Advertising that is disrespectful and aggressively left-wing drives the expansion of the informal economy.

Jennifer Sey, a business executive, spent over three decades as a "far-left Democrat," but abandoned this label as she felt the party's views became excessively radical.

""Businesses are taking aggressively left-wing stances that alienate many people, with some brands being disrespectful in their pursuit of 'progressive' positions," Sey stated."

She believes that the International Olympic Committee's decision to allow a boxer with XY chromosomes to compete against a woman on the world stage is not progressive.

The former Levi's marketing chief, who was ousted after speaking out against school closures during the pandemic, launched the pro-female apparel company XX-XY Athletics this year.

The latest addition to the expanding "parallel economy" is a product line that caters to conservative customers and those disillusioned with the politicization of mainstream brands.

While research on the popularity of polarized shopping is conflicting, with some surveys indicating a rise in demand for values-driven brands and others suggesting Americans are tired of companies taking controversial positions, consumers now have more options than ever, with a plethora of anti-woke coffee, clothing, cell phone service providers, and social media platforms emerging.

Will Burns, a longtime brand consultant, told Planet Chronicle Digital that marketers are not foolish and they take advantage of opportunities when they see them.

How the economy turned ‘away from meritocracy’ and toward polarization

Burns, a seasoned advertising professional with over 30 years of experience, has observed that the industry has a long-standing liberal bias. He described it as an echo chamber where individuals convince themselves that their beliefs are widely accepted.

He remarked that the level of vitriol we see today has never been reached before.

The CEO of PublicSquare described a two-decade shift "toward mediocrity and complacency."

""Corporate boardrooms shifted their focus from meritocracy and innovation to socially-engineered, politicized initiatives, as companies began prioritizing the climate and social initiatives," Michael Seifert stated."

Burns became more aware of the shift recently. In a 2016 op-ed for Forbes, he questioned whether liberal ad agencies could successfully market to Trump supporters.

The political polarization began innocently, but intensified. Airbnb pledged to treat all people fairly, regardless of race, gender, or religion in a 2017 Super Bowl ad that aired shortly after President Trump's temporary travel ban. Starbucks promised to hire 10,000 refugees, potentially alienating many unemployed American citizens, he said.

Nike selected Colin Kaepernick, a player for the San Francisco 49ers, as the face of its "Just Do It" campaign after he protested during the national anthem.

The use of polarizing political messages by brands has resulted in negative consequences, particularly in recent years.

In the aftermath of Bud Light's partnership with transgender activist Dylan Mulvaney, Anheuser-Busch lost approximately $5 billion in value. Similarly, Target's market cap decreased by billions following a controversy over its Pride displays that featured "tuck-friendly" women's swimsuits.

Burns did not anticipate the emergence of conservative or anti-woke alternatives in the marketplace, but he was not taken aback by it.

For conservatives seeking love, there's a new platform called The Right Stuff. If Nike no longer satisfies your needs, check out the new sneaker brand from NBA star Jonathan Isaac, who made headlines in 2020 for standing during the national anthem while teammates knelt.

"Burns stated that whenever there is alienation, there is a market opportunity because people are now feeling negative towards a category or brand. Their bet is that more people do not hold this view and that they can build a business on this assumption."

It’s hard to say whether that bet will pay off.

Is it accurate to describe America's readiness for a new economic system as "parallel"?

The coronavirus pandemic, coupled with the significant influence of the government's response on small businesses, led Seifert to believe that stakeholder capitalism was becoming more important than catering to customers.

In early 2021, he launched PublicSquare, an online marketplace similar to Amazon or Etsy. Currently, the platform has over 84,000 merchants selling a wide range of products, including coffee, cleaning supplies, firearms, and furniture.

Most of the businesses in the "parallel economy" are apolitical, according to Seifert.

"They concur with our fundamental values, including being pro-life, pro-America, pro-Constitution, and pro-small business," he stated, citing PublicSquare's core principles. "However, they do not incorporate their political beliefs into their marketing of their own services. Instead, they focus on the quality of their product to convey everything they want their customers to recognize in their business."

