The Birth of India's 'Pink Economy'

Out Of The Closet And Into The Marketplace

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O r The biA report by MSLGR

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CONTENTS

TABLE OF CONTENTS

Page

1. Executive summary

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2. How a court ruling might unleash societal change

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a.

A struggle ends

b. The times, they are a-changin’

3. The gay revolution and the business opportunity

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a.

What is a ‘pink’ business?

b. Understanding the market

c. The gay factor in arts and culture

d. Economics and the argument for a pink market

e. How being gay-friendly benefits business

4. Tapping the ‘pink market’

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a. Know the market

b. Things to remember

c. Success stories

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5. The path to profit, paved with conviction

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6. The battle to legalise homosexuality in India

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The gay rights movement came into sharp focus in the 1950s when there was a homophobic purge across the US State Department. Since then, the Lesbian Gay Bisexual and Transgender (LGBT) community has travelled a long road – gay people can now serve in the military, several anti-gay laws have been struck down and President Barack Obama has come out in support of same-sex marriage.

The LGBT community is asserting itself politically and socially. Obama’s statement and his volunteers fanning out across gay pride parades in June 2012 seeking votes are recognition of the LGBT community’s electoral power. These were important milestones for a movement that has gone through a 60-year evolution in the US, though the struggle is far from fruition.

In India, meanwhile, the movement is only nascent but got a boost in 2009 when the Delhi High Court decriminalised homosexuality. Since then, the LGBT community has been expressing itself in a social and political context – transgender candidates have begun contesting, and winning, elections – and is looking to satisfy its consumerist aspirations.

After the court ruling, studies found, the LGBT community is finding its voice in society and is being discovered by marketers – in an urban framework for the time being – as an attractive market. The economic power of a community thus far ostracised and economically marginalised is being unleashed.

Apparel stores and travel firms targeting gay people, as well as event organisers and bookstores, are setting up shop. Even if the ultra-conservative estimate putting India’s gay population at 20 million is true, a sustainable market is waiting to be exploited.

While in the West products and services are targeted specifically at the gay population, in India this is being done only now.

Jagdeep Kapoor, managing director of Samsika Consultants, a marketing consultancy, said the progress would be understandably slow because of the strong 4

hesitancy across product categories. Indian companies, he pointed out, are wary of the societal reaction to advertisements and allied promotional activities focused specifically on the gay segment.

Jaideep Shergill, CEO of MSL India, felt that the biggest challenge is “the government itself”. “The court ruling was the first step in a long journey. The government now needs to support the community by ensuring discrimination recedes and its potential is unleashed. But, remember, real change takes time,” he said.

Kapoor nevertheless identified segments such as spas, tourism and hotel packages targeted at gay clientele as ones that have tasted success.

Indeed, agencies such as Reuters have reported that India is emerging as a global hot spot (‘Conservative India unlikely hotspot on gay tourism map’, January 26, 2012).

In addition, overseas marketing consultants and multinational corporations are taking a long-term view on the Indian LGBT market.

Ian Johnson, CEO of London-based consultancy OutNowConsulting.com, told Facenfacts.com that its sheer size makes India an attractive market. He pointed to the growing purchasing power of the Indian LGBT community. His consultancy has been conducting surveys across the globe on the product and lifestyle choices of gay people and advises multinationals such as Lufthansa, IBM, Toyota, Citibank and Barclays on catering to this category of consumers.

The issue here, all observers are quick to caution, is not whether these businesses in India are profit-making or that the LGBT economy is large, but the fact that such businesses are being established and the foundation for a ‘pink economy’ is being laid.

$500 billion Global LGBT market, according to a Gba.org. uk study. A report on Business.com estimated it at $600 billion

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July 2, 2009, may go down in history as the day Indian society reached a tipping point. A Delhi High Court ruling that day read down Section 377 of the Indian Penal Code, decriminalising same-sex behaviour among consenting adults and unleashing celebrations among the LGBT community.

The foundation the ruling laid for a change in attitudes towards the gay community was also the groundwork for a more subtle, unseen revolution. As the LGBT community revelled in its newfound legal acceptance, it began to look for ways to assimilate into society and fulfill its economic potential. Gay entrepreneurs and businesses pushed for a louder voice, as did gay consumers – many of whom have substantial spending power.

The mainstreaming of a marginalised community began, and an environment for the unleashing of its consumerist aspirations was born.

A struggle ends

The first step towards eradicating the prejudice that has existed in Indian society for more than a century against the gay community had been taken.

Homosexuality had been illegal since 1861, when the British introduced a law prohibiting “carnal intercourse against the order of nature with any man, woman or animal”. The law, Section 377, has long been viewed, depending on which side you’re on, as an archaic colonial holdover or a necessary tool to “protect Indian culture”.

While Indian society has, by and large, adopted a don’t-ask-don’t-tell attitude to sex, the more liberal mores unlocked by economic growth and the digital destruction of boundaries are changing outlooks.

The liberals are quick to point out that there is sufficient archaeological evidence of same-sex ties existing in ancient India – the homo-erotic carvings in the temples of Khajuraho, Konark and Puri are well known, while the Kamasutra mentions several homosexual positions.

The public interest litigation (PIL) against Section 377 had been filed by the Naz Foundation (India) Trust in 2001. It argued that the law violated the right to life and liberty.

Nevertheless, society over the last century has been discriminatory towards the gay community; the frequent absence of family support is a concern too. One of the consequences of this was the suppression of the community’s economic aspirations.

