The Canadian entertainment network CBC features a show reminiscent of Shark Tank called Dragons’ Den, where business entrepreneurs present their funding requests to investors. In the latest season, Simu Liu, a Chinese-Canadian actor and star of Marvel’s Shang-Chi and the Legend of the Ten Rings, appeared as a guest “dragon” looking to invest during one of the episodes.
During this episode, the founders of a bubble tea business from Quebec named Bobba approached Dragons’ Den with hopes of securing a $1 million investment to advance their brand. As their pitch unfolded, the friction between Simu Liu and Bobba’s founders, Sebastien Fiset and Jess Frenette, became increasingly evident.
Boba tea, a tea-based drink hailing from Taiwan, has gained significant traction in the U.S. market. Frenette characterized boba or bubble tea as a “sugary, trendy beverage” and hinted that customers often remain “unsure about what it contains.”
Liu expressed his concerns regarding the founders’ ambition to “disrupt” the market with their product and questioned the cultural implications of their venture. Clips from this controversial Dragons’ Den episode have gained traction online, racking up millions of views. Following the incident, Liu publicly addressed the backlash.
In the end, Liu chose not to back Bobba, explaining that he “would be supporting a business profiting from something very significant to my cultural background. I want to help spread boba to wider audiences—but not in this manner.”
This incident underscores the necessity for businesses to embrace cultural sensitivity and the potential repercussions when they fail to do so.
Below are four strategies to assess whether your business demonstrates cultural sensitivity and to foster inclusivity, particularly as the holiday season draws near.
1. Consider the implications to prevent unintentional cultural appropriation
Liu’s boba tea situation isn’t the sole instance of cultural insensitivity that has made headlines recently. In 2022, Bath and Body Works’ attempt to commemorate Juneteenth with its product packaging for Black History Month was poorly executed, drawing widespread criticism. Per the Miami Herald, consumers labeled their products as “’trash,’ ’tacky’ and an example of ’cultural appropriation.’”
Brand marketing expert Katya Varbanova emphasizes the importance of grasping cultural sensitivity as a fundamental requirement for any business.
“The most significant takeaway from this is the necessity to comprehend different cultures, particularly in the Zillennial demographic, and the expectations they hold for brands,” she notes. “[Companies] must recognize that it is essential to be aware of what is culturally relevant and sensitive, particularly as cultural appropriation is a serious concern for both Gen Z and Millennials.”
Varbanova also advises brands and entrepreneurs to seek feedback early on—not just from within their organization, but also from their local and global customers.
2. Investigate relevant cultural histories and educate yourself during creation
What methods can businesses employ to honor various traditions and celebrations respectfully? A vital step towards ensuring cultural sensitivity is to ground your product development, marketing strategies, customer interactions, and branding in thorough research.
Without a solid understanding of culture-specific histories, achieving cultural sensitivity becomes challenging. When producing content, it’s crucial to comprehend the context and importance tied to any cultural elements involved before dissemination.
To facilitate this, develop a research protocol that includes studying historical contexts and pivotal cultural specifics. If your subject involves cultures outside your own, take the time to educate yourself about facets you might not be familiar with. Utilizing AI tools like ChatGPT or Google Gemini can help synthesize this information into digestible formats.
“A significant thing for business owners to keep in mind is that we instinctively judge quickly whether we wish to engage in business with others,” remarks Afya Evans, an image consultant who coaches high-level professionals facing media. “It’s common knowledge that relationships with people we know, like, and trust are critical. However, research shows that most of those assessments occur within seconds.”
“Thus, making those initial impressions impactful is crucial, as they can be difficult to amend later on,” she emphasizes. “Those initial interactions hold immense importance.”
3. Foster cultural sensitivity in communication and celebrate diversity
Businesses engage in communication with employees, customers, investors, and key stakeholders in various ways that significantly influence their brand’s growth trajectory. As demonstrated by Bobba’s experience on Dragons’ Den, a failure to communicate with cultural sensitivity can jeopardize a business, whereas thoughtful communication fosters a desirable workplace and a loyal customer base.
Employees and customers alike desire representation within a brand’s narrative. According to 2019 data from Google, 70% of Black and LGBTQ+ consumers were likely to engage with brands whose advertising resonated with their identities. Furthermore, a 2021 McKinsey study indicated that two-thirds of Americans consider their social values when making purchasing decisions.
“Cultural insensitivity can damage the brand but also hinder the company’s ability to attract and retain talent,” warns Vivian Acquah, a certified diversity, equity, and inclusion consultant. “[This] can result in clients feeling disinclined to continue purchasing from you. The repercussions of insensitivity can adversely impact businesses on a broader scale.”
With the holiday season approaching, now is the time to ensure your communications reflect cultural sensitivity and honor cultural diversity, considering celebrations and traditions that go beyond typical American holidays. Take into account various religions, demographic groups, and cultural festivities when crafting content for your enterprise.
Effective communication involves clarity and active listening. During your research and creation process, steer clear of stereotypes and avoid making assumptions about individuals or concepts if you’re unfamiliar with their cultural background. Welcome input from employees, consumers, and others that highlights any cultural insensitivity you may need to address.
4. Establish an inclusive business model
One of the most effective methods to cultivate a culturally sensitive enterprise is to prioritize inclusivity. In the aforementioned Dragons’ Den episode, Liu inquired of the Bobba tea founders, “How are you showing respect toward this quintessentially Asian drink that has gained global momentum? Is that reflected in your teas? In your product development? Who makes up your team? Who is part of your investment pool providing insights into this?”
Inclusive businesses thrive on diverse communication, teamwork, branding, and marketing approaches, along with the capacity to adapt to emerging issues. Cultivating a culturally sensitive organization serves as a strategic growth initiative, enhancing employee retention and resonating with consumers who feel acknowledged.
Is your venture culturally sensitive?
Olivia Chen and Pauline Ang, Asian entrepreneurs and business partners behind a boba tea brand named Twrl, previously attempted three times to appear on ABC’s Shark Tank but were unsuccessful. After they shared a video on TikTok supporting Liu’s stance against cultural appropriation, he encouraged them to submit a pitch deck to his team for investment consideration in Twrl.
The incident involving Simu Liu and the boba tea controversy underscores the importance of establishing a culturally sensitive business model, as a lack thereof can impede growth. You can foster a culturally responsive and representative company by immersing yourself in cultural research, embracing inclusivity in your creation processes, and thoughtfully considering implications.
