Inclusivity as a Business Strategy: Why it matters for Brands

Inclusivity is not just a business trend that brands have adopted recently. Instead, it has become a key driver for positive change, both socially and financially. Brands today are not only considering social good when incorporating inclusivity but also recognizing its strategic importance for business growth.

By fostering inclusivity, businesses can tap into new markets, fuel growth, and create stronger connections with diverse audiences. One such example is Mattel, the developers of Barbie. Initially criticized for promoting a narrow standard of beauty with a doll featuring blue eyes, white skin, and blonde hair, Mattel realized their product did not reflect the diverse demographics of their market. This realization led to the creation of new Barbies with different hair colors, skin tones, eye colors, and a range of body types. They even introduced Barbies with physical and cognitive disabilities. This initiative was a game-changer for the brand, resulting in a 63% increase in revenue even before the launch of the Barbie movie.

Nike is another great example. Their "Dream Crazier" campaign celebrated diverse athletes, and their adaptive products like FlyEase, designed for people with disabilities, helped Nike connect with underrepresented groups. This led to a 7% increase in sales and a boost in brand loyalty. These efforts not only fueled financial growth but also enhanced Nike’s image as a socially conscious brand.

Advantages of Inclusivity

Tapping New Markets:

Inclusivity allows brands to access new markets by reaching out to communities that were previously overlooked. For instance, Tanishq, an Indian jewelry brand, identified a gap in the market for everyday jewelry for modern working women. In response, Tanishq launched the "Mia" collection, offering stylish yet practical jewelry designed with a diverse range of women in mind.

It’s important to note that inclusivity isn’t just about targeting marginalized communities—it’s about expanding a brand's reach to different societal groups that may have been previously unrecognized or untapped.

Building Brand Loyalty:

Research shows that inclusivity significantly increases consumers' intent to purchase. When people feel represented by a brand, it deepens their loyalty. Nike exemplifies this with its broad appeal to diverse demographics, from white and African American communities to individuals with disabilities.

Gaining a Competitive Edge:

Inclusivity expands a brand's customer base and strengthens loyalty, giving it a competitive edge. When Rihanna launched Fenty Beauty, she sought to break away from conventional beauty standards by offering products in 40 skin tones. This inclusivity-driven approach led Fenty to achieve $100 million in revenue within just 40 days.

Staying Culturally Relevant:

For brands to remain culturally relevant, inclusivity is essential. It aligns them with evolving values and expectations of diverse consumers. Brands that embrace inclusivity are better positioned to stay connected to cultural trends, reducing the risk of becoming irrelevant.

How to Embed Inclusivity into Your Brand

Inclusivity should permeate every aspect of a brand's ecosystem—from product development to marketing and customer experience.

1. Product Development:

The first step is thorough market research to ensure representation across different groups. Brands need to analyze their current customer base, identify underrepresented communities, and understand their needs. For example, Nike’s adaptive footwear for people with disabilities and Microsoft's Xbox Adaptive Controller exemplify how inclusive products can appeal to broader markets while enhancing the brand’s reputation.

2. Inclusive Marketing:

Brands like Zara and H&M feature models of various ethnicities, body types, and skin tones in their campaigns, reflecting a conscious effort to market inclusively. Consumers need to feel represented, and inclusive marketing helps ensure that the brand connects with diverse audiences. Brands are also raising awareness through campaigns, such as those supporting LGBTQ+ rights during Pride Month.

3. Creating an Inclusive Experience:

Ensuring that a brand’s engagement with customers reflects inclusivity is crucial. This could involve redesigning stores or digital platforms to be more accessible or fostering inclusive hiring practices. A good example is Sephora, which revamped its customer experience after discovering that three out of five people of color and Indigenous customers did not feel welcome in their stores. Sephora developed diversity and inclusion training, increased the hiring of people from these communities, and pledged to source 15% of its products from Black-owned businesses. These efforts resulted in a twofold increase in revenue.

The Challenges of Inclusivity

While inclusivity brings many benefits, it also requires careful execution. Brands must strike the right balance to avoid backlash. For example, some LGBTQ+ campaigns have faced boycotts, with critics labeling brands as "woke" or misinterpreting their messaging. Brands must walk the path of inclusivity with authenticity, thorough research, and a well-prepared contingency plan to mitigate risks. Overemphasizing one group at the expense of others can also negatively impact a brand's image.

Conclusion

When executed correctly, inclusivity can open new doors for growth, build lasting brand loyalty, and give companies a competitive edge in the marketplace. However, it must be approached thoughtfully, ensuring that Inclusivity as a Business Strategy is not only embraced in product development but also in marketing and customer experience. Brands that do so successfully will find that the sky’s the limit.