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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 brandsparticularly 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. “DEI was synonymous with altruism, rather than strategy,” says Marcus Collins, a professor of marketing at the University of Michigan and the author of For The Culture. “They saw serving Black people as a good thing to do rather than seeing them as consumers with unbelievable buying power.” The Rise and Fall of Ami Colé At Sephora’s annual beauty festival last September, crowds gathered in a pavilion featuring the hottest up-and-coming brands to grace the retailer’s shelves. Ami Colé’s booth was designed to look like a Harlem hair salon, complete with a bright orange swivel chair and African-inspired baskets. It was a proud moment for founder Diarrha N’Diaye-Mbaye, who named her company after her mother, a Senegalese immigrant who opened a hair salon in New York. As she described in The Cut, she began building Ami Colé in 2019, but it wasn’t until 2021 that retailers and investors began returning her calls. As the Black Lives Matter uprisings spread across the country, the business community tried to address systemic racism by launching diversity, equity, and inclusion (DEI) programs. Target vowed to invest $2 billion in at least 500 Black-owned businesses; Walmart poured $100 million into a racial equity center; Sephora took a pledge to devote 15% of its shelf space to Black-owned brands. For months, Black founders received an influx of cash and interest from retailers: N’Diaye-Mbaye herself raised $1 million to launch her brand. But five years later, as the Trump administration wages war against DEI, the mood in the country has shifted, and support for Black entrepreneurs is drying up. Now N’Diaye-Mbaye does not have enough capital to keep her brand going, and she’s far from alone. According to Crunchbase, Black-owned beauty brands raised $16 million in 2024, a sharp decline from $73 million in 2022. This withdrawal of support for Black-owned brands is happening across product categories, and a wave of startups has quietly closed in recent months. Some of these brands’ founders are now in a worse position than they were before they received the DEI support; they’re dealing with debt, unsold inventory, and other liabilities. DEI Programs Had No Long Term Vision Karen Young, founder of the beauty brand Oui the People, predicted this wave of closures. In July 2024, she posted a TikTok video about Black founders she knew who were struggling to get the funding they needed to keep their businesses afloat, as support evaporated. While many brand founders dream of getting picked up by a national retailer, Young knows firsthand how expensive this can be. To launch Oui the People at Sephora, she had to buy enormous quantities of inventory, pay for displays and product samples, and pour a lot of money into marketing to get on consumers’ radars. This is consistent with other reporting I’ve done about how brands can spend upwards of $100,000 on in-store fixtures at Sephora, and must also provide product testers and samples. To get a spot on a seasonal display at the store, entrance can cost $250,000. And after all of that, Sephora takes a 65% cut in sales. To pay for all of this, Young raised $8 million in venture capital, led by New Age Capital. “The first thing Sephora’s merchants asked me was whether I had funding,” says Young. “You need capital to get off the ground. It’s only when you scale that you have a path to profitability.” Young did all of this work in 2019, before the DEI programs began popping up. This turned out to be a blessing, she says, because Sephora and her investors worked with her to come up with a plan for Oui the People to find its place in the market and achieve scale. In contrast, after Floyd’s murder, many companies pumped money into Black-owned brands without any sort of long-term strategy. “DEI can’t come without infrastructure,” she says. “Retailers brought in these very small Black-owned businesses across their stores, then just stopped there.” This is what happened to Ami Colé. (Sephora declined to comment; Ami Colé did not respond to our request for comment.) As N’Diaye-Mbaye writes in The Cut, she used her $1 million to launch at Sephora, but struggled to compete with brands that had access to far more capital. She eventually raised $2 million more from venture capital firms like G9 Ventures and Greycroft, but without further ongoing investment she sees no path to success. “Diarrha performed miracles on the capital she raised, more than comparable brands in her category, like Kosas and Saie,” says Young. “She created amassive shade range and cultivated a loyal customer base. But she hasn’t had the same access to capital as comparable brands.” Collins, the professor, says the sudden withdrawal of support for Black-owned brands is devastating for foundersand not just financially. “These entrepreneurs had hope,” he says. “They named their companies after their parents because they wanted to build a family legacy. And overnight, the rug was pulled out from under them.” Doomed to Fail Wells of Wndr Ln believes retailers treat Black-owned brands more poorly when they are brought in through DEI programs. She’s seen this firsthand across her two decade career in which she has owned a consulting business, launched her own brands, and also written books for both children and adults. “I’ve worked with 400 clients over the last two decades of my career,” she says. “Only two have come through DEI initiatives, and both were awful.” One of those experiences happened with Target, a retailer she has worked with closely for six years. In 2019, Target asked Wells to write a series of children’s books featuring a Black female lead charactersomething they felt was missing on their shelves. (Wells had previously published successful middle grade books.) This led to a bestselling series called the Zee Files, which was exclusively sold at Target. Later, Wells wrote a business book called The Elevation