The Latino audience is the fastest-growing in our industry. How can your brand succeed with them?

In the U.S. construction industry, Latinos make up a third of contractor businesses and more than half of all installers/crews, not to mention that Latinos are driving 70% of the new homeownership growth in the current decade (source: PEW Research Center, U.S. Census Bureau). That makes this audience a key constituency for most building materials manufacturers, and yet few seem to understand how to effectively connect with them. (Spoiler alert: it’s not all about Spanish translations.)

“When it comes to Latino engagement, efforts typically fall into two categories: translation and HR,” said Charlie Echeverry, managing director at Black//Brown, a Los Angeles-based consultancy specializing in culture-forward growth strategies for business. “Those things are fine and good, but when you think about it, they’re both at the end of the funnel; after a strategy, product or initiative has been designed, or after a job description has been created. There’s a much bigger opportunity higher up in the process to ensure that the strategy, product or role is shaped by a Latino insight to begin with. It’s an incredible growth driver for brands who want to capture and grow share.”

We took time out with Charlie and the Black//Brown team for a conversation about what the building materials industry must know—and how it must act—if it wants to unlock this important share of the market.

Latinos are no longer a niche market in the United States. The stats speak for themselves: with 63.7 million people, Latinos are nearly 20 percent of the country’s population. Their economic output in 2022 outpaced entire countries, with a GDP that ranks fifth in the world—ahead of France, the U.K. and India. In 2023, Latinos were responsible for launching 36% of new businesses in the U.S., and together those businesses generate over $800 billion in annual revenue. Tapping into this audience means accessing a group that is reshaping communities and impacting purchasing trends with their entrepreneurial mindset and inclination toward small businesses, according to Charlie. “This demographic change creates a variety of opportunities and risks for every business,” Charlie said. “Whether B2B or B2C, developing business strategies informed by these new market realities is crucial to long-term business health.”

First-time business owners often need to sort their way around software, insurance and other needs. And according to Charlie, a brand-awareness gap among Latino business owners when compared to non-Latino business owners means there are major opportunities for providers of B2B services, from HVAC to financial management. “This is a really big open space waiting to be filled,” he said. “You look at contractors, who are a massive constituency in B2B, and a third of them are Hispanic. Many or most of them inherited their business on the back of a napkin, so to speak, and are now looking to level up. Forward-thinking companies are getting in front of that need.”

Translation is important in straightforward documents like instruction manuals or legal terms and conditions. But outside that, to really move the needle you must speak to Latino audiences with culture-forward messaging and a customer experience that nods to language, cultural values, history or in-culture references. The Black//Brown team refers to it as “transcreation” versus “translation.” Transcreation helps brands demonstrate deep understanding of the Latino audience and build connections. Latinos often seek brands that resonate with their cultural identity, prioritizing that connection over concerns like convenience and brand loyalty. “There are a lot of ways you can slice the pie when it comes to including them in your business and marketing strategies, but what counts to this community is seeing brands that are investing in relational strategies to really get to know their communities, not just trying to sell them,” Charlie said.

Start with the Latino constituency at the very beginning of any strategy or creative work and ensure that the overall approach for the effort is shaped with them in mind. Any later is too downstream from where the response to this massive audience shift should be. “The greater leverage exists in the strategy stage,” Charlie said. “If you’ve already got the product market fit, you may not have enough space remaining to truly utilize what you know about this changing audience.” Think about the U.S. Latino audience as a critical opportunity during the planning stages of your go-to-market strategy, so that you can make relevant decisions with more meaningful impact. “For example, the behavior of sales channels differs with Latinos,” Charlie said. “We found that Latino contractors are much more likely to go to a retail home center to transact rather than a distributor.” Accounting for that from the beginning can help you explore different strategies for sales channels so you can ensure your brand is in front of this audience at the right place and time.

“Latinos value brands that invest in their communities,” Charlie said. Creating product experiences in cities with large Latino communities is one way to connect; finding media and advertising opportunities on outlets and channels that speak directly to Latino audiences is another. What counts is showing you know where they are, literally and figuratively, and prove you’re willing to meet them there in a way that is relational not transactional.

Don’t just "check a box" by translating documents like most companies do. Expanding your understanding and effectively engaging with the Latino audience in the United States is critical for building materials manufacturers looking to capture an important and growing demographic. Contact us to learn how Interrupt and Black//Brown can help you move the needle in 2024 with data-driven strategies to unlock new avenues for growth and success.