Rainbow Capitalism, Gen-Z, and the Fight for Real Allyship
Every June, brands burst into color. Rainbow logos light up your feed. Limited-edition Pride drops hit the shelves. It’s glitter, slogans, and hashtags galore. But behind the sequins and corporate solidarity posts, a growing number of Gen-Z voices are asking a real question: Is this performative? Or is it Pride?
This phenomenon has a name: rainbow capitalism. It refers to when companies profit off LGBTQ+ identity – especially during Pride Month – without backing it up with real year-round support or policy. It’s the disconnect between a $40 rainbow tote and the company selling it donating to anti-LGBTQ+ politicians behind the scenes. It’s a parade float in June and silence the rest of the year. And Gen Z is calling it out.
We’ve grown up in the age of digital activism. We’ve seen both the potential of brands to make change and the emptiness of performative gestures. We know when something feels off. And with so much of Gen-Z identifying as queer or allied, performative allyship doesn’t just feel lazy—it feels personal.
The Brands We Remember—and the Ones We Don’t
It’s worth looking at how some brands have tried to play the game—and either succeeded or fallen flat. Every year, there are companies that do the bare minimum: a rainbow logo, a vague Instagram post, maybe a product drop. But without deeper engagement, those efforts fade from memory as quickly as they appear.
In 2025, the shift became especially noticeable, outing those that had been following trends. According to The Drum, corporate participation in Pride dropped significantly this year, with many major sponsors pulling out of public events and campaigns to avoid political backlash. Companies like Delta and Anheuser-Busch, once regulars at Pride events, abruptly ended their partnerships with LGBTQ+ organizations or chose not to promote Pride publicly at all. CNN also reported that some brands quietly pulled Pride merchandise from stores or avoided marketing it entirely, reflecting rising pressure from conservative groups and politically charged boycotts.
To many in Gen Z, this retreat from visibility confirmed what we already suspected: that for some corporations, queer inclusion was only ever a strategy, not a principle. But this is contrasted with the approach of brands highlighted by WWD, which featured companies that launched Pride collections developed by queer artists, partnered with nonprofits, and supported LGBTQ+ causes year-round. These brands weren’t just chasing visibility, they were investing in community.
Take Target, for example. In 2023, they launched a Pride collection that included queer designers and offered accessible, affordable items for a wide audience. Yet after facing backlash, the company pulled select products and moved displays, citing safety concerns. To many in Gen-Z, that sent a message: their support only lasts until it gets uncomfortable. On the other hand, brands like Aesop have quietly and consistently supported LGBTQ+ organizations throughout the year, not just during Pride, and built internal cultures that reflect those values. This kind of consistency builds trust.
Pride Is Not a Marketing Campaign
Let’s be clear: visibility can be powerful. For queer youth, seeing themselves reflected in ads, campaigns, and social media can be affirming. But when representation is reduced to a marketing strategy, it can feel hollow. Especially when companies fail to support queer communities in meaningful ways beyond June.
As queer author Lily Zheng wrote in Harvard Business Review, businesses must "consider what might genuinely make a long-term impact for our community." True support shows up in how companies treat their employees, where their donations go, what policies they advocate for, and whether they are willing to take a stand when it isn’t profitable.
Some companies have gotten the message. For example, brands like Levi's and Aesop have committed to year-round donations to LGBTQ+ nonprofits and internal equity initiatives. Some go above and beyond – Ben and Jerry’s uses its platform to advocate publicly for LGBTQ+ rights and support systemic change through grassroots partnerships. But others, such as Walmart and Amazon, have been called out for releasing Pride merch while simultaneously funding lawmakers who propose anti-trans legislation or failing to create safe, inclusive work environments.
The message Gen-Z is sending is clear: if your support disappears on July 1, it wasn’t real to begin with.
Performative Allyship Isn’t Enough
Performative allyship is a term that’s been gaining traction in recent years, and it refers to surface-level gestures made to appear supportive of a cause without taking any real risks or actions. Think rainbow profile pictures, Pride merch with no donation tie-in, or vague statements of "solidarity" that lack substance.
According to a 2023 Wired article, TikTok has become a major platform where Gen-Z users critique Pride campaigns that feel like empty gestures. These videos often go viral, with users pointing out inconsistencies, like a rainbow-themed product being sold by a brand with a history of excluding trans voices or donating to anti-LGBTQ+ causes. One example is Connor Clary (@connor.clary), who has a series reviewing various companies’ pride collections based on how much thought and effort these organizations put into the collection.
This public accountability is changing the landscape. Gen-Z isn’t just accepting corporate Pride at face value anymore. We want transparency, values that align with action, and a willingness to engage with the community beyond profit margins.
So What Does Real Support Look Like?
Real support means investing in LGBTQ+ communities year-round. That could look like donating a meaningful portion of Pride merchandise profits to queer-led organizations and providing inclusive healthcare and protections for queer and trans employees. It also includes using brand platforms to uplift underrepresented voices and publicly supporting legislation that protects LGBTQ+ rights. Additionally, hiring queer creators, models, and leaders beyond June campaigns shows commitment. And sometimes, it means getting out of the way and letting the community lead.
A New Standard
For Gen-Z, allyship isn’t about who can market the best Pride hoodie. It’s about integrity. It’s about consistency. It’s about showing up when it matters most, especially when it’s hard.
Pride started as a protest, not a product. And if brands want to be part of this movement, they need to move past rainbow-washing and start doing the work. Because we see through it. And we deserve better.