Ethical consumerism is rising with many customers preferring to boycott brands with questionable ethics, with the figure much higher for those from marginalised communities.
For example, almost half (47%) of consumers with a Black background and over a third (37%) from the LGBTQ+ community boycott brands that are not committed to diversity, equity and inclusion (DE&I), according to a new study. Under-represented customers are more likely to shop elsewhere to avoid contributing to behaviours or causes they disagree on, noted the latest Understanding Bias, Discrimination and Its Impact on Society report.
The investigation into intersectionality by global market research agency Savanta asked more than 5,000 participants across the US and Europe about their lived experiences to understand the discrimination felt by consumers, in an effort to raise awareness and fuel inclusivity from brands. In the UK alone, three in 10 (28%) adults are unwilling to buy from brands that are not committed to DE&I.
DIVERSITY, EQUITY & INCLUSION MATTERS
While price, quality and design remain the most important factors in purchase decision making, it is clear that ethical consumerism is gaining momentum. Nearly one in five (23%) of consumers feel more negative towards a brand that remains silent at an important social moment, increasing to 41% amongst people from Black backgrounds and 35% amongst the LGBTQ+ community.
But it is not only speaking out and supporting different communities or under-represented groups that matters to consumers. Two in five (38%) of consumers will not buy from brands that do not treat their workers fairly, increasing to nearly half (48%) of BIPOC communities, which includes those from Black, Asian Middle Eastern, Romany and Traveller backgrounds, and 43% in the LGBTQ+ community.
As well as avoiding brands that do not live up to their expectations on DE&I matters, many consumers are actively seeking out retailers, stores and brands that align with their values, particularly if they are from minority group. For example, two in five (39%) of people with a Black background prefer to shop at minority-owned businesses; that more than double those from a Caucasian background (16%) – along with 30% of those who belong to the LGBTQ+ community.
BRAND BEHAVIOUR & ETHICS
Commenting on the study, Savanta’s VP of Client Development Sadia Corey, said: “Consumers are increasingly including brand behaviour and ethics in their criteria for making purchasing decisions. Brands need to deliver authentic and inclusive brand experiences to maintain relevance, market share and the opportunity to create a lasting impact and genuine connections with consumers. Many want to support both the communities they belong to and other under-represented groups, and brands that fail to recognise the importance of intersectionality will lose out as ethical consumerism continues to grow.”
The full report can be found here.
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