Purchasing Products With Pride: All You Need to Know About Rainbow Capitalism

This Pride month we are examining and exploring two issues facing the LGBTQ+ (Queer) community. In the last article covering Rainbow Washing, we outlined 3 actionable ways to find true LGBTQ friendly (and supportive) companies during Pride Month.

Well, buckle up folks, because today we are diving into Rainbow Capitalism!

Rainbow Capitalism Defined

Also known as “pink capitalism”, rainbow capitalism is a term used to describe the commercialization and commodification of LGBTQ movements, most notably Pride. BBC My World #shorts created a 1 minute clip describing the phenomena across the world. To compare to our previous article on Rainbow Washing, I personally like to think of rainbow capitalism as actual Pride products and rainbow washing as Pride symbols. Some people refer to the terms interchangeably but I do feel there’s a justifiable level of difference to validate two terms.

Rainbow Washing is the use of the rainbow symbol or its colors by companies and brands to indicate solidarity with Pride, whether their own policies and actions benefit LGBTQ+ people or not. It’s typically seen in marketing and branding practices where companies change their logo or typography to reflect rainbow colors. Rainbow capitalism would take this a step further, centering around creating and selling Pride related products on or during the month of June with the pure intent of making profit.

Understanding and leveraging market conditions towards your benefit is one of the base lines of capitalism- buy low, sell high!- but should we accept this attitude when considering a uniquely disadvantaged and marginalized identity still coming into their own within the larger consumer landscape? Is it ethically or morally right?

Stereotypically, older folks within the queer community seem to be content with just being recognized as their own market segmentation because this is the first time in their lives they’ve actually been seen for who they are. For younger folks benefiting from the work laid by their elders, they’re demanding more than representation and visibility- they’re demanding inclusion.

If you’re an elder Millennial like me, you might be somewhere in the middle. I like the recognition and larger societal excitement of Pride but I’m also young enough to see how Pride is being used in a disingenuous and disrespectful way to the folks at Stonewall (and more) so many years ago. I’m torn. And it seems most of the queer community is too.

Where’s the Money, Honey?

So let’s take a very simple, relatable example to explain this further. Legos. Yes, even legos have become queer now! This year for Pride month, the Lego Group has unveiled "Everyone is Awesome," its first LGBTQ-themed set. The set includes 11 monochrome figures, each with its own hairstyle and rainbow color.

This is a product designed, created and sold to the queer community intentionally released during Pride month to make money. This is capitalism. Companies capitalize on market circumstances, consumer sentiment and say hey, we have a chance to make some money here, we should take advantage of this.

Many queer advocates and activists have taken to Twitter and Tik Tok pleading with the Lego Group asking “honey, BUT WHERE is the money going?!” Lego isn’t explicitly donating any profits from the new set to LGBTQ causes or organizations- and this isn’t going over well in the queer community. 

For many, Pride is meant to be a celebration of queer culture, history and people, but it’s also an opportunity for businesses to give back to our community. It’s a little disappointing that Lego hasn’t taken this chance to give back more to the community.

Lego is benefiting off Pride products but not giving back to the community making Pride happen. Why, you ask? So does the queer community.

Is Rainbow Capitalism Pandering?

A company can Rainbow wash their logo and brand without creating and selling Pride related products. A company call sell Pride products without washing their brand. Whether we are talking Rainbow Washing or Rainbow Capitalism, many queer people see it as simple pandering.

Merriam-Webster defines pandering as the act of selling or distributing visual or print media (as magazines) designed to appeal to the recipient's sexual interest. The noun version, pander, is defined as someone who caters to or exploits the weaknesses of others.

Thinking about the queer community, what Pride is, the history, the influence it has on each of us in finding our own way, I find myself considering the arguments of many in the queer community that Rainbow Capitalism is pandering and for me personally, I think they are right.

