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

<p>Business sense rules in the advertising industry. As with any </p><p>economic activity, it has to, or businesses run the risk of being driven </p><p>to the ground. Then there are the pioneers, the risk-takers, the </p><p>entrepreneurs who spy opportunity and go for it. </p><p><BR><BR> </p><p>Sadly, in an economic environment that is as uncertain as it has ever </p><p>been in a decade, there is little appetite for risk-taking. And that is </p><p>exactly the way marketing to the gay community in Asia is perceived - a </p><p>massive risk. Sprinkle that with a few archaic legal systems, an overall </p><p>cultural attitude that does not feel comfortable with controversy, and </p><p>tight budgets, and marketing to the gay market looks a long way off. </p><p><BR><BR> </p><p>What it has resulted in is driving the market underground, where a </p><p>closed society feeds upon itself by word-of-mouth and ground level </p><p>marketing. </p><p><BR><BR> </p><p>But does this not smell of missed opportunity? Looking at data collected </p><p>by research companies and advertising agencies, the gay market is viewed </p><p>with passive nonchalance, at best. Not one agency or research company, </p><p>including ACNielsen or AMI, had any data to draw a profile of the </p><p>market, from its size to spending power or consumption patterns of gay </p><p>consumers. </p><p><BR><BR> </p><p>Is it simply a case that the gay market is not worth targeting? Do gay </p><p>communities in Asia lack the buying power which has made them a niche </p><p>but growing segment in the West. A casual observer, without the benefit </p><p>of reliable data, would see this as a fair assumption. But, given the </p><p>initiatives in the US and Europe, it would be foolhardy to ignore the </p><p>potential of Asia's pink dollars. </p><p><BR><BR> </p><p>Without stereotyping the market, leading industry figures agree that the </p><p>gay niche has large disposable income, is literate, cultured, </p><p>inquisitive, caring about possessions and appreciates design. </p><p><BR><BR> </p><p>But while there is little evidence of a move into this niche in Asia, </p><p>the situation couldn't be far more different down under. "Australia has </p><p>changed tremendously over the last 10 years," says Leo Burnett Sydney </p><p>managing director Troy Ruhanen. "The country is going through a massive </p><p>evolution and the gay category has been key to that. And it is not just </p><p>Sydney. It is even happening in Queensland." </p><p><BR><BR> </p><p>The vehicle that has been tactically used more than any other event in </p><p>Australia is the annual Sydney Gay and Lesbian Mardi Gras. Leo Burnett </p><p>Sydney's client, Lemon Ruski Vodka, found it a successful medium. "It is </p><p>a big social time and it's summer in Australia so we tried to hold an </p><p>outdoor campaign for the gay demographic," says Ruhanen. "Alcohol is one </p><p>of the categories that has recognised the power of the gay demographic </p><p>and its spending power. It is a powerful trend. </p><p><BR><BR> </p><p>"We need to open the minds of media companies and media planners. They </p><p>need to look at the index themselves." </p><p><BR><BR> </p><p>Far more interesting insights on the increasing maturity of the </p><p>Australian market are revealed in looking at mass market products. </p><p><BR><BR> </p><p>Eyeing the same event, household toothpaste brand, Macleans, also </p><p>participated in the Mardi Gras in a bid to grab business from rival, </p><p>Colgate, which commands 70 per cent of the market. </p><p><BR><BR> </p><p>It was undoubtedly a risk for the mass-market product, but its agency </p><p>Grey Worldwide Melbourne suggested a tactical approach in targeting </p><p>participants at the 25-year old event. </p><p><BR><BR> </p><p>"They are young, have a high disposable income generally and are </p><p>appearance-conscious. Macleans brand values fitted well with the event, </p><p>which are modern, fresh, credible and fun," says senior account manager </p><p>Belinda Cecchini. </p><p><BR><BR> </p><p>"And we had to be a bit smarter with the budget and this seemed a better </p><p>way to tackling the Colgate giant. We saw it as a great opportunity to </p><p>make an impact." </p><p><BR><BR> </p><p>As well as an ad campaign that showed a brilliant white toothy smile </p><p>with one tooth boasting the colours of a rainbow- plus a tagline "Show </p><p>your true colours this Mardi Gras" - the agency also handed out more </p><p>than 70,000 samples to revellers. </p><p><BR><BR> </p><p>"Macleans was the first packaged goods brand to participate as a sponsor </p><p>and it was received very well. The anecdotal feedback was fantastic </p><p>because normal companies back away from the event." </p><p><BR><BR> </p><p>But it's a different scene in Asia. It is not that companies have not </p><p>recognised the potential of the pink dollar. Some have dipped their toes </p><p>in the market, but having met with considerable public protest, </p><p>back-tracked and are now at pains to distance themselves from the </p><p>initiatives. </p><p><BR><BR> </p><p>In Hong Kong, mobile phone service provider Sunday startled consumers </p><p>with an ad campaign charged with gay sexual innuendo in what appeared to </p><p>be Hong Kong's first attempt to target the pink dollar. One print ad </p><p>pictured three Chinese men dressed in traditional costume, one reading </p><p>and the other on bended knee, one arm round the other's waist. The </p><p>tagline was "Be brave! Switch over now! 13 cents/min". </p><p><BR><BR> </p><p>"The story of 'Three Heroes' links up with HK$0.13 per minute, </p><p>the theme of Sunday's tariff promotion," says a spokesperson for Sunday. </p><p>"We are just creating an interesting story with eye-catching characters, </p><p>and the characters have no relation to any social concept." Sunday's </p><p>agency, BBDO Hong Kong, has been banned by its client from