Brands have long been powerful agents of change, from shifting societal narratives to tackling pressing social issues like gender stereotypes and taboos around menstruation and sexuality. In this evolving landscape, inclusive branding has emerged as a critical concept, expanding beyond mere representations of size, colour, and gender to embrace a broader spectrum of identities, including sexuality and cultural diversity. As brands strive to integrate these values into their core identity, the real challenge is navigating the fine line between genuine inclusivity and tokenism. “ There is always a thin line between diverse representation in branding and mere tokenism, and the only way to straddle it effectively is to make sure organisations are devoted to accurately reflecting as many diverse groups as possible. It is for this reason that authentic inclusion means that colour and multiculturalism are not simply added as a window dressing exercise, but they are integral to the brand,” Saif Ahmad Khan, founder, LEDSAK, told BrandWagon Online.
What’s up?
From what it is understood, inclusive branding is a practice aimed at representing the broad spectrum of human diversity—across races, genders, sexual orientations, abilities, and body types. Despite the growing emphasis on diversity, the actual representation in advertisements often falls short. In 2023, only three percent of Indian ads featured characters from diverse ethnic backgrounds, compared to the global average of 19%, according to Statista. Similarly, the representation of various skin tones in Indian ads stood at a mere four percent, significantly below the global average of 27%.
These statistics underscore a significant gap in inclusivity efforts across different regions, raising questions about the authenticity of such initiatives. Experts believe that brands need to move beyond superficial representation and make meaningful commitments to inclusivity. “Before marketing, brands must embed inclusion in their values, not just as a strategy. True representation involves continuous engagement with diverse communities and genuine representation from idea to reality. Brands should commit to long-term inclusive practices, supporting minority-owned firms and amplifying marginalised voices, to ensure authenticity through meaningful connections,” Hariom Seth, Founder, Tagglabs, opined.
The risk of tokenism!
Industry experts explain that tokenism involves making superficial efforts to appear inclusive without embedding actual values into the brand’s core practices. This often results in marketing campaigns that showcase diverse characters or themes but fail to reflect a genuine commitment to inclusivity. Tokenism not only damages a brand’s credibility but can also lead to consumer backlash, ultimately harming the brand’s reputation and financial performance. “Understanding the audience being catered to is paramount when navigating the line between authentic inclusive branding and tokenism. Listening to and engaging with diverse communities will not only help strengthen connections but also offer valuable insights into their distinct experiences and challenges which can be then subsequently addressed by the brand,” Delphin Varghese, co-founder and chief revenue officer, AdCounty Media, said.
The 2024 ANA LGBTQ+ Marketing Inclusion Survey reveals that while 55% of advertisers engage in LGBTQ+-inclusive marketing, 39% struggle with navigating brand-safe environments and consumer resistance. This indicates that while brands recognise the importance of inclusivity, they often grapple with implementing it authentically.
Industry experts opine that authentic inclusive branding requires brands to deeply understand local cultures and contexts to ensure their campaigns resonate with diverse audiences. Consistency and continuity are crucial; inclusivity should be a year-round commitment rather than a seasonal focus. Representation needs to go beyond surface-level diversity, involving real experiences and breaking stereotypes. Internally, inclusivity should be reflected in organisational practices, with employees and stakeholders actively participating in and shaping inclusive initiatives.
Hits and misses
Several brands have successfully implemented inclusive branding, leading to positive outcomes in brand perception and market performance. Khan believes that Nike’s ‘Dream Crazy’ campaign, which featured Colin Kaepernick, is one of the primary examples of how inclusive branding when done correctly is not only possible but highly effective. “Nike continued to make clear statements against racial discrimination, and social inequality, although it could be perceived as provocative – it was authentic. To sum up, concern with empowering individuals and initiating changes appealing to a large audience helped the campaign to highlight the idea of a brand’s identity and values,” he added.
Similarly, Gillette’s ‘The Best Men Can Be’ campaign challenged toxic masculinity and encouraged men to take a firm stand against sexism and gender-oriented bullying. It redefined norms and addressed contemporary values by addressing relevant social issues.
Conversely, some brands have faced criticism for their inauthentic or opportunistic approaches. Pepsi’s 2017 ad featuring Kendall Jenner and a protest scene was criticised for its perceived insensitivity and exploitation of social justice movements. Reportedly, the ad was seen as using a major cause for marketing without a proper understanding of the issue, leading to significant backlash and boycotts. Similarly, Zomato’s 2019 ad, which used the abbreviation ‘MC, BC’ for its membership service, was condemned for its offensive implications through Hindi slang. Seth explains that this term was viewed as derogatory, making the campaign appear poorly considered and insensitive to Hindi-speaking audiences. “ Refraining from making assumptions and making a genuine effort to understand the cultural nuances of the region to ensure that the messaging aligns with the norms. Use culturally appropriate language and include dialects, idioms, etc. that resonate with the local audiences,” Varghese said.
The impact on revenue and brand value
Experts opine that the impact of inclusive branding on revenue and brand value can be significant. Brands that successfully integrate inclusivity into their core values often see long-term benefits, including increased customer loyalty and enhanced brand perception. The 2024 ANA survey shows that 97% of advertisers recognise the positive impact of LGBTQ+-inclusive marketing on brand perception.
It is believed that inclusive branding can also open new markets and customer segments. For example, brands that cater to diverse audiences, such as women of colour or LGBTQ+ individuals, can tap into the growing purchasing power of these groups. Conversely, brands that fail to embrace inclusivity risk alienating a significant portion of the market, leading to missed opportunities and declining market share.
Geography plays a crucial role in the success of inclusive branding. In regions where inclusivity is more ingrained in societal values, such as parts of Europe and North America, inclusive campaigns tend to be better received. These areas often have higher levels of acceptance for diversity, making them more receptive to inclusive efforts.
However, in regions with more conservative cultural norms, such as parts of Asia and the Middle East, brands must approach inclusivity with greater sensitivity. Campaigns perceived as too bold or misaligned with local values may face resistance. “Localisation is another factor which involves adapting the language used as well as images used in adverts so that they are more reflective of diversity in those regions.” Seth said.
Product categories and market performance
It is believed that certain product categories have shown clear advantages in embracing inclusive branding. The fashion and beauty industries, for instance, have successfully tapped into the demand for diversity. Inclusive beauty lines catering to a broader range of skin tones have seen positive market performance. Fashion brands that celebrate diverse body types and styles also benefit from increased consumer engagement.
In contrast, experts believe that categories like finance and technology have been slower to adopt inclusive branding. These industries face challenges in integrating diversity into their branding efforts, as they are often seen as more functional and less personal than fashion or beauty. However, as consumer expectations evolve, even these industries will need to reflect diversity in their strategies.
To be sure, inclusive branding is more than a passing trend; it represents a fundamental shift in how brands engage with consumers. As the world becomes increasingly diverse, the demand for authentic representation will continue to grow. Brands that successfully navigate the complexities of inclusive branding, avoiding tokenism and embracing authenticity, will be well-positioned for long-term success. “The real commitment to diversity and inclusion should be long-term. It should be an integral component of the brand’s core values and should be consistent across all platforms and communication channels,” Varghese said. As the global market evolves, brands that make genuine efforts to reflect and engage with diverse audiences will not only enhance their reputation and build stronger connections with consumers but also drive growth and profitability.