Scaling Back DEI Could Cost You Up to One-third of Your Consumers

Consumers are noticing—and responding—when companies reduce their diversity, equity, and inclusion (DEI) initiatives. Recent findings from Collage Group indicate that a third of consumers aware of such rollbacks have cut back or completely stopped purchasing from brands that have stepped away from their DEI commitments. This response is even more pronounced among Black (45%), Hispanic (45%), and LGBTQ+ (58%) shoppers, creating a potential billion-dollar risk for businesses that deprioritize inclusivity.

Consumers Expect Brands to Stand for Something

The financial argument for DEI is compelling. Multicultural consumers account for more than 65% of U.S. spending growth, and brands that fail to meet their expectations risk falling behind in the market. Trust is a crucial factor—46% of Black consumers and 55% of LGBTQ+ individuals are skeptical of companies that publicly engage in social causes but lack true diversity within their organizations.

A notable case is Target, which has seen a downturn in brand sentiment, whereas competitors like Costco, which remain committed to DEI principles, continue to thrive with consumer support.

In today’s competitive market, inclusivity is more than just a moral obligation—it’s a strategic necessity. Download our Insights Flash Report to explore how brands can effectively navigate this evolving landscape, foster meaningful relationships with diverse consumers, and drive sustainable growth.