Insights on the Lesbian Gay Bisexual and Transgender (LGBT) movement in India, its evolution, and the community’s potential as a consumer segment. It also details the opportunities and challenges before marketers, as well as the sectors that have tapped this market, and examines the lessons this holds for other businesses.

1. Out Of The Closet
And Into The
Marketplace
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2. MSLGROUP India is the nation’s largest PR and multinational and Indian corporations since 1989 and
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2

3. CONTENTS
TABLE OF CONTENTS Page
1. Executive summary 04
2. How a court ruling might unleash societal change 05
a.
A struggle ends
b. The times, they are a-changin’
3. The gay revolution and the business opportunity 07
a. is a ‘pink’ business?
What
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’ 14
a. Know the market
b. Things to remember
c. Success stories
5. The path to profit, paved with conviction 18
6. The battle to legalise homosexuality in India 20
3

4. Executive
summary
gspot.com
en from lollitop.blo
Photo tak
The gay rights movement came into sharp focus in the hesitancy across product categories. Indian companies,
1950s when there was a homophobic purge across he pointed out, are wary of the societal reaction to
the US State Department. Since then, the Lesbian advertisements and allied promotional activities focused
Gay Bisexual and Transgender (LGBT) community has specifically on the gay segment.
travelled a long road – gay people can now serve in the
military, several anti-gay laws have been struck down Jaideep Shergill, CEO of MSL India, felt that the biggest
and President Barack Obama has come out in support of challenge is “the government itself”. “The court ruling
same-sex marriage. was the first step in a long journey. The government
now needs to support the community by ensuring
The LGBT community is asserting itself politically discrimination recedes and its potential is unleashed. But,
and socially. Obama’s statement and his volunteers remember, real change takes time,” he said.
fanning out across gay pride parades in June 2012
seeking votes are recognition of the LGBT community’s Kapoor nevertheless identified segments such as spas,
electoral power. These were important milestones for a tourism and hotel packages targeted at gay clientele as
movement that has gone through a 60-year evolution in ones that have tasted success.
the US, though the struggle is far from fruition. Indeed, agencies such as Reuters have reported that
In India, meanwhile, the movement is only nascent India is emerging as a global hot spot (‘Conservative India
but got a boost in 2009 when the Delhi High Court unlikely hotspot on gay tourism map’, January 26, 2012).
decriminalised homosexuality. Since then, the LGBT In addition, overseas marketing consultants and
community has been expressing itself in a social and multinational corporations are taking a long-term view
political context – transgender candidates have begun on the Indian LGBT market.
contesting, and winning, elections – and is looking to
satisfy its consumerist aspirations. Ian Johnson, CEO of London-based consultancy
OutNowConsulting.com, told Facenfacts.com that its
After the court ruling, studies found, the LGBT sheer size makes India an attractive market. He pointed
community is finding its voice in society and is being to the growing purchasing power of the Indian LGBT
discovered by marketers – in an urban framework community. His consultancy has been conducting
for the time being – as an attractive market. The surveys across the globe on the product and lifestyle
economic power of a community thus far ostracised and choices of gay people and advises multinationals such
economically marginalised is being unleashed. as Lufthansa, IBM, Toyota, Citibank and Barclays on
Apparel stores and travel firms targeting gay people, catering to this category of consumers.
as well as event organisers and bookstores, are setting The issue here, all observers are quick to caution, is not
up shop. Even if the ultra-conservative estimate putting whether these businesses in India are profit-making or
India’s gay population at 20 million is true, a sustainable that the LGBT economy is large, but the fact that such
market is waiting to be exploited. businesses are being established and the foundation for
While in the West products and services are targeted a ‘pink economy’ is being laid.
specifically at the gay population, in India this is being
done only now. $500 billion
Jagdeep Kapoor, managing director of Samsika Global LGBT market, according to a Gba.org.
Consultants, a marketing consultancy, said the progress uk study. A report on Business.com estimated
would be understandably slow because of the strong it at $600 billion
4