Approach, and Target invited her to create a line of coordinating home office products. In each case, Target poured substantial marketing dollars into the launches, which led to their success. “Target did it because it was good for business,” says Wells. “They felt the Black customer was worth cultivating and investing in.” Then, in the aftermath of Floyd’s murder, Target launched an internal committee called REACH, focused on improving racial equity throughout the company, including bringing on 500 new Black-owned brands. In 2021, REACH reached out to Wells, asking whether she would be interested in launching a luggage brand at Target. Given all of her positive experiences at Target thus far, Wells said yes and began developing Wndr Ln (pronounced Wonder Lane), a line of colorful suitcases and overnighters. She used her own money to manufacture the products. When Wndr Ln debuted in August 2023, Wells noticed a lack of support from Target compared to her previous projects. Target did not invest much in marketing, nor were products prominently displayed in store. (A Target spokesperson confirmed it carried the Wonr Ln collection, but says the company’s policy is not to comment on vendor relationships.) Shortly after the launch, Target cancelled all future orders. Wells never received a clear explanation about why this happened, but at the time, Target’s sales were in decline partly because of a massive consumer boycott over its Pride collection. Whatever the reason, Wells was left in a bind. “If you’re producing product for a single retailer and they cancel future orders, your business is dead,” says Wells. “I was left with massive liability I am still dealing with today.” (She cannot comment on the financial details of the end of this Target partnership for legal reasons.) For Wells, the problem with DEI programs is that they don’t often focus on driving profit and revenue. DEI is often seen as a moral issue, rather than an opportunity to bring in Black entrepreneurs who can target the valuable Black consumer. As a result, with a recession looming and the Trump administration attacking DEI, it is easy for brands to abandon Black-owned brands. “America is a capitalistic society,” says Wells. “The goal of Fortune500 companies is to increase shareholder value. The minute anything is not in alignment with that goal is not going to have long-term success.” Marcus Collins emphasizes that launching DEI programs were designed to address real problems. Historically, American companies have ignored the needs of Black and brown customers. Yet, there is abundant research showing that catering to diverse consumers is good for business. “The thing that gets in the ways is racism, so let’s just call it what it is,” says Collins. “Companies don’t cater to Black people because they don’t think Black people matter.” Going forward, Karen Young says that companies should focus on partnering with Black founders because they have better insight into the diverse consumers they’re seeking. And importantly, the business community needs to give these entrepreneurs access to the resources they require to succeed, including access to capital from banks and VCs. “These are baseline resources that other founders get,” says Young. “We’re just asking for the same treatment.” But in some ways, setting up DEI programs may not even be necessary in the years to come, Wells argues. It will soon be abundantly clear that brands will lose out financially if they don’t cater to Black and brown consumers, as white people become the minority in the U.S. by the 2040s. “America is becoming more diverse every day,” says Wells. “If you don’t want to serve your Black and brown customers, don’t worry. Someone else will come along to do it. That’s how capitalism works.”
Category:
E-Commerce
The delivery app DoorDash and the Alphabet-owned drone company Wing are bringing mall food court favorites to select doorsteps as they expand their drone delivery program. The companies recently announced that they were partnering with GoTo Foods, the parent company behind shopping mall brands like Auntie Anne’s, Jamba, and Schlotzsky’s, to deliver orders by drone to select areas in Frisco, Fort Worth, and Plano, Texas. It’s DoorDash’s latest push into delivery by air after announcing in March it would launch a drone delivery pilot program with Wing for select Wendy’s items in Christiansburg, Virginia, and also a sign that the company sees more room for growth. DoorDash said it began offering drone delivery for Papa Johns and The Brass Tap during limited hours of operation in parts of Little Elm and Frisco, Texas, in June, and now its partnership with GoTo Foods takes that pilot program further. “As we continue scaling our drone operations, we remain focused on building a world-class logistics platform that enables partners like Wing to integrate seamlessly into our ecosystem; provides a smooth, reliable delivery experience for merchants; and offers consumers fast and affordable access to brands they love,” DoorDash’s drone program head Harrison Shih said in a statement. For now, drone delivery is limited to just a 4-mile radius of participating locations, but for those who live in the radius, DoorDash promises delivery within minutes of ordering. The company has leaned into robotic delivery outside of drones with Coco, a delivery robot it began testing earlier this year in Los Angeles and Chicago. And in May, it bought the British delivery app Deliveroo for $3.9 billion. DoorDash reported more than $3 billion in quarterly revenue in the most recent quarter, up nearly 25% from the same time last year, according to PitchBook data. For GoTo Foods, the partnership with DoorDash is a chance to take its brand out of the shopping mall and to reinvent it for a new generation at a time when malls are changing. Thanks to drones, food court pretzels could be more easily accessible to “high-growth suburban areas” that are “well beyond traditional mall locations,” the two companies said in a press release. You used to go to the mall. The mall now comes to you.
