MEXICAN MARKET ECONOMIC REPORT
Mesirow Financial Special Economic Report: Thriving Mexican Market Presents Opportunity for Businesses with Culture-Centric Marketing
CHICAGO (October 24, 2006)—A special economic report issued today by Mesirow Financial sheds new light on the surging economic influence of Chicago’s Mexican market and its implications for local businesses. Written by the firm’s Director of Economic Communications, Olga Camargo, the report uses Chicago’s Little Village Neighborhood (a predominantly Mexican community) as a case study to show that as buying power in the Mexican community increases, local businesses must redefine marketing strategies to mirror the market’s cultural and ethnic values.
“Current buying power among the Hispanic market is $600 billion and is estimated to reach close to $1 trillion by 2010,” says Camargo. Financial institutions could have the most to gain, as the remittance business and Individual Tax Identification Number (ITIN) mortgage business are on the rise. In 2004, the Federal Reserve Bank of Dallas reported that Mexicans across the nation have created a $13.3 billion remittance business. Locally, Camargo’s report notes that the Mexican community in Chicago’s Little Village area generates an estimated $900 million a year in sales, which is said to be spawning tax revenue for the city that is second only to Michigan Avenue.
“The Mexican community has an enormous ability to build wealth and poses a great opportunity for local businesses,” says Camargo. “In Little Village, the main ethnic-business corridor has exploded with mainstream businesses, particularly banks, trying to tap into the lucrative market. The businesses experiencing the greatest benefit are those with ethnic-oriented marketing strategies,” she adds.
Camargo’s research of businesses and families in Little Village yields important results for marketers. “Mexicans are acculturating,” says Camargo, “meaning they seek to acquire American-valued skills such as English and computer proficiency in order to succeed in society, while preserving their core culture values such as emphasis on family and heritage.” In contrast, many mainstream marketers erroneously assume that Mexicans are assimilating, whereby completely adopting American values and culture. “Traditional advertising and marketing is often created for assimilated Mexicans and therefore uses messages that do not take into account cultural differences in language, values and goals. The result is a complete disconnect between marketers and consumers,” stresses Camargo.
Using businesses in the Little Village area as a model, Camargo’s research identifies key recommendations for local businesses attempting to market to the Mexican community:
•Invest in learning more about Mexican immigrants’ demographic shifts, economic preferences, culture and values
•Hire professional Hispanics, who are bicultural and bilingual, into all organization levels and in visible positions
•Develop products and services which appeal to the Mexican consumer
•Understand the complexity of reaching all micro cultures (e.g. Mexicans, Puerto Ricans, Cubans, etc.) within the larger Hispanic subculture
•Utilize community-based organizations to gain a knowledge of the market
Endorsing Camargo’s research is the Institute for Latino Progress, an organization based in Little Village that contributes to the fullest development of Latino immigrants while working with them to acculturate in U.S. society. The Institute for Latino Progress works with more than 8,500 participants every year to advance their basic academic skills, obtain a high school diploma, pass the GED exam, become U.S. citizens, increase their job skills and provide assistance with employment opportunities. Camargo worked closely with the Institute to conduct her research.
Olga Camargo is the director of economic communications for Mesirow Financial. She works with the firm’s Chief Economist, Diane Swonk to provide economic commentary to clients and the public at large. As a second-generation Mexican immigrant and a U.S. born citizen, she is active in efforts to bring together the Chicago business community with its Mexican community counterpart. Camargo earned her bachelor’s degree in marketing from the University of Illinois at Chicago and most recently completed her master’s degree in English at the same institution.
Mesirow Financial is a diversified financial services firm headquartered in Chicago. Founded in 1937, we are an independent employee-owned firm with nearly $30 billion in assets under management, advisory and custody, and more than 1,100 employees in locations across the country and in Puerto Rico. With expertise in Investment Management, Investment Services, Insurance Services, Investment Banking, Consulting and Real Estate, Mesirow Financial has consistently met the financial needs of investing institutions, public sector entities, corporations and individuals. For the fiscal year ended March 31, 2006, the firm posted revenues of $364 million and had $180 million in capital. For more information about Mesirow Financial, visit our Web site at www.mesirowfinancial.com.