5. Might
How A Court Ruling
ange
Unleash Societal Ch
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inbowrays.blogsp
en from ra
Photo tak
July 2, 2009, may go down in history as the day Indian The first step towards eradicating the prejudice that has
society reached a tipping point. A Delhi High Court existed in Indian society for more than a century against
ruling that day read down Section 377 of the Indian the gay community had been taken.
Penal Code, decriminalising same-sex behaviour among
Homosexuality had been illegal since 1861, when the
consenting adults and unleashing celebrations among
British introduced a law prohibiting “carnal intercourse
the LGBT community.
against the order of nature with any man, woman or
The foundation the ruling laid for a change in attitudes animal”. The law, Section 377, has long been viewed,
towards the gay community was also the groundwork depending on which side you’re on, as an archaic
for a more subtle, unseen revolution. As the LGBT colonial holdover or a necessary tool to “protect Indian
community revelled in its newfound legal acceptance, culture”.
it began to look for ways to assimilate into society
While Indian society has, by and large, adopted a
and fulfill its economic potential. Gay entrepreneurs
don’t-ask-don’t-tell attitude to sex, the more liberal
and businesses pushed for a louder voice, as did gay
mores unlocked by economic growth and the digital
consumers – many of whom have substantial spending
destruction of boundaries are changing outlooks.
power.
The liberals are quick to point out that there is sufficient
The mainstreaming of a marginalised community
archaeological evidence of same-sex ties existing in
began, and an environment for the unleashing of its
ancient India – the homo-erotic carvings in the temples
consumerist aspirations was born.
of Khajuraho, Konark and Puri are well known, while the
Kamasutra mentions several homosexual positions.
A struggle ends
Nevertheless, society over the last century has been
The public interest litigation (PIL) against Section 377
discriminatory towards the gay community; the frequent
had been filed by the Naz Foundation (India) Trust in
absence of family support is a concern too. One of
2001. It argued that the law violated the right to life and
the consequences of this was the suppression of the
liberty.
community’s economic aspirations.
Delivering the landmark ruling, the judges wrote in
Homosexual conduct, the court recognised, was deeply
their 105-page decision: “The inclusiveness that Indian
personal, a way to achieve sexual happiness for a certain
society traditionally displayed, literally in every aspect
kind of individual. It follows, that an individual that is not
of life, is manifest in recognising a role in society
persecuted by the state is happier and contributes more
for everyone... Those perceived by the majority as
to the economy and community than one who is the
‘deviants’ or ‘different’ are not on that score excluded or
target of agencies such as the police.
ostracised.”
Chief Justice AP Shah and Justice S Muralidhar The times, they are a-changin’
declared: “Consensual sex amongst adults is legal,
A September 2011 study by the Humsafar Trust – a non-
which includes gay sex...” The old law, they said, violates
profit that works with the LGBT community on matters
Article 14 of the Constitution, which guarantees all
related to rights, health and counselling – assessed the
people “equality before the law”; Article 15, which
changes perceived by the community and stakeholders.
prohibits discrimination “on grounds of religion, race,
caste, sex or place of birth”; and Article 21, which The study, ‘IPC Section 377: Aftermath of Reading
guarantees “protection of life and personal liberty”. Down of Section 377’, which was supported by the India
5

6. HIV/AIDS Alliance, found that LGBT people felt more University Vice-Chancellor Deepak Pental said after the
comfortable about their sexuality after the court ruling court ruling: “The world has changed, and we will have
and that the persecution had decreased. to move along.”
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
44 and 58
more positive LGBT portrayals in the media (58% and Percentage of male and female respondents
40% respectively). Transgender participants (98%) said respectively in a Humsafar Trust study who said that
that they perceived other community members as being other people were more open to discussing sexuality
more approachable. and sexual differences after the reading down of
Section 377
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%,
58 and 40
transgender 65%). Male participants felt that they Percentage of male and female respondents
perceived friends (42%), family (39%) and police (35%) respectively in a Humsafar Trust study who said that
as being less discriminatory. Female respondents, there were more positive LGBT portrayals in the media
however, only perceived less discrimination from friends after the decriminalisation of homosexuality
(22%). Transgenders felt that the police (86%), sexual
partners/clients (56%) and friends (42%) were less
discriminatory after the judgment.
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 sub-
economy that caters to the LGBT community. As Delhi
Photo by nickjohnson on flickr
6

