Economy
Until a few years ago, ignored (or almost ignored) by the mass market, the 5 million homosexuals registered by Eurispes are starting to be sought after by the most important industries, from fashion to automotive, from hi-tech to tourism. Defined as "trend setters," or people capable of shaping consumption, setting trends, and influencing the choices of others, they are an attractive target. This is also because they have above-average incomes. In the United States, according to an analysis by Greenfield Online, the average gay or lesbian family has an annual income of $57,000, and the purchasing power of the homosexual community as a whole is around $800 billion annually. In Italy, a survey conducted by Gpf&Associati, the research firm of sociologist Giampaolo Fabris, on behalf of the satellite television station Gay.tv, calculated the average monthly expenditure on clothing and accessories at €332: a total of nearly €20 billion annually. And that's not all. The study reveals that 70% of Italian homosexuals own a PC, 74% surf the Internet, 88% use a cell phone (and 30% even have three SIM cards), 60% speak a second language, and 54% have a credit card. The evolution of the Italian public's perception of this target group is also evident. "Old taboos have been scaled back," Fabris explained to Economy. "In the 1970s, for 80% of Italians, homosexuality was synonymous with perversion or illness. Only for 20% was it an expression of sexuality. Today, this latter interpretation is shared by 53% of the population.".
Embarrassment is holding the media back. Problems, however, remain. Many entrepreneurs fear a price in terms of respectability, authority, and image. Thus, advertising revenue figures for media outlets specializing in this target are suffering. And, despite having increased from €25 million in 1994 to €250 million in 2003 (estimates from communications firm Kaus Davi), they are still far from the levels achieved in other countries, especially the United States, where gay advertising generates a nine-figure turnover. And there are even paradoxical cases: companies such as Fiat and Alitalia, which invest in European gay media, yet dare not appear in Italy. The first victim of this situation could be Gay.tv. The satellite channel for homosexuals owned by Xat Production, created in August 2001 by the Dutch group Corill with an initial investment of $3 million, raised the alarm in March of this year. "Advertising revenue isn't going well," said Francesco Italia, director of the network, "and the main problem is the brand. There's still the underlying embarrassment of offering Gay.tv." This problem has also been denounced by industry magazines. "Many companies remain hostile," they explain to Babilonia, the only gay magazine sold on newsstands, which boasts a circulation of 15,000 copies and last year generated revenues of around €90,000. Meanwhile, those responsible for Pride, distributed free of charge in gay clubs, are less pessimistic. "Our advertising revenue is around €24,000 a month, for a total of almost €290,000 a year. For the gay community, this is a more than appreciable result," explains Gilberto Sacchi, marketing manager of the monthly magazine, which circulates between 15,000 and 17,000 copies.
Consumption patterns are, in part, different. Abroad, on the other hand, gays and lesbians have long been considered a fully-fledged target market. And the assumption is that there exists a standard consumer package that is partially different from that of the heterosexual population. "Enough to justify targeted market proposals," Fabris specifies. And there's even a specific statistical index: the Gay Index. Developed by economist Richard Florida of Carnegie Mellon University in Pittsburgh, Pennsylvania, it can determine, along with the Bohemian and high-tech elite indices, the level of prosperity of individual cities or even nations. The equation is simple: the more places demonstrate cultural creativity, open-mindedness, and a welcoming attitude, the more they are able to attract gays, artists, and high-tech companies, with their IT experts. Creative people considered the true engine of the knowledge economy.
Thus, even in Italy, some companies are beginning to invest. Among those that have helped break the taboo on gay advertising are Pirelli (a pioneer with a 1994 commercial), Benetton, Campari, Valtur, Ikea, Sony Ericsson, and Renault. "In 2003, at the suggestion of the Saatchi & Saatchi agency, we ran a Clio commercial for gays on Gay.tv and MTV," explains Angelo Bencivenga, advertising manager for Renault Italy. "With an investment of €50,000, we achieved significant visibility.".
