Diversity and Inclusivity in the Beauty Industry: Examining the Demands of Generation Z

Abstract

Generation Z consumers and their demands for diversity and inclusivity are shaping the beauty industry, creating a shift in what has previously been considered an industry that primarily catered to and promoted light-skinned consumers. The demands for diversity and inclusivity were further emphasized by the Black Lives Matter movement, which increased the focus on racial inequalities internationally, and thus, started a conversation in the beauty industry about the issue of its lack of diversity in terms of ethnicity and skin tone representation. This paper examines how Gen Z’s demands regarding ethnic diversity and inclusivity are reflected in the beauty industry, and how beauty brands can successfully accommodate this. This research area is of high relevance, as Gen Z will become the biggest consumer base by 2026, and limited research in regard to Danish Gen Z consumers’ demands and values, as well as very little insight into how this influences the beauty industry, is available. Thus, this paper aims to offer insight into this powerful generation in regard to their unique demands in an effort to provide recommendations as to how brands can reach this generation of consumers without missing the mark and experiencing “canceling on social media” or being accused of “diversity washing”. This paper will apply the scientific method of social constructivism to provide a possible understanding of the complexity of the topic. This is done via a mixed-method approach including a survey of Danish Gen Z consumers, interviews with industry experts, in-store observations as well a netnographic study that is used to illustrate the similarities between Danish and international Gen Z consumers. The theoretical framework of this paper includes theories about branding, consumer psychology, consumer behavior, and identity. In conclusion, this paper finds that demands for diversity and inclusivity can indeed be identified in the Danish beauty industry amongst Gen Z consumers and that a lack of diversity and inclusivity can be identified in the two biggest Danish retailers of cosmetics, both in terms of foundation shade ranges and campaigns. This paper concludes that the Black Lives Matter movement has influenced the beauty industry as it has increased the focus on, and consequently, demands for diversity and inclusivity and that it is evident on social media. Given these points, this paper suggests a list of managerial implications for brands wishing to reach Gen Z consumers. This list includes alignments between brand and consumer values, implementing authentic and genuine diversity and inclusivity initiatives, communicating honestly and authentically with consumers on social media, and investing resources into obtaining knowledge about Gen Z consumers, and the way they differ from previous generations.