A 'Pink' Rand... penetrating the gay market

In Cape Town specifically we see the impact of the gay tourism and travel market - which annually injects millions into the Cape economy - having long been a destination of choice for the gay traveller, and actually predating the upsurge in the city's overall international travel profile.

An overview of this market yields characteristics that should be irresistible to any marketer or brand manager. Typically the gay consumer has a high disposable income, shows 'early-adopter' tendencies - being keen to try new products, and is by his/her own admission, 'brand conscious'. Furthermore gay/lesbian consumers also show a high incidence of 'brand loyalty' to brands and products that specifically acknowledge and value them within the marketplace.

Since 1994 a clause recognising sexual diversity has been included in the South African constitution - a positive step for gay rights and human rights, but unfortunately SA marketing and advertising does not seem to have followed suite, and a decade later the gay consumer remains generally an overlooked entity within a thriving and creative advertising industry.

Of course part of this is somewhat due to the lack of a 'consumer rights' culture displayed by South Africans over the years - flexing our consumer muscle is just not something we are used to doing - but more to the point, SA advertising has just recently come to grips with the 'cultural diversity' issue, as well as the value of youth markets, that in the process the 'gay market' has remained relatively unexploited, although mainly due to a lack of initiative, interest and awareness on the part of the marketing fraternity.

Historically, being a conservative culture, we have had a legacy of risk-averse marketing and advertising. And in our 10th year of democracy, it is promising to see edgier and more interesting work coming out of the industry. But in a marketplace overloaded with information and noise, is it not time that the 'pink niche' marketing strategy came out of the closet? And relevant product categories read like a who's who of premium brands: finance, automotive, travel, electronics, fashion - to state only the obvious.

For the past 10 years, South Africa's biggest queer bash has been successfully staged in Cape Town by MCQP (Mother City Queer Projects). The event drew almost 7000 people to its famous costume party in 2003 and received an estimated equivalent of R800 000 worth of media coverage and publicity in South Africa alone, from September to December 2003 (Newsclip Media Monitoring). In November 2003 the Sunday Times ran the headline: "Brits charter two 747's for Cape's biggest gay party", and this year MCQP expects in excess of 8000, with additional events planned in the Mother City leading up to the December bash - and all of this on zero government funding and relatively minor corporate involvement or support.

So obviously somewhere something is missing, which is unfortunate, considering the sheer numbers of gay and lesbian individuals who are making a significant contribution in our marketing departments and advertising agencies. And as for the Brand Managers, how much longer are we going to hide behind the excuse of 'lack of data' in order to justify a major marketing oversight. If anything the deficiency of traditional advertising opportunities in this market (SA is yet to see its first credible quality gay magazine title) should make for interesting strategic approaches at reasonable levels of spend, possibly in the areas of events, branding, sponsorship and online campaigns.

Recent U.S. research has demonstrated:
-- 84% of gays and lesbians hold a valid passport vs national average 29% US.
-- 94% of gays and lesbians would go out of their way to purchase products and services marketed directly to them. (Source: Greenfield Research & Kinsey Report)
-- 21% of gays and lesbians report household income that surpasses $100,000 per year. (Source: Simmons Market Research Bureau)
-- 58% of the gay and lesbian community members hold management positions. (Source: Simmons Market Research Bureau)
-- 70% of gays and lesbians have at least a college education and work in professional and managerial jobs. (Source: Greenfield Research & Kinsey Report)
-- 79% of gays and lesbians agree that it is important for them to work in a gay/lesbian-friendly environment (Source: Greenfield Research & Kinsey Report)
-- 62% own a personal computer (Source: Mulryan/Nash Study)
-- The purchasing power of gay and lesbian US adult consumers pink dollars exceeded $450 billion in 1999 (Source: DiversityInc.com)

MCQP welcomes any dialogue with brand custodians who are interested in reaching the gay and lesbian consumer, considering our extensive experience with marketing and events activities within this market.