The beauty industry is a multibillion-dollar business that promises to enhance not only people’s appearances but also their lives. However, for many Black consumers and entrepreneurs, the beauty industry is not a source of empowerment but of frustration and inequity. In this blog post, we will explore some of the pain points and challenges that Black people face in the beauty industry, as well as some of the opportunities and solutions that can lead to greater racial equity and inclusion.
The Pain Points
According to a recent report by McKinsey1, Black people’s experience within the beauty industry is markedly more frustrating than that of non-Black people and filled with multiple friction points. Some of these are:
Lack of representation in products and brands. Black consumers are three times more likely to be dissatisfied than non-Black consumers with their options for hair care, skin care, and makeup1. They often struggle to find products that suit their needs, preferences, and skin tones. For example, only 4 to 7 percent of beauty brands carried by specialty beauty stores, drugstores, grocery stores, and department stores are Black brands1, defined as either Black-founded or Black-owned. Yet, Black consumers show an affinity and preference for Black beauty brands and are 2.2 times as likely to conclude that products from those brands will work for them1.
Lack of representation in the industry workforce. From entry-level to the C-suite and from retailers to beauty houses, only 4 to 5 percent of all employees in the US beauty industry are Black1. This means that there is a lack of diversity and inclusion in the decision-making processes, product development, marketing, and customer service that affect Black consumers and entrepreneurs. Moreover, there is a lack of mentorship, sponsorship, and career advancement opportunities for Black professionals in the beauty industry.
Lack of access to capital and support for Black entrepreneurs. Black brands in the beauty industry raise a median of $13 million in venture capital, substantially less than the $20 million that non-Black brands raise1. This limits their ability to scale up, innovate, and compete in the market. Furthermore, Black entrepreneurs face barriers such as lack of distribution channels, shelf space, visibility, and promotion by retailers and beauty houses.
The Opportunities
Addressing racial inequity in the beauty industry is not only a moral imperative but also a business opportunity. The report by McKinsey estimates that better serving Black consumers and supporting Black beauty brands could lead to an additional $2.6 billion in revenue for the beauty industry1. Some of the ways that the beauty industry can achieve this are:
Increasing the number and variety of products and brands that cater to Black consumers. This means expanding the range of shades, formulas, ingredients, benefits, and price points that meet the diverse needs and preferences of Black consumers. It also means increasing the representation and visibility of Black brands in retail stores and online platforms.
Increasing the representation and inclusion of Black professionals in the industry workforce. This means hiring, retaining, developing, and promoting more Black talent across all levels and functions in the beauty industry. It also means creating a culture of belonging and respect for Black employees and fostering an environment where they can thrive and contribute.
Increasing the access to capital and support for Black entrepreneurs. This means providing more funding, mentorship, guidance, and resources for Black founders and owners of beauty brands. It also means creating more partnerships, collaborations, and alliances between Black brands and established players in the beauty industry.
The Solutions
Some examples of how some players in the beauty industry are taking steps toward greater racial equity are:
Ulta Beauty, the largest beauty retailer in the US, has launched several initiatives to support Black consumers and entrepreneurs. These include committing to double its assortment of Black-owned brands by the end of 20222, dedicating $25 million to amplify underrepresented voices through marketing campaigns2, creating a diversity-and-inclusion coalition to advise on its strategy2, partnering with Tracee Ellis Ross’s Pattern Beauty brand to offer grants to emerging Black-owned beauty businesses3, and collaborating with Essence magazine to celebrate Black excellence in beauty4.
Sephora, another leading beauty retailer in the US, has also implemented several actions to address racial inequity in the beauty industry. These include signing the 15 Percent Pledge , which calls on retailers to dedicate at least 15 percent of their shelf space to Black-owned businesses, conducting an extensive study on racial bias in retail, launching an incubator program for BIPOC (Black, Indigenous, People of Color) founders of beauty brands, and creating a D&I (diversity-and-inclusion) advisory board composed of internal and external experts.
Fenty Beauty, a beauty brand founded by Rihanna, has been widely praised for its inclusive and diverse approach to beauty. The brand launched in 2017 with 40 shades of foundation, which has since expanded to 50 shades. The brand also offers a wide range of products for different skin types, tones, and textures. Fenty Beauty has been credited with disrupting the beauty industry and inspiring other brands to follow suit. The brand has also been recognized for its social impact, such as donating $5 million to various organizations supporting communities affected by COVID-19 and partnering with the Clara Lionel Foundation to support education and emergency response programs around the world.
The Conclusion
The beauty industry has a long way to go to achieve racial equity and inclusion for Black consumers and entrepreneurs. However, there are also signs of progress and hope, as some players in the industry are taking action and making commitments to address the pain points and challenges that Black people face. By doing so, they are not only creating a more fair and just industry, but also a more profitable and innovative one. Black representation matters in the beauty industry, and it is time for everyone to recognize it and act on it.
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