Under the Trump administration, Diversity, Equity and Inclusion (DEI) are facing unprecedented attacks. In his first month in office, the President signed executive orders dismantling DEI programs within federal agencies, while simultaneously encouraging the private sector to do the same. Against this backdrop and his declared war on ‘wokeness’, DEI efforts have become increasingly contentious yet more essential than ever. At its core, DEI ensures fairness and equal opportunity for all:
• Diversity – Ensuring different perspectives and identities are represented.
• Equity – Providing fair access to opportunities and resources for everyone.
• Inclusion – Creating an environment where individuals feel valued and respected.
Facing pressure to align with an administration that influences corporate benefits and tax policies, major brands like Target, Amazon, McDonald’s and Meta have scaled back or dismantled their DEI initiatives. The public backlash has been swift, triggering consumer boycotts, nationwide shopping blackouts and class action lawsuits. While the full economic impact of these ongoing protests remains to be seen, early data from the February 28th Shopping Blackout suggests a 1% to 6.5% decline in online sales and a 3.2% to 9.5% drop in brick-and-mortar retail for brands that have reduced or eliminated DEI efforts. In contrast, Costco, whose board voted to uphold DEI programs, saw an 8.3% increase in web traffic, signaling strong consumer support for inclusivity.
As some corporations prioritize political positioning over consumer sentiment, DEI remains more critical than ever for smaller brands and conscious consumers who demand fairness, representation, and ethical business practices, but we face some challenges.
While the fashion industry boasts one of the most diverse workforces behind the scenes, significant challenges remain in leadership and front-facing representation. Diversity extends beyond race and skin color - it also includes gender, national origin, religion, socioeconomic status and sexual orientation. And the data shows that progress is still needed across various areas. In the past year alone, 48% of adults reported feeling excluded from representation in advertisements.
Meanwhile, according to Media Culture, luxury fashion consumers are increasingly diverse, with Hispanic, Black, Asian and White consumers making up a notably mixed demographic. Gen Z now also accounts for 17% of the luxury market, shifting the industry focus away from the traditional older consumer. Encouragingly, the inclusion of models of color on fashion magazine covers has increased from 17% in 2014 to 48.8% in 2020 and 52% in 2021. Yet, a study of 30,000 images over five decades from various media, found that racial minorities appeared less frequently than their white counterparts. When featured, they were often portrayed less prominently and associated with more negative emotions.
Another growing, yet underserved market is adaptive fashion for people with disabilities. The World Health Organization estimates that 15% to 20% of the global population experience some form of disability. Their spending power, combined with that of their families and friends, is estimated at $13 trillion annually, representing a massive, largely untapped market opportunity for the fashion industry.
Diversity, Equity, and Inclusion (DEI) are not just buzzwords, they are essential strategies for brands seeking to thrive in an increasingly diverse and socially conscious marketplace. PR and marketing play a critical role in shaping narratives, influencing consumer perceptions, and ultimately determine a brand’s success. For emerging brands, embracing DEI can be a powerful differentiator, helping them break into new markets, build consumer trust, and drive innovation. Here are four key areas to consider:
1. Media Representation
Media outlets wield significant power in shaping public discourse, particularly in today’s digital age where global reach is instant and social media amplifies narratives. In this landscape, the line between marketing and propaganda is blurring, making ethical storytelling more crucial than ever.
Historically, marketing and advertising have profited from stereotyping and the exclusion of diverse communities . DEI provides a framework for more conscious and ethical messaging, ensuring that media representation is fair, accurate and inclusive. PR practitioners and marketers have the power to redefine mainstream norms, whether by choosing diverse spokesmodels, working with inclusive designers, or crafting campaigns that reflect the reality of diverse consumers.
For small fashion brands, this presents a unique opportunity. As of January 1, 2024, there were 34.3K small fashion design businesses in the US, reflecting a 4.9% increase from 2023. The small business sector’s growth of 8.5% annually between 2019 and 2024, demonstrates that independent brands are abundant. With a DEI-focused approach, these brands can carve out a niche by authentically addressing underrepresented communities. A 2022 Mintel study found that 41% of Gen Z consumers prefer brands that reflect their identity, underscoring the demand for authentic and inclusive representation in fashion design and advertising.
2. Market Expansion
As large brands de-prioritize DEI efforts, many are losing customer trust and loyalty, creating an opening for smaller brands to step in. Globally, 75% of consumers say DEI influences their purchasing decisions, proving that inclusivity isn’t just an ethical choice, but a smart business strategy.
Emerging brands can fill gaps left by larger corporations by catering to diverse consumers who are disillusioned and feel overlooked by mainstream fashion. Small brands also can tap into underrepresented markets via targeted campaigns and specialized product categories:
• Inclusive beauty products that serve a broader range of skin tones and hair textures.
• Adaptive fashion for people with disabilities, an underserved market with a spending power of $13 trillion annually.
• Modest wearfor religious communities seeking fashionable yet culturally appropriate clothing.
By focusing on authenticity and inclusivity, small brands can attract diverse consumers that hold DEI as a guiding principle.
3. Authentic Storytelling
PR and marketing are rooted in storytelling, and diverse perspectives ensure that brands feel genuine and relevant. A homogenous team may overlook important cultural nuances, leading to campaigns that feel disconnected – or worse, offensive. Missteps can come off as tone deaf, lead to a PR crisis and a damaged reputation.
For emerging brands, the biggest mistake is trying to mimic mainstream marketing norms instead of embracing their own unique stories. Consumers today crave creativity and authenticity: a post-pandemic consumer report found that 88% of consumers say authenticity is important in deciding which brands they like and support, with 50% saying it’s ‘very’ important.
Authentic storytelling doesn’t just build trust – it creates emotional connections that drive loyalty. Take, for example, brands like Telfar, founded by a queer Liberian-American designer of unisex clothing and accessories. Telfar Clemens built a cult following by championing inclusivity and redefining luxury fashion through community-driven storytelling. Known for going against the fashion system, Mr. Clemens won a Council of Fashion Designers of America Award for best accessories designer, a Cooper Hewitt National Design Award for fashion design and was named the GQ designer of the year. This is a testament that a small brand can succeed by embracing their distinct identity, and leaning into cultural storytelling rather than conforming to industry norms.
4. Industry Innovation
Diversity isn’t just about representation, it fuels innovation in design, PR and marketing. The fashion industry has historically been shaped by a narrow set of voices, limiting creativity and failing to address real world consumer needs.
A DEI-focused approach brings fresh perspectives, leading to:
• New product solutions: Adaptive fashion, gender-fluid collections and sustainable fashion tailored for diverse communities for example.
• Innovative communication styles: A departure from Eurocentric beauty standards in advertising, and culturally resonant storytelling and marketing approaches.
• Disruptive PR Campaigns: Unconventional, grassroots campaigns and activations that engage global communities authentically and individually rather than relying on traditional, mass-market strategies. : Unconventional, grassroots campaigns and activations that engage global communities authentically and individually rather than relying on traditional, mass-market strategies.
For small fashion brands, embracing DEI in PR and marketing isn’t just a social responsibility, it is a competitive advantage. By prioritizing inclusive media representation, tapping into underserved markets, telling authentic stories, and driving innovation, emerging brands can differentiate themselves, build consumer trust, and ultimately drive long-term success.
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