The document discusses trends in the Chinese PR market, including a lower growth rate, increased activism in industrial policy focused on consumption and services, and opportunities and challenges at the local level. It also examines the evolving Chinese media landscape which is diversified but also prone to propaganda, commercial pressures, and corruption. The PR industry in China is large but facing stricter censorship and nationalism, with steady growth in digital PR but sluggish growth for event firms. Talent acquisition and social media present both opportunities and challenges for Chinese PR firms.

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