Delivering the landmark ruling, the judges wrote in their 105-page decision: “The inclusiveness that Indian society traditionally displayed, literally in every aspect of life, is manifest in recognising a role in society for everyone... Those perceived by the majority as ‘deviants’ or ‘different’ are not on that score excluded or ostracised.”

Homosexual conduct, the court recognised, was deeply personal, a way to achieve sexual happiness for a certain kind of individual. It follows, that an individual that is not persecuted by the state is happier and contributes more to the economy and community than one who is the target of agencies such as the police.

Chief Justice AP Shah and Justice S Muralidhar declared: “Consensual sex amongst adults is legal, which includes gay sex...” The old law, they said, violates Article 14 of the Constitution, which guarantees all people “equality before the law”; Article 15, which prohibits discrimination “on grounds of religion, race, caste, sex or place of birth”; and Article 21, which guarantees “protection of life and personal liberty”.

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The times, they are a-changin’ A September 2011 study by the Humsafar Trust – a nonprofit that works with the LGBT community on matters related to rights, health and counselling – assessed the changes perceived by the community and stakeholders.

The study, ‘IPC Section 377: Aftermath of Reading Down of Section 377’, which was supported by the India

HIV/AIDS Alliance, found that LGBT people felt more comfortable about their sexuality after the court ruling and that the persecution had decreased.

Both male and female respondents said that other people are more open to discussing sexuality and sexual differences (44% and 58% respectively), and there were more positive LGBT portrayals in the media (58% and 40% respectively). Transgender participants (98%) said that they perceived other community members as being more approachable.

Many participants said that, after the judgment, their straight friends were more supportive (male 37%, female 34%, transgender 71%) and more open to discussing sexuality (male 48%, female 37%, transgender 65%). Male participants felt that they perceived friends (42%), family (39%) and police (35%) as being less discriminatory. Female respondents, however, only perceived less discrimination from friends (22%). Transgenders felt that the police (86%), sexual partners/clients (56%) and friends (42%) were less discriminatory after the judgment.

University Vice-Chancellor Deepak Pental said after the court ruling: “The world has changed, and we will have to move along.”

44 and 58 Percentage of male and female respondents respectively in a Humsafar Trust study who said that other people were more open to discussing sexuality and sexual differences after the reading down of Section 377

58 and 40 Percentage of male and female respondents respectively in a Humsafar Trust study who said that there were more positive LGBT portrayals in the media after the decriminalisation of homosexuality

The survey showed that the reading down of Section 377 has already brought about a distinct, if moderate, positive change in the lives of the LGBT community.

These influences were experienced at various levels – a greater sense of belonging, the ability to access and participate in activism and lesser discrimination at the hands of the police.

The court ruling, it’s clear, is helping the community assert its existence and experience a societal environment where dialogue around taboo topics such as sexuality is easier. The change also means greater economic assertiveness and an ecosystem for the creation of a new consumer class.

One participant (name withheld) pointed out: “More gay parties are being organised and gay men who were hidden, and the new generation, are coming out.” Another unnamed participant said: “After the judgement, transgender and [gay] people walk with their heads held high.”

In Pune, a respondent said that the police do not bust gay parties any more. Participants also reported an improvement in environmental factors such as workplace acceptance, a feeling of solidarity with other LGBT groups, more networking with other organisations, better media coverage, and more courage in revealing their sexual orientation.

Most such societal trends have a direct or oblique economic impact, and the stage is set for a subeconomy that caters to the LGBT community. As Delhi Photo by nickjohnson on flickr

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n And o i t u l o v e R The Gay tunity r o p p O s s e The Busin

‘Now to be gay or lesbian is not simply a statement of sexuality, but a statement of lifestyle: it defines what clothes you wear, what magazines you read, what furniture you have, or what vodka you drink.’

Peter Morgan, in the ‘International Socialist Journal’ The decriminalisation of homosexuality didn’t only mean that the LGBT community could declare its sexuality without fear of persecution, it also marked the beginning of a gay market, dubbed the ‘pink economy’.

India is witnessing the establishment of fashion lines, clothes stores, bookstores and travel services specifically targeting the ‘pink rupee’.

The size of the market and its spending power is not lost on entrepreneurs. While the government claimed in the Supreme Court that India has 2.5 million gay people, other studies report between 2% and 13% of the population being gay – that is, 20 million to 130 million.

The perception is that many gay people have large disposable incomes, often based on the assumption that they don’t have spouses or children to support.

In India, where the rights movement is only just becoming high profile, many feel that a pink economy will lead to greater visibility of the gay population and help in its assimilation into the mainstream.

For the moment, these businesses exist only in urban areas where they are likely to gather a critical mass of customers and where their marketing investments are likely to generate greater returns. As Shergill, of MSL India, said: “In terms of the market, if you exclude the big cities, it is very difficult to establish a pink business.”

Party services are doing well now that they are free from the spectre of police harassment. While they have existed for years, they kept a low profile and their operations were frequently disrupted by law enforcers.

As a result, their growth was limited.

“I organise five to 10 gay parties a month [now]. More people are coming out and accepting their identity. It’s

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an untapped market and will see a boom in the times to come,” Manish, who organises gay parties in Delhi, told ‘The Indian Express’ newspaper.

