81% of Gen Zers Say Multicultural/Diverse Communities Greatly Shape Brand Preferences [REPORT]

Direct Digital Holdings released a new whitepaper, Cracking the Code: How Multicultural & Gen Z Reshape Mainstream Marketing. The paper features exclusive research along with insights from industry leaders and academics.

Direct Digital Holdings’ research shows that the outsized influence that multicultural and diverse communities have on the brand choices of mainstream consumers – especially Gen Z – should be viewed as a seismic shift by brand marketers to intentionally and authentically connect with multicultural and diverse consumers to promote broader sales.

The findings show that 81 percent of Gen Zers – the most diverse generation in history – and 72 percent of Millennials say that multicultural and diverse consumers have a big impact on their brand choices, and surprisingly, 48 percent of Gen Xers, and 32 percent of Boomers report the same.

While younger consumers are at the forefront of this market shift, results reveal that the level of multicultural and diverse peoples’ influence on the overall market surpasses their current share of the population – with more than half (57%) of today’s mainstream consumers saying that multicultural and diverse communities’ tastes and opinions strongly influence their own brand preferences.

When looking at the impact specifically on major brand categories, a very high percentage of Gen Zers said that multicultural/diverse communities have an influence on a wide range of product and service choices. Top categories where Gen Z cite big/some influence, include:

• Food/Restaurants – 90%
• Fashion – 89%
• Entertainment – 88%
• Beauty/Wellness – 87%
• Household/Cleaning – 82%
• Technology – 76%

Michael Roca, Executive Director of ELEVATE at Omnicom Media Group, shared his thoughts in the whitepaper on what this means for brands. “There was a time when brands had a Hispanic budget, a Black budget, etc. Today, it’s everybody’s responsibility to reach these audiences. Brands and agencies need to make this a business priority, and the siloed approach doesn’t work anymore.”

Examining the presence of diversity in various circles of family, friends, colleagues and neighbors – as well as celebrities, influencers, and other public figures followed on social or other media – Direct Digital Holdings’ survey confirmed that diversity is real and present in U.S. consumers’ lives. Nearly three-quarters (72%) of mainstream consumers say that at least some of their closest connections do not share their race, ethnicity or sexual identity. Gen Z consumers, however, were the most likely to say that their connections, at every level, are primarily diverse.

“These groups have been disproportionately influential. And today, cultural circles are more heterogeneous than ever before,” added Dr. Marcus Collins, Clinical Assistant Professor of Marketing at the Ross School of Business, University of Michigan, and author of For the Culture. “Marketers have been a little slow to this. Particularly the impact and influence of network effects.”

“Among the younger consumers who will dominate the market in the future, the deep-rooted presence and influence of multicultural and diverse people has become staggering – making intentional and authentic connection with these communities critical for any brand seeking success in the marketplace,” said Mark D. Walker, CEO and Co-Founder of Direct Digital Holdings, who wrote the introduction to the whitepaper. “Moreover, the research makes clear that this isn’t just about tomorrow. Black/African American, Hispanic/Latin, AAPI and LGBTQIA+ people already have an outsized influence on the brand choices of 57 percent of the broader market today. It’s a tipping point that cannot and should not be ignored.”

To download the whitepaper, CLICK HERE.