Today's consumers are confidently embracing their authentic identities, and forward-thinking brands are following suit. Inclusive beauty giants like Ulta Beauty proudly defy gender norms, while others prominently feature same-sex couples and individuals with disabilities and promote body positivity in their advertising campaigns. On the flip side, some brands are succumbing to the fear of appearing overly “woke.” The increasing backlash against diversity, equity and inclusion has prompted a few to backtrack on commitments made during the peak of social unrest in 2020, leaving consumers feeling angered and confused.

Multicultural consumers, who represent almost 100% of the population growth in the U.S. and are on track to become the majority by 2050, seek genuine connections with brands. Central to this is a brand's ability to authentically understand its audience and allow that authenticity to drive consumer engagement.

Brands that bridge cultural divides are the ones that thrive. By genuinely connecting cross-culturally, companies seamlessly align DEI with their bottom line. Inclusivity isn't optional – it's the fuel for long-term success. From diverse workforces to inclusive marketing campaigns, a focus on inclusion strengthens every aspect of a brand.

Understanding multicultural consumers means appreciating their commitment to holistic well-being. Black women prioritize mental health, while Gen Z seeks a shift from the “grind” to self-care and mindful living. Brands that tap into these trends resonate with a broader audience.

In this episode of The New Mainstream podcast, Will Campbell, Co-founder and CEO of Quantasy, shares his perspective on the state of multicultural marketing and how young, diverse generations are driving wellness trends.

The past year has been a roller coaster ride for multicultural marketing practitioners. From the recent Supreme Court ruling on affirmative action to increased scrutiny of diversity, equity and inclusion (DEI) initiatives, companies are carefully assessing how these factors will impact their multicultural marketing budgets. ThinkNow shares this curiosity and has recently surveyed corporate decision-makers in multicultural marketing and multicultural consumer research, aiming to understand how they are strategically navigating the current landscape.

Download the report here.

The short answer? Budgets are increasing.

Multicultural marketing budgets are on the rise. Two-thirds of respondents plan to maintain or increase their multicultural marketing budgets in 2024. The driving force? Opportunity. Recognizing the economic power of diverse consumers and demographic shifts, companies see multicultural marketing as a key growth strategy.

Among the reasons cited by the 31% of respondents who plan to increase their budgets are identifying new business opportunities, acknowledging cultural influence on their business, and a desire to better represent and impact diverse audiences.

• “Audience business opportunity, cultural influence, growing audience representation and impact.”
• “More budget available to multicultural marketing. Hispanic has historically been a priority. We're on the journey to increase focus with African-American and other cohorts.”
• “Growing diverse consumer impact on business and sales.”

Additionally, respondents highlighted the importance of staying ahead of cultural trends and consumer behaviors to remain relevant and effective in their marketing efforts. This includes understanding the nuances of different cultural identities and tailoring messaging and campaigns accordingly. Companies recognize that cultural relevance is not only a matter of inclusivity but also a strategic imperative for engaging and retaining diverse consumer segments.

Interestingly, nearly 40% of respondents intend to maintain their 2023 budgets, indicating a continued commitment to multicultural marketing. This demonstrates a continued recognition of the economic significance of multicultural consumers and the importance of targeting this segment effectively.

Challenges and Cautiousness

However, amidst the optimism surrounding budget increases, there are challenges and instances of caution. Eighteen percent of multicultural marketing decision-makers plan to decrease budgets, citing general cost-cutting measures and clients shifting towards broader "general population" strategies. Among the reasons given by the minority who stated they’re reducing their budgets were:

• “Budget cuts across multicultural marketing efforts and an increased desire from clients to hit 'wider' audiences; e.g., Gen Pop.”
• “Less clients trying to target multicultural clients.”
• “Lower post-COVID budgets.”

Moreover, there is a growing emphasis on accountability and measurement in multicultural marketing efforts. Companies are increasingly leveraging data and analytics to evaluate the effectiveness of their campaigns and ensure they are resonating with diverse audiences. This includes monitoring key performance indicators such as brand awareness, consumer engagement, and sales lift among multicultural segments.