Among the leading party organisers are Gay Bombay, Gossip and Bird Cage in Mumbai, and Pink Party in Kolkata. Their offerings range from parties in popular night spots, to picnics and movie screenings. Richa Kaul Padte reported on the blog Ultraviolet.in that the “growing demand for queer social spaces has also led establishments such as Delhi-based Pegs n Pints and Mumbai’s Banana Bar to organise regular nights for their LGBTQ patrons”.

Among the leading apparel and accessories stores, there is D’Kloset in Mumbai and Azaad Bazaar that started in Mumbai but later shifted to Goa, while Indja Pink and Le Passage to India offer travel services.

Fiji-Indian Shobhna Kumar, who launched India’s first online gay literature store, www.queerink.com, told ‘The Indian Express’: “[The store is] an attempt to create a comfort zone for people who want to access queer literature and find it difficult to pick up such books in a normal bookstore. It’s about empowering and informing.

The LGBT community wants to see their lives reflected in fiction.”

Kumar, who had worked for the rights of the LGBT communities in the US and Australia, felt Indian youngsters were more confident and open about their preferences now.

There has been a distinct impact of the court ruling on the arts and culture scene too. There was a spate of films that featured gay characters, including some in popular cinema. Dharma Productions’ ‘Dostana’, for instance, addressed LGBT issues but was also criticised for caricaturing gays. ‘Dunno Y… Na Jaane Kyun’ had central gay characters, while film festivals showcased gay films from around the world.

“fondly remembered by members of Mumbai’s queer community as not simply a shopping destination, but an important refuge for gay or questioning individuals to come together and meet in a truly safe and welcoming space”.

Tappy Tippy, a blogger, wrote: “...I’ve come in to find common friends, get advice… [Customers got] support from everyone as they came out to their families and dealt with the aftermath within [Azaad Bazaar’s] walls.”

Sanjay Malhotra, proprietor of Indjapink, described how awareness among service providers is a challenge. “In every hotel we use... I’ve met the owners, spoken to their staff – their butlers, their receptionists, everyone – I’ve made them understand what it is to be gay... They are gay-friendly in the true sense of the word, because we’re not just selling an idea as gay-friendly – we speak to them, we make them understand… It’s very important in today’s times to change mindsets, because ignorance cannot be a reason for a poor or offensive service anymore,” he told Kaul Padte.

It’s clear, then, that spending power is not enough – a business that depends on people and services outside the community will have to create an environment of sensitivity.

Understanding the market

2.5 million Number of gay people in India, according to the National Aids Control Programme. This number is disputed by activists, who say that between 2% and 13% of the population is gay – that is, 20 million to 130 million

Even if the government’s claim that India is home to 2.5 million gay people – a conservative number, say most activists – is to be believed, that’s enough of a consumer base for a small- to medium-sized market.

‘Pink’ business, grey area

As MSL India’s Shergill pointed out, “Any demographic – homemakers, single women, the LGBT community – consumes various products and services.” The implication being that, if targeted well, any consumer segment can deliver business results.

As Kaul Padte pointed out, “it is difficult to estimate the scale of the pink economy within the country, given that the scattered businesses and initiatives are yet to be collated into a comprehensive survey. However, attempts to do so will have to first question what exactly it is that makes a business ‘pink’”.

Some observers believe that sexual identity could be used by marketers to create a lifestyle in the same way that the post-feminism purchasing power of women provided the launchpad for fashion lines, phones (many telecom firms introduced devices targeted specifically at women) and even sex aids.

Indeed, the parameters for the definition of this market are grey. Is a ‘pink’ business one that caters only to gay people? Or is it one that does not discriminate within the workplace? Or one that offers the same level of service irrespective of sexual orientation?

Kumar, of Queer Ink, felt that while the pink economy has made a good beginning it is still largely untapped in the country. “It still targets [mainly] foreigners and will take time to get Indian customers,” she told ‘The Indian Express’.

What is clear is that these businesses are a testimony to the persistence and resilience of the gay rights movement and the community’s burning desire to be counted as an economic force.

She told Kaul Padte: “The whole queer movement arose out of grassroots-level activists – who still go to the police to get permissions, are visible on the road marching… So they also make up a power base in terms of your everyday retail consumer. But we don’t see them as a [pink] retail consumer, because they don’t buy books, because they don’t go on holiday. But they

Many of the owners feel close to the cause. Kaul Padte wrote that Azaad Bazaar, for instance, is

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For the pioneers of the pink economy, India’s largely conservative society presents a bigger barrier than legislation. “We might be legal by law, but we’re not yet legal in the mindset,” said Arjun Sharma, founder of Le Passage to India, a travel firm that offers gay tours.

Aditya Bondyopadhay, a gay rights activist and lawyer, told Eturbonews.com: “Police harassment, though it has gone down drastically, is still prevalent.”

Photo by lighttripper on flickr

go to your kirana (grocery) store and buy rice and dal to support their families. So yes, the BPO-working, English-speaking gay guy comes to my shop to buy books, and is able to spend Rs 3,000 – so is that then the qualification to be part of the pink rupee?”

The implication is clear: The pink economy is in danger of leaving out large swathes of the gay community simply because it does not cater to their needs or because it exists only in affluent, urban enclaves.

No wonder, then, that journalist Vikram Doctor, a wellknown gay voice, is worried that such businesses are not fulfilling the needs of India’s LGBT community. Simply put, there is a danger that marketers mistakenly view the community as a uniform entity whereas in reality it is anything but uniform.

