Article originally published in Orlando Business Journal.

This year will bring a seismic wakeup call to many corporations. We all will witness our consumer base transform from a traditional customer focused on material possessions, to one who invests in the retail experience.

Plus, a diverse audience of millennials and Gen Z individuals is emerging. According to the Claritas 2023 Pop-Facts Demographics report, more than 44% of consumers are multicultural, and that number is projected to rise to 47% by 2028.

This burgeoning dynamic will require an equally substantial shift in marketing strategies.

Several big retailers will disappoint on Wall Street as consumers shift spending, according to an Aug. 23, 2023, Marketplace.org article about the stark evolution in consumer preferences. For example, said the article, the surge in consumer spending on exercise bikes and home-related goods during the pandemic era has changed to a fervent desire for travel, new dining experiences and live events. “The retail companies that feasted on the boom that Covid brought to them— because of the change in lifestyle that people went through—are now exhibiting a hangover,” said Professor Mark Cohen at Columbia Business School.

So as consumer consumption and demographics shift, the question is: What will be the ramifications to the brands reluctant to embrace this consumer evolution? It likely will diminish their competitive edge, reduce their market share and affect their bottom-line now and well into the future. If no action is taken, these brands no longer will be relevant.

Cutting or reducing marketing budgets is not advisable for your long-run success. It often results in more “vanilla” campaigns at a time when businesses need to be bold and edgy. Marketing attracts new customers, retains current customers and even can encourage them to increase their spending. Good marketing shows that a business is active, engaged and thriving. There is a lot of potential for positive ROI in marketing during times of uncertainty. It has been proven that low investment generates low returns.

While it’s understandable that businesses want to play it safe in times of crisis, that’s actually the riskiest thing to do. Sticking with what you know won’t change anything. The best thing to do is to take some well-advised risks, a leap of faith, and stop mimicking what your competitors are doing.

More corporate executives are realizing that the consumer brand experience is becoming a big focus for 2024 and beyond. This is a great starting point if you want to increase customer confidence and brand loyalty.

However, besides the transactional aspect, brands need to start doing a better job in how they keep those consumers engaged before and after the purchase is made. More than ever, corporate executives must embrace the importance of diversity, equity and inclusion internally, and how that message is reflected externally, as well.

Companies also need to create a diverse shareholder or advisory team that will guide them to be successful with multicultural consumers. Executives must listen to them and take their advice to heart. They also should make a positive impact in the communities their diverse workforce represents. Their marketing teams must engage with consumers through a more efficient, meaningful multicultural marketing strategy and culturally relevant advertising executions.

Here are 3 business tips for a prosperous 2024 and beyond:

1. Focus on the big picture: Many corporate executives are focused on short-term gains instead of long-term business growth. On many occasions, multicultural marketing efforts get cut the moment they reach the CFO’s desk. The excuse is that they need to cut costs and “buckle down” during times of uncertainty; therefore any new programs, new audiences or advertising is no longer part of the equation. This type of thinking could lead to irreversible consequences for your brand, especially in terms of reduced market share, weakened brand awareness, market positioning and customer connections. Don’t let short-term decisions sabotage your long-term growth.
2. Communicate and streamline: The larger a corporation is, the bigger its bureaucracy. And that’s like mud on the highway, slowing every decision, every opportunity, and costing corporations millions of dollars annually. Too many times, departments such as sales, marketing and public relations barely interact with each other during a product launch, for example. That leaves ad agencies and consultants to act as the liaison between the departments to get them to share information and make more efficient decisions together. Opening up communication between departments, streamlining processes and being more agile gives you the ability to pounce on opportunities, save more money and time, and be more responsive overall.
3. Embrace this consumer evolution: Diversity is a key driver of creativity and innovation. All marketing in the U.S. should be done through a multicultural lens. American author Seth Godin said, “Marketing is no longer about the stuff you make, but about the stories you tell.” The U.S. Census showed that Hispanics have driven U.S. demographic growth, reaching 62 million in 2020. They accounted for over 50% of the country’s population growth and represented 20% of U.S. population. Gen Z, a crucial demographic for most marketers, is now over 40% Hispanic. If you can realize the potential in these growing numbers and connect with these new consumers in a more meaningful way, you will be well-poised for the future.

Your survival and sustained growth in the coming years hinge on your ability to adapt to the evolving consumer landscape and embrace diversity as a core doctrine of your corporate strategy. Navigate these new tides correctly and you will realize the possibilities evolving in front of you.