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People that know me know that I’ve been a Subaru fan for many years now. For me, it was the WRX/STI pedigree in the World Rally Championship in the mid-nineties that drew me in. I still remember watching races with Colin McRae that made me drool over this wonderous vehicle. So when I was finally able to afford my own car, I wanted a Subaru. Many years later, I still love them. I’m not sure that it’s considered a stigma per se, but in all my years of driving Subarus, there has always been this running joke I guess that Subarus are the preferred car for lesbians. So, I decided to investigate and see if there was any truth to it. And it turns out, not only is there truth to it, I thought it was a great story, so I thought I’d share it with you.

How It Began

Subaru began as a part of Fuji Heavy Industries (FHI) in the 1950s.  And in the late 60s, they started to export vehicles into North America. Subarus have always been this offbeat, quirky car, but they filled a small niche of people wanting small cars that had four wheel drive. But there were a couple of problems with Subarus at the time; being quirky meant that they only attracted a certain demographic, and being full time all wheel drive meant that their gas mileage wasn’t great.

By the late 80s and early 90s, Honda and Toyota were selling over a million vehicles in the U.S. Subaru on the other hand, dropped from their peak of 183,000 vehicles in 1986 down to just over 100,000 in the early 90s, that’s nearly half. Subaru of America was losing money. Every year.

To be fair, there were some understandable issues. With vehicles like the Justy and the Brat, that they were quirky and didn’t appeal to mainstream buyers. They had weak brand identity. They weren’t known for their luxury like Lexus and Acura, they weren’t particularly sporty or fun like Mazda was. And with Toyota, Honda, and Nissan being Japan’s “Big Three”, it didn’t seem like there was a lot of space for Subaru. They even tried to launch some vehicles that were more mainstream, but they were being outgunned by the Big Three. It was so bad, that there were serious considerations to pull out of the North American market completely.

As part of Subaru’s considerations, Subaru did a deep dive internally that led to some fantastic understandings about their business.

All-Wheel Drive

Subaru realised that their cars weren’t selling to mainstream drivers, but they did have value to people in niche groups that Toyota and Honda didn’t emphasise; people who liked all-wheel drive, safety in snow, and practicality for outdoor hobbies. They realised that instead of being ‘another Camry’, they could own a unique space in the market.

This was a big eureka moment for Subaru. They came to realise that competing as a generic sedan brand would equal death. They leaned into this, and made the pretty radical step of making All-Wheel drive standard across almost all their offerings. Suddenly, Subaru wasn’t just another sedan, it was the only affordable All-Wheel Drive option.

Embracing Their Fans

Continuing to drill down on their loyal customers, their research found some more information. They found some very specific buyer groups. They seemed to attract Teachers, Healthcare professionals, Outdoor enthusiasts, and… Single women.

In 1990, the US Census recorded 145,130 same-sex couples. Of these, about 44% were female-female partnerships. This would suggest that there were around 125,000+ individuals who were part of a lesbian coupling. Obviously, this being 1990, the numbers are likely also severely underrepresenting the true number.

The thing is, in the early 90s, homophobia was still widespread. This was even before Bill Clinton’s “Don’t ask, Don’t Tell” policy in the military (1993). This time period was arguably worse for lesbians. They didn’t have the visibility of gay men in mainstream culture. They didn’t have the likes of Freddie Mercury and Boy George. This also meant that there was pretty huge stigma attached to being a lesbian at the time; it often meant risking careers, housing, and even relationships. It also meant that there were very few safe community spaces. This led to many of them turning to alternative spaces. Places like music festivals, hiking circles, and camping communities. I’m not saying that ALL lesbians were outdoor enthusiasts, but these outdoor spaces meant more freedom from prying eyes. The outdoors was just an alternative space for people to be themselves so that they wouldn’t be stigmatised and judged.

Subaru’s offerings of all-wheel drive on almost every model meant that these single women could feel some sense of empowerment on the unpaved roads, even in less-than-ideal weather conditions. Additionally, Subaru’s wagons were great for bringing along dogs and outdoor equipment.

Subaru’s Response

In response, Subaru made the bold move of leaning into this niche group. It was subtle, I mean, this was the early 90s after all, but they provided community specific cues. Ads like, “Get out. Stay out”, or “It’s not a choice. It’s the way we’re built” had a double meaning. It was just talking about the outdoors to most people, but it was affirming to lesbian audiences.

They included women drivers with dogs. They included women hiking, or camping. They also included easter eggs like XENA LVR as licence plates to refer to the show Xena: Warrior Princess. All subtle things that most people would just see as outdoor lifestyle messaging, but felt inclusive to the lesbian community. In 1996, they even collaborated with Martina Navratilova (tennis star), one of the few openly gay athletes at the time.

Embracing The Brand

This wasn’t ‘gay-washing’ for Subaru. It was a natural extension. Since the mid-80s, Subaru had already started leaning into the outdoor lifestyle with their vehicles. Supporting the lesbian community wasn’t some social statement, it already aligned with their brand identity. Their messaging was already naturally resonating with independent, adventurous women. Their decision was based on listening to their customers. This meant that this direction was respectful and relevant to the product.

The remarkable thing about this decision was when it was made. It was a big risk on Subaru’s part. They could have really alienated themselves. This wasn’t performative. This was a response to a deep understanding of their customers.

Small Business Takeaways

Subaru’s turnaround in the 1990s is a goldmine of lessons, a masterclass for small businesses. One of the things that we talk about a lot is listening to your customers. In branding, we also talk about finding your niche, how to differentiate yourself. We talk a lot about authenticity. We talk a lot about building your tribe. And this is what Subaru did. They researched, they observed, and they tested. They saw what set them apart, their All-Wheel Drive capabilities, affordability, and their target audience. In a nutshell, success often comes from knowing your niche, valuing your audience, and having the courage to embrace what makes your business unique.