How powerful India’s pink rupee becomes – and what shape the market takes – is difficult to predict. It is likely that, as the market grows, commercial considerations – rather than its activist role – will guide its journey. Its ties to the movement that spawned it may well weaken.

The gay factor in arts and culture In 1982, pioneering Marathi filmmaker Jabbar Patel made ‘Umbartha’ (Threshold) about lesbianism in rural India at a time when homosexuality was taboo even in private conversations.

There were, however, few that took the film’s lead, until 1996, when Deepa Mehta released ‘Fire’. The film, about two women falling in love after finding themselves in loveless marriages, raised a storm of controversy and protests, many of them violent.

“There are lots of gay men who are fairly openly out, and who’ve thought, ‘There must be lots of other gay men like us who we can do things for.’ They see the gay community through the prism of themselves, but in fact the queer community is much more diverse,” Doctor told Kaul Padte.

While clothes, party and travel services may be the most visible, there is an even greater need for medical services that take into the account the community’s special needs.

Most agree, however, that these are early days in the evolution of the market.

“If all goes well,” said Shergill, “if there is government support, then maybe in five years the market will flourish. It all depends on how something like this is managed.”

“Right now, it’s nice that there are some queer businesses out there who are participating in the movement, as compared to bigger corporate companies who will target money from queer people without thinking about the overall community. This has happened a lot abroad,” Soraya, a Mumbai-based feminist and queer activist, told Kaul Padte.

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Photo by twitter.com Onir, director of ‘I Am’

“The subject of homosexuality has been handled far more maturely in regional cinema like Malayalam or Marathi rather than in popular cinema, merely because these films placed the problem in a social, everyday milieu,” film critic CS Venkiteshwaran told Reuters. He recalled two Malayalam films, ‘Rendu Penkuttikal’ (Two Girls) and ‘Desadanakkili Karayarilla’ (Migratory Birds Don’t Cry), which treated homosexuality in a matter-offact manner.

Indeed, gay themes and popular Hindi cinema, or Bollywood, kept their distance but that seems to be changing. In 2003, the hit ‘Kal Ho Naa Ho’ featured a gay humour theme and in 2008 ‘Dostana’ portrayed two men who pretend to be gay so they could rent a house with a woman.

More importantly, in 2010 – less than a year after the court decriminalised homosexuality – India got its first mainstream gay film. Organisers hailed it as a sign of progress after years of discrimination.

The four-day ‘Kashish’ Mumbai International Queer Film Festival showcased 110 films from 25 countries at a leading multiplex chain and the Alliance Francaise cultural organisation. This was a big leap for the conservative Indian cultural scene, though such events were common in western countries.

The festival organiser, Vivek Raj Anand, told AFP: “There have been gay film festivals before, but this is the first gay film festival in the mainstream.”

The Information and Broadcasting Ministry did its bit by giving its approval for the festival and the

uncensored screening of films. “That’s a big thing,” Rajan Ramchandani, a gay former investment banker attending the festival, told AFP. “Five to seven years ago, people wouldn’t have been talking about homosexuality.

It was taboo. But now, through the media and other forms of communication, it’s much easier for people to accept.”

Among the films screened was ‘I Am’, which follows the lives of four people, including a gay man who lives in fear of blackmail. The film was directed by Onir, who had earlier made the critically acclaimed ‘My Brother...

Nikhil’, about the stigma surrounding HIV and prejudice towards gays in India.

Actor Rahul Bose, who starred in ‘I Am’, said the festival was part of the “new history” of India. “It would have been inconceivable for mainstream cinema to do this five years ago,” he said.

Economics and the argument for a pink market Urban theorist Richard Florida provided an economic dimension to the discussion on gay rights during an interview to Bigthink.com. Referring to social and cultural characteristics of societies with regard to diversity, he said: “[The] tolerance dimension – this social and culture dimension – is not just something we do because it’s right and it’s ethical and it’s moral and it’s the right way to treat people. We’re going to find that these social and cultural factors really add a lot to economic growth...”

Photo by nickjohnson on flickr

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How being gay-friendly benefits business While many corporations are far from being gay-friendly, they are changing fast. ‘The Economist’ reported that 86% of Fortune 500 firms now ban discrimination on the basis of sexual orientation, up from 61% in 2002. Around 50% also ban discrimination against transsexuals, compared with 3% in 2002.

Human Rights Campaign, a US-based non-profit agency, measured corporate policies towards sexual minorities.

Of the 636 companies surveyed, 64% offered the same medical benefits for same-sex partners as for heterosexual spouses. About 30% scored 100% on the group’s ‘equality index’.

Among the 100% club were banks, consultancies and industrial giants such as Alcoa, Dow Chemical and Ford.

Lord Browne, head of BP who resigned after his sex life became public in 2007, said that he kept his sexuality a secret because “it was obvious to me that it was simply unacceptable to be gay in business”.

Today, many corporations are coming out with imaginative gay-friendly policies. American Express has a ‘pride network’ with more than 1,000 employees as members, while Cisco gives gay workers a bonus to make up for an anomaly in the tax rules for insurance premiums. Microsoft and Nike have written to Congress to support gay marriage.

A still from ‘Dunno Y’...

He pointed out that what made America great was its acceptance of people from all over the world who could build the lives they wanted and realise their dreams irrespective of their diversity. Similarly, societies that accept diversity – whether it’s of race or sexual orientation – tend to be more vibrant and economically stronger.