When I see a Rainbow flag at a shop or see a company selling a rainbow cup, I’m excited. For once, as a marketing segmentation, I feel seen! I feel empowered! Yes, I exclaim to myself, this is our month and for the next 30 days, the minority become the majority! 

Have I always been as proactive and careful in my Pride purchases as I could be? Do I research companies to determine their authenticity in selling Pride items before buying? Do I know where the profits from my purchase are going? How the products were sourced? Did the queer community have a hand in creating queer products for queer people?

I’m big enough to admit it, no. Have I been too weak to walk away from a cute as hell piece of Pride merch even after knowing there is probably a for queer, by queer alternative? Yes. I’m a gay who has frequented Chick-Fil-A and Cracker Barrel- I know my shame…….

Many queer folks like me are not unique in falling victim to Rainbow Capitalism pandering. We want to whole-heartily believe companies see us, support us and invest in us beyond the basics of the case for diversity in business. We want companies to support our community because they BELIEVE it’s right, not because it makes profit sense or is a “should”/have to during Pride month.

Picking Products with Pride (and Authenticity)

In a recent opinion article written by Aimee Langer for the Canadian Broadcasting Corporation (CBC News) titled “Rainbow capitalism' is pandering, pure and simple, but it can still help drive social change” they outline 6 ways of putting pressure on companies to truly embrace meaningful change. They are:

1. Demanding workplace policies to develop inclusive work environments;
2. Hiring LGBTQ+ people at all levels, including high-level corporate positions;
3. Planning and running community events that promote LGBTQ+ interests, arts, and businesses;
4. Creating partnership and mentorship initiatives with queer businesses;
5. Providing internships through universities and high schools;
6. And creating capital grant programs for queer entrepreneurs.

Aimee closes with, “There are a million ways that companies can sincerely engage with queer folk and communities year-round that will help our community become more normalized and accepted and keep us spending our money”.

When I read Aimee’s article, I found myself nodding my head, preaching out loud whilst sitting home alone saying “yes, girl, tell em how to do it” every other line. While this list is simple- that’s the whole point. You can be a company leveraging Pride month to your advantage AND genuinely supporting the queer community.

For me, it comes down to intent. I want Rainbow flags and colors washed across society in June. I want Rainbow products to show my identity and to give our allies a way to support inclusion. But I also want to see money going back into the queer community.

We need support in areas we are uniquely disadvantaged such as equitable health care, equal pay, affordable housing and particularly for our queer youth, we need programs and people who can support those folks when they need it the most. Whether they were disowned from their families for being queer or need help exploring who they are in a safe space- it takes money.

Companies choose where to spend their money. I hope as Pride evolves, more companies will choose inclusive causes and organizations invest in. I have much faith in the next generation of the queer community. They are pushing for societal change, they are demanding community evolution and I truly believe my hopes on where Pride can go will be executed into reality by this amazing, innovative and relentless generation of young folks who know and love themselves and each other and won’t take any less than what they deserve.   

PS- You will have noticed I use different labels in this piece to refer to the gay, queer, lesbian, LGBTQ+ etc. etc. community but this is just a sampling (and personally preferred or relevant to me) of what you could use.

Don’t know how to refer to someone you know is homosexual? JUST ASK. How I wrote this felt right to me- it won't be for everyone.

Just like with pronouns- if you identify yours first when meeting someone for the first few times, it opens the door for the other person to feel safe and accepted enough to disclose their identity to you. Just ask, get permission and show respect to those around you. That’s true inclusion. 

About the writer...

Hi! My name is Nadia and I help people design happy and fulfilling careers through authentic career coaching. My expertise includes career exploration guidance, resume writing, interview prep and LinkedIn profile optimization. My pronouns are She/ Her/ Hers and as a member of the LGBTQ+ community, I focus on how diverse identities impact and influence folks holistically and professionally.

I'm on Etsy as The Career Coach Shop! Visit, favorite, shop and share. You can also find me on Instagram too.