7. And
The Gay Revolution
nity
The Busin ess Opportu
‘Now to be gay or lesbian is not simply a statement of an untapped market and will see a boom in the times to
sexuality, but a statement of lifestyle: it defines what come,” Manish, who organises gay parties in Delhi, told
clothes you wear, what magazines you read, what ‘The Indian Express’ newspaper.
furniture you have, or what vodka you drink.’
Among the leading party organisers are Gay Bombay,
Peter Morgan, in the ‘International Socialist Journal’ Gossip and Bird Cage in Mumbai, and Pink Party in
Kolkata. Their offerings range from parties in popular
The decriminalisation of homosexuality didn’t only
night spots, to picnics and movie screenings. Richa
mean that the LGBT community could declare its
Kaul Padte reported on the blog Ultraviolet.in that the
sexuality without fear of persecution, it also marked the
“growing demand for queer social spaces has also led
beginning of a gay market, dubbed the ‘pink economy’.
establishments such as Delhi-based Pegs n Pints and
India is witnessing the establishment of fashion Mumbai’s Banana Bar to organise regular nights for their
lines, clothes stores, bookstores and travel services LGBTQ patrons”.
specifically targeting the ‘pink rupee’.
Among the leading apparel and accessories stores,
The size of the market and its spending power is not there is D’Kloset in Mumbai and Azaad Bazaar that
lost on entrepreneurs. While the government claimed started in Mumbai but later shifted to Goa, while Indja
in the Supreme Court that India has 2.5 million gay Pink and Le Passage to India offer travel services.
people, other studies report between 2% and 13% of the
Fiji-Indian Shobhna Kumar, who launched India’s first
population being gay – that is, 20 million to 130 million.
online gay literature store, www.queerink.com, told
The perception is that many gay people have large ‘The Indian Express’: “[The store is] an attempt to create
disposable incomes, often based on the assumption a comfort zone for people who want to access queer
that they don’t have spouses or children to support. literature and find it difficult to pick up such books in a
In India, where the rights movement is only just normal bookstore. It’s about empowering and informing.
becoming high profile, many feel that a pink economy The LGBT community wants to see their lives reflected
will lead to greater visibility of the gay population and in fiction.”
help in its assimilation into the mainstream. Kumar, who had worked for the rights of the LGBT
For the moment, these businesses exist only in urban communities in the US and Australia, felt Indian
areas where they are likely to gather a critical mass of youngsters were more confident and open about their
customers and where their marketing investments are preferences now.
likely to generate greater returns. As Shergill, of MSL There has been a distinct impact of the court ruling on
India, said: “In terms of the market, if you exclude the the arts and culture scene too. There was a spate of
big cities, it is very difficult to establish a pink business.” films that featured gay characters, including some in
Party services are doing well now that they are free popular cinema. Dharma Productions’ ‘Dostana’, for
from the spectre of police harassment. While they instance, addressed LGBT issues but was also criticised
have existed for years, they kept a low profile and their for caricaturing gays. ‘Dunno Y… Na Jaane Kyun’ had
operations were frequently disrupted by law enforcers. central gay characters, while film festivals showcased
As a result, their growth was limited. gay films from around the world.
“I organise five to 10 gay parties a month [now]. More
people are coming out and accepting their identity. It’s
7

8. “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
Even if the government’s claim that India is home to 2.5
2.5 million million gay people – a conservative number, say most
Number of gay people in India, according to activists – is to be believed, that’s enough of a consumer
the National Aids Control Programme. This base for a small- to medium-sized market.
number is disputed by activists, who say that As MSL India’s Shergill pointed out, “Any demographic
between 2% and 13% of the population is gay – homemakers, single women, the LGBT community
– that is, 20 million to 130 million – consumes various products and services.” The
implication being that, if targeted well, any consumer
‘Pink’ business, grey area segment can deliver business results.
As Kaul Padte pointed out, “it is difficult to estimate Some observers believe that sexual identity could be
the scale of the pink economy within the country, given used by marketers to create a lifestyle in the same way
that the scattered businesses and initiatives are yet that the post-feminism purchasing power of women
to be collated into a comprehensive survey. However, provided the launchpad for fashion lines, phones (many
attempts to do so will have to first question what exactly telecom firms introduced devices targeted specifically at
it is that makes a business ‘pink’”. women) and even sex aids.
Indeed, the parameters for the definition of this market Kumar, of Queer Ink, felt that while the pink economy
are grey. Is a ‘pink’ business one that caters only to gay has made a good beginning it is still largely untapped in
people? Or is it one that does not discriminate within the the country. “It still targets [mainly] foreigners and will
workplace? Or one that offers the same level of service take time to get Indian customers,” she told ‘The Indian
irrespective of sexual orientation? Express’.
What is clear is that these businesses are a testimony She told Kaul Padte: “The whole queer movement
to the persistence and resilience of the gay rights arose out of grassroots-level activists – who still go to
movement and the community’s burning desire to be the police to get permissions, are visible on the road
counted as an economic force. marching… So they also make up a power base in terms
of your everyday retail consumer. But we don’t see
Many of the owners feel close to the cause. Kaul them as a [pink] retail consumer, because they don’t
Padte wrote that Azaad Bazaar, for instance, is buy books, because they don’t go on holiday. But they
8

