Question: What do you do for a living?
Answer: We run a sexual health boutique.
With those words, a debate was born. In a recent AVN Novelty Business opinion piece ("Extreme Industry Makeover: Those Zany Semantics," March 26, 2008), Publisher Tony Lovett argues that our definition (or "rebranding") of what we do and the terminology we use to describe our profession (leaving out the words "adult" and "pornography") are flawed and give ground to forces who seek to keep the adult industry on the fringes of acceptable and legitimate business (i.e., religious fanatics, conservative politicians, et cetera). Fortunately for us, Lovett is completely misguided. The movement to segregate the adult industry is not only a positive step, but also beneficial to every sector of the industry in the long term.
The Novelty New Wave
While we have a long way to go to gain shelf space in Wal-Mart-not necessarily a bad thing-there certainly is room for discussion of how we define ourselves and with whom we associate based on the changing climate in sexuality. The incredible wealth of sexual information available via the internet, combined with a burgeoning mainstream-media acceptance of sexually themed programming, for example, has caused a monumental shift in the way our society conducts business. We must adapt to meet this changing climate head-on with fresh ideas, products and services these newly informed consumers' desires (and are willing to pay for). Rebranding, which is nothing more than natural subdivision of any industry growing to meet new demands in a changing marketplace, is healthy and should be encouraged and vigorously pursued to promote growth.
Prior to 10 years ago, adult stores were fairly straightforward-the notable exception was Good Vibrations-with the highest percentage of sales coming from video sales, and with a smattering of vibrators, dildos and gag gifts funneled into the channel by large manufacturers such as Topco, Doc Johnson, and Pipedream. Due to the dominance of porn, packaging of vibrators and other stimulation items featured popular porn stars of the time, guiding customers' purchasing decisions through the associations between the two. Adult novelties were directly linked to the video segment, and this helped move more goods.
The product sector primarily consisted of high-margin, low-quality items made even more attractive by their classification as "novelties," a label coined to avoid expensive testing and inspection by Big Brother and to allow them to be legally sold in regions prohibiting the sale of sexual items from store shelves. With no government regulations on items called "toys" and with verbiage absolving manufacturers of legal responsibility-"For novelty use only" is still found on most packaging-manufacturers enjoyed the freedom to create a robust distribution channel and made sufficient profit to fuel their propaganda vehicles. Hence, the existence of AVN Novelty Business, its trade-show components, and its educated staff, which pushes information and editorial content into the retail channel.
Long Tail, Big Profit
Fast-forward to today, however, and the story is completely different, evolving with lightning speed as the channel splits and grows into a multiheaded behemoth. This phenomenon is driven by the "Long Tail" (a concept outlined by Wired magazine editor Kurt Anderson), whereby new markets spring up, Hydra-like, as access to information divides consumer sectors into smaller and smaller niches, inspiring entrepreneurs to fill the demand. This results in the creation of small businesses or the expansion of larger ones who cater specifically to those more focused markets.
In the mainstream world, this is best summed up by iTunes, which just sold its 4 billionth song, generating huge profits on music you probably have never heard of. Indeed, with its distribution channel requiring only disk space, Apple's music service can add songs from any genre with almost no cost, relying less on mass-marketed "hits" and allowing more artists to penetrate the selling space-to the detriment of the big record labels. Artists, free from the constraints of large recording contracts, push their music into the consumer consciousness through social-networking avenues such as MySpace and Facebook, earning a living by touring to promote their libraries.
Here's an example of the Long Tail in our industry. Freddy and Eddy was created to serve couples based on our inability to find a sexual information resource that spoke to us, a married couple experiencing sexual difficulties seven-plus years ago. Uncomfortable with pornography and communicating about sexuality, we set out to find a place where we'd be able to learn more about our sexuality together and improve our situation. Unable to find such a resource, we created our own. Today, we serve our niche with our website and our sexual health boutique in Mar Vista, Calif., picking up ancillary sales by people attracted to our message of stronger relationships through sexual well-being.
More examples can be found popping up all over the country as the message of sexual health further disassociates with older adult-retail models and causes consumers to instead seek out the businesses that most closely serve their specific needs, such as Babeland, Coco de Mer, Good Vibrations, and The Pleasure Chest. Slowly, as these more upscale, comfortable, and information-rich boutiques proliferate, comfort levels among prospective patrons will rise and the full purchasing power of this retail sector will be realized.
Sex, Fun And Educated Consumers
From a manufacturing standpoint, the changing market and consumers' realization that sexuality is vital to sustaining relationships and healthy lives is leading to a revolution in products rushing in to fill this need. Companies like Fun Factory, Tantus, Lelo and Vibratex are challenging the Cal Exotics, Topcos and Doc Johnsons of the world by creating products that transcend the "novelty" label and shun the pornography association that once was integral in moving clamshells off the shelves. As more boutiques open to serve more niches, manufacturers are learning that these newer environments are serving customers who are more educated, concerned about what goes into their bodies and willing to spend more money.
From a practical standpoint, relying less on pornography as a profit center means more opportunities to focus on education and customer comfort. The porn we choose to carry must appeal to our demographic to reach our shelves, and we vigilantly filter the options to better serve our customers and maximize revenue. With more free porn becoming available by the second over the Internet, the pornography industry must come to grips with the fact that the days of quick and easy money through DVD sales and pay sites are ending, and they must find more creative ways to draw revenue by working to serve their niches with products consumers want and will buy.
We view the rebranding of our sexual health, education, and entertainment industry not as some gimmick easily tossed aside by editorialists, but as a serious attempt to accurately define what we do and who we are. Success will bode well for the adult industry as a whole, including pornography, and we invite everyone in the adult industry to help promote this new vision. By working together with all facets of our market, we can continue to grow markets across the board to meet that most basic and beautiful human desire: healthier, happier and hotter sex.
Ian Denchasy, aka Freddy, is co-owner and founder of Freddy and Eddy and FreddyAndEddy.com: a Los Angeles retail location and a website dedicated to helping couples lead more intimate lives through communication, education, and information.
