MediaPost
reported on how DEIBA+ cutbacks are leading to diminished consumer brand trust.
The article touched a nerve with at least one reader, who posted a
counterpoint. Check it out below.
Broken
Promises: How DEI Rollbacks Are Deepening The Brand Trust Crisis
By Sarah
Mahoney
Target's
Black History Month items sparked outraged comments on social media,
criticizing what many consumers see as brand hypocrisy.
A new study
reveals that consumer trust in brands is eroding, with diversity rollbacks
becoming a key flashpoint in an already widening gap.
Some 80% of
those in Collage Group’s latest wave of data say inclusive marketing is equally
or more important to them today than in 2020, and 39% say they’ve purchased
from a brand expressly because that company’s ads represent diverse people in
ways that seem authentic.
Since President
Donald Trump’s re-election, many companies -- including Target, Walmart,
McDonald’s, and Toyota -- have rolled back DEI initiatives. As a result, 30% of
consumers (about 86 million people) plan to cut back spending on these brands.
That meshes
with other research, including a recent Harris Poll published in the
Guardian, which found that by mid-February -- even before boycott and
Economic Blackout plans solidified on social media -- 24% of consumers said
they’d already stopped shopping at their favorite stores.
And while
there’s no conclusive data available yet that these efforts, including the
recent Economic Blackout Day, are hurting sales, preliminary indications show
these consumer-led boycott groups could hurt financial performance.
The uproar
reflects problems that go much deeper than a single issue. “Many brands have
been spiraling down a reactionary cycle for years,” the report says. Brands
start with grand promises, retreat to moderate promises, then degenerate into
empty promises. For consumers, that’s led to a parallel downward cycle of
disappointment and backlash.
The result is a
gaping trust gap: While 80% of consumers say brand trust is essential when
making a purchase, only 40% believe brands and companies are trustworthy.
DEI isn’t the
only measure of trust, or even a large one. A personal positive experience with
the product or service is the essential way brands build trust, named by 61% of
respondents, followed by friends and family recommendations (47%), timely and
personal customer service outreach (39%), transparent business practices (37%),
and fair treatment of staff (32%.)
A stated
commitment to diversity was named by just 25%, with support for “social causes
I care about” mentioned by 24%.
Before their
DEI pullbacks, Walmart and Target had high trust levels compared to other
retailers, with 83% of consumers saying they trusted Walmart and 82% saying
they trusted Target, according to Collage.
In the weeks
following announcements from both companies saying they would no longer support
efforts promoting internal diversity and inclusion, Walmart has somehow managed
to maintain more of that trust, with Collage’s measure of brand momentum among
multicultural consumers up nine percentage points, and increasing by six
percentage points among white shoppers.
Consumers
believe Walmart is holding up its primary and highly transactional promise:
everyday low prices.
For Target, the
reverse is true. Consumers read the DEI retreat as an abandonment of core
promises. Momentum among multicultural shoppers fell three percentage points
and dropped seven percentage points among white shoppers.
“Target is
stuck in a repeated, reactionary cycle of dramatic reversals,” the report
notes, “with the latest policy changes, misaligned with established brand
values, continuing the downward spiral. The brand is now extremely vulnerable
to double backlash and accusations of performative allyship.”
Early in
February, Target launched a Black History Month collection, drawing widespread
hisses and boos on social media. “Did you think we forgot???” posted one
critic. “Babes Babes it hasn’t even been a month.” Added another: “Anyways,
y’all need anything from Costco?”
Collage says
the findings underscore messages for all marketers, no matter where their
corporate parent lands on the political spectrum. For those at companies that
are standing by DEI policies, a list that includes Costco, Apple, Delta
Airlines and E.L.F., it’s vital to do more than just stay the course. Collage
says stepping up core brand value propositions, and increasing transparency
efforts to reach out to multicultural growth segments, will all increase trust.
For those
working at brands that have eliminated or watered down efforts, marketers need
to “chart a new course.” That likely entails increasing efforts to track
consumer sentiment, developing proactive response playbooks, and building new
relationships with diverse creators.
Here’s the
reply:
John
Caldwell from JACaldwell
Inc
This article tries to claim that consumer trust
is eroding due to DEI rollbacks, but it contradicts itself and ignores the
bigger picture of why people actually buy from brands. Right away, it pushes
the idea that DEI is a key driver of trust when, according to its own data,
only 25% of consumers consider a commitment to diversity important. That’s far
behind factors like product experience (61%), recommendations from family and
friends (47%), and good customer service (39%). If trust is really falling, it has
more to do with companies failing to deliver value and consistency than rolling
back DEI initiatives.
It also misuses polling data. Saying that 30% of consumers “plan” to cut back
on brands that moved away from DEI efforts doesn’t mean they actually will.
People often claim they’ll boycott something over politics, but when it comes
down to it, price and convenience win. Look at Walmart—the article admits that
despite its DEI pullback, trust in the brand has actually gone up among both
White and multicultural shoppers. If these changes were really alienating
consumers, Walmart should be losing trust, not gaining it. Meanwhile, Target’s
struggles aren’t because of DEI rollbacks but because it’s been inconsistent in
its branding and decision-making. The article even acknowledges that Target has
gone through “dramatic reversals,” which makes it seem unreliable to customers.
Then there’s the attempt to use social media outrage as proof that consumers
are turning on brands over DEI decisions. Twitter comments about Target’s Black
History Month collection aren’t real market indicators. Social media outrage is
mostly performative, driven by a small but loud group of people who often don’t
even shop at the stores they’re complaining about. What actually moves the
needle for companies is whether people are spending money, and there’s no real
data showing that these so-called economic boycotts are having a meaningful
financial impact.
At the end of the day, the article is trying to force a narrative that doesn’t
hold up. Brands succeed when they stay true to their core promises, offer good
products, and give customers a reason to keep coming back. Walmart proves that
if a company delivers on what people actually care about—like low prices and
reliability—then political posturing, whether for or against DEI, doesn’t
really matter. Target’s decline has more to do with its business missteps than
its stance on diversity. The real lesson here is that consumers reward
consistency and value, not pandering or reactionary politics.