9. 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.”
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 –
Photo by lighttripper on flickr rather than its activist role – will guide its journey. Its ties
to the movement that spawned it may well weaken.
go to your kirana (grocery) store and buy rice and dal The gay factor in arts and culture
to support their families. So yes, the BPO-working,
In 1982, pioneering Marathi filmmaker Jabbar Patel
English-speaking gay guy comes to my shop to buy
made ‘Umbartha’ (Threshold) about lesbianism in rural
books, and is able to spend Rs 3,000 – so is that then
India at a time when homosexuality was taboo even in
the qualification to be part of the pink rupee?”
private conversations.
The implication is clear: The pink economy is in danger
There were, however, few that took the film’s lead, until
of leaving out large swathes of the gay community
1996, when Deepa Mehta released ‘Fire’. The film, about
simply because it does not cater to their needs or
two women falling in love after finding themselves in
because it exists only in affluent, urban enclaves.
loveless marriages, raised a storm of controversy and
No wonder, then, that journalist Vikram Doctor, a well- protests, many of them violent.
known 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.
“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 Photo by twitter.com
feminist and queer activist, told Kaul Padte. Onir, director of ‘I Am’
9

10. “The subject of homosexuality has been handled far uncensored screening of films. “That’s a big thing,”
more maturely in regional cinema like Malayalam or Rajan Ramchandani, a gay former investment banker
Marathi rather than in popular cinema, merely because attending the festival, told AFP. “Five to seven years ago,
these films placed the problem in a social, everyday people wouldn’t have been talking about homosexuality.
milieu,” film critic CS Venkiteshwaran told Reuters. He It was taboo. But now, through the media and other
recalled two Malayalam films, ‘Rendu Penkuttikal’ (Two forms of communication, it’s much easier for people to
Girls) and ‘Desadanakkili Karayarilla’ (Migratory Birds accept.”
Don’t Cry), which treated homosexuality in a matter-of-
Among the films screened was ‘I Am’, which follows
fact manner.
the lives of four people, including a gay man who lives
Indeed, gay themes and popular Hindi cinema, or in fear of blackmail. The film was directed by Onir, who
Bollywood, kept their distance but that seems to be had earlier made the critically acclaimed ‘My Brother...
changing. In 2003, the hit ‘Kal Ho Naa Ho’ featured a Nikhil’, about the stigma surrounding HIV and prejudice
gay humour theme and in 2008 ‘Dostana’ portrayed two towards gays in India.
men who pretend to be gay so they could rent a house
Actor Rahul Bose, who starred in ‘I Am’, said the festival
with a woman.
was part of the “new history” of India. “It would have
More importantly, in 2010 – less than a year after the been inconceivable for mainstream cinema to do this
court decriminalised homosexuality – India got its first five years ago,” he said.
mainstream gay film. Organisers hailed it as a sign of
progress after years of discrimination. Economics and the argument for a pink market
The four-day ‘Kashish’ Mumbai International Queer Urban theorist Richard Florida provided an economic
Film Festival showcased 110 films from 25 countries dimension to the discussion on gay rights during an
at a leading multiplex chain and the Alliance Francaise interview to Bigthink.com. Referring to social and
cultural organisation. This was a big leap for the cultural characteristics of societies with regard to
conservative Indian cultural scene, though such events diversity, he said: “[The] tolerance dimension – this
were common in western countries. social and culture dimension – is not just something we
do because it’s right and it’s ethical and it’s moral and
The festival organiser, Vivek Raj Anand, told AFP: “There
it’s the right way to treat people. We’re going to find
have been gay film festivals before, but this is the first
that these social and cultural factors really add a lot to
gay film festival in the mainstream.”
economic growth...”
The Information and Broadcasting Ministry did its
bit by giving its approval for the festival and the
Photo by nickjohnson on flickr
10

