Three quarters of consumers say that a brand’s diversity and inclusion reputation influences their purchasing decisions, according to a new global study.
Researchers say the findings highlight the significant opportunity for brand’s to drive growth through inclusive marketing, as it’s “clear that brands who fail to address discrimination risk alienating a significant portion of their customer base”.
The survey of more than 23,000 people in 18 countries was conducted by marketing data and analytics business Kantar.
Within Kantar’s 2024 Brand Inclusion Index, the findings sit in the context of preliminary research from the Unstereotype Alliance with Oxford University’s Saïd Business School, which revealed that progressive, inclusive advertising drives a sales uplift of over 16 per cent when compared with less progressive ad content. Inclusive advertising was also shown to have a significant impact on consumer loyalty, buying intentions and a brand’s pricing power.
“It’s a myth that inclusion marketing is about marketing to minorities. Inclusion marketing is expansive marketing,” says Valeria Piaggio, global head of diversity, equity and inclusion at Kantar.
“One of the fundamental ways to grow your brand is to predispose more people to it. Yet when brands exclude consumers – whether that’s because people don’t feel welcomed when shopping in store or their advertising doesn’t reflect diverse communities – it’s an easy miss.”
Piaggio says Millenials and Gen Z consumers prioritise diversity and inclusion more than any other group, so brands should take note as these populations grow in size and buying power.
“Brands will be rewarded if they stand by their values – especially in the face of vocal communities which stoke the culture wars by pitting minority groups against one another,” she says.
Inclusion gaps
Despite some progress made, the Brand Inclusion Index 2024 shows a significant inclusion gap between the proportion of people in the market who’ve experienced discrimination and the percentage who believe in the importance of diversity and inclusion.
Findings revealed a staggering 46 per cent of the world’s population have experienced some form of discrimination in the past year. Seventy-two per cent of those who experienced discrimination reported it happening in a work environment or during interactions with brands, and 58 per cent experienced discrimination in a commercial location.
People with disabilities and LGBTQ+ individuals report the highest rates of discrimination (81 per cent and 62 per cent respectively), with researchers saying this emphasises the need for targeted efforts to create more inclusive environments and content.
Discrimination is even more prevalent in emerging economies (64 per cent) than in developed markets (36 per cent), as the countries with the highest inclusion gaps included South Africa, Nigeria, Colombia and Japan.
The most inclusive brands
In its Index of the world’s most inclusive brands, Kantar ranked Google, Amazon, Nike, Dove and McDonald’s in its global top five.
The study says that consumers– particularly in marginalised communities– praised Google for its unwavering commitment to DE&I in its internal policies, products and marketing, its authentic representation of people from all walks of life and its leading-edge innovation for inclusion.
“The people we design for come from different places, ethnicities, socio-economic positions, and disability communities,” said Annie Jean-Baptiste, founder and director of product inclusion and equity at Google, in response to the study’s findings.
“With those varied backgrounds come different mental models and contexts of use. This is why we continue to partner with communities to understand their needs directly and develop truly helpful products.”
As for the other top brands, Dove was commended for its consistent and positive representation of women of all backgrounds. And Nike received praise for its unwavering support of the LGBTQI+ community.