Myth: Emerging Market Consumers don't buy premium products

A new McKinsey report deals with 3 CPG myths. 

1. U.S. not a growth opportunity. 

2. Too late to get into India and China. 

3. Emerging market consumers don't buy premium products. 

We've seen #3 be debunked in the U.S. again and again by U.S. Hispanic consumers. The perception persists that U.S. Hispanics don't have the disposable income. Often its more about how are CPGs addressing the Hispanic opportunity. Many still believe Hispanics don't go online. Link below --

http://www.mckinseyonmarketingandsales.com/three-myths-about-growth-in-consumer-packaged-goods-companies

Millennials Love Walmart?

Ad Age reports that data from consulting outfit InfoScout indicates Walmart is one of the most popular retailers among Millenials, just behind Target. 

Why? Low prices. 

According to Business Insider Walmart's cheap prices are a big draw to cash strapped Millenials. 

http://www.businessinsider.com/millennials-love-wal-mart-and-executives-are-shocked-2015-6

Houston, TX: An example of how immigration works in the US

Salvadorans and the Dynamism of the U.S. Hispanic Population

For as long as most can remember the U.S. Hispanic population groups always centered on Mexicans being #1, Puerto Ricans #2 and Cubans #3.

But change is on the way.  The Salvadoran community in the U.S. is growing at a more robust rate (33%) compared to the Cuban community (17%).  Due to this growth surge Salvadorans may soon replace Cubans as the #3 U.S. Hispanic group.

In Los Angeles we are experiencing this growth directly.  In the summer of 2012  the city of Los Angeles declared a section of Vermont Ave as the "El Salvador Community Corridor", the first  designated Salvadoran neighborhood in the city.

There are some parallels between the Salvadoran and Cuban  experience in the U.S.  In the 80's many Salvadorans fled the violent civil war in their country as refugees and settled in the U.S., with many arriving to the Los Angeles area.

Today Salvadorans are a thriving community in Los Angeles, opening up businesses and running for City Council slots.  No doubt the U.S. Hispanic population is expanding across the country exponentially, but in the established core Hispanic population centers, like Los Angeles, change is in the air as well.

Link: http://www.pewresearch.org/fact-tank/2013/06/19/salvadorans-may-soon-replace-cubans-as-third-largest-u-s-hispanic-group/

"Day of the Dead is becoming the cool holiday"

Nicholas Gossett had his face painted on Oct. 27. Sandy Huffaker for The Wall Street Journal

Dia de los Muertos (Day of the Dead) is fast becoming a popular holiday celebration in the US, traditionally celebrated by Hispanics of Mexican heritage, although its important to note people celebrate a variation of Dia de los Muertos (All Saints Day) around the world — from Brazil, across Europe and into Asia.

The Wall Street Journal has an article this morning titled "No Bones About It: Day of the Dead Is Finding New Life".  As a tradition with a precolumbian heritage that has been celebrated for hundreds of years in Mexico and beyond, the holiday was not in need of a second wind. However, as American culture increasing blends with US Hispanic culture the holiday is growing by leaps and bounds and coverage by the WSJ is an example of that. 

In Mexico the modern day version of the celebration began with the Aztecs. The Day of the Dead fell on the 9th month of the Aztec calendar and was celebrated for an entire month. 

In most regions of Mexico November 1 is to honor children and infants, whereas deceased adults are honored on November 2. This is indicated by generally referring to November 1 mainly as Día de los Inocentes ("Day of the Innocents") but also as Día de los Angelitos ("Day of the Little Angels") and November 2 as Día de los Muertos or Día de los Difuntos ("Day of the Dead") (Source:Wikipedia)

A few highlights from WSJ:

• The renowned Hollywood Forever Cemetery hosts one of the largest Dia de los Muertos events  in the country (35,000 est. attendance). "Day of the Dead is becoming the cool holiday," says Celine Mares, co-founder of a popular annual event in a Hollywood cemetery. "Halloween is passé."

• Companies are also jumping in. Nestlé, a sponsor of the cemetery event (Hollywood Forever Cemetery) , says it will attempt to "establish the Guinness World Record for the largest Day of the Dead altar in the U.S." Its entry will portray stylish female skeleton figures known as Catrinas enjoying cups of its Mexican-style hot chocolate and its instant coffee.

• In Texas, Houston's science museum offers a workshop for teachers interested in taking the holiday into their classrooms. "It's probably our most popular workshop," said education director Nicole Temple. Lesson One, she says: "It's not Mexican Halloween."

Link to the WSJ article here.

How Pepsi is Delivering More with iPhone's and iPad's

Great video on how Pepsi is leveraging technology with their in-house distribution and merch app on iPhone's and iPad's to improve customer satisfaction (retailers and consumers) efficiently.

Some key highlights:

• “In North America we run approximately 17,000 distribution routes a day,” says Brian Spearman, Senior Vice President of Go-To-Market and Service for PepsiCo North America Beverages. “We have to get the products from our manufacturing and warehouse facilities onto our trucks and into stores in time to meet demand. With iPhone and iPad, we can be more efficient and get in front of problems before they even happen.”

• To make merchandising and distribution as seamless as possible, PepsiCo North America Beverages created Power4Merch, a custom in-house app for iPhone. With Power4Merch, merchandisers are immediately notified when a driver has arrived at a store and can be sure that deliveries are unloaded quickly and displayed correctly, so the right products are always on the shelf and ready to buy.

• “A manager can make manpower assignments right on iPad,” Uppaluri says. “It automatically sends a push notification to the merchandiser’s iPhone, so he knows he's got a new stop. Life before was all about being on the phone, checking email in the office, checking paperwork. Now with iPad, the manager starts and ends his day where he needs to be, with his team.”

Link to article here.

Look Closer To See The Demograhic Future of the US

The U.S. Census recently released various interactive graphics showing the countries of origin of Hispanics around the US.  The maps reflect the expected, Puerto Rican population clustered in the DC-Boston corridor, majority of Cuban population in Miami, and so on.

However, on closer inspection the Mexican population map is very interesting because it visually reveals how the US Hispanic population, which is majority Mexican ancestry, has expanded into almost every state of the union. Its a portent of the future of the country and how US Hispanics are  more and more a part of the social fabric not just in Calfornia and Texas, but Colorado, The Carolinas, Georgia, Oklahoma and even Arkansas.

The last Census raised awareness of skyrocketing Hispanic population growth in unexpected areas, such as the South and Midwest, but these new interactive graphic maps serve to communicate the breadth of the US Hispanic consumer expansion in a way that numbers and statics cannot.

With the 2010 data, the Census mapped 22 different origins that included Mexico, the Caribbean, and Central and South America. To access the interactive maps click here.