John Russell's presentation at the ICCO Summit 2014 in New Delhi

1. 1
Chinese PR Market Trends
By John Russell, North Head

2. • Legitimacy of new administration
• Anti Corruption
• Reform: “decisive role” of markets
• Consolidation and Centralization
• China Rising
Government - Notable Features

3. 3
• Lower growth
• Activist industrial policy: consumption & services
• Local level – opportunities & challenges
• Diversified incentive structure of officials
• Rise of civil society (CSO)
Implications for Business

5. How this will impact the media
and PR industries?

6. Evolving Chinese Media
• Diversified and huge
• Propaganda arms of
Party
• Commercial pressures
• Mixed professionalism
• Rise of social media

7. Stricter
censorship
More
nationalistic
More
commercial
Prone to
corruption
Recent Trends

8. Chinese PR Industry Overview

9. • Diversified market: market value USD 5.7B, growth 12.5%
• Top 25 average income USD 22M (Blue Focus USD 228M)
• Average income by headcount USD 8.3K
• 80% PR firms optimistic
• Strong distinction between local & MNC clients
• GR/PA normally separate from PR
Chinese PR Industry Overview

10. • Steady growth, yet lower pace
• Digital grows fast ( up to 50% of revenues)
• Sluggish for event firms
• Opportunities for corporate, crisis management &
public affairs
• More balance: healthcare, dotcom & city branding
rising
• MNC firms spreading to 2nd and 3rd tier cities
Notable Features

11. • Fierce competition: MNC revenue per headcount
Local firms flexible but turbulent
• Talent, talent, talent!
• Social media a new service model ?
• Impact of anti corruption campaign
• Need for industry consolidation
Notable Features (1)

12. You can contact us at:
jrussell@northheadcomms.com
www.northhead.com
+86 10 8591 0056