February 28, 2007
By Jason Grubbs
The Hispanic population in Texas is growing with both legal and illegal immigrants.
In fact, the census bureau shows it to be the biggest minority group in Texas. Companies say that translates into spending power, despite the debate over immigration reform.
Dan Arguijo Jr., Hispanic Business Alliance, said, "There is an opportunity here in East Texas to embrace this culture.”
Arguijo help found the East Texas Hispanic Business Forum. That was two years ago. Since then it's become an alliance, made up of the forum, UT Tyler, TJC, Tyler's Chamber of Commerce and the Hispanic Leadership Council.
It's something Arguijo says is very unique.
“This helps our respective memberships and customs, because we're all working together to bring the services that are available to mainstream businesses.”
Area real estate agent Juan Gonzalez can attest to that help. He joined the organization the same year he became a realtor. He's now the group's treasurer.
"When I went over there they advertised for me, put me in the papers you know the members started saying I’m a realtor, give me a lot of clients and help me to pick-up my business,” Gonzalez said.
Nearly 12 million Hispanics own homes in America. A quarter of those houses are $250,000 or more. Gonzalez's bi-lingual abilities and knowledge of the Hispanic community have allowed him to be a part of that successful market.
Not long ago, a list of homeowner's last names was not very Hispanic, but a five-year study of real estate records in 37 states reveals this: Miller and Brown are making way for Garcia and Rodriguez.
"The immigrant that is coming to the East Texas area mirrors the values, the work ethic and the religious aspects that all East Texans enjoy."
Arguijo says he's working on funding for an East Texas research project. It's in an effort to find out more about where the Hispanic community is heading.
“Where are they coming from, what is the impact they have with their purchasing power, what kind of economic impact will they bring in the future?" he said.
A recent study by Arbitron-Scarborough estimates the Hispanic spending power to be $923 billion a year. Nearly $120 billion of that is in Texas. The Lone Star State is second only to California.
Business are very well aware of the cash flow that's out there. Arguijo says executives who are running both large and small companies are even bringing in marketing firms to help guide them.
"If we take the growth that we've seen in the last 15 years, then we need to start preparing for that," he said.
Preparation is exactly what some colleges and universities around the country are doing, including UT Tyler.
Dr. Kevin Shanahan is teaching the latest forms of marketing strategies to his students, both in class and online.
"You can't just use one marketing technique to reach everybody anymore," he said.
Shanahan says traditional marketing methods break down age, sex, occupation and income, but that has evolved into something much more.
“The big trend is to be inclusive to understand that Hispanics aren't just white people who speak Spanish. There is a culture they're much more polychromic and family oriented," he said.
Shanahan says his online class is even studying the subcultures within all communities.
“We did the same thing with the Hispanic community. Whether you're from Nicaragua or Cuba or Mexico, they're very, very different," he said.
As for a company's bottom line and the billions of dollars at stake?
“The Hispanic community tends to be much more brand loyal, for instance, so if you can win them over, you've got a very good customer for life if you treat them well.”
Source: KETK NBC 56
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