To expand your breach in the market, you must attract more consumers. More consumers mean more profit. The increasingly growing diversity in the American market has led many corporate bigwigs to look into configuring and diversifying their services and merchandise to accommodate this imminent change in consumer demographics. In fact, by the year 2045, it is estimated that forty-five percent of the American market will be people of color.
Listed are things companies must consider to transition.
Corporation and Community
- Know thy market.
The data available regarding the consumer behavior of people of color are alarmingly limited. To address this, companies must take it upon themselves to conduct in-house research. If doing in-house research is not plausible, get outside help. Commission an outsource company to do it.
- Offer modified services and merchandise.
The effects of racism have immensely impacted the buying power of people of color. Due to being given limited opportunities in the past, the majority of people of color come from low-income earning households. Their level of wealth prohibits them from having many options. Make the services and merchandise you offer affordable to them by making some modifications. Keep in mind not to limit these changes for the sake of reducing the prices. Make changes based on their distinctive preferences as well. Look into their history and culture. By incorporating these changes with their well-being in mind, you will certainly attract their attention.
- Rebuild trust.
Historic and on-going discrimination have people of color hesitant to avail of certain services and merchandise. Advertise your service and merchandise in a way that would appeal to them. Hire people of color so that they may better explain what services and merchandise you are offering. Develop mutually beneficial partnerships with organizations spearheaded by people of color. By sincerely serving communities of color, a strengthened regained trust will surely ensue.
Employee and Employer
- Employ with diversity in mind.
Having a diverse staff means having a good representation of the market. Having people from different socio-economic classes share their honest take in company matters ensures the formulation of sound, well-thought off solutions. These brainstorming sessions not only lead to formulating solutions but uncovering new services, products, markets, and ways of doing business.
- Eliminate a toxic work environment.
People who experience discrimination at work are disengaged. Their level of productivity is low. They are prone to incurring a lot of absences because of physical (e.g., heavy smoking and drinking to cope with stress) or emotional reasons (e.g., anxiety and depression). Prevent high staff turn over by introducing policies that lessen the occurrence of workplace discrimination. Schedule continually occurring team-building exercises to develop rapport and trust. If the company budget permits it, hire a psychiatrist who would help employees effectively deal with their stressors.
Companies that refuse to adapt to this change in consumer demographics will suffer a loss of income due to bad PR (public relations) and litigation. The only way for companies to flourish in the future is to create harmony in the marketplace by openly embracing diversity.