Adapting Multicultural Marketing Strategies

Still, 1 in 4 companies are adapting their approach. The cost of “getting it wrong” has increased in recent years. No one wants to be in the position Budweiser was in after boycotts erupted in response to their partnership with a trans influencer. In response, some companies are taking a more cautious approach, while others are conducting more research before launching new campaigns.

Key Takeaways:

• Multicultural marketing remains a strategic priority for many companies.
• The economic power of diverse consumers is driving budget increases.
• Uncertainty and cost-cutting pressures are impacting some budgets.
• Companies are adapting their strategies to navigate the changing landscape.

What does this mean for the future? While challenges exist, the prevailing sentiment among many practitioners is that multicultural marketing represents a pivotal avenue for growth. Companies adept at strategically maneuvering through these changes and placing a premium on comprehending diverse consumer demographics will undoubtedly find themselves poised for success.

As Women's History Month approaches each year, the remarkable strides women have made in business become increasingly clear. However, despite these advancements, certain industries, such as the insights industry, continue to struggle with leadership inequities and a lack of workforce diversity.

While the insights industry prides itself on understanding and reflecting diversity in consumer populations, this awareness often stops short within its own workforce. This creates a troubling gap: the voices informing strategies may be representative, but the decision-makers interpreting and implementing those insights remain predominantly homogenous.

This lack of diversity leads to blind spots and missed opportunities, potentially limiting strategy effectiveness and perpetuating biases. Closing the gap between measured and internal diversity unlocks the full potential of insights, creating more opportunities across the board.

In this episode of The New Mainstream podcast, Ali Henriques, Global Director of Research Services at Qualtrics, delves deeper into leadership diversity and its impact on recruiting and retaining diverse talent.

Multicultural marketing has emerged as a critical strategy for brands seeking to reach and engage a broader audience in today's interconnected, global marketplace. However, the days of generic, one-size-fits-all campaigns are long gone. Today's discerning consumers demand authenticity and cultural relevance, and it's up to brands to rise to the challenge and meet their needs.

Specificity promotes diversity and increases representation.

Specificity is the cornerstone of effective multicultural marketing. While targeting broader ethnic or cultural groups represents a step forward from the general market, it still fails to address the inherent diversity within these groups. Instead, brands must delve deeper, understanding the nuances, subcultures, and unique experiences that define each audience segment.

Latinx audiences, for instance, are often stereotyped as abuela-focused or reduced to Spanglish catchphrases in hastily translated general market ads. But these tired tropes do not account for the rich diversity, lived experiences and varied levels of acculturation within Latinx communities.

Consumers crave genuine representation and identify with advertising that mirrors how they see themselves and how they live. Whether it's language nuances, celebrating cultural traditions, or portraying diverse family structures, brands that avoid stereotypes will pull ahead.

Consumer scrutiny of DEI remains high.

The rise of multicultural marketing coincides with escalating calls for social justice, particularly in the wake of the murder of George Floyd in 2020. Since then, companies have woken up to the importance of diversity, equity and inclusion (DEI), creating executive-led initiatives to drive change within these organizations.

However, recent trends suggest that the corporate focus on DEI may be waning. Layoffs within DEI departments and pending lawsuits suggest a decline in DEI efforts, which could impact multicultural marketing strategies.

Despite the corporate ebb and flow, consumer scrutiny of diversity and inclusion efforts or the lack thereof remains steadfast. Consumers are increasingly aware of companies' DEI commitments and hold them accountable through their purchasing decisions.

A recent ThinkNow study found that 72% of consumers are more likely to purchase from brands that demonstrate genuine commitment to diversity and inclusion. This sentiment is echoed across all demographics, including multicultural consumers.

Multicultural Marketing and DEI have a symbiotic relationship.

Effective multicultural marketing is inextricably linked to a deeply ingrained culture of DEI within an organization. When DEI is embedded in the corporate DNA, it fosters a culture of empathy, respect, and inclusivity, empowering the people behind the brands to create authentic and culturally relevant marketing campaigns that, in turn, reinforce DEI efforts.

The future of marketing is multicultural.

As the election cycle heats up, issues of race and ethnicity are poised to dominate public discourse. Now more than ever, companies need to demonstrate their commitment to DEI.

