When it comes to appealing to apparel shoppers, mamasita knows best

DSN Retailing Today, May 17, 2004 by Emily Scardino

Addressing multicultural consumers begins with dressing them, offering product that fits their needs. Marketing is also critical, but unless there is something that this customer wants to buy, it is a waste of valuable advertising dollars.

Of the various rapidly growing ethnic groups in the United States, Hispanics comprise the largest of all. This demographic is expected to grow to approximately a quarter of America's population in the next decade, according to U.S. Census data.

While Hispanics, African-American, Asians and other ethnic groups are still a minority, together they constitute a large enough group to significantly impact business.

"The multicultural consumer segments have been and will continue to be important to the current and future plans of JCPenney, particularly since these customer segments currently account for approximately one-third of the total U.S. population," said Manny Fernandez, manager of multicultural marketing at the company.

Now is the time to introduce new brands and marketing initiatives to reach these consumers, before they hit critical mass. Testing out ways to make stores destinations for today's moms will help make them a resource for their daughters tomorrow.

A number of retailers have already begun to address Latinas, and one by one, others are following suit. They are taking a time-tested approach to targeting Hispanics, focusing on the customer they know they have shopping in their stores: young moms. From there, it is a natural extension that mom will shop for her significant other and her children at the same retailer. That is why most of the new lines at retailers are designed for and marketed to the misses customer.

Though the brands are rolling out in different distribution channels, under different banners, they enjoy a few things in common: They are youthful, and cater directly to this audience, while staying fashion-forward enough to appeal to a broader consumer base. While many retailers insist that their brands are not designed specifically for Latinas, they are certainly designed to appeal to them.

Most recently, Kohl's brought a new Daisy Fuentes line to market from Regatta USA, which company president Kevin Mansell stressed would appeal to a "broad cross-section of Kohl's shoppers." However, this Hispanic model and television personality has a large Latina following, and is a critical part of Kohl's assortment as it expands in the culturally diverse California market.

Prior to the Fuentes line, Sears recently rolled out its own Latina-inspired brand, Lucy Pereda. Also based on a television celebrity, the line appeals to boomer-aged moms with fashionable, premium-priced products. Some key items this spring include flounced woven shells and off-white pinstriped suits with dramatic black floral embroidery.

An early adopter, Kmart has enjoyed almost a year of success with its Thalia brand, based on the chart-topping Mexican songstress of the same name. Always with an eye to multicultural consumers, the company bet on Thalia during its bankruptcy--a bet that paid off. While Thalia's first album in English last year did not make her a crossover phenomenon, the singer still has a tremendous following in the States and just launched a new Thalia magazine in response.

While the fashions under the Thalia label are what the industry has typically classified as favorites of Latina consumers--in bright colors, like reds and fuchsias, and bolder, trendier silhouettes than standard missy fare--they are the exception. Lucy Pereda is an older, work-appropriate, extremely sophisticated offering, with prices to match--higher than those under other most other Sears private labels. The Daisy Fuentes line fits her image as a fashion sophisticate, with a neutral palette and subtle designs more akin to Club Monaco than Wet Seal.

Slipping these brands into assortments is a key way in which companies are trying to gain a foothold with Hispanic shoppers. However, this customer is often not addressed via traditional advertising efforts. Even though 33% of the U.S. population belongs to a non-white ethnic group, according the U.S. Census Bureau, the Selig Center for Economic Research and the American Advertising Federation, companies spend an average of 8% of their budgets advertising to this consumer. With new product in place, it may be the time to spend more.