‘Rainbow Capitalism’: How LGBTQ+ Pride Month has turned into a marketing strategy

Every June, a wave of corporations temporarily depart from their usual branding for a more vibrant alternative - one which embraces rainbow flags and screams ‘Love is Love’. By revamping their image to coincide with LGBTQ+ Pride Month, companies aim to signify their support for the queer community. However, June has now become saturated with corporate marketing to LGBTQ+ consumers, as brands are accused of commodifying queerness to boost their own sales. Indeed, whilst leading brands such as Apple, Netflix and Nike have launched strong performing Pride campaigns on social media, Stonewall reports that less than 50% of LGBTQ+ people feel open about their sexual orientation or gender identity to their family members. Furthermore, homosexuality remains criminalised in 71 countries. With this in mind, it must be considered whether this new phenomenon of ‘rainbow capitalism’ is helping or hindering the fight for LGBTQ+ rights.

History of Pride Month and Rainbow Capitalism

Pride Month is celebrated annually to commemorate the Stonewall Riots in New York City on 28th June 1969, which occurred in response to police violence against LGBTQ+ individuals. A year later, demonstrators organised a march down Christopher Street to honour Stonewall, which has since been replicated in communities across the globe.

Whilst 2019 marked the 50th anniversary of the Stonewall Riots, corporate support for the LGBTQ+ community – and Pride Month in particular –  has not always been as visible as it is today. The 1980s and 1990s saw the emergence of advertisements targeted at queer consumers specifically, including Absolut Vodka which frequently purchased advertising space in gay publications like The Advocate. During this time, such a move was still considered a risky strategy; for instance, former Director of Marketing at  Subaru, Tim Bennett, received countless hate letters for marketing his company’s cars to a queer audience in the 1990s. Consequently, many companies were reluctant to follow suit, fearing that they would fall out of favour with their conservative consumer base.

However, growing social acceptance of LGBTQ+ individuals in the twenty-first century has unsurprisingly prompted companies to radically change their stance on queer marketing, recognising the opportunity to reach a new demographic and maximise their profits. As support for same-sex marriage grows and transgender rights gain recognition, businesses have jumped on the bandwagon to improve their own reputation. It’s easy to see why Pride Month has been co-opted by transnational corporations like Nike; altering brand logos during June to incorporate a rainbow lays the foundation for a lucrative seasonal marketing campaign, topped off with an array of limited edition LGBTQ+ products pitched as the key to unlocking your ‘true self’. Capitalism at its finest – only this time, in technicolour. Then, once the month draws to a close, the companies can wipe away the rainbow, revert back to their ordinary branding and call it a day for another year.

‘Rainbow Washing’ and Hypocritical Practices

Just as ‘greenwashing’ describes unfounded claims which deceive consumers into believing their products and services are more environmentally friendly than in reality, ‘rainbow washing’ has been ascribed to the equivalent practice in the context of LGBTQ+ rights. For example, whilst Abercrombie & Fitch announced that it donates a percentage of its proceeds from its Pride range to LGBTQ+ charities, the company has brushed over the maximum limit it has set on the total amount donated. As such, consumers are left unaware that their purchase is largely benefitting the corporate giants themselves.

Concerningly, a Popular Information investigation recently found that 25 corporations proudly supporting Pride Month, (having all received a perfect rating of 100% on the Human Rights Campaign’s Corporate Equality Index) have collectively donated over $10 million since 2019 to politicians with an anti-LGBTQ+ agenda. The commitments towards non-discrimination expressed by such companies, including AT&T and Deloitte, have evidently been merely performative, highlighting the fundamental problem with rainbow capitalism. Whilst consumers may be attracted by a company’s liberal values, the fact that profit will be the primary aim of their marketing campaigns cannot be ignored.

What can corporations do?

Firstly, corporations must ensure they have inclusive policies of their own to demonstrate genuine interest in helping LGBTQ+ individuals. Whilst progress has been made since the Stonewall Riots, a recent survey of LGBTQ+ professionals by LinkedIn revealed that 25% of respondents had been intentionally denied career advancement opportunities because of their identity. Additionally, 31% stated that they have faced discrimination and microaggressions in the workplace. Therefore,  there is a pressing need for all companies to reconsider their own practices and work environment, including the introduction of bias training and equality officers.

Beyond this, corporations must use their huge influence to work towards dismantling structural discrimination by condemning oppressive legislation. For example, Coca-Cola, Microsoft and PepsiCo have all endorsed Japan’s proposed Equality Act, which seeks to accelerate LGBTQ+ equality and inclusion. With over 250 anti-LGBTQ+ bills introduced in the US this year alone –  including those banning transgender children from playing sport or receiving life-saving medical treatment –  it is imperative that companies forego the rainbow graphics, and instead use their power to forestall  both proposals and  existing laws which marginalise queer individuals.