Diversity is good business: Transforming business and marketing practices for growth

Abstract

A major demographic shift has occurred in the United States, and by the mid-2040s, the country will be majority–minority. Younger, more diverse consumers are shaping today’s culture, trends and consumer values. They are an integral part of the US economy with significant and rapidly increasing buying power serving as a growth engine for many industries. Multicultural consumers represent nearly US$4tn in buying power, which is greater than the fourth largest economy in the world. By 2030, they will represent more than half of the adults in the United States. These shifts require brands to evolve their strategies in order to stay relevant in the lives of these consumers and realise the growth they present. Today many brands are still missing this opportunity because they have not adapted their business and marketing strategies to reflect the new reality of a more diverse marketplace. As a result, they face the risks that come with inaction. Addressing the needs of and investing in diverse consumers can pay dividends for a brand but require inward reflection and more inclusive and integrated business practices. This paper analyses five strategic imperatives that can fuel a brand’s ability to make material progress: 1) sizing and clarifying the business opportunity; 2) investing in quality diverse insights, data and measurement; 3) investing for long-term growth; 4) expanding diversity in marketing and 5) educating your organisation.