As liberal politics have permeated the advertising sphere for decades, a backlash has emerged with the rise of anti-woke companies that cater to consumers alienated by the increasingly radical stances of mainstream brands. This parallel economy is gaining momentum, offering a glimpse into the changing landscape of consumer values and political polarization in the marketplace.
For years, liberal perspectives dominated the advertising industry, with brands eager to align themselves with progressive values and causes. However, this strategy has faced growing resistance from consumers who feel alienated by the increasingly radical stances taken by businesses.
The Rise of the Parallel Economy: Anti-Woke Businesses Thrive as Liberal Dominance Wanes
"So many people feel alienated by the aggressively left-wing stances that businesses are taking," said Jennifer Sey, a former executive at Levi's who launched the pro-female apparel company XX-XY Athletics. "They're disrespectful, some of these brands that are touting aggressively ‘progressive’ positions."
Sey believes that businesses should not use their platforms to promote controversial social issues, arguing that it alienates a significant portion of the marketplace.
The Rise of the Parallel Economy: Anti-Woke Businesses Thrive as Liberal Dominance Wanes
According to Will Burns, a longtime brand consultant, the advertising world has long held a liberal bias, creating an echo chamber where everyone assumes their beliefs are universally shared. "But it’s never been with the vitriol that we see today," he said.
The CEO of PublicSquare, Michael Seifert, attributes this shift to a departure from meritocracy and excellence, with businesses prioritizing social initiatives over innovation and customer satisfaction. "The economy took a turn away from meritocracy and excellence and innovation toward these sort of socially-engineered, politicized initiatives out of corporate boardrooms," he said.
The Rise of the Parallel Economy: Anti-Woke Businesses Thrive as Liberal Dominance Wanes
As polarization intensified, a slew of conservative or anti-woke alternatives emerged in the marketplace, offering products and services that aligned with the values of consumers alienated by the progressive messaging of mainstream brands.
Instead of Tinder or Bumble, there's The Right Stuff for conservatives looking for love. If Nike no longer resonates, there's a new sneaker brand from NBA star Jonathan Isaac, who stood during the national anthem while his teammates knelt.
The Rise of the Parallel Economy: Anti-Woke Businesses Thrive as Liberal Dominance Wanes
While the term "parallel economy" might suggest a fringe market, it encompasses a diverse range of businesses, including coffee providers, clothing brands, and even cell phone service providers and social media platforms.
Seifert emphasizes that most of these businesses are apolitical, aligning with PublicSquare's pro-life, pro-American, and pro-small business values without using political views in their marketing.
The Rise of the Parallel Economy: Anti-Woke Businesses Thrive as Liberal Dominance Wanes
Surprisingly, PublicSquare's customer base reflects this diversity, with a majority of Republican shoppers but a significant 26% of registered Democrats and 22% of independents.
It's difficult to pin down what exactly consumers want, with polls and surveys providing conflicting results. Some research indicates a desire for brands that align with personal values, while others suggest consumers are burned out on companies taking controversial stances.
The Rise of the Parallel Economy: Anti-Woke Businesses Thrive as Liberal Dominance Wanes
Harris Poll research found that 82% of shoppers prefer brands with matching values, while the Edelman Trust Barometer shows 60% of consumers globally choose or avoid brands based on politics. However, Gallup polling reveals a 7% decline in support for businesses taking public stances on current events from 2022 to 2023.
Some mainstream brands have dialed back their progressive marketing, but alternative brands remain confident in their approach. Jennifer Sey believes that XX-XY Athletics should not be labeled a conservative brand, despite its focus on female athletes who believe in fair competition.
"The vast majority of Americans agree with us," Sey said, referencing a poll showing 69% of Americans support transgender athletes playing on teams that match their biological gender. "We should not be relegated to parallel economy or second-class citizens."
Both Seifert and Sey emphasize that their political messaging is narrow, focusing on core values rather than every social issue. They believe that the quality of their products will drive success, not their political stances.
Some industry experts believe that the parallel economy will become the dominant marketplace as businesses prioritize consumer values over political correctness. Others argue that a return to "normie capitalism" is possible if polarization subsides.
Sey hopes that brands will abandon the "hyper-politicized" strategy and focus on what she calls "normie capitalism." "Unfortunately, this is where we are right now," she said. "And if you have a choice, why not choose a great product from a brand that aligns with your values?"
As the market continues to evolve, it remains to be seen whether the parallel economy will fade away or become an established force in the consumer landscape, reflecting the changing values and political divisions within society.
