Tracee Ellis Ross: Beauty Brands Miss ‘Cultural Currency’

Pattern Beauty founder Tracee Ellis Ross is shedding light on a critical issue within the beauty industry: why are so many brands, particularly those led by Black entrepreneurs, struggling to sustain themselves? Ross believes the core problem lies in how the industry values success, often overlooking a crucial element she calls ‘cultural currency.’

The Fading Commitments to Inclusivity

Following the social reckoning of 2020, there was a surge of support and investment in Black-led brands. However, many founders have noted that this commitment has waned, especially under the current administration, which seems to view diversity, equity, and inclusion (DEI) initiatives with skepticism. This shift has led to the closure of several Black-owned beauty brands, including Ami Colé, Beauty Bakerie, Ceylon, and Koils by Nature.

Diarrha N’Diaye-Mbaye, founder of the clean-beauty brand Ami Colé, shared her experience in an op-ed, citing changing investor attitudes, rising tariffs, and brutal marketing costs as factors in her brand’s shutdown. She noted the stark contrast between the investor enthusiasm for inclusivity in 2020 and the more hesitant approach she encountered later. “The world feels upside down,” she wrote, lamenting an industry that preaches inclusivity but remains unforgiving.

Beyond the Dollar Signs: Valuing Cultural Impact

Tracee Ellis Ross, who founded Pattern Beauty by carefully selecting business partners rather than self-funding, discussed these challenges on the “Aspire with Emma Grede” podcast. She acknowledged the difficulty of maintaining a brand in an oversaturated market but stressed that the industry needs to do more to support these unique ventures.

“I think we have to do better as an industry. I think there are systemic roadblocks, and I think it requires a broader approach to support in understanding how you take a unique value proposition and how you scale that,” Ross explained. She questioned how growth is measured – is it solely through expanded retail or new products, or does it account for the brand’s core value?

The Unseen Value of Niche Brands

Ross highlighted the concept of ‘cultural currency’ – the intangible value a brand brings that isn’t always reflected in immediate dollar amounts. “There is a cultural currency that is not accounted for in dollar numbers that we must, as an industry, do a better job of counting,” she stated. She used the example of an exclusive brand serving a specific customer base; while it might not generate the same revenue as a mass-market brand, it can attract new customers and create a ‘halo effect’ that benefits the business culturally and financially in ways not easily quantified.

Ultimately, Ross argues that the industry needs a more nuanced understanding and a different approach to supporting brands that offer unique cultural value. This means looking beyond short-term financial gains and recognizing the long-term impact these brands have on consumers and the broader market.