This change, ‘The Economist’ pointed out, is “because changing attitudes in society... have reduced the cost of being gay-friendly, and raised the rewards. A generation ago in the West, creating a gay-friendly workplace might have upset heterosexual staff. Now it probably won’t. But failing to treat gays equally is very likely to drive them to seek employment elsewhere. Since they

“Places that are more open, places that value people, that are more meritocratic... They’re going to attract more people with skill and ambition and entrepreneurial verve... The gay and lesbian factor is an approximate variable for a place that’s very open-minded and selfexpressive... So, places that allow you to [express yourself], that allow you to mobilise resources, they’re also the places that are going to gain an upper edge in the entrepreneurial and innovative realm,” said Florida.

Besides, gay-friendly businesses attract gay customers.

Take the case of Merrill Lynch. In 2001, it instituted a private banking team that focused exclusively on the gay market. Within five years, it had earned more than $1 billion.

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Smita Patil starred in ‘Umbartha’

are perhaps 5%-10% of the global talent pool, bigotry makes a firm less competitive”.

Sylvia Ann Hewlett and Karen Sumberg of the Center for Work-Life Policy in the US tried to quantify the benefits of being gay-friendly. They found that 47% of gays who went public with their sexuality said that they trusted their employers, compared with 21% who hadn’t gone public.

It’s clear that you’re unlikely to perform well if you have to conceal what you are.

86 Percentage of Fortune 500 firms that now ban discrimination on the basis of sexual orientation, up from 61% in 2002, according to a study conducted by the Human Rights Campaign, a US-based non-profit agency

50 Percentage of Fortune 500 firms that also ban discrimination against transsexuals, compared with 3% in 2002

Financial planning for gay people in the US Financial information website NerdWallet has a tool that helps LGBT partners manage the financial, legal and tax complications implicit in their relationships.

The ‘Same Sex Couples Planning Tool’ helps with documentation and with housing, insurance and retirement decisions. Gay couples spend $1,500 to $10,000 for the same legal and economic benefits that heterosexual couples automatically get when they pay $40 for a marriage license, according to NerdWallet.

In the US, LGBT people are being offered financial planning options customised for their unique situations. Some services offer a network of financial advisors who are gay themselves.

Major firms, including Wells Fargo, Bank of America and UBS, have divisions focused solely on gay clients. Some of these institutions are sponsors of the National Gay and Lesbian Chamber of Commerce.

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The UK experience A study on Gba.org.uk estimated that around 1.5% of the British population is openly gay.

Overall, the gay population is probably around the 6% mark. Even though it’s a relatively small chunk of the market, it has incredible spending power – an estimated £6bn (nearly $10 billion) a year – said the study.

The ‘pink pound’ reflects the financial clout of the LGBT communities. Despite the economic troubles and a depressed job market, the group still earns 23% more than the national average, spending around a third of its income on entertainment and lifestyle products, said the study.

The financial stability of this demographic is linked to freedom from traditional commitments, such as children, said analysts tracking the segment.

On a global scale, the study said, the LGBT market would be around the £350 billion (nearly $500 billion) mark.

Google launches ‘Legalize Love’ campaign Google stepped up its gay rights activism issues in nations with anti-homosexuality laws in July 2012.

“We want our employees who are gay or lesbian or transgender to have the same experience outside the office as they do in the office,” Google executive Mark Palmer-Edgecumbe said at the Global LGBT Workplace Summit in London.

Google will focus on alliances with local companies and on supporting grassroots efforts.

Citigroup and Ernst & Young have already signed on.

Gay + Groupon = Gaypon Gaypon, which launched in 2011 in Detroit, operates much like Groupon, offering limitedtime deals on goods and services. But, it only sells coupons from entrepreneurs and firms known to be gay/lesbian-friendly.

From holiday deals to discounts on dips and mixes, Gaypon has it all.

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“‘Legalize Love’ is a campaign to promote safer conditions for gay and lesbian people inside and outside the office in countries with anti-gay laws,” said a Google statement.

Google is frequently upheld as an example by gay rights groups for its workplace policies, which include full benefits for same-sex partners. It also made 2012’s ‘best places to work’ Human Rights Campaign list.

A Google spokesman said the campaign’s focus is on human rights and employment discrimination.

“We see this fundamentally as an issue of equality,” wrote Google co-founder Sergey Brin on the company’s blog.

Tapping the t’ ‘pink marke ghttripper

Photo by li

on flickr

Shielding themselves from social stigma, India’s gay people lived double lives – one for the world and one in which they were true to themselves – for the longest time. Today, thanks to aggressive activism, growing awareness and an increasing number of LGBT people coming out of the closet, a new world has opened up for them. They are now carving out their space as niche consumers, giving marketers a new target group.

Smart marketers are taking note of this newlyempowered community. A report on Business.com said that gays and lesbians spend more than $600 billion every year across the world. They’re a business owner’s dream because they are: » Affluent: The average annual income for a gay household is $61,000, 20.4% higher than a heterosexual household’s, said the website » Educated: About 83% of gays and lesbians have either attended or graduated from college » Loyal: Approximately 89% of gays and lesbians are brand-affiliated and are highly likely to seek out brands that advertise to them

Jerry Johnson, a marketing professional and TEDx speaker, said: “It is important for marketers to understand that the LGBT community is not just about sexual orientation. Our identities can also be identified with our interests. For any campaign to appeal to us, it should stay away from stereotypes and clichés. It would be best to keep it normal and inclusive. The Benetton ‘Unhate’ campaign was a great one as it had a simple message and yet had a strong impact. It conveyed that it is OK to be different. GAP too had a campaign that had two men wearing one shirt. These are big brands that are trying to be inclusive and we appreciate that.”

