Inclusion is the future for brand growth

Inclusion is the future for brand growth

5 minute read

Keen to avoid the gaze of the manufactured outrage machine, marketers have been timid about investing in Diversity, Equity and Inclusion (DEI) in the past year. Kantar’s research, and that of our partners, however, indicates brand inclusion and fairness inside and outside businesses are the keys to brand growth. There is a strategic imperative to put inclusion back at the core of their brands.

Article details

  • Global Head DEI, Kantar’s Sustainable Transformation Practice
Opinions
22 July 2024
Kantar Brand Inclusion Index 2024
“About a quarter of the global population (23%) are quite satisfied with advertiser representation, saying they are “always” well represented. The happiest? Americans, with 33% approving of how they are represented on screens."

One brand that has been successfully doing this is Google, recognized this year by Kantar as the most Inclusive Global Brand. Google was chosen by popular vote in Kantar’s first global Brand Inclusion Index study, conducted in April and May 2024. The study was conducted in 18 countries, with over 20,000 participants. When we ask people who have chosen Google as the most inclusive global brand, the number one reason is its non-discriminatory practices. What is telling is that most of these comments came from parts of the world that are often discriminated against or underrepresented: Nigeria, India, Colombia, Kenya, Mexico, and Brazil.

Preliminary insights from the first-ever global Brand Inclusion Index by Kantar demonstrate that inclusion is the future for brand growth. A generational shift has opened the door to a wider range of identities, creating a new culture that demands everyone be welcomed and understood. Data shows that globally, diversity, fairness and inclusion are more important to Gen Z and Millennials. This means that Diversity, Equity and Inclusion will continue to rise in importance as high-growth populations care about DEI and support brands that show inclusivity.

65% of people think most brands are making an effort to be more diverse and inclusive. However, despite brands' efforts, a small percentage of people feel advertisers never represent them well—on average, 8% of the global population, but this goes up to 20% in Japan and 15% in the Czech Republic (the same two countries where people are doubtful or negative about advertisers’ D&I efforts). About a quarter of the global population (23%) are quite satisfied with advertiser representation, saying they are “always” well represented. The happiest? Americans, with 33% approving of how they are represented on screens.

Closing inclusion gaps means listening to the voices of those who tend to be underrepresented. Kantar analyzed these demands using its proprietary TextAI tool and the guidance was clear: people are tired of aspirational beauty and want realistic representation that shows diversity of skin tones, body sizes and hair textures.

Brands are advised to prioritize body inclusivity and age inclusivity. Ageism should be challenged and people as young as 40 years old demand visibility and respect.

Brands should make diversity and inclusion feel natural rather than forced, making it an intrinsic part of the brand story. To achieve this, brands should focus on authentic representation, both in front of and behind the camera.

In emerging markets (e.g., Nigeria, Kenya), brands should prioritize local representation. This includes using diverse languages, dialects, and accents within each country, as well as the avoidance of colorism.

Marginalized communities (e.g., Travelers in Spain, First Nations or Indigenous people in Canada) seek positive representation in brand communications.

To future-proof their brand, marketers must evaluate if their brands are meeting the needs of undervalued consumer groups, or if they are risking cultural relevance and commercial opportunity. Other brands successfully achieving this and recognized by the Brand Inclusion Index include:

  • Most Inclusive Brand for Women: Dove
  • Most Inclusive Brand for LGBTQ+: Nike
  • Most Inclusive Brand for People with Disabilities and Neurodiversity: Google

The most inclusive brands around the world, according to our study, are also the most successful. This applies to more granular types of marketing, such as LGBTQ+ inclusive marketing. Kantar is about to release a new study with GLAAD that proves LGBTQ+ inclusion is accepted, welcomed, and drives business results in addition to having a positive social impact.

The brands chosen by people around the world as the most inclusive lead their industry in terms of innovation for inclusion, diversity and inclusion of their workforce, inclusive advertising and fair customer experience; they are also the brands that enjoy financial success, such as large market share and high brand equity.

Inclusion = Income

Kantar’s Brand Inclusion Index shows that D&I influences buying decisions among almost 8 in 10 people worldwide, especially among Gen Z and Millennials, people with thinking and learning differences, LGBTQ+ individuals, and people with disabilities. Kantar’s findings are also echoed in the upcoming Business Case for Progressive Advertising conducted by Oxford University’s Saïd Business School academics Dr. Felipe Thomaz and Prof. Andrew Stephen for UN Women Unstereotype Alliance, supported by Kantar’s attitudinal and behavioral research. Preliminary findings released during the Cannes Lions advertising festival prove progressive advertising drives significant sales impact, including uplifts of:

  • +3.46% direct short-term sales
  • +16.26% greater direct long-term sales than less progressive ads
  • +29% times loyalty (intent to repurchase)
  • +43% times higher strong purchase consideration
  • +52% more pricing power

The Rising Importance of Intersectionality

Kantar’s inclusive research, derived using the most inclusive techniques to date, uncovered an important truth: vast parts of the population have an identity characteristic that places them in the underrepresented or underserved category. As we compound the different dimensions of identity that make someone unique—age, gender, sexual orientation, race/ethnicity, abilities, thinking and learning differences, physical appearance, social class, religion—we find that people’s uniqueness is rarely taken into account by marketers. More often than not, people find it hard to navigate the world without bias or discrimination.

Kantar finds that as much as 46% of the global population experienced discrimination in the last year—a percentage that is significantly higher among key demographics for growth. What’s most worrying is that most of those experiences happened in a business setting. When discrimination happens, it is often in a work environment or when potentially in touch with a brand in 72% of the cases, and in commercial locations in 58% of cases (Kantar, Brand Inclusion Index 2024).

This is an article by Valeria Piaggio, Global Head DEI, Kantar’s Sustainable Transformation Practice.

Article details

  • Global Head DEI, Kantar’s Sustainable Transformation Practice
Opinions
22 July 2024