For digital leaders, the useful lesson is not about foundersโ identity alone; it is about how a team decides where differentiation should be preserved and where consistency should win. In product, platform and service businesses, โauthenticityโ can function like a design principle: it strengthens relevance for some customers, but it also narrows the addressable market if it becomes the default rule for every channel, segment and offer. That makes positioning a management choice, not just a marketing one.
The practical implication is governance. Leaders need explicit decision rights on what must remain fixed, what can be localised and what should be simplified for scale. Without that structure, teams often over-invest in distinctive features or language that delight a niche audience but reduce conversion, supportability or partner adoption. The trade-off is clear: more specificity can improve trust, but more specificity can also raise complexity, cost and execution risk.
This is especially relevant in portfolios that span multiple customer segments or regions. The question is not whether to be authentic, but which form of authenticity creates measurable value for each segment. That suggests running disciplined experiments on messaging, packaging and onboarding, then using evidence to decide whether a product should stay category-leading, become segment-specific, or be reframed for broader uptake. Senior leaders should ask: what metrics define โfit,โ who approves changes to core narrative, and when does differentiation become dilution?
For CIOs, CTOs and transformation leaders, the broader lesson is to treat identity-linked offers as governed bets rather than fixed truths. The strongest operating model preserves the elements that customers trust while allowing teams to adapt language, channel and experience to market reality. That balance can turn a hard-to-copy story into a scalable proposition, but only if leadership is willing to manage the trade-offs openly and revise the model as evidence changes.
The Authenticity Paradox for Minority Founders
racheleva.lim@โฆ Tue, 10/07/2025 – 09:30
Entrepreneurship
The Authenticity Paradox for Minority Founders
Kaisa Snellman ,
Daisy Pollenne ,
Thom Eng (MBA’25D) and
Angela Zhou(MBA’25D), INSEAD07 Oct 2025
The Authenticity Paradox for Minority Founders
Staying true to your roots can help your brand stand out โ but is that always a good thing? Loading the
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Minority founders often face a paradox: the very authenticity that could differentiate their brand in a crowded marketplace might also limit its appeal. Althoughย 86 percent of consumers say that authenticity influences their purchasing decisions, what happens when โbeing authenticโ means being seen as too out-of-the-box to achieve mainstream success?
Authenticity is typically understood as acting in ways that align with oneโs personal values. For founders from underrepresented groups, however, enacting authenticity can be double-edged: it may differentiate their brand and help them connect with niche audiences, but it can also trigger โotheringโ (being perceived as too foreign or different) and create distance from mainstream markets.
To explore this tension, we (Thom Eng and Angela Zhou) spoke with 10 Asian American and Canadian entrepreneurs and investors during the 2025ย INSEAD Summer Start-Up Tour. The founders said that staying true to their cultural heritage and lived experience could be a source of differentiation, but that authenticity often had to be adapted to market realities to ensure growth and success.ย
Three recurring challenges โ and learning opportunities โ emerged from these dialogues.
1. Authenticity has market limits
Blindly pursuing authenticity is a risky strategy because it can collide with consumer preferences and market economics. As Ian Weng (MBAโ21J), co-founder of Spatula Foods, reflected: โThe further you get from your core customer base, the less they care about authenticity.โย
Launched during the Covid-19 pandemic, Spatula Foods deliversย gourmet, flash-frozen meals crafted by award-winning local chefs.ย The company initially focused onย providing culturally authentic, high-quality dishes.ย But as it scaled, responding to consumer preferences for convenience and familiarity often outweighed the aim for perfect cultural reproduction.ย
The key insight? Authenticity only scales in mature product categories that consumers are familiar with. For well-established product categories, such as chilli crisp, authenticity can deepen differentiation; for new categories, familiarity is often a prerequisite for growing the business.
2. Authenticity is personal, not traditional
Many founders conflate authenticity with fidelity to cultural tradition. But our interviews revealed another perspective: authenticity can mean being grounded in foundersโ unique lived experience.ย
Take Wild Mannered, a ready-to-drink soju cocktail brand founded by childhood best friends Michael Gu and Perry Ya. When launching the business, they deliberately avoided leading with traditional Asian flavours, such as lychee or yuzu. โWe needed to sell soju as a concept first,โ Gu explained. โAsian flavours create an amazing sense of nostalgia for a customer demographic that grew up with them, but would be another novel taste that youโd have to sell to a consumer whoโs unfamiliar.โ
Gu and Ya positioned the product around communal experiences โ think karaoke sessions and late-night meals with friends โ that felt authentic to their lives as third-culture kids. This helped them appeal not just to Asian Americans, but to other consumers as well.
The most resonant identity-led brands donโt define authenticity based on cultural stereotypes. Instead, they draw on their foundersโ lived experience to create a relatable yet differentiated offering that connects with consumers regardless of their background.
3. Authenticity is important, but so is framing
Even if cultural authenticity is an important facet of your brand, it doesnโt necessarily have to be foregrounded in your market positioning or messaging. Gamsa Foods, inspired by the Korean comfort dishes that founder Sarah Hwang grew up eating, faced this dilemma with its Korean-influenced breakfast product.ย
Consumer testing revealed that labelling the product as congee or juk (porridge in Korean) created hesitation, while calling it โsavoury oatmealโ unlocked instant familiarity with American consumers. The formulation didnโt change, but the framing did. This helped Gamsa Foods remove the potential language barrier or unfamiliarity associated with its branding, while keeping its cultural intent intact.
As Hwang put it: โThis is not an authentic Korean product โ it is a uniquely Korean American product that represents the immigrant experience. Youโre constantly experimenting with ingredients you have access to.โ
Indeed, cultural heritage can remain central to your product without being your primary market message. Sometimes, broader impact means letting your heritage inform the product while leading with universal accessibility.
The authenticity advantage
Authenticity is a strategic tool that, when used thoughtfully, can build cultural resonance in tandem with scaling commercially. The most successful founders resisted the false binary of โauthentic vs. dilutedโ and instead embraced authenticity as adaptive.
Rather than choosing between staying true to their cultural heritage and scaling their business, these foundersย reframed identity as an evolving advantage. By anchoring their brands in familiarity, leveraging their lived experience and adjusting their messaging over time in response to consumer behaviour and market conditions, minority founders can turn the complexity of their backgrounds into something that brands with less personal appeal cannot easily replicate.
Thom Eng and Angela Zhouโs INSEAD Summer Start-Up Tour was sponsored by theย INSEAD Gender Initiative.
Edited by:
Rachel Eva Lim
About the author(s)
is an Associate Professor of Organisational Behaviour and the Associate Dean of Diversity and Inclusion at INSEAD. She also serves as
the Academic Director of the INSEAD Gender Initiative.
is a Research Associate at INSEAD.
is an MBA candidate at INSEAD.
is an MBA candidate at INSEAD.
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https://knowledge.insead.edu/entrepreneurship/authenticity-paradox-minority-founders
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