Major US PR firm bullish on China market

WE Communications stresses nation's biz potential for overseas, local brands

US-based WE Communications, one of the world's largest communications and integrated marketing agencies, said frequent exchanges in China following the COVID-19 pandemic have brought more business opportunities for public relations agencies, and the company will continue to increase its investment in the country, especially in Beijing and Shanghai.

Kass Sells, CEO of WE Communications, who frequently travels to India, Singapore, the United Kingdom and Germany, visited China earlier this month for the first time since the pandemic.

"China is one of our largest international markets, so it's very important to get here and spend some time with our clients and people and just reconnect after more than three years of being apart," Sells said.

"China is recovering, and we have made a commitment to stay here to continue to grow for Chinese and international brands that want to do business in the country," he said.

He added that China will be a very important market for brands to grow, whether they are technology, healthcare or consumer brands, not only for forthcoming brands but for brands that are already in China.

Sells said that a PR agency's job is to build a corporate reputation for its clients. Its efforts in helping clients tell their stories in China are probably more important than ever.

In the past, PR agencies have focused on traditional earned media, but today they have a larger palette to work with. Integrated communications, which can include traditional media, social media, digital content and owned media, have become more prevalent.

The company said one of the big differences in China compared with other countries is the use of social media platforms such as powerful apps like WeChat. China has a large Generation Z — born between the mid-1990s and early 2010s — audience that has disposable income to spend.

"Looking at the long-term trends in China, it may have ups and downs along the way, but the overall trend is positive because of the strength of the consumer market, technology market and innovation. Many brands and companies can learn from China in the area of innovation," Sells said.

"We believe in China and the opportunities to help brands be successful," he said.

WE Communications, which currently has 21 offices in eight countries, said as an independent PR agency, it has advantages in providing services to brands in the fields of consumer, fashion, luxury products, hospitality, technology and health. The company said it has an agile approach, without so many layers in terms of working methods.

Consultancy Bain & Co found that the optimization of its COVID-19 response measures before the Chinese New Year holiday this year has contributed to the growth of the country's luxury market.

The luxury market on the Chinese mainland, which saw growth in the first quarter, is expected to rise again this year. In the meantime, the Asian market is experiencing a reshuffling, Bain & Co said.

"To remain relevant in the long run, brands will need to continue to channel an insurgent mindset, championing hero products and their founders' vision, while also tooling up to sustain long-term growth by getting the business fundamentals right," said Federica Levato, partner at Bain & Co.

Sells agreed and said: "We are working with a number of luxury brands who are already in the market and those planning to enter the market in the near future."