[eMarketer] Brands step up efforts to reflect diversity in their products and spending
Brands are waking up to opportunities to cater to communities of different races, backgrounds, and identities in their products and ad spending, with more work to be done.
Diversity and inclusion can positively influence consumers’ attitudes and behavior toward companies, an October 2021 report by researchers at Rice University and the University of Miami found.
Two-thirds of consumers say social values shape their shopping decisions, with 45% of people expressing a believe that retailers should actively support Black-owned businesses, per a recent McKinsey report.
Value-conscious consumers want to see diversity reflected in products, advertising, and merchandising. The potential financial impact of giving more attention to inclusion is a no-brainer as the US grows more diverse.
eMarketer says that brands that shrug off consumers of color are forgoing opportunities to cultivate relationships with shoppers from communities that will keep growing and gaining economic clout. The US buying power of Asian and Black consumers, for example, is expected to rise nearly 39% and 26%, respectively, from 2020 to 2025, compared with growth of 22% for white consumers.
Read the full eMarketer article here
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