Black-owned brands adjust strategies amid shifting DEI landscape

Small businesses owned by Black entrepreneurs are reassessing their strategies as major U.S. companies scale back diversity, equity, and inclusion (DEI) programs. This shift is prompting some to consider offering more “neutral” products or seeking alternative distribution channels.

A Fighting Chance for Black-Owned Brands

The co-founders of Puzzles of Color, Ericka Chambers and William Jones, began creating frameable puzzles featuring artists of color in 2020, coinciding with the Black Lives Matter protests following the death of George Floyd. The Fifteen Percent Pledge, which encouraged retailers to dedicate 15% of shelf space to Black businesses, helped Puzzles of Color gain distribution through Macy’s and Nordstrom’s websites and later into select Barnes & Noble stores. Chambers noted a backlash after media coverage of the brand, leading them to consider offering more abstract designs to ensure a broader appeal in certain locations.

Discontent Over Corporate Diversity

Several major retailers, including Walmart and Target, have recently ended or modified their DEI programs, citing legal challenges and negative publicity. Target’s decision to suspend its DEI targets particularly impacted Black and LGBTQ+ customers who viewed the company as a supportive ally. Pound Cake’s co-founders, Camille Bell and Johnny Velazquez, stated they would not pursue a partnership with Target at this time, opting to find alternative avenues for growth.

To Boycott or Not?

The changes at Target have created a dilemma for brands with existing distribution agreements. Chantel Powell, founder of Play Pits, a natural deodorant for children sold in approximately 360 Target stores, expressed concern about the impact of boycotts on her business. While some activists called for brands to sever ties with Target, Powell and others encouraged consumers to prioritize purchases of items from Black-owned businesses.

Navigating the Post-DEI Landscape

Jason Panda, founder of B Condoms, a Black-owned sexual wellness business, is not overly concerned about Target’s decision to discontinue carrying his product. His business relies on partnerships with non-profit organizations and local governments, and the product is also available through Amazon and CVS stores. Brianna Arps, founder of the fragrance brand Moodeaux, has observed a decrease in grant opportunities for Black brand creators and is focusing on expanding her brand’s presence in independent shops and supporting other Black fragrance enthusiasts.

Accentuating the Positive

Despite the challenges, Aurora James, founder of the Fifteen Percent Pledge, reports that nearly 30 major companies remain committed to the initiative, including Bloomingdale’s, Sephora, J. Crew, and Gap. Pound Cake products are carried by Ulta Beauty and Credo Beauty, and the company plans to leverage social media to direct customers to these retailers and boost online sales. Puzzles of Color is expanding its “Pride” collection and plans to introduce more Black-themed puzzles to Barnes & Noble over time, while continuing to emphasize the representation of Black people in their products.