11. 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.
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
A still from ‘Dunno Y’... might have upset heterosexual staff. Now it probably
won’t. But failing to treat gays equally is very likely to
He pointed out that what made America great was drive them to seek employment elsewhere. Since they
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.
“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 self-
expressive... 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. Smita Patil starred in ‘Umbartha’
11

12. 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 The UK experience
Work-Life Policy in the US tried to quantify the benefits A study on Gba.org.uk estimated that around
of being gay-friendly. They found that 47% of gays who 1.5% of the British population is openly gay.
went public with their sexuality said that they trusted Overall, the gay population is probably around
their employers, compared with 21% who hadn’t gone the 6% mark. Even though it’s a relatively small
public. chunk of the market, it has incredible spending
It’s clear that you’re unlikely to perform well if you have power – an estimated £6bn (nearly $10 billion) a
to conceal what you are. year – said the study.
The ‘pink pound’ reflects the financial clout of
the LGBT communities. Despite the economic
86 troubles and a depressed job market, the
group still earns 23% more than the national
Percentage of Fortune 500 firms that now ban average, spending around a third of its income
discrimination on the basis of sexual orientation, up on entertainment and lifestyle products, said the
from 61% in 2002, according to a study conducted by study.
the Human Rights Campaign, a US-based non-profit
agency The financial stability of this demographic is
linked to freedom from traditional commitments,
such as children, said analysts tracking the
50 segment.
On a global scale, the study said, the LGBT
Percentage of Fortune 500 firms that also ban market would be around the £350 billion (nearly
discrimination against transsexuals, compared with 3% $500 billion) mark.
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.
12

13. 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.
“‘Legalize Love’ is a campaign to promote safer
Gay + Groupon = conditions for gay and lesbian people inside and
outside the office in countries with anti-gay laws,”
Gaypon said a Google statement.
Google is frequently upheld as an example by
Gaypon, which launched in 2011 in Detroit, gay rights groups for its workplace policies, which
operates much like Groupon, offering limited- include full benefits for same-sex partners. It also
time deals on goods and services. But, it only made 2012’s ‘best places to work’ Human Rights
sells coupons from entrepreneurs and firms Campaign list.
known to be gay/lesbian-friendly.
A Google spokesman said the campaign’s focus is
From holiday deals to discounts on dips and on human rights and employment discrimination.
mixes, Gaypon has it all.
“We see this fundamentally as an issue of
equality,” wrote Google co-founder Sergey Brin on
the company’s blog.
13

14. Tapping the
t’
‘pink marke
on flickr
ghttripper
Photo by li
Shielding themselves from social stigma, India’s gay Jerry Johnson, a marketing professional and TEDx
people lived double lives – one for the world and one speaker, said: “It is important for marketers to
in which they were true to themselves – for the longest understand that the LGBT community is not just about
time. Today, thanks to aggressive activism, growing sexual orientation. Our identities can also be identified
awareness and an increasing number of LGBT people with our interests. For any campaign to appeal to us, it
coming out of the closet, a new world has opened up should stay away from stereotypes and clichés. It would
for them. They are now carving out their space as niche be best to keep it normal and inclusive. The Benetton
consumers, giving marketers a new target group. ‘Unhate’ campaign was a great one as it had a simple
message and yet had a strong impact. It conveyed that it
Smart marketers are taking note of this newly-
is OK to be different. GAP too had a campaign that had
empowered community. A report on Business.com said
two men wearing one shirt. These are big brands that are
that gays and lesbians spend more than $600 billion
trying to be inclusive and we appreciate that.”
every year across the world. They’re a business owner’s
dream because they are: Marketers have also identified that the LGBT community
as an opportunity for gadget makers. Marketers are
» Affluent: The average annual income for a gay
reaching out to them through social media, smart
household is $61,000, 20.4% higher than a
phones and other new media. Gay web portals are a
heterosexual household’s, said the website
great marketplace and have a captive audience.
» Educated: About 83% of gays and lesbians have
“Social media is the biggest tool; we are very active
either attended or graduated from college
online. There are several online groups, websites and
» Loyal: Approximately 89% of gays and lesbians are social forums that attract huge traffic,” said Johnson.
brand-affiliated and are highly likely to seek out “The internet gives customers the luxury of privacy.
brands that advertise to them 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 tailor-
Oreo was among the brands that was openly pro-gay
made platform.
14

