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El Nuevo Día to Close Doors in Orlando and an Important Business Lesson in the School of Hard Knocks

Hard hit by lack of newspaper advertising and mismanagement, Puerto Rico's major newspaper is being forced to close its Orlando publication. I know this story well and I think we can all learn from it.

El Nuevo Día is owned by the Ferre family in Puerto Rico. They are of Cuban anscestry. This newspaper is very strong in Puerto Rico and is either subscription based or you pay for it mostly at the local "panaderías" (bakeries) or "farmacias" (drug stores).

Spanish language newspapers in the United States are free. You can pick them up at Latino owned stores, etc. The point is that they are free and the public is used to getting them free. El Nuevo Día ownership didn't understand American Spanish Language newspaper consumer habits. They thought that Latinos here would pay for their newspaper in Spanish — especially Puerto Ricans since they do on the island. They were wrong.

They found out quickly that their model wouldn't work, switched to a "free" version but the damage was done. I have often said that you don't get many chances with the Latino consumer. You get it right and enjoy great brand loyalty or you simply will fail. Central Florida has several other local Spanish language newspapers who are holding their own during these challenging economic times.

This is a great example because it shows that even Latinos can misunderstand their own culture within the United States. Latinos here are not like Latinos in Latin America. Business models are different; at the least they are culturally affected by our environment in this country. So, if Latinos who know Latinos can misunderstand Latinos in this country how much more do Americans need help with this culture?

I've had a lot of American business owners tell me, "business is business" or "people are people." Really? Tell that to the owners of El Nuevo Día who have to take their multi-million dollar investment back to the island.

If you want to have serious success in the Latino market, get help from an expert who knows how to help you. There are simply too many cultural mine fields out there to leave it to chance. Of course, it would be a privilege to help you but if you don't seek me out, find someone else who really knows what they are talking about!

El Nuevo Día didn't and paid for it dearly both financially and in brand image. Imagine how many Puerto Ricans in Orlando (around 300,000) are telling their families in Puerto Rico, "oye, aquí no pudo esa gente poderosa." ("Hey, those powerful people couldn't make it here.)

Think about it.
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posted by Ricardo González on August 15, 2008.

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