The future of marketing is undoubtedly diverse. By fostering empathy, understanding, and respect for these audiences, brands will forge stronger bonds, drive growth, and emerge as leaders in multicultural marketing.

While diversity and inclusion have recently come under fire in several industries, the expectation consumers set in 2020 for brands to be more inclusive stands. A ThinkNow study revealed that over 45% of consumers are willing to go out of their way to shop at a store they've never frequented if the brand has made a public commitment to D&I. Forty-seven percent of consumers are willing to spend more in a store.  This demonstrates a significant shift in consumer priorities, with many placing a high value on brands that align with their beliefs.

While different, D&I and multicultural marketing often converge in practice, creating a powerful synergy for reaching and engaging diverse audiences. The growing multicultural majority in the U.S. has shifted consumer behavior, with individuals increasingly seeking brands that reflect their own diverse identities and values. As a result, multicultural marketing has become an essential tool for brands. A fundamental understanding of D&I and how it integrates into multicultural marketing, from representation to authenticity and cultural competency, helps brands realize the full potential of this synergy.

However, the challenge with multicultural marketing often lies in the limitations imposed on it. Often, multicultural marketing is viewed as separate from mainstream marketing strategies, leading to limited budgets and resources that can negatively impact campaign performance and jeopardize relationship-building efforts with diverse audiences.

In this episode of The New Mainstream podcast, Javier Farfan, Culture Marketing Strategist at the National Football League (NFL), delves into various multicultural campaigns the NFL has launched to effectively reach and engage multicultural audiences and how the league overcomes multicultural marketing pitfalls.

The workforce is evolving, and with it, expectations of companies to be more inclusive in their hiring and retention practices. Younger generations, particularly Gen Z, are entering the workforce with a strong sense of self-confidence and a clear idea of what they want in a work experience. They are willing to pass on a job, even if it pays well, if it does not align with their values or create a supportive work environment.

So how do companies compete for talent? Post-pandemic, many attempted to attract younger demographics by dismantling their cubicles and building open workspaces with pool tables. Then the pandemic shifted how we work. Offices were shuttered, and employees worked from home, creating the “work from anywhere” culture many companies now find contentious. Gen Z, on the other hand, has fully embraced it and seeks to align with companies that value work/life balance and offer opportunities for growth and development.

But job candidates don’t just want employers to dismantle their cubicles. They expect companies to aid in the dismantling of systemic racism and other pressing issues plaguing society, like climate change. Developing an employer brand that appeals to Gen Z requires a visible and vocal commitment in these areas. With seasoned workers aging out of the workforce, taking their institutional knowledge with them, the balance of power has shifted to young job candidates, making those commitments essential.

Gen Z is the first multicultural majority generation in U.S. history. They are tomorrow’s leaders, and the onus is on employers today to create an early career talent pipeline to replace outgoing talent.

That won’t be easy, especially for companies unwilling to evolve with culture. In the past, the employer sat in the seat of power, and now it’s the candidate, and they aren’t asking about pool tables. They want to hear about the companies’ DEI goals and progress, employee resource groups (ERGs) and the annual DEI report. Failing to make this information accessible could jeopardize the employer brand.

In this episode of The New Mainstream podcast, Henal Majethia, Diversity Recruiting Manager, University Relations at Eastman, discusses the importance of diversity, equity, and inclusion in building healthy early career talent pipelines and strengthening the employer brand.

Meet Menal Majethia

Menal (“hen-null”) Majethia began her career after graduating from the University of Tennessee at Amazon Fulfillment, supporting Operations, Supply Chain, and Distribution, and later launching the Operations University Recruiting initiatives for the East Coast. In this role, Henal supported US and CA hiring goals and was able to spearhead the HBCU (Historically Black Colleges and Universities) and HSI (Hispanic-Serving Institutions) recruiting presence. She was exposed to DEI during this tenure. Upon completing graduate school at Northeastern University, Henal joined Eastman, where she continues leveraging her skills in early career talent and DEI in her current role.