15. We become very loyal to corporations that advertise realise that, at the end of the day, it is a business
on our mediums and we also become their advocacy transaction and that they need to give customers the
customers.” best possible service,” said Johnson. Shergill added:
“The only tip I would give marketers is to treat them
Apple, for instance, has several apps that help the
like other consumers. The more differently they are
community connect with a wide network. Apple’s
treated, the more the stigma is likely to remain.”
DowneLink provides a space “for Downe (LGBT) people
and their friends to exchange ideas, build friendships,
and utilise local and nationwide services”. The app
Success stories
offers features such as social networking, blogs, While undoubtedly nascent, India’s pink economy has
e-mails, bulletins, forums, video/audio chat and instant already tasted success. There is no market study, but
messaging. It also has ‘365gay News’, which provides a entrepreneurs and observers have said that sectors such
space for LGBT people to stay abreast of current news as tourism and apparel are catching on.
and happenings in the world.
A journey of a thousand miles…
The keys to success The pink rupee is finding its way into the bank accounts
of travel companies catering to a gay clientele. Firms
» Understand the segment: In Johnson’s estimate,
like Indjapink, Le Passage to India and Bangkok-based
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.
» 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 Photo taken from lepassagetoindia.com
opportunities in the LGBT space. Johnson explained
that the gay people are eager to reach out and Purple Dragon are leading the race. The tours cover
connect to others like them. “We spend a lot of time everything, from honeymoon packages and candle-lit
on the internet, on long-distance phone calls and dinners to wildlife safaris and spiritual retreats. Some
BlackBerry Messenger groups. Domestic travel is tour companies have even conducted weddings with
another strong market. We love to travel and meet traditional rites for gay couples.
other members of the community,” he said. Since The packages are mid-range to luxury and most of the
many gay couples have no children to support, clientele comes from the US and Australia. Though
their disposable income is high – something the most agencies cater to only men, there are indications
automobile industry also recognises. Furnishings that lesbians in North America are interested in the
and home décor are important segments too. country too.
» Be sensitive and inclusive: Being flashy does not “India is high on the wish-list of many customers. The
always grab eyeballs. It is the approach and attitude big attractions are history, culture, cuisine, shopping...
of marketers that can make or break a business when We are happy about the Delhi High Court ruling and
it comes to a niche market. “Gay-friendly businesses this might put some of our prospective India customers
don’t need to spell that out. It is in the attitude. For at ease,” Douglas Thompson, MD, Purple Dragon, told
instance, at hotels and restaurants, it is important ‘The Indian Express’. Purple Dragon sends 200 to 250
that the staff are trained and sensitised. They need to customers to India every year.
treat customers with respect. Owners and managers
15

16. 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.
Set up in 2009 in a garage, AzBaz – as it was popularly
known – was the brainchild of Simran and Sabina (they
Photo taken from indiapink.com 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
Delhi-based Indjapink specialises in gay tourism. “We designed – it doubled up as a coffee shop, where gay
create tours for the gay community, offering them people hung out, sipped tea and chatted. It was as much
outstanding personalised service and make them a community house as a retail store.
experience India in a discrimination-free atmosphere,”
founder Sanjay Malhotra said. He felt that the reading “A lot of people came in with their parents, and they
down of Section 377 had liberated the community from usually come up to us with an awkward ‘hello’ but often
discrimination and abuse. end up in conversations ranging from the polite (‘So,
how is the store doing?’) to the personal, about how they
Malhotra told Reuters that his firm started off with 20 felt when their child came out to them,” Sabina told the
gay customers, but now has more than 100. ‘DNA’ newspaper.
“They feel they can breathe easy, live the life they The store – which has now moved to Goa – also
want to. After the court order, we started getting more hosted book readings, film screenings and community
inquiries from gay men, both in India and abroad,” he meetings. “When we were younger, the community was
added. 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 Photo taken from azaadbazaar.com
16

