reflect on and be proud of.”

“Keeping culture in your family is important. When people

immigrate with each generation the culture gets less and less. It’s

important to keep it. Speaking Spanish and knowing stuff makes

you.”

“I identify as both but the majority of it is towards Mexican. I don’t

feel like America has a unique culture…It’s easier to connect to

my Mexican side…I like the elements of that culture better.”



MOST HISPANIC GEN Z ARE AWARE OF STEREOTYPES OR HAVE FELT THEY WERE TREATED

DIFFERENTLY BASED ON THEIR ETHNICITY

“They think of me differently because of who I am.”

“Sometimes they look down on me because I’m Mexican…like oh, he is going to steal

something.”

“I don’t like that there is a stigma of what it means to be Hispanic.”

“Through the college process being Hispanic is kinda helpful in different ways because

it makes me unique. But I think there are also ways that it is kinda harmful because I

know a lot of people were thinking ‘since she's Hispanic’ maybe she will get more

opportunities or scholarships.”

“People think that because I'm Hispanic that I'm usually lower than them.”

“People assume I know about things that are vaguely Hispanic or they

assume I'm Mexican and when I do correct them sometimes they don't

see the difference.”


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“We don’t respect

other people’s

cultures… we expect

them to speak

English…”

WHITE NON-HISPANICS ARE AWARE OF RACIAL INEQUALITY

“I think being a

privileged white

male… I have been

treated differently in

a good way.”

“I have seen how my

brother has been

treated differently…he is

black and Mexican…I

definitely see how my

culture affects how I am

treated.”

“I think there is an

overall ignorance in

American culture that I

would like to see

changed.”

“Many times, there are

instances when ethnic

backgrounds and preconceived

notions play a factor in

someone's decisions. I believe

that being a privileged white

male has given me an unfair

advantage over others in some

cases.”



WHITE NON-HISPANIC GEN Z ARE POLYCULTURAL

“Growing up in a

diverse area,

Hispanic culture has

had a huge influence

in my life.”

“I can identify

with a lot of

cultures.”

“I’m just

American so I

try to get to

learn about

other cultures

more.”

“I have a friend from

school, I spend a lot of

time with his family.

They have evolved my

appreciation for Latin

American/Hispanic

culture. Because of him

I have grown to love his

culture.”

“My friends all

come from

different cultures

and have different

vibes. It’s pretty

cool.”

“Their culture

doesn’t rub off on

me as much as

my culture rubs off

on them. I’m more

open about it.”

“One of my close friends… when we go

to each other’s houses their family make different food I’ve

never tried before. It is cool to learn about his

culture.”



FAMILY


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I PREFER TO TELL MY PROBLEMS TO:

Hispanics (solid-inner circle)WNH (pattern-outer)

HISPANIC GEN Z

ARE MORE LIKELY TO TELL

THEIR PARENTS ABOUT WHAT’S

GOING ON IN THEIR LIVES

“Usually talk to friends but if something is really

bothering me I talk to my mom…she usually has good

advice.”

“I usually talk things out with my parents when I

need advice but most of the time if I need help

with something I talk to my sister because she

is more down to earth.”

“We stay connected and know what’s going on in

each others lives.”



HISPANIC FAMILIES HAVE MORE RITUALS WHERE WNH FAMILIES SPEND TIME WHEN THEY HAVE IT

HISPANIC WNH


“We don’t really have a

ritual…we don’t eat

dinner together…we

aren’t all home at the

same time.”

“We always try to have our

meal times together.

Sometimes it’s hard to

coordinate but we do our best.

On Sunday’s we always cook

and have a big meal together.” “I don’t get to see them

a lot… but when we do

spend time together it is

always fun and I wish

there was more of it.”

“Every weekend my family we gather up

and have dinner.”

“Sunday is family day”

“Eating is great to do together– it gives

us time to talk to each other.”

“I think once every two

weeks we go to the movies…

we invite everyone and have a great

time.”

“I generally get together with my parents and

grandparents and have homemade food.”


GEN Z LOOK UP TO FAMILY MEMBERS AS IDOLS

HISPANIC WNH


19

“My dad because he’s

really successful when

he started with nothing. I

want to be as successful

as him if not more.”

“My Nina or my godmother…she

came to America and started

working to support her family and

eventually got all of her family into

America. She had to provide for

her parents and 10 other siblings.

That fact that has contributed to my

family and my being here; she’s

such a role model.”

“I would say my mom for

the simple reasons she's

independent, she's a

leader… she is audacious

and bold especially

coming from Ecuador and

starting with nothing”

“My dad because

he is confident

and always

knows what he

wants.”

“I idolize my

father because I

respect his

morals and

values.”

“My uncle, because he

is a hard worker and an

honest man… I strive

to be like him.”

