Pride participation pays off: 37% back brands in Pride, up 9 points, as Gen Z leads and authentic allyship drives loyalty.

Brands are facing political pressure as fewer Americans want neutrality and loyalty rises for companies that pick—and stick to—a political side.

Consumers increase support for brands who stand by LGBTQ+ initiatives, and advertisers who back away face challenges in reaching the next wave of consumers.

Showing commitment to Pride pays off: LGBTQ+ consumers, representing large portions of key demographics, are willing to reward brands who stay the course.

LGBTQ+ consumers are a rapidly growing, influential segment, with expectations for brand authenticity, year-round inclusion, and genuine support. We explore their values and media behaviors as well as strategies for marketers to meaningfully engage.

On today’s podcast episode, we discuss how retailers are approaching their DEI initiatives under the current administration, the impact of staying quiet this Pride Month, and where the discussion around DEI goes next. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Principal Analyst Sky Canaves, Analyst Paola Flores-Marquez, and Dr. Marcus Collins—author and Professor of Marketing at the Ross School of Business at the University of Michigan.

68% of US LGBTQ+ adults say all or most companies participate in Pride Month to boost business, while just 16% believe it’s driven by genuine support, per a January survey from Pew Research Center.

The news: Monthly subscription dog toy company BarkBox is under fire for a leaked Slack message showing the company stepping back from its Pride marketing initiatives. The message claimed that promoting its Pride offerings alienates a large portion of BarkBox’s audience. Our take: The BarkBox backlash highlights that companies are at an inflection point where submitting to political pressures and pulling back on Pride is just as risky as staying the course—but those who remain committed are most likely to benefit in the long run.

LGBTQ+ influencers note drop in Pride deals: The change, attributed to pressure from the administration, could have consequences for brands.

Consumers now expect sustained and meaningful social action from brands, instead of isolated gestures. As brands pull back or quiet their DEI initiatives, consumers are paying close attention.

2 in 5 brands plan to scale back Pride engagement: The change results from mounting conservative pressure—but some brands are reaffirming commitment.

Sephora-related content resonated best with Gen Z consumers, but legacy brands like Neutrogena struggled to maintain relevance. Cultural moments like Pride and back-to-school drove Q3 UGC, while video tutorials on platforms like TikTok provide more effective ways for brands to connect with Gen Z. Here are four insights into how beauty brand-related, UGC performed among Gen Z consumers in Q3, according to research firm dcdx’s Gen Z's Top 50 Beauty Brands Report Q3 2024.

It’s a balancing act for brands that want to champion inclusivity—authentically and meaningfully, without stirring controversy. “It’s really important for advertising to reflect the world in which we live. Displaying it creates a sense of acceptance,” our analyst Paola Flores-Marquez said on the “Behind the Numbers: Reimagining Retail” podcast. But brands can hurt people by getting it wrong, she added.

On today's podcast episode, we discuss why it felt as though fewer brands were showing their support for LGBTQ+ folks, what a brands place in Pride (or holidays) is, and which retailers have hit the nail on the head this year. Join our analyst Sara Lebow as she hosts analysts Daniel Konstantinovic and Paola Flores-Marquez.

The number of LGBTQ+ consumers in the US is growing, and they seek authentic inclusivity from brands trying to reach them.

Pride products are plentiful this year: Walmart, JCPenney, Kohl’s, and Abercrombie push past the right-wing backlash to offer Pride-related products.

As many brands honor members of the LGBT+ community this Pride Month, consumers are looking for more than just a rainbow logo—they want action.