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.

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