Marketers have also identified that the LGBT community as an opportunity for gadget makers. Marketers are reaching out to them through social media, smart phones and other new media. Gay web portals are a great marketplace and have a captive audience.

“Social media is the biggest tool; we are very active online. There are several online groups, websites and social forums that attract huge traffic,” said Johnson.

“The internet gives customers the luxury of privacy.

The best way to reach us is through our mediums.

Know the market The LGBT market is different because it is many layered and poorly researched. It is crucial, therefore, for companies to study the market and understand which cross-section to target. This will help in getting maximum return on investments.

Surveys conducted by various agencies indicate that gays and lesbians look at more magazines and newspapers and watch more TV than heterosexual consumers. They are also more driven by marketing campaigns to make purchases.

One of the biggest strengths of the community is its resilience and its tendency to bond closely. When they come together for events, festivals or concerts, the energy is unparalleled. For marketers, this is a tailormade platform.

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Oreo was among the brands that was openly pro-gay

We become very loyal to corporations that advertise on our mediums and we also become their advocacy customers.”

Apple, for instance, has several apps that help the community connect with a wide network. Apple’s DowneLink provides a space “for Downe (LGBT) people and their friends to exchange ideas, build friendships, and utilise local and nationwide services”. The app offers features such as social networking, blogs, e-mails, bulletins, forums, video/audio chat and instant messaging. It also has ‘365gay News’, which provides a space for LGBT people to stay abreast of current news and happenings in the world.

The keys to success » Understand the segment: In Johnson’s estimate, there are 70 million gay people in India – many of them urban professionals with great purchasing power. “This is a huge segment and marketers are taking note of it. Mumbai, for instance, has three to four gay-related events every week. While they may not openly advertise them as so, community members spread the word and join the party,” he said.

realise that, at the end of the day, it is a business transaction and that they need to give customers the best possible service,” said Johnson. Shergill added: “The only tip I would give marketers is to treat them like other consumers. The more differently they are treated, the more the stigma is likely to remain.”

Success stories While undoubtedly nascent, India’s pink economy has already tasted success. There is no market study, but entrepreneurs and observers have said that sectors such as tourism and apparel are catching on.

A journey of a thousand miles…

The pink rupee is finding its way into the bank accounts of travel companies catering to a gay clientele. Firms like Indjapink, Le Passage to India and Bangkok-based

» Make business sustainable: In India, there are several challenges before pink businesses. The community is not very visible and, while there are many who are openly gay, there are millions still unwilling to come out in the open. For businesses, it is therefore best to cast the net wide than have explicit marketing campaigns. It isn’t wise to start an exclusive store as many still don’t like to be branded as gay and would shy away from visiting them. » Social media engagement and mobile marketing: Telecom and internet are two of the biggest opportunities in the LGBT space. Johnson explained that the gay people are eager to reach out and connect to others like them. “We spend a lot of time on the internet, on long-distance phone calls and BlackBerry Messenger groups. Domestic travel is another strong market. We love to travel and meet other members of the community,” he said. Since many gay couples have no children to support, their disposable income is high – something the automobile industry also recognises. Furnishings and home décor are important segments too. » Be sensitive and inclusive: Being flashy does not always grab eyeballs. It is the approach and attitude of marketers that can make or break a business when it comes to a niche market. “Gay-friendly businesses don’t need to spell that out. It is in the attitude. For instance, at hotels and restaurants, it is important that the staff are trained and sensitised. They need to treat customers with respect. Owners and managers

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Photo taken from lepassagetoindia.com

Purple Dragon are leading the race. The tours cover everything, from honeymoon packages and candle-lit dinners to wildlife safaris and spiritual retreats. Some tour companies have even conducted weddings with traditional rites for gay couples.

The packages are mid-range to luxury and most of the clientele comes from the US and Australia. Though most agencies cater to only men, there are indications that lesbians in North America are interested in the country too.

“India is high on the wish-list of many customers. The big attractions are history, culture, cuisine, shopping...

We are happy about the Delhi High Court ruling and this might put some of our prospective India customers at ease,” Douglas Thompson, MD, Purple Dragon, told ‘The Indian Express’. Purple Dragon sends 200 to 250 customers to India every year.

most gays in India at the time, I was basically invisible,” he told Reuters. Today, he said, “With Gay Pride events, film festivals and parties, gay visitors can have it all.”

A survey conducted by Roth’s firm last year ranked India as the second most desired cultural or adventure destination, just behind Thailand.

When clothes set you free ‘The most powerful politics is the politics of economics,’ read the sign on the door of Azaad Bazaar, a clothes store that catered to the gay community in the Mumbai suburb of Bandra.

Photo taken from indiapink.com

Delhi-based Indjapink specialises in gay tourism. “We create tours for the gay community, offering them outstanding personalised service and make them experience India in a discrimination-free atmosphere,” founder Sanjay Malhotra said. He felt that the reading down of Section 377 had liberated the community from discrimination and abuse.