“My little brother, he has

down syndrome and that

has shaped me into the

person I am today. He is so

enthusiastic and happy

about life.”“My dad and my

grandma… I look up to her

because she’s the nicest

person I know…she’s

always happy.”


MARKETING


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GEN Z ARE VERY INFLUENTIAL; HISPANICS INFLUENCE LARGER PURCHASESHispanic are have more influence on Cars, Trucks, Digital/Tech, NBA/Soccer purchases

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HISPANIC MORE LIKELY TO BE SUPER-INFLUENTIAL ON…HISP & WNH ARE EQUALLY LIKELY TO…

Source: SSG Analysis of GfK MRI Teen Mark Study 2015. Major differences with 90% confidence level


HISPANIC WNH

HISPANIC GEN Z FEEL MORE MOTIVATED TO PURCHASE FROM BRANDS

WITH STRONG SOCIAL MISSIONS; FOR WNH IT WAS A BONUS NOT A MAJOR DRIVER


“I know a lot of the shoe

companies they donate

a pair of shoes every

time you buy them but I

can’t think of any I use.”

“I don’t think about that

much…but if there are

two similar products I

might pick the one that

gives to charity.”

“I never really think

about that but if I heard

more about it, it would

probably influence my

decision more.”

“There was a company that I

didn’t use… Pepsi funds planned

parenthood which is something I

don’t stand for. I decided to be

more conscious of companies that

just worry about money and don’t

have morals”

“I care about that kind of

stuff…if a brand does

something I don’t like I

won’t buy from them

anymore.”

“I like American apparel

because they hire

immigrants and makes

their clothes in America.”


MEDIA GREATLY INFLUENCES GEN Z; SPECIFICALLY SNAPCHAT AND

INSTAGRAM

HISPANIC WNH


“I look at Snapchat and Instagram to see what’s trending, what people

are wearing.”

“If my friends are wearing something or I see something on Instagram

I’ll be like I want to wear that.”

“A lot of what is seen in the media can influence young people. For

example, eating disorder rates are rising due to the large amount of

emphasis on being skinny in society and all the thin models being

shown in ads.”

“I think the media has a strong influence on girls in particular,

because of all the highly derogatory language directed towards

women in movies and songs as well as the highly specialized

women in magazines and on television.”

“Social media is a big influence because you want to

do things to show off.”

“[Social media] it is one of the biggest social influences in the world

just because it has so much power and say into what everyone does.”


IMPLICATIONS



WHITE NH

LOOSELY DEFINED

CULTURALLYSense of having less of a

defined culture

THIRSTY FOR OTHER

CULTURESEnjoy absorbing non-American

foods, music, dances, languages

TRADITIONALMore sheltered & less experience

with diversity

PRACTICALMore pragmatic when making

purchases (not as altruistic)

LOOK TO FAMILY & FRIENDS

OPEN- MINDED

HARD WORKING

AWARE OF DISCRIMINATION

INFLUENCED BY SM

HYPER-DIGITAL BUT

FACE-TO-FACE WITH FAMILY

Gen Z 1.0 CONCLUSIONSOVERALL GEN Z

DUAL CULTURES &

PROUD LATINOInfluenced by American &Hispanic

Cultures but Hispanic gives them

uniqueness

INFLUENCE LARGE

PURCHASES

CONFIDE IN &

STRESSED BY FAMILYParents are confidants which often

cause them more stress

CHOOSE OWN PATHDriven and have riskiergoals

COMMUNITY-MINDEDMake more decisions on altruism

and emotions

HISPANIC


KEY FINDINGS

Hispanic Culture remains alive and strong among our

youngest generation despite feeling as equally American as

White NH.The study uncovered

strengthening Latino cultural values of hyper-aspirational drive, determination, free

thinking, and family closeness.

.

• Adept marketers will continue to win by using Culture, Values and Identity as major relevant platforms to connect brands at a deeper level with Hispanic Gen Zers.

• To target Gen Zers appropriately, marketers should leverage ‘tailor-made’ efforts eliciting deeper emotions, identities, and triggers. Overlooking differences and oversimplifying ‘looser fit’ approaches may be more cost efficient but not as relevant and effective.

• The appeal of over-simplification vs. recognition of differences will continue to challenge marketers, pulling them between efficiency and effectiveness. That said, effective marketing will win more sustainably and those marketers who establish a connection will be rewarded by consumers with long life expectancy, and hence, a better long-term return on marketer’s marketing and advertising dollars

IMPLICATIONS



Gen Z 2.0

Coming This Fall

Thank You!

Copyright 2016 VIVA-SSG. All rights reserved. CONFIDENTIAL

Carlos SantiagoPhone (818) 509-5901

[email protected]

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