Show Commitment to the Underserved

A promising path to retailing success is to select an underserved target market and then show commitment to meeting their distinctive needs. In my opinion, there is no better example of that than La Curacao, the California-based chain with a target market of consumers of Latin American heritage. Based on what La Curacao has done, here are some tips for all retailers—regardless of where in the world you are located and what distinguishes your underserved target markets:

• Give help in gaining financial strength. La Curacao offers three credit plans, two of them specifically designed for customers without a strong credit history. It’s reported that 95% of purchases are made with a store credit card, and for 80% of the store credit card holders, the La Curacao card was the first one they ever had.
• Honor the family. Cultures place different amounts of importance on family, but every culture honors family to some degree. La Curacao gives college scholarships to children with Latin American roots, sponsors talent shows featuring young Latin American musicians and dancers, and provides ongoing Latin American-themed live-performance family entertainment in each store. The company spokescharacters are a gregarious family of penguins.
• Partner with others who have ties to the distinctive community. For their college scholarship program, La Curacao partnered with the University of Southern California Mexican-American Alumni Association. For an initiative that brings Latin American bands to the annual Tournament of Roses Parade in Southern California, La Curacao partnered with a local affiliate of the Spanish-language Univision TV network. Although the stores are probably best known for selling home appliances, computers, and furniture, La Curacao also partnered with suppliers of ethnic handcrafts. The company motto is “Un Poco De Su País,” which translates from the Spanish into “A Little Bit of Your Country.”