The LGBT As Growing Niche Influencing Business Trends

  1. Jill Andrews
  2. June 19, 2017 11:30 am

The LGBT As Growing Niche Influencing Business Trends

 

The LGBT population continues to grow significantly as states and nations put in place laws that are changing the atmosphere on a vast scale. The society is also looking at the LGBT community from a different perspective possibly coming to accept this niche as key players in various industries. The numbers reflect this aspect even better.

It is estimated that of the entire adult population in the United States, 3.4% associate with the LGBT. This translates to about 9 million people. Out of these, gay men account for 76% and 87% lesbians, while about 7 out of 1000 households are comprised of same-sex couples. It has also been indicated that 75% of LGBT are living in double-income, no kids (DINK) households. With this reflection, it is easy to understand why the LGBT comprises an important market that corporations cannot look down upon.

Although their population may not seem much to make a substantial impact on sales for any product, this population has a higher purchasing power than several other segments of the US population. Compared to Hispanics and African Americans, the purchasing power of LGBT is four times over, while it is double that of the Asian Americans. In 2015, the purchasing power for African Americans stood at $1.2 trillion, while that of Hispanics totaled $1.3 trillion and that of the Asian community amounted to $825 billion.

The president of the National Gay & Lesbian Chamber of Commerce, Justin Nelson observed that the diversity of the LGBT lies in their rich ethnicity outreach and socioeconomic status, while they become extraordinarily loyal to brands. This has been underlined by the partnership the chamber has had with more than140 bodies. The chamber is good access to the gay directory and the larger LGBT society.

When marketing to the LGBT, efforts must be made to sell to individual clients, as opposed to throwing a blanket target on the entire market. Treat every person on the gay directory or the lesbian forum separately in consideration to factors such as belief, ideas, values, preferences and so on. This calls for analysis into their general lifestyle about age, occupation, marital status, family size and so on. Noting that they are indeed loyal clients, it helps to anticipate their purchasing trends.

A few characteristics make this niche market an interesting one to study. First of all, they are loyal, second, they buy more frequently and thirdly they spend larger amounts. But they also have considerations that will determine their association with a given organization. Companies that show the diversity and equal treatment will attract 55% of LGBT consumers, while 70% of LGBT adults do not mind at an overprice a product developed by a company which offers them support.

It is evident that marketing to this group of society requires an understanding of their world at large. That means an effort to know what affects them, their forums, leadership, colors, logos and relevant organizations that advocate for their existence. The approach must also be friendly enough to foster business. All in all, this is a market that businesses can focus on for profitability.