The diverse range of businesses on PublicSquare led to a surprising variety in their customer base, with 26% of shoppers being registered Democrats, 22% being independent or not affiliated with a party, and a slight majority of 52% being registered Republicans, according to Seifert.

"He stated that it is simple to portray us as a conservative marketplace, but the data indicates that America is prepared for a new economic system."

Sey and Burns argue that the term "parallel economy" is unfairly dismissive of legitimate businesses.

"These are real market opportunities that are happening right now with real people who are really looking for alternatives to what they see as a real problem in society today," Burns said. "However, calling it parallel means it's not our reality, it's some other reality that isn't important."

Riley Gaines, a former NCAA swimmer, is not willing to be associated with a company that enlists brand ambassadors.

"We are part of the mainstream economy. We aim to become a mainstream brand that competes with the big players," she stated. "I believe there is a growing movement against the extremes of woke capitalism, and I would support that."

Seifert likes the term, but believes it will eventually become outdated.

"If we succeed, the parallel economy will become the standard, go-to economy, indicating that our objective has been accomplished."

What do shoppers actually want?

Consumer preferences are difficult to determine accurately due to the wide variation in poll and survey results.

In 2022, a Harris Poll study revealed that 82% of shoppers desire brands to align with their personal values.

In 2024, 60% of global consumers make brand choices or avoidance based on their politics, a slight increase from 58% in June 2023, according to the Edelman Trust Barometer.

A 7% decline in the percentage of U.S. adults who want businesses to publicly address current events was found in a Gallup poll from 2022 to 2023. Republicans were the least likely to support such public statements (17%), while Democrats had the highest level of support (62%).

Burns believes that brands should steer clear of controversial social issues.

"He remarked that it's pointless for them to try because it only isolates a portion of the customer base, and their main goal isn't to change societal beliefs."

He acknowledged that the proliferation of polarization on the left provided an opportunity for conservatives to gain, but both sides must exercise caution.

"If you focus on conservative markets, you will lose liberal ones permanently. Similarly, if you become 100% woke, you will lose conservatives. This is especially true as conservative alternatives gain strength."

Seifert and Sey both said they keep their political messaging narrow.

"Seifert stated that they do not speak out about every political issue, as they have chosen not to take a stance on certain things that do not align with their five core values."

Sey does not view XX-XY as a conservative brand; it is a label assigned to her by others.

"A poll shows that 69% of Americans agree with us that transgender athletes should play on sports teams that match their biological gender," Sey said. "We should not be relegated to a parallel economy or second-class citizens."

Opportunities remain for alternative brands to look to the future.

While some popular brands have scaled back their progressive marketing and initiatives, Seifert and Sey are not concerned that their businesses will suffer if polarization decreases.

"Even if this issue is resolved, I believe women athletes deserve our support," Sey stated. "My brand still has plenty of opportunities."

Some parallel economy brands fail because they don't produce high-quality products, she stated.

"At the conclusion of the day, customers may seek us for our mission, but they remain for our product," she stated. "My aim is for our product to rival Nike and Lululemon, and be of equal or superior quality."

If we don't do that, we won't survive.

She stated that XX-XY's return rates are under 5%, which is significantly lower than the average return rate of online clothing orders, estimated at 24.4% in 2023, according to a Coresight Research survey.

EveryLife was founded by Seifert as a pro-life diaper company to fill a gap in the American marketplace.

In March, PublicSquare bought Credova, a buy now, pay later service that specialized in the firearms industry, as many of their merchants had experienced "cancellation" by payment processors.

"Seifert stated that cancel-proof payment processing is a crucial solution for merchants, and he believes it will become the largest vertical in terms of revenue and sales in the next 12 to 18 months."

One day, Sey hopes the market will abandon its "hyper-politicized" approach and return to what she refers to as "normie capitalism."

"Unfortunately, we are currently in a situation where we have to make a choice. If you have the option, why not select a top-notch product from a brand that shares your values?"

Ramiro Vargas contributed to the accompanying video.