5 days ago
How DEI destroyed Black-owned brands
In 2022, Diarrha N'Diaye-Mbaye had achieved a lifelong dream: Ami Colé, her three-year-old beauty brand, was on the shelves of Sephora. In the wake of George Floyd's murder in 2020, she'd received a wave of support from venture capitalists and retailers. But by this year, much of that interest had dried up. In mid-July, N'Diaye-Mbaye abruptly announced she would be shuttering her fledgling brand because she could not find enough capital to stay afloat.
The news sent shock waves through the beauty industry, but it's an increasingly familiar story for venture-backed Black-owned brands—particularly those that scaled with the help of major retailers who went all-in on DEI after 2020's racial reckoning.
Tina Wells recently shut down Wndr Ln, the luggage brand she launched in partnership with Target, after the retailer cancelled all future orders. Thirteen Lune, a diversity-focused online retailer, went through insolvency proceedings last December. Many other black-owned beauty brands have closed in the wake of Trump's election, including Beauty Bakerie, Ceylon, and Koils by Nature.
Black founders are now trying to figure out what went wrong. For many, the answer is that investors and retailers like Target quickly launched diversity, equity, and inclusion (DEI) programs without long-term strategies to help Black-owned brands scale and find success. Ultimately, DEI was often perceived as a moral endeavor, rather than smart business. So it's not that surprising that so many of them are now struggling.
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