The news: Despite a broader US political and corporate rollback of diversity initiatives, retailers are still pursuing growth among diverse and underserved consumer groups.

Sally Beauty is investing in programs aimed at textured-hair consumers and younger shoppers, including an expanded tour of Black colleges and universities this year.

Earlier this month, Apple launched its 2026 Pride Collection, showing that brands still see sales upside in inclusion, particularly among younger consumers who tend to expect companies to reflect their values.

Zooming out: A-Frame Brands, the Los Angeles-based incubator and product developer co-founded by entrepreneur Ari Bloom and actor Hill Harper, builds consumer brands and retail partnerships around underrepresented audiences. The company says retailer demand remains strong as brands seek growth among consumers whose needs are often overlooked.

Its Proudly Baby brand, launched with celebrity couple Dwyane Wade and Gabrielle Union, offered early proof that inclusion-focused products could scale nationally. JCPenney launched an exclusive Proudly line that includes clothing and towels last year.

“We look for underserved markets, period,” Bloom told EMARKETER in an interview. That means customers who are not being served as they should be, whether defined by age, race, generation, or other characteristics.

“If you have a product to sell, you want to be introducing it to as many consumers as possible within the fastest-growing area,” Harper said.

US consumers are becoming more diverse. Between 2010 and 2020, the Hispanic population grew 23%, the Asian population rose 35.5%, and the Black multiracial population increased 88.7%, per the US Census.

Inclusion pays off: The case for inclusion is not just cultural; it is commercial.

• 67% of Black consumers say they pay more attention to brands that reflect their culture, versus 46% overall, per a 2025 Nielsen study.
• A 2024 global study of 392 brands across 58 countries from Oxford University and the Unstereotype Alliance found that inclusive advertising was linked to 3.46% higher short-term sales and 16.26% higher long-term sales.
• 65% of US adults say a company’s social stance—including diversity and inclusion efforts—influences their overall experience or purchasing decisions, per Sogolytics data from October 2025.

Inclusion has staying power as a business model because brands will keep discovering unmet needs as markets evolve. “As populations age, demographics change, and you have to present products and speak differently,” Bloom said.

Implications for brands and retailers: Companies may be quieter about DEI these days, but the business incentive has not gone away. As the US grows more diverse, brands that ignore multiracial and other underrepresented populations risk leaving growth on the table.