Tokenism: riding the trend versus doing the work.
2020 has been a year. Let’s just start there. The retail landscape has had to adapt quickly in a few short months to stay alive. We were once in an industry where brick and mortar sales still dominated online and in the blink of an eye that changed. Globally, the industry has had to navigate store closure due to the COVID-19 pandemic. And just when people were beginning to grapple with the effects of COVID, racial and social justice inequality became impossible to ignore. Those in the U.S. retail space have had to navigate racial and systemic inequality by determining how to respond. While many retailers are just figuring out how to navigate their website & online promotions; they’re also having to learn social media to keep their public persona afloat.
In previous years, Gen X reigned as the supreme consumer as they carried the bulk of the workforce and money. In those years, corporate social responsibility was not a determining buying factor for the majority of that population. Therefore, many retailers were able to implement operations that didn’t necessarily serve their customer base but helped their bottom line.
As millennials and Gen Z are primary online consumers and are slowly taking over the brick and mortar scene, retailers must deep dive into what matters to this demographic. One of those factors is corporate social responsibility. Many Millennial and Gen Z consumers value companies that have ethics and socially responsible focus. It’s not just enough to have trendy or innovative products. They want to know what you’re doing to make this world better for them and their future.
As we’ve seen in the U.S. over the past few months, racially and systemic equality is a HUGE focus for these generations. With the help of social media, these younger consumers are making that harder to ignore. For example, we’ve seen the swift image downfall of Reformation in a few short weeks. A millennial brand that based its whole ethos around creating clothes sustainably and ethically. But based on multiple allegations from employees, the behind the scenes fostered a toxic corporate work environment by engaging in racist policies and behavior.
There is no more hiding behind an image or public persona. In the past, the saying used to be, “all publicity is good publicity.” With the new cancel culture phase, bad publicity could lead to a decline in business. If you want a successful brand, you have to be involved, and that goes beyond participating in a social media trend for one day. Millennials and Gen Z expect small businesses and corporations to:
Donate; put your money where your consumer cares.
Be involved in charities.
Use your leverage to embrace the communities that put money in your pocket.
Take a stance. Silence gets you nowhere. Speak out against inequalities.
Be open to criticism without taking offense.