Target’s decision to retool its diversity, equity, and inclusion (DE&I) measures has sparked widespread backlash, with many Black-owned brands urging consumers to reconsider their support for the retailer. The move comes as several other major companies, including Walmart, Amazon, and McDonald’s, have also rolled back their DE&I initiatives in response to mounting pressure from conservative activists.
According to marketing executives and brand founders, the issue is complex and multifaceted. Many brands rely on larger retailers like Target for product discovery, distribution, and profitability. The loss of a physical footprint could be devastating for smaller brands, including those owned by marginalized voices.
“We can’t just put paid media spend behind a product if consumers can’t find it in-store,” said Liv Lewis, an executive marketing communications consultant. “We need to pivot our marketing strategies to better educate shoppers on how to continue supporting the business.”
Despite the challenges, many believe that DE&I is not charity, but rather a smart business decision. A recent survey found that 40% of CMOs feel DE&I is essential to their brand’s identity, while 75% of consumers say diversity and inclusion reputation impacts purchasing decisions.
As the industry continues to grapple with these issues, some are pointing to the need for genuine commitment to DE&I. “We can’t just pay lip service to appease the new administration or right-wing activists,” said Dawn Wade, managing partner and chief strategy officer at Nimbus, Inc. “We need real change.”
Ultimately, the dollars will tell the story of these changes. As one anonymous agency executive noted, “Let’s give it Q1.” The industry is waiting to see how these companies will perform in terms of sales and revenue, and whether their DE&I commitments will be met with consumer support or backlash.
Source: https://digiday.com/marketing/boycotts-and-backlash-reveal-complications-in-changing-dei-landscape