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Managerial Implications

Having now provided an analysis of Gen Z consumers’ demands for diversity and inclusivity in the beauty industry, this paper will now present some recommendations for brands who wish to reach Gen Z consumers. It is crucial to specify that the recommendations are intended for brands, however, this paper argues that retailers do share a part of the responsibility of offering inclusive product ranges together with the brands they hold. As per the problem statement of this paper, it strives to examine how beauty brands can successfully accommodate Gen Z’s demands regarding diversity and inclusivity. Given the findings of the analysis, it is argued that new insight into the values of Gen Z consumers, and hence demands, has been acquired. On the basis of this, this paper will now utilize its acquired new insight in an effort to contribute with the following recommendations.

1 - Align Brand Values with Consumer Values

Based on the analysis of this paper, it is argued that it is crucial for brands wishing to reach Gen Z consumers, to invest resources into getting an understanding of who Gen Z consumers are as people, in order to be able to understand who they are as consumers. What this specifically means for brands is that they should familiarize themselves with the values and the demands that arise as a result of these values. Given that, as has previously been argued, Gen Z is a generation whose consumers are characterized by being the most diverse generation, they, thus, demand to see an authentic representation of diversity and inclusivity in the brands they support. Hence, it can be said that brands should make an effort to accommodate these values in their branding. There is plentiful evidence that suggests that it may be beneficial for brands to consider how and whether their branding is in congruence with Gen Z’s demands for genuine diversity and inclusivity practices and implement the appropriate measures to achieve congruence. Given the diversity of Gen Z, it can be said that they wish to see the same kind of diversity from brands. There is something to be said about “becoming the market you seek” in terms of brands reflecting and representing what they want to attract in relation to consumers.

It can be said that Gen Z consumers may evaluate and consider brands based partially on their diversity and inclusivity practices, and brands wishing to reach this critical thinking and investigative generation arguably should prepare for this. As has been illustrated by the results of the survey, the vast majority of Danish Gen Z consumers, i.e. 62 %, perceived diversity and inclusivity in the beauty industry as being either extremely important or very important (Appendix 3, Q13). This trend includes both consumers of color and light-skinned consumers, which may be a potential indicator that Gen Z consumers, regardless of skin color, value diversity and inclusivity, making it potentially even more important for brands to accommodate this.

Having said this, it is maintained that brands should very clearly communicate support for diversity and inclusivity, and moreover, it could even possibly be advantageous for brands to incorporate this into their brand values, in order to create a connection with Gen Z consumers.

These values could be communicated in many areas of a given brand’s marketing, such as storytelling, branding, advertising, etc.

2 - Implement Authentic and Genuine Diversity and Inclusivity Initiatives

However, as is also evident from the findings of this paper, it is arguably not enough to only communicate support of diversity and inclusivity; it has to be done genuinely and authentically in order to truly resonate with Gen Z consumers. It is presented that Gen Z consumers are more likely to support companies who they perceive as being authentic and honest, and that, due to their previously argued tendency to be distrusting of brands, Gen Z consumers are arguably highly likely to research a brand before deciding whether or not to support that brand.

Therefore, it is argued that it may be essential for brands to be authentic and genuine in terms of their diversity and inclusivity initiatives, as any action that could be perceived as inauthentic or as diversity washing or any other type of performative activism. This paper maintains that brands being perceived as performing performative activism might be verging on a potential future ‘canceling’ or a consumer boycott. Given Gen Z’s tendency to share their opinions on social media, and how fast words spread on social media, any suspected diversity washing could potentially turn into a crisis beyond the control of the company. Brands should therefore make an effort to be “Google-proof”, as they will most likely be Googled by Gen Z consumers to determine the credibility of any social responsibility claims made and hold the brand accountable if they find anything that contradicts those claims.

Thus, brands must understand the difference between performative activism and genuine allyship. This paper argues that if a brand wished to be perceived as genuine allies of whichever social justice movement they wish to support, in this case, diversity and inclusivity, they need to be consistent and continuously improving their diversity and inclusivity initiatives and support, and not just implement it as a one-off strategy when it is trendy to do so. It is argued that this would be perceived as diversity washing, in line with using e.g. the BLM movement as a marketing strategy, which is evident by the survey (Appendix 3, Q19) that the majority of Danish Gen Z consumers expressed thinking to be true about some beauty brands. Hence, brands should be aware not to do anything that contradicts their social responsibility claims and at all times make an effort to create compliance between what they say they support, and what they actually support. This includes having brands’ social media and campaigns correctly express what the brand values are, as well as ensuring that those values are visible throughout the whole organization at all times.

3 - Communicate Honestly with Gen Z on Social Media

The recommended authenticity when communicating is heavily related to online activities, as argued in this paper, social media plays a major role in forming Gen Z’s consumer attitudes.

Gen Zers are heavy users of social media, and they will use social media platforms to express their dissatisfaction with noninclusive beauty brands and products, both internationally and in Denmark. Based on these findings, this paper recommends that brands behave according to the demands of Gen Z on social media. They demand diversity, authenticity, and honesty from brands, leading to the recommendation of brands to communicate honestly on social media.

Gen Z will arguably fact-check statements made by brands as they are more skeptical towards brands’ trustworthiness. As this paper argues that Gen Z uses social media platforms as a form of political activism, it is crucial that brands are highly aware of these tendencies of activism on social media. They expect brands to take a stand and respond to crises quicker than ever. In order to accommodate these demands, it is recommended that brands are honest and clear in their communication on political stands related to movements such as BLM. The findings of this paper show how the hashtag #PullUpOrShutUp contributed to brands releasing numbers on ethnic diversity among their employees, and honesty that Gen Z highly values. Thus, brands are recommended to tell the truth instead of staying neutral or perhaps even embellish the truth.

To embellish the truth can receive backlash as this paper found that Gen Z wishes to hold brands accountable to their, arguably, false claims on diversity, moreover, they are willing to boycott, or “cancel”, brands. This paper found that information about untruthful brands quickly spread on social media, thus, it is recommended that brands become agile to respond honestly to these types of crises on social media. The power of Gen Z on social media must not be underestimated, and honest communication on social media is crucial for brands in order to establish a relationship with Gen Z.

4 - Invest Resources to Gain Knowledge

To maintain a trustworthy relationship with Gen Z, it is recommended that brands try to understand the complexity of diversity that Gen Z demands. The findings of the collected data show how diversity is a term that can be understood and interpreted in different ways. As this paper argues that the increased focus on ‘doing something right’’ is, particularly, a trait of Gen Z, brands must be aware of the depth that diversity entails. Brands should acknowledge that everyone, including them, can always learn even more. Thus, this paper recommends brands

invest time and money to expand their view on diversity. This can be done through courses or seminars on diversity. It must also be done by engaging in insightful, and sometimes difficult, conversations on what diversity is. This should be done with both colleagues as well as consumers. When engaging in these conversations with Gen Z, this paper argues that brands will gain much value and positive reactions. Brands must be actively and sincerely curious to gain knowledge on diversity in order to live up to the demands set by Gen Z, and they must accept the fact that they do not know everything about diversity yet. The findings of this paper show that knowledge is needed, and brands who are unaware of the complexity and nuances of diversity can fail to live up to their claim on diversity and inclusivity. Moreover, bias exists everywhere, and it is recommended that brands acknowledge potential bias related to diversity in order to actively work with these. Moreover, brands must acknowledge that mistakes can be made in the process of understanding diversity. It is arguably a part of the complicated learning process. However, whenever brands have made mistakes in the eyes of Gen Z, it is recommended to actively follow up on these mistakes as this is what Gen Z requires.