Set up in 2009 in a garage, AzBaz – as it was popularly known – was the brainchild of Simran and Sabina (they both go by their first names only), strong voices in Mumbai’s gay rights movement. Their commitment to the cause was reflected in the way the store was designed – it doubled up as a coffee shop, where gay people hung out, sipped tea and chatted. It was as much a community house as a retail store.

Malhotra told Reuters that his firm started off with 20 gay customers, but now has more than 100.

“A lot of people came in with their parents, and they usually come up to us with an awkward ‘hello’ but often end up in conversations ranging from the polite (‘So, how is the store doing?’) to the personal, about how they felt when their child came out to them,” Sabina told the ‘DNA’ newspaper.

“They feel they can breathe easy, live the life they want to. After the court order, we started getting more inquiries from gay men, both in India and abroad,” he added.

The store – which has now moved to Goa – also hosted book readings, film screenings and community meetings. “When we were younger, the community was not so accessible,” Sabina added.

Arjun Sharma, who founded Le Passage to India in Delhi, said: “It’s a $3 billion industry worldwide. Gay tourists are wealthy and have expensive hobbies like arts and fashion.”

The Indian gay travel industry got a boost when the International Gay and Lesbian Travel Association listed the country as a destination site for gay travellers, with 11 gay-friendly or exclusively gay travel agents as partner businesses. “The gay community had so many apprehensions travelling to India,” Malhotra told Reuters. “Now, they look at the option of travelling to India without acting heterosexual.”

India seems to be following the lead of Nepal, which became the first South Asian country to decriminalise homosexuality and legalise same-sex marriages three years ago and has since been actively courting the gay tourism market.

American Thomas Roth, who runs an LGBT community market research firm in San Francisco, is among those hooked to India.

Thirty years ago, when he first visited the country, he would evade questions about his wife and children. “Like

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Photo taken from azaadbazaar.com

Sabina and Simran started AzBaz by retailing their own ‘Jailbird’ brand of T-shirts, which they marketed largely by word of mouth. It was a humble beginning, so imagine their surprise when several local shoppers started to walk in. “Once we explained the concept of the store to them, we got a variety of reactions that ranged from the evolved (‘You mean there is only one store like this in India?’) to the very excited (‘Oh, I have to tell my gay best friend about this!’),” Sabina told ‘DNA’.

“This is not just about retail — it’s about understanding the concept of the store.”

“The gay community is a targeted consumer and it’s growing now,” Simran told ‘The Indian Express’ newspaper.

Green Lantern turns pink In September 2011, DC Comics announced that one of its superhero characters would reveal his homosexuality. That superhero, it was revealed in June 2012, was the Green Lantern.

Gay undertones have been attributed to iconic characters such as Batman and Wonder Woman since at least the early 1950s. In 1954, for instance, Dr Frederic Wertham blamed comics

Consumers with a voice Oreo cookies posted an LGBT-friendly image on its Facebook page on June 25, 2012, sparking off a debate on gay pride as a business strategy in the US. Earlier, the One Million Moms family association anti-gay group squared off with JC Penney (ad above) over its use of lesbian spokeswoman Ellen DeGeneres as well as same-sex couples in its catalogues. One Million Moms called for a boycott of JC Penney. This, in turn, led to an outcry from the gay community and the boycott failed.

While the LGBT community may be small, it and its backers are outspoken, staging rallies and campaigning for gay-friendly businesses.

for homosexuality among the youth in his book ‘Seduction of the Innocent’. Wertham also suggested that Batman was “psychologically gay”.

In the US, this led to the formation of the Comic Code Authority, which till 1989 prohibited depictions of homosexuality in the medium.

DC decided to relaunch the character as gay, ostensibly to make the comics more attractive to the pink readership. The publicity surrounding the outing didn’t hurt either.

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aved p , t i f o r p o t The path ion with convict

By Nitin Karani, equity research editor and gay rights advocate. Nitin also writes for ‘Bombay Dost’ magazine and blogs at queerindia. blogspot.com

LGBT people will not buy a product or service solely because of their sexual orientation or gender identity (SOGI). However, there are potential benefits that come with promoting your brand as a queer-friendly one. It is important to consider these while also setting realistic expectations from this emerging niche market.

It is safe to assume that LGBT people are no different from society at large in terms of their dispersion on metrics such as age, education, economic background, income, religion and so on. What sets them apart is not just SOGI, but also their spending – and saving – behaviour. That, and to some extent their ‘look West’ policy for attitudes (towards society and the individual’s place in it; relationships; human rights) and popular culture (TV shows, for example). (Instead of labelling it ‘Westernisation’, it may be more apt to term it the evolution of a global identity, a process that is clearly not limited to the LGBT community. However, that’s a different debate.) A crude comparison for our purposes may be the perceived Western outlook of the Parsi community.

Money, money, money: One of the chief reasons to be upbeat is, of course, money. It is not that this ‘community’ comprises individuals with higher-thanaverage incomes, but more disposable income. And, they are good spenders – especially on clothes, gadgets, travel, grooming, alcohol, entertainment and so on.

spread of social media are starting to coalesce LGBT people into a group that often thinks and acts alike.

Note the popularity of Blackberry phones (because of Blackberry Messenger), at least among the more avid networking and sexually active set. This sense of confidence and community can only increase with the legal and social reform that is inevitable.

Leaders, not followers: Not every LGBT person is a style diva. However, the LGBT community creates trends rather than follows them. Many LGBT people are early adopters, be it technology, fashion or music.