A 2.7 million business on the Internet. The Gay.it website is also a success. Launched in 2000, the year of World Gay Pride Day in Rome (which coincided with the Jubilee, sparking controversy, but was a financial success: €60 million in revenue), it was launched by Alessio De Giorgi, a former company executive, with an initial capitalization of €1 million. The American group Planet Out Partners participated in the 45%. A leading site in Italy and eighth in the world in its sector, it has 300,000 visitors, over 6 million page views per month, and 50,000 registered users (Carat Geoconsulting data). "We started almost for fun. The first attempts date back to 1997. "We wanted to create a gay community at a time when little or nothing existed in Italy," explains De Giorgi, who closed 2003 with a turnover of €2.7 million (up €101 million from 2002). "We provide comprehensive information services and content. Our users span all age groups, but the number of very young people is increasing," continues De Giorgi. "This is thanks to the so-called early coming out, or becoming aware of oneself and one's sexuality. While until a few years ago this stage occurred around age 24, today the threshold has lowered: 14 is the average.".
The first credit card is rainbow. Even the banking world is timidly entering this market, driven by gay people's propensity for spending. Leading the way is Finemiro Banca di Bologna (Sanpaolo Imi Group), which in 2000, in collaboration with MasterCard, issued the first credit card designed for homosexuals. It's called Rainbow, after the rainbow, the community's symbol, and it's the only one in Italy to recognize gay couples. That is, it allows cardholders to obtain an additional card for their partners without paying any fees. "The project, born on the initiative of Franco Grillini, "Rainbow, a member of parliament for the Democratic Party, started in 2000," explains Michela Manuelli, operations manager at Finemiro. "What convinced us to accept the challenge was a closer analysis of the gay world: it's made up of people with a medium-high income and a high propensity to purchase." Results, however, are slow in coming. "So far, we've issued around 1,000 cards," continues Manuelli, "but new marketing approaches are being studied. We're confident they'll work." Grillini, honorary president of Arcigay, the non-profit association with 270,000 members, is also convinced: "Rainbow has a remarkable level of loyalty: those who have chosen it have never given it back. And that's no small feat, in a market where credit card turnover is close to 25 percent.".
Services are becoming more specialized. Providing services for the homosexual community seems to be a viable option. This is also demonstrated by the experience of the Gayus association, which has been providing specialized legal advice to gays and lesbians since spring 2003. "Our work has a threefold purpose," he explains. Alberto Baliello, president of the organization, which includes 50 professionals, including lawyers and magistrates. "We promote seminars on homosexuality to raise public awareness. We provide legal advice. So far, we've tried to help around 250 people. Finally, we collaborate on drafting specific legislative proposals. An example? The Civil Solidarity Pact, which, modeled after the French Civil Partnership Agreement, aims to pass a law recognizing the reciprocal rights of de facto couples, including same-sex couples.".
Aurelio Mancuso
Arcigay also provides counseling services, but has focused on employment. "For a few years," he explains, " Aurelio Mancuso, the association's national secretary, "In collaboration with the CGIL, we have set up help desks that provide assistance to anyone experiencing sexual discrimination in the workplace. We are present in almost every region and offer concrete support to thousands of people in need. We are also considering the creation of facilities for young people abandoned by their families and for elderly people living alone, especially gay people. It's an ambitious project, and to make it a reality, we are also counting on European Union funds allocated annually to support anti-discrimination projects.".
On holiday with a top-notch agency. Greater spending power and the desire to travel abroad to live their homosexuality more freely have also boosted the specific tourism market. So much so that the first travel agencies specializing in tailoring packages for this segment of the population have begun to open their doors in Italy. According to Eurisko data, compiled for Gay.it, homosexuals, compared to heterosexuals, go on vacation significantly more often: +14%. Furthermore, they are able to spend significant sums, even 3-4 thousand euros per trip. And, although traditional agencies still dominate, gay-friendly tour operators are starting to gain ground. This is demonstrated by the experience of Zipper Gay Travel in Rome, the only Italian company to be a member of the International Gay & Lesbian Travel Association (IGLTA), the most important organization in the sector worldwide. "In 1997, we founded the first specialized agency in Italy. "The idea came to us by observing what had been happening in the United States since the 1970s: specialized tour operators doing business by offering specifically designed packages to a specific target audience and taking advantage of agreements with exclusively gay establishments," explains owner Marco Conte, who boasts growth from a few tens of millions of old lire in turnover five years ago to €300,000 in 2003 and is now considering launching a franchising project. "In our country, although increasing, there are still few gay resorts and hotels. Some locations, however, are more popular than others, starting with Taormina, Rimini, and Torre del Lago in Versilia. Most of our clients (1,000–2,000 per year) still prefer abroad, where, alongside traditional destinations such as the Canary Islands (Spain), Mykonos (Greece), and Miami (USA), more exotic destinations are gaining ground. Australia, first and foremost." The same choices are also made by customers of Out Travel, the tour operator born within the Gay.it portal, which includes 15 offline agencies and which in 2003 had a turnover of 680 thousand euros.
