WOOING PINK CASH FURTIVELY: Australia is leading the way in wooing the pink dollar, a market niche seen to offer more risk than potential elsewhere in the culturally-sensitive Asia-Pacific region, r

Business sense rules in the advertising industry. As with any

economic activity, it has to, or businesses run the risk of being driven

to the ground. Then there are the pioneers, the risk-takers, the

entrepreneurs who spy opportunity and go for it.

Sadly, in an economic environment that is as uncertain as it has ever

been in a decade, there is little appetite for risk-taking. And that is

exactly the way marketing to the gay community in Asia is perceived - a

massive risk. Sprinkle that with a few archaic legal systems, an overall

cultural attitude that does not feel comfortable with controversy, and

tight budgets, and marketing to the gay market looks a long way off.

What it has resulted in is driving the market underground, where a

closed society feeds upon itself by word-of-mouth and ground level

marketing.

But does this not smell of missed opportunity? Looking at data collected

by research companies and advertising agencies, the gay market is viewed

with passive nonchalance, at best. Not one agency or research company,

including ACNielsen or AMI, had any data to draw a profile of the

market, from its size to spending power or consumption patterns of gay

consumers.

Is it simply a case that the gay market is not worth targeting? Do gay

communities in Asia lack the buying power which has made them a niche

but growing segment in the West. A casual observer, without the benefit

of reliable data, would see this as a fair assumption. But, given the

initiatives in the US and Europe, it would be foolhardy to ignore the

potential of Asia's pink dollars.

Without stereotyping the market, leading industry figures agree that the

gay niche has large disposable income, is literate, cultured,

inquisitive, caring about possessions and appreciates design.

But while there is little evidence of a move into this niche in Asia,

the situation couldn't be far more different down under. "Australia has

changed tremendously over the last 10 years," says Leo Burnett Sydney

managing director Troy Ruhanen. "The country is going through a massive

evolution and the gay category has been key to that. And it is not just

Sydney. It is even happening in Queensland."

The vehicle that has been tactically used more than any other event in

Australia is the annual Sydney Gay and Lesbian Mardi Gras. Leo Burnett

Sydney's client, Lemon Ruski Vodka, found it a successful medium. "It is

a big social time and it's summer in Australia so we tried to hold an

outdoor campaign for the gay demographic," says Ruhanen. "Alcohol is one

of the categories that has recognised the power of the gay demographic

and its spending power. It is a powerful trend.

"We need to open the minds of media companies and media planners. They

need to look at the index themselves."

Far more interesting insights on the increasing maturity of the

Australian market are revealed in looking at mass market products.

Eyeing the same event, household toothpaste brand, Macleans, also

participated in the Mardi Gras in a bid to grab business from rival,

Colgate, which commands 70 per cent of the market.

It was undoubtedly a risk for the mass-market product, but its agency

Grey Worldwide Melbourne suggested a tactical approach in targeting

participants at the 25-year old event.

"They are young, have a high disposable income generally and are

appearance-conscious. Macleans brand values fitted well with the event,

which are modern, fresh, credible and fun," says senior account manager

Belinda Cecchini.

"And we had to be a bit smarter with the budget and this seemed a better

way to tackling the Colgate giant. We saw it as a great opportunity to

make an impact."

As well as an ad campaign that showed a brilliant white toothy smile

with one tooth boasting the colours of a rainbow- plus a tagline "Show

your true colours this Mardi Gras" - the agency also handed out more

than 70,000 samples to revellers.

"Macleans was the first packaged goods brand to participate as a sponsor

and it was received very well. The anecdotal feedback was fantastic

because normal companies back away from the event."

But it's a different scene in Asia. It is not that companies have not

recognised the potential of the pink dollar. Some have dipped their toes

in the market, but having met with considerable public protest,

back-tracked and are now at pains to distance themselves from the

initiatives.

In Hong Kong, mobile phone service provider Sunday startled consumers

with an ad campaign charged with gay sexual innuendo in what appeared to

be Hong Kong's first attempt to target the pink dollar. One print ad

pictured three Chinese men dressed in traditional costume, one reading

and the other on bended knee, one arm round the other's waist. The

tagline was "Be brave! Switch over now! 13 cents/min".

"The story of 'Three Heroes' links up with HK$0.13 per minute,

the theme of Sunday's tariff promotion," says a spokesperson for Sunday.