17. 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. Consumers with a voice
Gay undertones have been attributed to iconic
Oreo cookies posted an LGBT-friendly image on
characters such as Batman and Wonder Woman
its Facebook page on June 25, 2012, sparking off
since at least the early 1950s. In 1954, for
a debate on gay pride as a business strategy in
instance, Dr Frederic Wertham blamed comics
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.
17

18. ved
The path to profit, pa
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 spread of social media are starting to coalesce LGBT
because of their sexual orientation or gender identity people into a group that often thinks and acts alike.
(SOGI). However, there are potential benefits that come Note the popularity of Blackberry phones (because
with promoting your brand as a queer-friendly one. It is of Blackberry Messenger), at least among the more
important to consider these while also setting realistic avid networking and sexually active set. This sense of
expectations from this emerging niche market. confidence and community can only increase with the
legal and social reform that is inevitable.
It is safe to assume that LGBT people are no different
from society at large in terms of their dispersion on Leaders, not followers: Not every LGBT person is
metrics such as age, education, economic background, a style diva. However, the LGBT community creates
income, religion and so on. What sets them apart is trends rather than follows them. Many LGBT people
not just SOGI, but also their spending – and saving – are early adopters, be it technology, fashion or music.
behaviour. That, and to some extent their ‘look West’ More importantly, they are excellent at networking and
policy for attitudes (towards society and the individual’s influencing. This should make them a good audience to
place in it; relationships; human rights) and popular test new products and services.
culture (TV shows, for example). (Instead of labelling
Brand loyalty: Perceptions matter in the LGBT
it ‘Westernisation’, it may be more apt to term it the
community. If your brand is seen as ‘LGBT friendly’
evolution of a global identity, a process that is clearly
(for instance, supportive of equal opportunity at the
not limited to the LGBT community. However, that’s a
workplace), then you are on the ‘gaydar’. How much love
different debate.) A crude comparison for our purposes
you receive depends on the friendliness ranking.
may be the perceived Western outlook of the Parsi
community. If you are perceived negatively, however, be ready to
face the music. The community can lobby, and how.
Money, money, money: One of the chief reasons
Examples of this abound in the developed world but
to be upbeat is, of course, money. It is not that this
closer home, TV9 had to face the heat for a homophobic
‘community’ comprises individuals with higher-than-
average incomes, but more disposable income. And,
they are good spenders – especially on clothes, gadgets,
travel, grooming, alcohol, entertainment and so on.
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 Photo by lighttripper on flickr
18

19. 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 Photo by nickjohnson on flickr
community. So, generally speaking, if you are starting a
queer-run business, then you should receive at least an The question of the size of the LGBT market is the most
initial wave of support to help you take off. contentious one. How many LGBT people are there,
Having said that, look before you leap. Profit is a even the Supreme Court, which is hearing appeals
legitimate pursuit if the means and the intent are against decriminalisation of homosexuality, wondered
legitimate too. It is better to have no pretence of being recently (as if that should be a deciding factor, with all
LGBT-friendly or venture into this market if you don’t due respect to the honourable judges).
have the strength of your conviction. The hair-splitting over statistics is tied deeply to the
There is value judgement around issues of SOGI question of identity. Sexual behaviour and identity is not
still, and there always will be. It is difficult to imagine set in stone; sexual orientation at least is a continuum.
a time when there will be a Utopian embracing of Some days you might be at one end of the scale and
human diversity by 100% of the world’s population. on other days at the opposite end (the two ends being
Even countries that have made progress in bringing exclusive attraction to the same sex and exclusive
laws for equal treatment of every citizen see cases attraction to the opposite sex, with a range of bisexuality
of homophobia, often violent. Human beings judge in between). If there are no neat boxes to put people in,
each other – and brands – according to their personal how do you count them?
understanding of morality. Some of that good and bad Then, some people dislike the various current terms,
halo will be attached to your brand as well. Gutsy brands some dislike being labelled and many more are scared
wouldn’t care, not just because boldness expands the to identify with any label because of the stigma and
market – and money has no colour – but because they discrimination. Any surprise then that there is no reliable
believe they are doing the right thing. 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.
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
Photo by nickjohnson on flickr in the market.
19

20. lise
The b attle to lega
ndia
homos exuality in I
on flickr
ghttripper
Photo by li
2001 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
20

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