Leisure time: business worth 600 million. The cornerstone of gay entrepreneurship, however, remains entertainment-related activities: more than 150 gay clubs, bars, and pubs spread across Italy, around fifty nightclubs, dozens of specialized saunas, and fitness centers. In terms of hospitality, agritourism, bed & breakfasts, and purpose-built hotels are beginning to gain traction. Gay-friendly establishments, those willing to welcome gays and lesbians, are also becoming increasingly popular, perhaps by organizing specific evenings (in the case of clubs) or offering special packages (in the case of holiday villages).
However, it remains difficult to quantify the sector's turnover. There are no official figures, although operators speculate and estimate it to be worth at least €600 million for gay establishments alone. "It's a rapidly growing industry," comments Mancuso. "Homosexuals love to communicate and meet each other, and to do so, they're willing to travel miles and spend significant amounts: even a few hundred euros per night." The preferred destinations remain the major cities, with Milan and Rome leading the way. In the Lombardy capital, Via Sammartini (near the Central Station) aspires to be Italy's first gay street. Modeled after those in London and Paris, this street currently offers a disco bar, a restaurant, a sex shop, and a sauna—all specialized, of course. Glounge, the DJ bar in the Duomo area, also specializes in gay entertainment. "We opened the venue in early 2002 because we believed that the gay demographic, which represents approximately 60% of our clientele, could guarantee us a significant revenue stream even in a time of crisis," explains Sabrina Falcone, the venue's manager. In Rome, meanwhile, alongside numerous themed venues, since 2002 there has been the Gay Village, a gay entertainment fair open during the summer months that can welcome hundreds of thousands of customers.
Then there are the trendy clubs that, while mostly frequented by heterosexuals, are also a hub for the gay community. A prime example: Noy in Milan, a 700-square-meter multifunctional space divided between a bar and a restaurant. "Ours is a gay-friendly venue, targeting a medium-to-high-end clientele," explains Paolo Janni, CEO of the club, which expects to close 2004 with a turnover of €2.5 million and employ 40 people.
The gay world, however, is not just entertainment, but also culture. Two international gay film festivals are held in Milan and Turin, and there's also plenty of space for specialized bookstores, such as Babele, which has two locations, one in Milan and one in Rome, and carries over 7,000 titles on gay themes.
The US shows the way to retailers. A new area to explore, however, are shops with a gay feel. Still few in Italy, they represent an interesting niche market worth exploring.
The most prominent example is provided by the Castro Market in Milan, the only minimarket dedicated exclusively to the sale of gay products. Named after the world's most famous gay neighborhood, the Castro in San Francisco (USA), the store offers, in addition to numerous merchandise in the colors of the gay flag (red, orange, yellow, green, blue, and purple), a full range of everyday products.
The range includes underwear—mostly Calvin Klein and 2(x)ist—to clothing (Canadian brand Priapa is a popular choice), accessories, erotic products, gift ideas, and homeware. "We lived in San Francisco for three years. There are entire emporiums dedicated to the gay world. Castro Market was founded in 2000 with the idea of bringing to Italy what had already been available abroad for years," say owners Maurizio Goretti and Gino Monopoli, who closed 2003 with a turnover of €380,000, an increase of approximately €151,000 over 2002. "Business is doing well, thanks to the ever-growing interest of the gay community in these products, which they also purchase online at www.castromarket.it.".
