The DEI Rollback and Consumer Response
Target and Walmart, two of the largest retail consumers have faced significant consumer boycotts following their decision to scale back Diversity, Equity, and Inclusion (DEI) initiatives. The public outcry has been immediate, and the backlash is ongoing. While this is a nightmare scenario for Target and Walmart, it gives other market players a clear shot at capturing a portion of the market these multi-billion-dollar giants are no longer willing to serve. Their once loyal customer base is searching for greener pastures. Among these emerging contenders, is a company many are already familiar with, online beauty retailer NubianElixir.Com. The company has been selling award-winning Black-owned beauty brands since 2020, and they are strategically positioned to experience substantial revenue growth by stepping in as a safe harbor for the Black-owned brands many dedicated consumers have come to know and love.
In the eight weeks since Target ended their Racial Equity Action and Change program, customers have made their dissatisfaction loud and clear by putting their adamant disapproval on full display. There has been a 6% decrease in foot traffic as compared to this same period last year. Walmart is also feeling the heat from customers. Customers have decided to cast a vote against these corporations with their wallets. There has also been a marked uptick in negative press for both stores.
The Economic Influence of Black Consumers in the Beauty Market
Black consumers represent roughly 14% of the U.S. population. However, they account for 11.1% of beauty spending in the U.S. In 2023 they spent $9.4 billion on beauty products. Their favorite categories are fragrances and body lotions. It is a highly sought after market segment given their $1.7 Trillion buying power. In the same beauty industry where so much of their hard-earned money is spent they only realize 2.5% of the profits. This is quite a disparity, given their substantial buying power.
Strategic Opportunities for NubianElixir.Com
As an established retailer specializing in popular and award-winning Black-owned beauty brands, NubianElixir.Com is uniquely positioned to grow its market share by welcoming consumers who feel deserted by Target and Walmart’s recent change of heart regarding DEI policies. But for NubianElixir.Com, who is a trusted source for high-quality Black-owned beauty products there is an opportunity to capture the market share these major retailers have alienated. The company knows that becoming a dominant retailer for its target market is highly dependent on refining its logistics and marketing strategies.
By incorporating better infrastructure to ensure more efficiency while scaling up its brand portfolio to include even more Black-owned beauty products, NubianElixir.Com can directly address the unmet needs of this highly sought after consumer market. The company’s point of view is that customers don’t have to be concerned about their stance on dealing with Black customers. They are not just a market, but a “family.” No matter what the rest of the retailer world decides to do, we will ALWAYS BE BLACK, that isn’t going to change. Nubian Elixir can be relied upon to stand by the principles that foster trust and loyalty among consumers seeking businesses that align with their values.
Projected Financial Impact
Each year Black consumers spend $9.4 billion on beauty products. Redirecting 1% of those sales towards their online store represents $94 million in revenue. While there are a great deal more products available than there used to be for this particular market, many customers feel there should be significantly more product offerings. There is also a lack of trust that emerges when a Black owned brand is acquired by a non-Black owner. Most customers notice a marked change in product recipes that usually has a negative effect. Nubian Elixir’s goal is to lead the charge of addressing those needs by focusing on products that come from our own community.
Conclusion
Right now NubianElixir.Com is poised to take a position as a leader in online beauty retail. It appears that Target and Walmart will be wrestling with their decision to eliminate their DEI policies for a long time to come. However the story ends for other companies Nubian Elixir is determined to be at the helm doing their part to ensure their Black family of customers that they will be there to offer products and a level of service that make it clear that their Mission aligns with their customer’s needs. As a by product strong financial growth is inevitable.