The past two years have been difficult for the LGBTQ+ community. Despite years of progress, a disturbing resurgence of intolerance threatens to undermine the hard-earned gains toward social acceptance. As part of our commitment to promoting diversity and inclusion, ThinkNow surveyed a nationally representative sample of LGBTQ+ Americans on their views of the current social climate, corporate support for LGBTQ+ causes, personal pronouns, and mental health care. Below are a few noteworthy findings from the study.

Download the full results of the quantitative survey here.

Discrimination Is On The Rise

We asked our sample of 500 LGBTQ+ Americans if they felt that discrimination or prejudice towards the LGBTQ+ community had increased over the past year, and 67% said "yes." This perception appears to be rooted in reality. A recent Gallup Poll found that support for same-sex relations in the U.S. dropped from 71% in 2022 to 64% in 2023. That drop is likely driven by a loss of support among Republicans, dropping from 56% last year to 41% currently. A possible explanation for this drop is the rhetoric surrounding the 2022 "Don’t Say Gay” law in Florida that portrayed education about sexual identity as “grooming” children to adopt gay lifestyles. While politicians appear to be driving the current wave of anti-LGBTQ+ rhetoric, only 29% of our respondents said they “only vote for candidates who support LBGTQ+ rights.” For most (58%), a candidate’s position on LGBTQ+ rights is just one of many key factors when voting.

Corporate Support For LGBTQ+ Community Matters

Although recent controversies have surrounded Bud Light and Target's support for the LGBTQ+ community and their subsequent pullback of that support, LGBTQ+ consumers still believe companies should advocate for their causes. In fact, Target and Bud Light were two brands that respondents felt were doing a good job supporting the LGBTQ+ community.

However, using advertising to show support is not the only way respondents want brands to engage. Sixty-five percent want companies to train their employees in diversity, equity and inclusion, while 59% want companies to include sexual orientation in corporate nondiscrimination policies.

Personal Pronouns Are Age Sensitive

Thirteen percent of our sample used a pronoun other than “he/she.” The most common non-binary pronoun (18%) was “they/them.” Age was the primary factor that determined how important it was for respondents that people use their correct pronouns. Seventy-three percent of respondents between the ages of 18-22 stated that it was at least moderately important to them that people use their correct pronouns vs. 25% of those aged 55+.

Less Than Half Support Boycotts

While conservatives are boycotting Bud Light, Target, Kohl’s and even Chik-fil-A for supporting diversity, equity and inclusion ideals, the LGBTQ+ community is split on boycotts, with 43% saying they’ve boycotted a company because of their stance on LGBTQ+ issues. Interestingly, 59% of respondents in the 55+ age bracket say they’ve boycotted a company for their stance on LBGTQ+ issues, while only 34% of 18–22-year-olds have boycotted for that reason. Income also seems to be a factor, with 52% of those earning $80K or more supporting boycotts vs. 34% of those earning less than $35K a year.

Mental Health Support Needed Young LGBTQ+

“Forty-two percent of LGBTQ+ youth—and 52 percent of trans youth—said they seriously considered suicide in 2021.” One thing that a vast majority of our LGBTQ+ survey respondents (76%) agreed on was the need to “create safe, accepting, and supportive environments for LGBTQ+ youth on school campuses” to support mental health among young people. Most respondents also supported DEI initiatives, connecting youth with supportive peers and providing gender-affirming mental health care.

Moving Forward

The past two years have presented significant challenges for the LGBTQ+ community, with a noticeable increase in discrimination and prejudice. Despite this setback, our survey highlights the unwavering belief among LGBTQ+ Americans that corporate support for their cause is crucial. The controversies surrounding brands like Bud Light and Target have not diminished the community's expectation that companies should actively advocate for LGBTQ+ rights.

However, it is important to note that supportive advertising alone falls short. Respondents want companies to go beyond that by providing employee training in diversity, equity, and inclusion and including sexual orientation in corporate nondiscrimination policies. Lastly, the survey underscores the urgent need for mental health support for young LGBTQ+ individuals.

Overall, the findings highlight the persistent challenges faced by the LGBTQ+ community and emphasize the role that acceptance, advocacy and allyship play in fostering their well-being and advancement.