Category:
E-Commerce
Sarah thought she’d nailed it. Three rounds of interviews for her dream marketing role, glowing feedback from the hiring manager, and a reassuring “we’ll be in touch soon.” So when the rejection email landed in her inbox two weeks latera generic “we’ve decided to move forward with another candidate”it felt like a gut punch. If youve had a similar experience taking job rejection more personally than youd like, youre not alone. Youre also very human. In fact, research has found that 78% of professionals say job rejection negatively impacts their confidence for weeks or even months afterward. But as normal as it is to feel knocked down, were also capable of using rejection to clarify our direction, refine our value, and accelerate the outcomes (and ideal roles) we wantnot to let it define us. This isnt about building thicker skin. Its about building smarter systems and more empowered thinking. Here are six straightforward strategies to do that. 1. Use the 24-hour rule. Youre human, not a robot. Its okay not to feel great when a rejection email lands in your inbox. Emotions may not always be rational, but theyre still real. So cut yourself some slack and give yourself permission to feel disappointed without immediately trying to “fix” it or bounce back. Set a timer for 24 hours, acknowledge the sting, then deliberately shift into learning mode. This prevents both endless rumination and what psychologists call “emotional bypassing”jumping straight to positivity without processing the real emotions. 2. Separate the ‘no’ from your self-worth. This rejection isn’t a referendum on your value as a person or professional: it’s simply a mismatch, not a verdict. Research has shown that people with a growth mindsetwho ask What can this teach me? instead of Whats wrong with me?are more likely to bounce back from setbacks, stay motivated, and take constructive action. When Marcus, a software engineer, didnt get the senior developer role he wanted, he initially spiraled into self-doubt. But when he shifted from “I’m not good enough,” to “What skills do I need to develop?” he used the feedback to land an even better position six months later. You do yourself a disservice when you let the subjective evaluation others place on you depreciate the value you place on yourself. That Tom Brady was the 199th pick in the 2000 NFL draft is proof that sometimes those tasked with assessing others’ future potential have absolutely no idea. 3. Ask for feedbackeven if you don’t get it. The simple act of requesting constructive feedback signals a growth mindset and helps you reflect more objectively on the experience. Even when companies dont respond (and many wont), the process of asking forces you to think strategically about your performance and what you might do differently next time. 4. Reframe it as redirection, not rejection. Jenny, a finance executive, felt incredibly disappointed when she didnt get a controller position at a startup. Six months later, when that company folded, she realized the rejection had actually protected her from a career disaster. Sometimes a “no” is actually steering you away from a situation that wouldnt have served you well. Research from Glassdoor shows that 65% of people who stay in roles that werent their first choice report lower job satisfaction within two years. 5. Dont personalize systemic issues. Sometimes hiring decisions come down to budget, internal politics, timing, or internal candidates being preferredfactors that have nothing to do with your qualifications. Other times, personal preferences, unconscious judgments, or stereotypes bias hiring decisions. According to research from SHRM (Society for Human Resource Management), 48% of HR managers admitted that biases affect the candidates they hire. Many hiring decisions are influenced by factors completely outside a candidates control. Avoid interpreting rejection as anything more than a decision someone madea decision shaped by a whole array of factors and biasesthat simply wasnt the one you wanted them to make. You cant control those variables, but you can control your response. 6. Track your progress, not just your wins Top performers dont avoid rejectionthey risk it regularly and treat it as no more than a hidden curriculum, mining any insights for their next opportunity. Create a system that tracks not only your wins, but also your courage: interviews taken, skills built, connections made, insights gained. Maybe you realized you need to clarify your value proposition. Maybe you discovered a role or industry isnt for you. These are all progress markers. These are all victories worth celebrating. Its not rejection itself that holds future potential hostage, but the emotions of unworthiness it triggers. The irony is that by avoiding rejection, we often reject ourselveslong before anyone else has the chance. So whether youre starting out or starting over, the biggest setback isnt being told no. Its letting it stop you from showing up again. Just imagine the possibilities if you moved forward knowing that rejection is simply part of your individualized growth plan. Let rejection refine your clarity, not shrink your courage. Keep putting yourself forward. Keep learning. Your next opportunity may just need the version of you that rejection helped shape.
Category:
E-Commerce
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