Fashion and cosmetics are deeply connected to consumers' appearance, identity and cultural alignment. These industries choose what products and services are produced and how to market them, giving brands significant power to choose who gets to express themselves and how they do so. Marketeers have the opportunity to craft inclusive brands that tackle stereotypes, social injustice and meet the needs of underserved populations. Understanding the true social and economic value of inclusion in this industry is a vital ingredient to brand growth and success.
To start with we know consumers care about inclusion, according to Kantar’s 2024 Brand Inclusion Index, 80% people around the world say diversity and inclusion is important to them. When it comes to discrimination brands are also undeniably part of the problem, with 72% of reported incidents on the index occurring in work environments or during brand interactions. Ethically speaking, brands have perpetuated the problem and therefore have a responsibility to be part of the solution.
Ethics aside, if brands don’t choose to be inclusive out of love, they should do it for money.
Underrepresented populations hold significant buying power. To give some examples the LGBTQ+ population hold $3.9 trillion in spending power, whereas those with a disability or thinking/learning difference hold $8 trillion. Brands that embrace inclusivity will see increased profits both now and, in the future, as demographic shifts reshape the global population. For example, currently 25% of our global population is African, this number will change to a third in 2075. Failing to connect with overlooked consumer groups means that brands forfeit revenue from these market segments.
Cosmetic and fashion brands have a unique opportunity to win with inclusion
Cosmetic and fashion brands are closely tied to consumers' sense of self, giving them the chance to connect to consumers more deeply through inclusivity. It is no surprise that two out of the five most inclusive brands identified by Kantar’s Brand Inclusion Index – Dove and Nike – are from these industries. Dove also was recognized as the overall most inclusive brand for women and Nike the overall most inclusive brand for LGBTQ+ community.
See how Dove and Nike’s approach to inclusion helps consumers feel a personal connection with these brands:
“I remember the campaign that had the lady who was a burn victim. That's my earliest memory of the brand and I have loved it since.” 25-34, women, South Africa
“Nike highlights athletes and people from all walks of life in its advertising campaigns and marketing initiatives. They collaborated with designers and athletes of diverse ethnicities, genders, sexual orientations and physical abilities.” France, Man, 55-65, LGBTQ+
Dove and Nike’s financial success is undebatable with Dove achieving its highest underlying sales growth in more than a decade in 2023, and Nike being the second most profitable fashion company in 2022 according to McKinsey. Both brands are well known for investing in inclusive advertising which we now know increases profit. Recent data from ‘Inclusion = Income’ produced by the Unstereotype Alliance and Oxford Saïd Business School in partnership with Kantar reveals that brands that use inclusive advertising experience 3.5% higher-short term sales, 16.5% higher longer-term sales and 15% higher customer loyalty.
Staying ahead with inclusion in the fashion and cosmetics industry
Nike’s 2020 “For Once. Don’t do It” campaign to tackle racial injustice and their vocal support of the LGBTQ+ community with the 2023 “No Pride, No Sport” movement are examples of how Nike showcases their commitment to inclusion. This work has been impactful in the past, but currently, Nike is facing limited growth. As of October 2024, Nike experienced a 10% drop in quarterly sales.
Inclusive advertising boosts success in the fashion and cosmetics industry, but brands shouldn’t limit their inclusivity efforts to just more representation in advertising. Consumers want action that is impactful, in fact, 75% of consumers believe that it is important to buy from companies that actively promote diversity and inclusion in their own business and society as a whole. This is why the Brand Inclusion Index is calculated across 4 key metrics: diversity, equity, inclusion and brand strategy (or brand bravery).
Competitors that are growing in the fashion and cosmetics space are taking a more holistic approach to inclusion. For example, sports retailer Decathlon transformed their brand strategy in spring 2024 with the objective to “make sports accessible to all”. Inclusivity was placed at the heart of Decathlon with inclusive pricing strategies, messaging and innovations. A notable innovation includes the work done by Decathlon’s morphology and sensory science labs that aim to make clothing more comfortable for those with physical and mental disabilities. According to BrandZ data when there are more uses for a brand, this results in 17% growth. Decathlon’s work is already starting to pay off as the brand experienced a 4.4% increase in sales relative to 2023.
Brands such as Fenty also place inclusion at the heart of their brand strategy with a key component of the brand's success stemming from their efforts to make sure their products are suitable for 50 skin tones. Fenty continues to grow and capture new market opportunities such as $6.6 billion dollars Black American’s spend on beauty products each year.
It is important to note that brands need to consider how much of a license they have to drive forward inclusion, and in what topic area will this be relevant and impactful. Take luxury fashion brand Loewe that can’t be accessible to all due to the brands’ high-cost products. Despite exclusivity, the brand still made progress with inclusion by placing 88-year-old Maggie Smith at the forefront of the brands 2023 winter collection. This kind of age inclusion breaks down stereotypes around beauty and appeals to older consumers who, in many countries, have more means to shop for luxury products.
These compelling examples show that when inclusion is done right it creates both social impact and significant growth. Learn more about Kantar’s Brand Inclusion Index here and explore how we help brands to get inclusion right.
Please also contact valeria.piaggio@kantar.com or Dan.Dexter@kantar.com to learn more about how Kantar can help you to win with inclusion.