Fuel success with this dominant demographic
By recent census numbers, the Latino population now encompasses 19 percent of the total US population and 26 percent of all children living in the US. By 2030, this number is expected to increase, representing one in five workers in the US. The Latin American (LATAM) market is a dynamic and growing category of consumers and entrepreneurs who are now one of the strongest growth drivers for companies both domestically and internationally. For direct selling leaders, understanding the wants and needs of this segment of earners and shoppers can translate to a significant chunk of market share and can provide insight into both the impact of the LATAM community’s buying behaviors and the cultural values that draw them to opportunities.
To respectfully engage with this demographic, it is essential to understand that each country and community has its own unique traditions and habits. There is no one-size-fits-all approach that would effectively reach this vast audience, and it’s important to remember that there are distinctions among the descriptors often used to describe this diverse group of cultures within and outside of the US. The word Hispanic describes Spanish speakers, including those living within the US and Spain, while Latinos is reserved for those living within Latin America, including Brazil, where Portuguese is the official national language.
“We call ourselves Latinos,” said Sol Flint, Nature’s Sunshine General Director of Latin America. “Colloquially speaking, we would not call ourselves ‘hispanos’ unless we were talking with an English speaker from the US, or if we were living in the US.”
It is critical to appreciate the individuality of each LATAM market, but there is also a connective tissue within these cultures, from food and dance to familial and religious values, that transcends countries and continents.
“Including Latinos living in their respective markets, there is no other community of this size in the world that possesses linguistic cohesion (Spanish and Portuguese) and cultural cohesion across borders,” Flint said. “The total population of Latin America and the Caribbean in 2024 was approximately 662 million people, accounting for about eight percent of the global population. Spanish is the second most spoken language globally, with over 559 million speakers in 2024, including native and non-native speakers. Portuguese ranks seventh, with approximately 221 million native speakers worldwide.”
This is key to remember. What was once considered a language “barrier” has now become the standard, as English is no longer the prevailing language.
“It’s important to understand that the majority of direct selling customers primarily speak Spanish or Portuguese in the Americas, rather than English,” said Stuart Johnson, Direct Selling News Founder and Chief Executive Officer. “And 20 percent of the US salesforce is Hispanic or Latino.”
4Life, who counts Puerto Rico, Dominican Republic, Mexico, Colombia and a number of other Central and South American countries as its key LATAM markets, sees its domestic engagement with the Latino population as one of its most important customer and distributor groups.
“Our Latin market in the United States is significant,” said Daniel Taylor, 4Life Vice President of Business Intelligence and Analytics. “Everything we do, we do with consideration of this segment.”
From Remittances to Independent Wealth
The pay gap between Latino workers living and working in the US versus those working and living in Mexico, for instance, is stark. On average, the manufacturing wage in the US is approximately $20 per hour. In the Northern Border Free Zone of Mexico, that pay drops to approximately $20 per day, and even further depending on region. For this reason, Latinos working in the US send a significant amount of money, called remittances, back to their family members each year.
In 2023, these remittances amounted to $155 billion sent to Latin America, up 9.5 percent from 2022. And in Mexico, remittances accounted for $63.3 billion (a 7.6 percent year-over-year increase), an amount that exceeded foreign direct investment and represented approximately 4.5 percent of the country’s Gross Domestic Product (GDP).
Amid this pattern, Flint believes there is a significant opportunity to empower the Latino workforce living in the US and its communities back home through business opportunities that exceed simply sending money.
“As Latinos, we have the power to drive long-term prosperity by sharing opportunities that go beyond financial aid,” Flint said. “The time is now to leverage our collective strength to create a true ‘Latinforce for good’ that is known for the prosperity we can bring through direct selling. We need to acknowledge that the tools that brought us here from our past will not take us to the future we want. We can take some of our strong core direct selling values of community, integrity, love and discipline, but the tools and the message to the younger generations must evolve.”
Tailoring Product, Price and Messaging
Company leaders finding success within the LATAM markets agree that each region has its own purchasing power and socioeconomic challenges to keep in consideration. This means wielding price sensitivity and recognizing differing values around frugality. Flint points out that Latino customers living in Latin America prioritize value and tangible benefits, while Latinos living within the US tend to be more willing to invest in premium products.
The messaging around these product offerings is equally important. Taylor emphasizes the importance of translation and interpretation, citing that 4Life is careful to remember that the way products and communications interact with sight, sound and taste can carry unique cultural characteristics depending on region.
OMNILIFE-SEYTÚ has taken care to address the distinctions between the highly segmented LATAM markets by designing content tailored for different age groups and geography. In particular, OMNILIFE-SEYTÚ’s Nfuerza platform, designed to foster a sense of belonging and community among younger generations, has played a key role for the company in supporting young Hispanic distributors living in the US.
“In the US, we have achieved remarkable success, with sales growing by over six percent and recruitment increasing by 16 percent,” said Kenya Vergara, OMNILIFE-SEYTÚ Director of Global Marketing. “This growth reflects our tailored approach to addressing the diverse and evolving needs of Hispanic communities in the US, which are characterized by a rich blend of generational experiences and cultural influences.”
The US, Vergara says, demands generational and multicultural dynamics, while strategy within Latin America focuses more on community, family values and interpersonal relationships. Within each region are unique communities that require their own customized messaging. In Mexico, for instance, OMNILIFE-SEYTÚ communicates with an emphasis on family and community health, while in Brazil, the highlight is wellness and beauty.
Tailoring product, price, messaging and compliance for each individual market may sound tedious, but it is essential for creating cultural relevance and remaining in alignment with customer expectations. Language preferences, customs and local celebrations can impact the success or failure of product launches. When done well, brands communicate an authenticity that feels homegrown, rather than imported.
“We ensure our efforts resonate with the communities we serve, making our brand feel like an integrated part of their lives,” Vergara said. “Our business is supported 90 percent by LATAM. These countries are pivotal to our success.”
From the January/February 2025 issue of Direct Selling News magazine.