More importantly, they are excellent at networking and influencing. This should make them a good audience to test new products and services.

Brand loyalty: Perceptions matter in the LGBT community. If your brand is seen as ‘LGBT friendly’ (for instance, supportive of equal opportunity at the workplace), then you are on the ‘gaydar’. How much love you receive depends on the friendliness ranking.

If you are perceived negatively, however, be ready to face the music. The community can lobby, and how.

Examples of this abound in the developed world but closer home, TV9 had to face the heat for a homophobic

Growing numbers: No, homosexuality is not infectious.

What is spreading is confidence. More people than ever are ‘out’ and choosing to lead a gay lifestyle – they prefer to remain single rather than cave in to societal pressures to get married. They stay independent of their parents and siblings, or possibly migrate to a metro and are bolder in their career and economic choices.

This confidence comes from a mix of factors such as decriminalisation of homosexuality, globalisation, the growth of the internet and social media and a younger demographic profile. This sense of confidence and the 18

Photo by lighttripper on flickr

story by its Hyderabad bureau. It had to cough up a fine of Rs 1 lakh ($1,800) to the National Broadcasters’ Association and run an apology for three days. Another example: the makers of ‘Dostana’, a film that was praised but mostly panned for its gay quotient have clarified that the sequel will be more positive. They are busy trying to push the stars of their new releases as ‘gay icons’ – a term much abused in Indian journalism, incidentally.

The stronger sense of allegiance probably comes from the stigma and marginalisation faced by the LGBT community. So, generally speaking, if you are starting a queer-run business, then you should receive at least an initial wave of support to help you take off.

Having said that, look before you leap. Profit is a legitimate pursuit if the means and the intent are legitimate too. It is better to have no pretence of being LGBT-friendly or venture into this market if you don’t have the strength of your conviction.

There is value judgement around issues of SOGI still, and there always will be. It is difficult to imagine a time when there will be a Utopian embracing of human diversity by 100% of the world’s population.

Even countries that have made progress in bringing laws for equal treatment of every citizen see cases of homophobia, often violent. Human beings judge each other – and brands – according to their personal understanding of morality. Some of that good and bad halo will be attached to your brand as well. Gutsy brands wouldn’t care, not just because boldness expands the market – and money has no colour – but because they believe they are doing the right thing.

Photo by nickjohnson on flickr

The question of the size of the LGBT market is the most contentious one. How many LGBT people are there, even the Supreme Court, which is hearing appeals against decriminalisation of homosexuality, wondered recently (as if that should be a deciding factor, with all due respect to the honourable judges).

The hair-splitting over statistics is tied deeply to the question of identity. Sexual behaviour and identity is not set in stone; sexual orientation at least is a continuum.

Some days you might be at one end of the scale and on other days at the opposite end (the two ends being exclusive attraction to the same sex and exclusive attraction to the opposite sex, with a range of bisexuality in between). If there are no neat boxes to put people in, how do you count them?

Then, some people dislike the various current terms, some dislike being labelled and many more are scared to identify with any label because of the stigma and discrimination. Any surprise then that there is no reliable estimate of the LGBT population?

What has emerged so far is that the percentage of exclusively gay men and women who are sexually active could be 2%-10%. However, the percentage of sexually active bisexuals is believed to be much higher at 35%45%. Also, while estimating the market size, you need to include the wider set that is not sexually active. How much these numbers translate into money is anyone’s guess but OutNow Consulting, which is not based in India, recently estimated it at $200 billion annually, based on 6% of the country’s GDP, assuming that percentage of the population are LGBT adults.

Photo by nickjohnson on flickr

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This percentage probably represents the potential, an opportunity that can be exploited in the best conditions, not current ones. If there was already as huge a market, as OutNow estimates, then queer-run businesses targeting it mainly should have been able to ride out the poor conditions of rising rentals, inflation and high interest rates that are afflicting the economy in general.

A $200 billion market will be up for grabs but only with greater legal reform, change in societal attitudes, further penetration of the Internet and the first movers in the market.

alise g e l o t e l t t a The b India n i y t i l a u x e homos ghttripper

Photo by li

on flickr

2011

Naz Foundation, an NGO fighting for gay rights, files public interest litigation (PIL) seeking legalisation of gay sex among consenting adults

September 2, 2004

Delhi High Court dismisses PIL, activists file review petition

November 3, 2004

Court dismisses review plea

December 2004

Gay rights activists approach Supreme Court

April 3, 2006

Supreme Court directs Delhi High Court to reconsider the matter

October 4, 2006

Delhi High Court allows right-wing politician BP Singhal’s plea, opposing decriminalising gay sex, to be impleaded in the case

September 18, 2008 Government seeks more time after the contradictory stands taken by the home and health ministries. Court refuses plea, final arguments begin September 25, 2008 Activists say government cannot infringe upon fundamental right to equality September 26, 2008 Court pulls up government for speaking in two voices on the homosexuality law September 26, 2008 Centre says gay sex is immoral and the reflection of a perverse mind, and its decriminalisation would lead to moral degradation of society October 15, 2008

High court pulls up the Centre for relying on religious texts to justify ban on gay sex, asks it to come up with scientific reports

November 2008

Government, in a written submission before the court, says judiciary should refrain from interfering in an issue that is for Parliament to decide

Nov 7, 2008

High court reserves verdict

July 2, 2009

Court legalises gay sex among consenting adults

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