As multiracial audiences expand, brands ignoring them risk ceding revenues to rivals that don't.

Bicultural Latinos drive faster spending gains and reward culturally fluent brands with loyalty and action.

Consumers increase support for brands who stand by LGBTQ+ initiatives, and advertisers who back away face challenges in reaching the next wave of consumers.

The news: Gap’s newest denim campaign is challenging American Eagle’s controversial Sydney Sweeney ad. Helmed by K-pop girl group Katseye and featuring a diverse group of dancers set to the 2003 Kellis hit “Milkshake,” the ad is earning praise for celebrating diversity, individuality, and modern inclusivity. Our take: Advertisers can take several key lessons from the ads about how culturally attuned messaging can either draw praise or spark controversy depending on how it aligns with current social conversations.

Retailers have been quietly sidelining plus-size clothing and reducing in-store quantities, even though most US women wear larger sizes. This shrinking presence isn't just a bad business decision; it's out of step with consumer preferences.

T-Mobile has announced a full rollback of its DEI programs as it seeks regulatory approval for two major deals, citing alignment with FCC expectations. The move eliminates all DEI language and infrastructure, signaling a dramatic reversal of the brand’s equity commitments. FCC Chair Brendan Carr applauded the shift, while critics warned of reputational risks—particularly with Gen Z and DEI-conscious consumers. As major brands reassess social strategies amid regulatory and political scrutiny, T-Mobile’s move may gain short-term approval but risks long-term brand damage. Marketers face a tough balancing act between political pragmatism and authentic social commitments.

On today’s podcast episode, we discuss how retailers are approaching their DEI initiatives under the current administration, the impact of staying quiet this Pride Month, and where the discussion around DEI goes next. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Principal Analyst Sky Canaves, Analyst Paola Flores-Marquez, and Dr. Marcus Collins—author and Professor of Marketing at the Ross School of Business at the University of Michigan.

Despite political pressure, McDonald’s is standing by its commitment to inclusion. While it recently replaced “DEI” language with “inclusion,” its initiatives remain intact, per Bloomberg. That contrasts with brands like Target, Nike, and JPMorgan Chase, which have scaled back DEI and climate efforts amid conservative backlash. McDonald’s cosmetic rebranding reflects a strategic calculation: investing in programs it views as beneficial for business and essential to long-term brand equity, especially with key demographics. If it avoids major backlash, McDonald’s could offer a model for other brands weighing how to uphold values while managing political and reputational risk.

This generation cares deeply about a brand’s values, and its history with these values.

While several industries roll back DEI initiatives under the Trump administration, some companies are emphasizing the value of data diversity. Revry, a global LGBTQ+ streaming network, wants to offer advertisers more ways to represent and resonate with diverse audiences.

Despite brands scaling back DEI, commitment pays off: A new study shows demographics like Gen Z are cutting ties with brands that reverse their DEI efforts.

Many large banks are watering down or removing online references to DEI in a polarized environment.

Younger banking customers care more than their older counterparts about banks’ diversity.

Retailers get burned on DEI: Companies risk backlash whether they stand firm or capitulate to anti-DEI pressure.

Costco defends DEI policies amid right-wing backlash: The retailer noted the importance of diversity to its business while questioning activist investors’ motivations.

Global ad study shows strides and shortfalls in inclusivity: Brands that fail to embrace inclusion can miss growth opportunities.

A number of retailers and brands have eliminated diversity, equity, and inclusion (DEI) programs this year. These changes may not present a PR issue for many brands, said Dr. Marcus Collins, clinical assistant professor of marketing at the University of Michigan’s Ross School of Business.

Why marketers should experiment with CTV ad formats: Interactivity and advanced targeting help improve ad relevancy and user experience.

Inclusive brands, exclusive growth: Beauty companies that champion inclusion unlock new customer segments and drive higher sales, a Circana and SeeMee Index study shows.

Assistive tech helps banks tap into the large, growing market of disabled customers and avoid monetary and reputational risks.