“For one day, we show them who really holds the power,” The People’s Union USA website reads as part of its call for an “Economic Blackout Day”, scheduled for 28 February. The grassroots organisation has planned a no-spend day, urging all US consumers to cease shopping online or in store at major chains, fast food restaurants and gas stations. If spending must be done, it should be with small, locally owned businesses. Future no-spend days targeting specific companies like Walmart and Nestlé are also scheduled, as well as a follow-up on 28 March. “If we disrupt the economy for just one day, it sends a powerful message,” the website reads. “If they don’t listen (they won’t), we make the next blackout longer (we will).”
Consumer boycotts have gained awareness on platforms like TikTok in the past month. While the Economic Blackout Day is a general protest of “corporate greed, government, corruption and the system that has been keeping the working class in struggle”, according to People’s Union founder John Schwarz, the most pointed outrage is in response to threats to DEI efforts.
In January, Donald Trump signed a series of executive orders dismantling DEI requirements from the private and public sectors. Companies like Target, Amazon, Meta and Google changed their DEI policies in the weeks since. Walmart, America’s largest retailer, had already done so in November. In response, users have been urging other consumers who disagree with these decisions to stop spending money with these companies. As calls for consumer boycotts ramp up in the US, what should fashion and beauty brands do?
“Audiences do want to see diversity and representation in media and from brands,” says Tammy Tsang, founder of social impact agency &Humanity. According to a recent Harris poll conducted for the Guardian and shared with Vogue Business, 43 per cent of Americans say they have shifted their spending in recent months to “align with moral views”, with 50 per cent of Democrats saying they were changing their spending habits; Democrats were also more likely to say they have stopped shopping at companies with opposing political views. A July Kantar survey found that eight in 10 people globally consider diversity, equity and inclusion in their buying decisions.
“If you flip-flop in your support [of DEI], you’re going to see a lot of educated and aware consumers realising that you’re not actually committed, that you’re being performative. You will see consequences. It’s important to consider the impact of boycotts, protests and information campaigns to shop elsewhere,” Tsang says.
A chilling effect
For the most part, fashion and beauty brands have stayed quiet in response to the backlash against DEI, despite being previously involved in DEI efforts. Particularly in the aftermath of the Black Lives Matter protests in 2020, a wave of commitments, hires and proclamations flooded the industry from top brands.
“Companies can’t lose focus as to why they did this in the first place — it’s not just the right thing to do, it’s about purchasing power,” says Risha Grant, an author, public speaker and DEI expert. “It’s also for your people. This is a deep hurt for employees and customers that many people won’t soon forget.”
Donald Trump kicked off his second term as US president with a number of anti-DEI executive orders, sparking a rollback of companies’ diversity policies. James, founder of the Fifteen Percent Pledge, weighs in.
The silence now signals that companies may feel less confident about the political temperature and consumer sentiment. Since Trump took office — this time having won the popular vote in the 2024 election — there’s been a drastic shift to the right in the US, with more CEOs and tech’s top brass showing their support for the new president.
“The problem that a lot of retailers find themselves in is they’re damned if they do, damned if they don’t,” says Globaldata Retail managing director Neil Saunders. “There are various political opinions, and some favour DEI, some do not. Whenever a retailer makes a move in either direction of one of these hot political topics, they’ll get pushback from one side or another.” Saunders references the boycott that punished Bud Light after the beer company partnered with a trans influencer in 2023.
“I don’t envy organisations with the double pressure that’s happening now,” says Tsang, from the administration to abandon DEI and from consumers to keep commitments. She adds that brands she works with are “shocked” by what’s happening. “But fashion and beauty brands know and understand that they need to continue with [DEI commitments]. Now is not the time to roll back those efforts significantly.”
Some companies, including Costco, JPMorgan and Apple, have reaffirmed their commitments to DEI in light of the rollbacks. Elf Cosmetics CEO Tarang Amin has publicly spoken out against companies caving to pressure. He said via email that “diversity of thought is engrained in our business because we believe that attracts the best possible talent — who then drive the best possible performance.” Elf doesn’t have a formal DEI department, programme or quotas. “We haven’t needed them. Our policy is to foster a culture of inclusivity through intentional actions and initiatives to help ensure that every team member is dedicated to our mission; this has not changed. Being inclusive versus being exclusive is good for business.”
