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Business riding on cultural events

C. Gopinath

CINCO DE MAYO is a minor event in Mexico that commemorates a Mexican victory over French invaders on May 5, 1862 in the Battle of Puebla. Citizens around the country stage enactments of the event and celebrate it in a solemn manner. Yet, in the US, it is fast becoming a time for partying, with beer bashes and exchange of greeting cards and not just for Mexican-Americans. To understand how this comes about, one must first realise that when business and culture mix, a lot of money can b e made.

First, a look at the numbers. The US has been seeing a boom in its Hispanic population, with an increase of about 60 per cent in the last decade. The recent census estimates that there are 35 million Hispanics. This is a figure that the politicians have been closely watching for some time, and its effect can be seen in the battles for bilingual education in the southern states. This year, the US President, Mr George Bush, chose to record a Spanish version of his weekly English radio address to commemora te Cinco de Mayo. And a White House spokesperson said that this is the start of a new weekly tradition.

As impressive as the size of the Spanish speaking population is, so is the increase in their purchasing power. Their disposable income is estimated to have increased by 118 per cent during the 1990s, putting it at $452 billion (Rs 21,24,400 crore) in 200 1. The comparative figure for non-Hispanics is just a 68 per cent increase. Hispanics have been making a dent in the entrepreneurial class too. The number of Hispanic-owned businesses have risen 30 per cent between 1992 and 1997.

Clearly, here is a market that offers several wondrous possibilities. Businesses that specialise in the ethnic markets were doing well but the mainstream companies found little opportunity or opening to get into the act. And that is where Cinco de Mayo a nd its timing was a godsend. After the President's Day holiday in February, an event in May as the weather was turning warm is just what was needed. It comes three weeks after Easter and three weeks before Memorial Day, a national holiday. Moreover, as t he Mexican-American community, which used to be concentrated in the Southern states, began to spread across the nation, this was a holiday that began to have national possibilities.

Business participation has been in various forms. One is through sponsorship of events, parades, parties, and music performances. Credit-card companies find this an occasion to target the community for selling their cards. Retiree services firms have pro vided venues as a way to distribute their literature. Even corporate recruiters seeking to diversify their intake have used the occasion to reach out to the community. The credit for transforming the original military nature of the event into a fiesta of Mexican-American pride must surely go to the food and drink companies.

Grocery stores advertise product specials during the week. Taco Bell, a Mexican food restaurant chain, really decks itself up for the event to help you get into the mood. Mexican beer manufacturer, Corona, uses the event to launch its annual campaign. Th is year, it planned to spend $2 million (Rs 9.4 crore) in TV spots. Of course, US beer manufacturers are not far behind. Pushing it beyond food and drink, Hallmark Inc., the large cards and gift items manufacturer, has begun to develop a separate line of Cinco de Mayo greeting cards.

Market analysts report that American consumers spend an extra $500 million (Rs 2,350 crore) during a week which has a branded holiday as against a normal spending week. Pubs and restaurants know it. There are special hours with discounted prices to draw you in!

Not everyone in the Hispanic community is happy at the way Cinco de Mayo is being celebrated. Some groups have been calling for less booze-drenched celebration. Rival parties have been held in public parks, which are alcohol- and tobacco-free. Churches h ave begun to sponsor events that now compete with parties sponsored by liquor companies.

Cultural opportunities

Businesses everywhere in the world have a keen eye for events that can be celebrated. Celebration of St. Valentine's Day is of fairly recent origin in Japan. Valentine's Day, which is celebrated on February 14, was introduced into Japan by a chocolate ma nufacturer in 1936. In the West, men buy chocolates and flowers for their spouses or female friends as an expression of their love. But Japan provided its own twist to the event. By the 1960s, in Japan, the prevailing practice became one of only women bu ying gifts for men. Women are expected to buy chocolates not only for their boyfriends, but also some sort of `courtesy' chocolates for their male colleagues and bosses! Surveys show that, on an average, female employees spend about 4,000-5,000 yen (Rs 1 ,500-Rs 1,900) in buying gifts for their co-workers. Well, the story does not end there.

In 1980, a Japanese confectioners' association designated March 14 as White Day, an occasion for men to reciprocate by giving white chocolates, marshmallows, cookies, or other gifts to women. So you see, it all evens out! Businesses are happy and the GNP goes up.

Of course, all such celebrations bring out the good in some of us. Employees of several companies are pushing their colleagues to donate the money they usually spend on chocolates to help the needy in developing countries.

Purists in India were not too happy with the publicity surrounding Valentine's Day. The media provided us with live images of rampaging groups tearing down advertising and breaking glass showcases. Their view is that, if this trend of celebrating Valenti ne's Day is left unchecked, it would bring in an `alien' celebration that would pollute the culture of the nation. Given the success with which such events have taken off elsewhere, these purists may have reason to fear. But they are also missing a golde n opportunity! The Fall season is too dreary and Christmas in December too far away. Why not popularise Deepavali around the world! Give the Scandinavians a break with fireworks in October! Imagine the number of diyas that can be exported! And don't you think a brand of beer called `Soma' would be well received during that season?

(The author is a professor of international business and strategic management at Suffolk University, Boston, US. His Internet address is cgopinat@suffolk.edu)