Do You Speak Cultura? The Need for Hispanic Voices in Leadership

Lisandra de la Paz

Co-Founder, Fluentica

I recently came across a thread in which  Latina entrepreneur Sandra Velasquez, founder of beauty and personal care brand Nopalera, raised awareness about the struggle Hispanic brands face when trying to showcase their concepts because investors often struggle to understand the culture.

Sandra Velasquez

founded Nopalera carrying the values of resilience of their Mexican parents.

“…there aren’t enough Latinas who are investors and retailer buyers. So I spend a lot of time having to teach people how to pronounce my brand name, what a cactus is, and the data on the Latino cohort,” Velasquez said. 

This hit me. As a Latina entrepreneur myself and co-founder of Fluentica, an intercultural marketing agency that helps brands connect effectively with US Hispanics, Velasquez’s shared thought made me wonder what it would be for Fluentica not to have to educate non-Hispanic business owners or industry leaders about Latino consumers. 

From left to right, Wendy Betancourt, Lisandra de la Paz, and Amy Perez, founders of Fluentica. 

How amazing would it be for us to skip the “convincing” and develop a great marketing strategy or creative idea for a campaign targeting a specific Hispanic segment by tapping into their culture, similar to how agencies usually target, for example, affluent investors or Gen Z entrepreneurs. Of course, the person in charge would have to empathize with what we’re talking about, and unfortunately, this rarely happens. Nopalera, Fluentica, and thousands of other Latino-owned companies experience the consequence of Latino underrepresentation in business or leadership roles every day.

Curious it is, these business owners and marketing leaders are aware of the numbers. They know Hispanics represent the largest second demographic in the country, making up nearly 20% of the U.S. population, and that the Hispanic Buying Power is expected to grow by $2.8 trillion by 2026. They also know Hispanics exhibit strong brand loyalty, with 54% of Hispanics less likely to change brands. 

Still, they do not allocate a marketing budget to this segment, or if they do, it is very minimal. Why?

It’s simple: people fear the unknown. So, they are unlikely to invest in something they do not comprehend. While they grasp the numbers and the potential, they are unable to take action on what is unfamiliar to them.

Trusting a Hispanic-focused marketing agency (or, in Velasquez’s case, a brand of products made from the Mexican Nopal cactus) seems a risk too big for non-Hispanic business owners, leaders, or investors. For them, it means entering a “terra incognita,” where there are too many segments with too many different traditions and food, Spanish accents, and dialogues. Acculturated, Bicultural, or Unacculturated. Second or first generation. Politically undefined. Too mixed but too split at the same time.

It’s a fun puzzle for people who understand the culture. For those who don’t, it simply represents The Upside Down. As a result, they choose to avoid taking a shot because it could lead to cultural misunderstandings and perpetuate stereotypes, which could represent a significant failure and further alienate Latino consumers. It’s no surprise that 54% of Latinos feel overlooked by major brands, and 43% feel their community is undervalued, according to a research by the We Are All Human Foundation and Nielsen. 

Back in 2018, 54% of Latinos believed big brands aligned with their values, but in 2023, this number dropped to 45%.

Source: WAAH/Nielsen.

Representation matters. A more inclusive industry could be a potential solution. Brands (or individuals in leadership or decision-making roles) who understood Latino entrepreneurs’ ideas and were unafraid to adopt a small, non-budget-friendly” strategy. People who were already “convinced” of the power and relevance of the Hispanic community because they belonged to it and understood its power from the inside.

Having more Latino leaders not only empowers our community but also contributes to a more vibrant, innovative, and inclusive economy. Let’s continue to champion diversity and work towards a future where Hispanic entrepreneurs are seen, heard, and valued in every boardroom and business setting!