"We are just creating an interesting story with eye-catching characters,

and the characters have no relation to any social concept." Sunday's

agency, BBDO Hong Kong, has been banned by its client from commenting on

the ad to the press, adding further weight to the claim that Sunday is

distancing itself from its furtive gay marketing attempt.

Another BBDO Hong Kong client, E*Trade Securities, courted controversy

earlier in the year with an ad of two men walking side-by-side, dressed

in business suits, one with his hand in the other's back pocket. BBDO

executive creative director Paul Chan now says that he's not sure that

marketing to a gay audience is "right for Hong Kong" as the market is

"too small and a bit sensitive".

Which is probably why marketing to gays is largely undertaken as a

covert activity. The preferred media are likely to be gay community

magazines, with ads of bars and saunas, gay websites, such as the

popular www.gaystation.com - and pornographic publications.

In Bangkok, a city famed for its tolerance towards people of all sexual

persuasions, the even more conservative and marketing to gays remains an

almost subversive activity. And this despite Hong Kong and Thailand

being repeatedly mentioned as the markets in which gay marketing

initiatives are most likely to take hold.

There were early and encouraging signs of change in Bangkok previously:

a developer proposed a property exclusively for the gay community six

years ago; a focal point for gay organisation and activities, Utopia,

was established about the same time; and a flamboyant annual gay parade

was set up.

But the late '90s economic crisis appears to have taken its toll on the

fledgling efforts, with most activities now conducted by word-of-mouth

or the internet.

"There is an opportunity to tap into the gay community, but it is not

very visible," says Leo Burnett managing director Thailand and Indochina

Pornsiri Rojmeta. "Thai people are very sensitive to this. In general,

all products are concerned about tarnishing their image and alienating

the rest of the market."

Two years ago, the Wine Cooler drink was successfully targeted at women,

"but there are no producers of drinks who would want to be associated

with gay clients. It is not on their radar at all".

Thailand has become a preferred destination to many upmarket travellers

who are gay. Yet, an inherent conservatism belies the apparent

liberalism.

For instance, Burnett, which has held the Tourism Authority of Thailand

(TAT) domestic and international account for six years and launched its

highly-lauded Amazing Thailand campaign, veered clear of the gay

market.

"We segmented for golfers, businessmen and eco-travellers, but never

into the gay community. We never saw it as an opportunity for them as

the TAT would be concerned about alienating other tourists."

However, Pornsiri believes the winds of change are blowing in

Thailand.

Already famed for its creative prowess, the country could add yet

another feather in its cap and lead the industry in swaying cultural

idiosyncrasies that currently hold back marketing to Asia's gay

communities.

"If you observe Thai soap operas, talk shows and game shows, you see

more and more of this kind of talent. It is more widely accepted now and

this is just the beginning," says Pornsiri.

In addition, the annual Gay Parade in Bangkok is gathering steam and

like Sydney's Mardi Gras is seen as an appropriate vehicle for

condom-related marketing.

In the meantime, overt marketing to gay communities remains off limits

and is likely to stay that way for some time, held back by both cultural

and economic factors.

"I think it is mostly an Anglo-Saxon thing for the moment because in

these cultures being gay is less taboo," says Grey Worldwide president -

Asia-Pacific, Eric Rosenkranz.

In the US, brands such as Gap and Ikea have conducted successful and

overtly gay campaigns, but Rosenkranz feels that the overtones of being

gay in Asia are more sexual. "There is not the legal and social

acceptance in Asia. I don't think any of our clients feel comfortable to

identify with and call out the target market. It will happen eventually,

but at the moment the market is not ready for it. It is a cultural

thing," he says.

Rosenkranz adds that there is also more niche marketing going on in

markets such as the US due to the size of ad budgets, which is not the

case in Asia. In any case, when more niche marketing happens, Rosenkranz

suspects other niches will come to the fore before the gay market due to

"cultural and legal restrictions".

His views have been echoed by Ogilvy & Mather Singapore vice-chairman

Asia Pacific Tim Isaac. "This is very much happening and becoming

important in North America and Europe, but we do not have any campaigns

here," he says. "In Singapore you're locked up for being gay." A

particular irony given the size of Singapore's gay community. "Down the

line in more developing markets when there are boom conditions there may

be an opportunity, and long-term undoubtedly yes. There is no reason why

Asia cannot go the same way other markets have gone. But it is a bridge

too far at this point, no doubt."

With the economy heading south, marketing to Asia's sizeable gay

communities is simply too great a risk to take - at least for now.