We experience disruption with new technology and industry changes. However, demographic and customer expectations are fundamental driving forces in challenging how things are done.
Demographic change is a good indicator of who your future customer could be. You can look at age composition, income, education. However, the ethnic composition of the future population is one factor that sometimes becomes an afterthought.
What makes demographic shifts so rewarding is that it brings innovation and growth opportunities that will impact society and the economy.
For instance, the US Census has projected that Latinos will reach 111 million by 2060, becoming 28% of the population. That means that soon it will be one in three people who could be a future customer. However, 70% of Latinos say brands don’t understand their culture, a 59% increase from a year ago, according to H Code.
Why does understanding their culture matter?
Because culture matters to tell authentic stories and to create remarkable experiences. People don’t care about you unless you care about them. They look at content through their personal lens of values, knowledge, experiences, attitudes, and beliefs. And if you cannot meet them where they are, cannot see their worldview, and provide a solution that fits them, you run the chance to become irrelevant.
The implication is that addressing a new population segment rarely fits the way you currently do things. It will require you to see things differently, look at your current capabilities, identify your key and future customers’ challenges, and deciding what you need to do to serve them.