Reversing gay and transgender pride could be damaging to brands. Here’s how:

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Levi Strauss & Co.’s Pride collection celebrates queer biker clubs as “guardians of the community who have become symbols of strength, safety, and solidarity.” Non-binary artist Alva Skog created a rainbow clothing and gear collection for REI, including camping chairs.

Apple offers Pride-themed sports loop watch bands and Pride wallpapers for iPhone and iPad. Abercrombie & Fitch’s “Made with Pride” lineup comes with a $400,000 donation to youth crisis intervention organization The Trevor Project.

But this year’s Pride Month still has far fewer rainbows and fewer corporate sponsors.

Pride Month has been marked by corporate defections since gay and transgender rights emerged as a flashpoint in the culture wars and the Trump administration cracked down on efforts to promote diversity, equity and inclusion.

As support for same-sex marriage and other LGBTQ+ issues wanes, major brands have cut budgets and weakened support for lesbian, gay, bisexual, transgender and queer people in the country to avoid the “wake up, go bankrupt” backlash that roiled Bud Light, Harley-Davidson and Target.

But that approach can also have consequences.

About 77% of LGBTQ+ shoppers and 86% of LGBTQ+ Generation Z respondents said they would pay more for brands that meaningfully support gay and transgender people and issues, according to new data provided exclusively to USA TODAY by Harris Poll. Two-thirds said they would have paid more.

Nearly three-quarters of respondents say they’re more likely to stick with a brand that supports a cause or community they care about, even if they’re on a tight budget.

When a brand pulls back, it’s a red flag for LGBTQ+ shoppers, with a survey of nearly 5,000 U.S. adults, including more than 1,000 LGBTQ+ consumers, finding that 42% of them said they had less trust in the brand and 38% were looking for another brand.

A more subdued approach to Pride may lessen public backlash, but it also risks alienating customers who expect companies to hold fast to their values, Tim Osiecki, director of thought leadership and trends at the Harris Poll, told USA TODAY.

“LGBTQ+ consumers say they notice when brands are pulling back, they know when they feel support is effective, and they often shop differently when support is removed,” he said.

Non-LGBTQ+ shoppers surveyed felt less strongly, but four in 10 said they would pay more for brands that meaningfully support LGBTQ+ people and issues, and just over a quarter said they had done so in the past year. More than half said they would stick with brands that support a cause or community they care about, even if they were on a budget.

Additionally, 80% said they are more likely to support a brand that stands up for their values ​​in the face of public criticism, and 77% said they feel more positive about a brand that supports the community to which their loved one belongs.

“LGBTQ+ inclusion is not as niche as some brands make it out to be. More than half of Americans say they identify as LGBTQ+ or personally know someone who is LGBTQ+. This is a great reminder for brands that it’s not just about speaking to one individual audience,” Osiecki said. “For brands, LGBTQ+ support reaches out to friends, family, co-workers, and even parents. If brands are holding back because they think LGBTQ+ support only matters to a small group, they may be seriously misunderstanding how personally connected many Americans are to this community.”

Pride Month, held each June, celebrates the rise of the modern gay and transgender movement after the 1969 police raid on New York’s Stonewall Inn.

In recent decades, corporations have emerged as important allies in the fight for gay rights, promoting LGBTQ+ equality with inclusive policies internally, publicly supporting same-sex marriage, and opposing transgender bathroom laws.

Pride Month has become a trigger for “Rainbow Capitalism.” It’s a great opportunity for companies to win LGBTQ+ wallets with flashy promotions that show support for LGBTQ+ people.

These shoppers represent a huge customer base, with annual purchasing power of $1.4 trillion, according to a 2023 Merrill Lynch analysis.

At the same time, its customer base is also expanding. Gallup estimates that nearly 1 in 10 U.S. adults identify as lesbian, gay, bisexual, transgender, or something other than straight, which is higher than the 7% measured in 2021-2023 and more than double the rate in 2012.

The number is increasing most rapidly among young people. Nearly a quarter of adults under 30 identify as LGBTQ+, according to a Gallup poll.

Bob Wytek, president of LGBTQ+ marketing firm Wytek Communications, says these younger LGBTQ+ consumers especially expect and want trust.

“What we know is that consumer trust is one of the most accurate measures of a brand’s reputation, and that it is hard-won and all too easily squandered,” Witek said.

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