Pink Pounds/Dollars

The pink pound, or pink dollar, refers to the spending power of the lesbian, gay, bisexual, transgender (LGBT) community in Britain, the United States, and other countries. In Britain, the value of this market has been estimated at £10 billion, while in the United States it is estimated to be in excess of $600 billion. The relationship between gay and lesbian consumers and the market can also be called the pink economy. A pink economy is most developed in democratic nations in which homosexuals have gained increased levels of legal equality and social integration. In countries or regions where homosexuality remains criminalized or where strong social or religious pressures marginalize or even condemn homosexuality, the pink economy, if it exists at all, remains small and largely underground.

[Page 1093]Commercial interest in the pink economy has long been based on the perceived affluence of gay and lesbian consumers, particularly that of homosexual men. With households that often include two incomes and are less likely to include children, gay men and lesbians have been found by successive marketing surveys to have higher discretionary incomes and to spend more on social and leisure activities and on consumer goods. Homosexuals are also characterized as early adopters, technologically savvy consumers eager to explore new products and services. They are also associated with high levels of brand loyalty, particularly to businesses that have demonstrated support for gay and lesbian causes. Advertisers may seek these consumers by creating ads that include homosexuals, speak to uniquely gay and lesbian issues and concerns, or appear in media directed at the LGBT community.

Historical research suggests that a nascent pink economy existed from the late-nineteenth century. Appearing only in major urban centers, it remained marginal and almost completely underground, restricted to a limited number of pubs and clubs, publications, and erotica. This was the case for much of the twentieth century as gays and lesbians were forced by legal prohibition and social exclusion to hide their sexualities. In the 1960s and 1970s, however, with the advent of gay liberation, the pink economy grew to include more mainstream products and services. Increasing commercial interest in gay and lesbian purchasing power also contributed to the development of commercial and residential neighborhoods, or “gay villages,” in large urban centers. Awareness of the pink economy and discovery of this market expanded rapidly in the 1980s and 1990s as businesses sought to harness this market segment that had remained largely untapped. Clubs and bars, magazines, clothing manufacturers, and brewers and other producers of alcoholic beverages were the first to seek the patronage of gay and lesbian consumers. The pink economy has now grown in both value and acceptance to such an extent that cars, vacations, banking, and consumer goods and services of all sorts are now all directly and openly marketed to the LGBT community.

Mainstream interest in the lucrative potential of a gay and lesbian market emerged with the collapse of many legal restrictions on homosexuals, increased visibility of LGBT subcultures, and growing social acceptance of gay men and lesbians. In Britain, the decriminalization of male homosexuality in 1967 allowed gay men greater freedom to express their sexuality without the threat of prosecution. In the United States, New York's 1969 Stonewall riot by homosexuals against police raids and persecution became a national event that served to foster the sense of a shared community and identity for gay men and lesbians. These changing legal and social conditions helped create an environment that fostered the growth of self-identified gay and lesbian communities and increased public visibility. This cohesion and visibility also opened up greater opportunities for marketers and retailers to identify and advertise to the pink market segment.

...