Elf’s approach — practising diversity without naming it DEI — is one that brands may be likely to adopt as DEI crackdowns continue. “Why should we have to rename something? It almost feels like a cowardly stance — but what’s more important is the action, making sure inequities and inequalities don’t exist anymore. And if you need to call it something else, then do that,” says Grant.
Part of the hesitancy to speak up may come down to the utter confusion around what Trump’s executive orders actually mean and what legal action can be taken. While most of the executive orders around DEI pertain only to government organisations, one that applies to the private sector calls for the attorney general to come up with a plan to “end illegal discrimination and preferences, including DEI”, as well as “specific steps or measures to deter DEI programs or principles” deemed unlawful, whether or not they’re labelled “DEI”.
Economic uncertainties, fatigue and polarisation stifled progress this year. Experts say the conversation needs to be reframed for 2024, to focus more on diversity, equity and inclusion as a business imperative.
Threats for legal investigations over unfair hiring practices seem to have had a chilling effect on the industry, says Deena Merlen, partner at law firm Reavis Page Jump, LLP, who is also the chair of the diversity committee of the Fairfield County Bar Association. “There seems to be some confusion now as to what merit means and what DEI means,” Merlen says. “Discrimination was illegal, and it is still illegal, and while there’s a lot of talk about ‘illegal’ DEI policies, diversity, equity, inclusion and accessibility are not illegal. Unlawful preferences in hiring and promotion are being conflated with DEI.” As of this week, civil rights groups are suing the Trump administration over its DEI orders.
Do boycotts work?
Will calls for boycotts actually impact retailers’ bottom lines? “People do these things to send a message. It likely has a negligible effect though, in the grand scheme,” says Saunders, pointing out it’s just one day (though future blackout days are planned) and that what’s picked up on social media may not reflect the reality of what will happen offline. “People are more circumspect in real life. The only thing people can do is direct their money and spend to where they think it’s deserved, and customers always do that, to an extent.”
Merlen agrees. “The impact is less economic; the impact is PR,” she says. “It’s to get people talking and, hopefully, through that process, get them to understand that DEI is not code for discrimination.”
Schwarz says that if enough participate, it will send a clear message: “We are the economy. At any time we can choose to stop, or to disrupt, or to withhold our spending, and when we do it together, corporations and politicians will have no choice but to listen. This is just the beginning.”
While Grant says it’s not clear how big of an impact that boycotts will have on companies’ bottom lines, reputations may be damaged. “We all have global customers right now. It’s important that these people feel you have earned their dollars,” she says. “We have choices. The president can sign all of the executive orders in the world, but a company has the autonomy to say, ‘Not here. We’re going to stand on business, and our business is about people.’”
Target, in particular, has made past commitments to carrying Black-owned brands on its shelves. In an emailed statement, the company said that its “belonging update” has had “no immediate impact on any current supplier relationships, and we’ll continue to work with suppliers from all backgrounds”, continuing, “This includes continuing to offer a wide range of products, including Black-owned and minority-owned products.”
Amazon said in a statement that it’s “committed to creating a diverse and inclusive company”, pointing to this page on its positions. Walmart — which updated its DEI policy in November, following the election but ahead of Trump’s executive orders — said of the DEI changes, “We continue to operate with a focus on living our values of respect, integrity, service and excellence. We remain committed to creating a culture where everyone can be successful and ensuring we are a Walmart for everyone.”
The brands these retailers carry face a potential blow if negative press continues. It’s a lesson in not becoming overly reliant on any one channel. “The signs of this shift were clear during the presidential campaign period, when DEI became a frequently misunderstood buzzword,” says Karess Roseme, co-founder of brand consultancy Rose Neal Collective, which works with Black-owned brands. “Many founders and clients we know anticipated this moment and have diligently diversified their retail distribution strategies behind the scenes.”
“We believe [our retailers to] all be highly ethical and good partners,” said Amin. “Because of our wide distribution, from digital sites to the largest beauty, drug, grocery, and dollar retailers, the Elf community has choices of where to purchase our products. We meet our consumers where they are.”
In the US — a critical growth market for luxury brands — boycotts may not disrupt the economy significantly, but they do add to a general mood of chaos and uncertainty, already created by inflation and the threat of tariffs. Could this lead to a downbeat market?
“This is a change-heavy period that makes people uncomfortable, but it’s a hallmark of the current administration,” says Saunders. “That means turbulence, but the US is resilient.”
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