commenting on </p><p>the ad to the press, adding further weight to the claim that Sunday is </p><p>distancing itself from its furtive gay marketing attempt. </p><p><BR><BR> </p><p>Another BBDO Hong Kong client, E*Trade Securities, courted controversy </p><p>earlier in the year with an ad of two men walking side-by-side, dressed </p><p>in business suits, one with his hand in the other's back pocket. BBDO </p><p>executive creative director Paul Chan now says that he's not sure that </p><p>marketing to a gay audience is "right for Hong Kong" as the market is </p><p>"too small and a bit sensitive". </p><p><BR><BR> </p><p>Which is probably why marketing to gays is largely undertaken as a </p><p>covert activity. The preferred media are likely to be gay community </p><p>magazines, with ads of bars and saunas, gay websites, such as the </p><p>popular www.gaystation.com - and pornographic publications. </p><p><BR><BR> </p><p>In Bangkok, a city famed for its tolerance towards people of all sexual </p><p>persuasions, the even more conservative and marketing to gays remains an </p><p>almost subversive activity. And this despite Hong Kong and Thailand </p><p>being repeatedly mentioned as the markets in which gay marketing </p><p>initiatives are most likely to take hold. </p><p><BR><BR> </p><p>There were early and encouraging signs of change in Bangkok previously: </p><p>a developer proposed a property exclusively for the gay community six </p><p>years ago; a focal point for gay organisation and activities, Utopia, </p><p>was established about the same time; and a flamboyant annual gay parade </p><p>was set up. </p><p><BR><BR> </p><p>But the late '90s economic crisis appears to have taken its toll on the </p><p>fledgling efforts, with most activities now conducted by word-of-mouth </p><p>or the internet. </p><p><BR><BR> </p><p>"There is an opportunity to tap into the gay community, but it is not </p><p>very visible," says Leo Burnett managing director Thailand and Indochina </p><p>Pornsiri Rojmeta. "Thai people are very sensitive to this. In general, </p><p>all products are concerned about tarnishing their image and alienating </p><p>the rest of the market." </p><p><BR><BR> </p><p>Two years ago, the Wine Cooler drink was successfully targeted at women, </p><p>"but there are no producers of drinks who would want to be associated </p><p>with gay clients. It is not on their radar at all". </p><p><BR><BR> </p><p>Thailand has become a preferred destination to many upmarket travellers </p><p>who are gay. Yet, an inherent conservatism belies the apparent </p><p>liberalism. </p><p><BR><BR> </p><p>For instance, Burnett, which has held the Tourism Authority of Thailand </p><p>(TAT) domestic and international account for six years and launched its </p><p>highly-lauded Amazing Thailand campaign, veered clear of the gay </p><p>market. </p><p><BR><BR> </p><p>"We segmented for golfers, businessmen and eco-travellers, but never </p><p>into the gay community. We never saw it as an opportunity for them as </p><p>the TAT would be concerned about alienating other tourists." </p><p><BR><BR> </p><p>However, Pornsiri believes the winds of change are blowing in </p><p>Thailand. </p><p><BR><BR> </p><p>Already famed for its creative prowess, the country could add yet </p><p>another feather in its cap and lead the industry in swaying cultural </p><p>idiosyncrasies that currently hold back marketing to Asia's gay </p><p>communities. </p><p><BR><BR> </p><p>"If you observe Thai soap operas, talk shows and game shows, you see </p><p>more and more of this kind of talent. It is more widely accepted now and </p><p>this is just the beginning," says Pornsiri. </p><p><BR><BR> </p><p>In addition, the annual Gay Parade in Bangkok is gathering steam and </p><p>like Sydney's Mardi Gras is seen as an appropriate vehicle for </p><p>condom-related marketing. </p><p><BR><BR> </p><p>In the meantime, overt marketing to gay communities remains off limits </p><p>and is likely to stay that way for some time, held back by both cultural </p><p>and economic factors. </p><p><BR><BR> </p><p>"I think it is mostly an Anglo-Saxon thing for the moment because in </p><p>these cultures being gay is less taboo," says Grey Worldwide president - </p><p>Asia-Pacific, Eric Rosenkranz. </p><p><BR><BR> </p><p>In the US, brands such as Gap and Ikea have conducted successful and </p><p>overtly gay campaigns, but Rosenkranz feels that the overtones of being </p><p>gay in Asia are more sexual. "There is not the legal and social </p><p>acceptance in Asia. I don't think any of our clients feel comfortable to </p><p>identify with and call out the target market. It will happen eventually, </p><p>but at the moment the market is not ready for it. It is a cultural </p><p>thing," he says. </p><p><BR><BR> </p><p>Rosenkranz adds that there is also more niche marketing going on in </p><p>markets such as the US due to the size of ad budgets, which is not the </p><p>case in Asia. In any case, when more niche marketing happens, Rosenkranz </p><p>suspects other niches will come to the fore before the gay market due to </p><p>"cultural and legal restrictions". </p><p><BR><BR> </p><p>His views have been echoed by Ogilvy & Mather Singapore vice-chairman </p><p>Asia Pacific Tim Isaac. "This is very much happening and becoming </p><p>important in North America and Europe, but we do not have any campaigns </p><p>here," he says. "In Singapore you're locked up for being gay." A </p><p>particular irony given the size of Singapore's gay community. "Down the </p><p>line in more developing markets when there are boom conditions there may </p><p>be an opportunity, and long-term undoubtedly yes. There is no reason why </p><p>Asia cannot go the same way other markets have gone. But it is a bridge </p><p>too far at this point, no doubt." </p><p><BR><BR> </p><p>With the economy heading south, marketing to Asia's sizeable gay </p><p>communities is simply too great a risk to take - at least for now. </p><p><BR><BR> </p>