International PR agencies eye China
( 2002-06-28 08:49 ) (8 )

US-based Ketchum Newscan, one of the world's leading public relations (PR) agencies, announced Thursday that it expects to have closer cooperation with local PR businesses, possibly through mergers or joint ventures.

James Huang, deputy general manager with Ketchum Newscan's office in Beijing, said at the China International Public Relations Congress held Thursday that foreign-funded PR agencies are increasingly joining their local counterparts.

Early this month, another leading PR giant, Ogilvy Public Relations Worldwide (Ogilvy PR), bought a majority stake in Chinese-based H-Line Public Relations.

The new agency, called H-Line Ogilvy Communications Company, becomes a member of the British communications group WPP Group which is also the parent company of Ogilvy PR.

It is good for the local PR industry to cooperate more with foreign firms as they not only bring more competition, but also incentives for local companies to improve performance, said Jacques Dinan, president of the International Public Relations Association (IPRA).

Foreign PR agencies will also bring their clients - foreign companies that will bring more foreign investment to China, he said.

Managing director of the Chinese-based China Global Public Relations, Wang Zhiwen, said that the company is having talks with several foreign counterparts.

Chinese companies understand the Chinese public better, making it more efficient for foreign companies to enter the Chinese market by joining hands with local agencies, he said.

China's PR industry reported an annual turnover of two billion yuan last year, a year-on-year rise of 33 percent, bucking the global trend.

Long Yongtu, vice-minister of foreign trade and economic cooperation, pointed out that the PR industry enjoys a rosy future in China since its entry into the World Trade Organization (WTO).

Local and foreign-funded PR agencies will benefit alike from the WTO entry as the country is opening wider to the rest of the world, he said.

Foreign companies that intend to enter China need to know the legal, administrative and cultural environment here while Chinese companies need to know overseas markets. PR agencies can meet the need, he added.