Once the undisputed king of Asia’s ad industry, Hong Kong is in danger of becoming little more than a local market. Even McCann Worldgroup Hong Kong’s success at Cannes, where it won the SAR’s first ever Grand Prix, could not mask the broader issues facing the territory.
In some ways this is nothing new. Clients, agencies and media owners have been decamping to Singapore or to mainland China for a number of years. But it has continued with a vengeance in 2009. Leo Burnett scrapped the vestiges of a regional office it still had in the city. Then over the summer came News Corp’s decision to wield the axe at Star TV, with 200 job losses.
Hong Kong’s biggest attraction remains its proximity to mainland China. Yet even this advantage may not be assured in the long term. In June Jimmy Lai, chairman of Next Media, predicted that Mandarin-speaking Taiwan could become the media hub for Greater China as trade links improve.
In some ways these changes are a natural reflection of the growth of the Asian market. There are now plenty of alternatives to Hong Kong that didn’t exist during the city’s heyday. Also, the city’s authorities, focused on property and finance, have been slow to embrace the media and creative sector. Certainly, compared with Singapore, which offers huge tax breaks to media companies willing to relocate, Hong Kong has failed to keep up.
Hong Kong’s Government is finally aware of this issue. In June it announced a US$38 million fund called CreateHK to finance creative projects (though compared with the $160 million invested by Singapore’s Media Development Authority, it’s not a huge amount). More recently, the Government’s policy agenda set out plans to develop a “creative industries cluster”.
If the Government finally has woken up to the benefits of having a thriving creative and media industry, the question remains: what exactly can it do to turn the fortunes of the city around?
Spencer Wong, national chief creative officer, McCann Erickson China
The bigger business market is not equal to the better quality market. Since China is still quantity-driven, Hong Kong still plays a major role in showcasing good-quality creative to international standards. This is particularly obvious when we are talking about integrated and interactive communication. Hong Kong still enjoys a more transparent flow of information than most countries in Asia.
The Government’s promises are better than nothing. Hong Kong’s success was mainly contributed by the non-interference policy of the Government, and the entrepreneurship of the people. Too much interference from the Hong Kong Government becomes a pressure on the development of creativity. Creativity needs to be motivated, rather than controlled.
The advantage of Hong Kong is efficiency and diversity. We can package something nicely to an international standard, speedily and with a big impact.
We should focus on producing more showcases rather than building volume, or setting up a system. If we want to regain our status as the centre of the region, whether for creative or media, we should go for the quality centre approach.
Mark Ringer, executive creative director, TBWA Hong Kong
Hong Kong’s history is in trade, and the city is all about making money (this is the only market in which I’ve worked where stock prices are openly discussed in the creative department). Creativity is not a priority. Nor is it in Singapore, the city to which many regional offices have moved.
Agencies or client companies choosing to headquarter in Singapore is a decision made in consideration of transport connections, cost of living, the absence of corruption, pollution, quality of life and several other factors. It has nothing to do with creativity. Singapore might rank higher in performance on creative rankings, but on the street there is little good work.
Unfortunately, though, when business moves north or south out of Hong Kong for any reason, it does affect the creative output. Because where there is business and trade there are products and services that need to be promoted. So as the volume of business diminishes, so too do the opportunities.
It’s certainly not gloomy in Hong Kong, though. Regionally and globally 2009 was the strongest year in many for Hong Kong.
But I think the SAR will rely on a core of inspired individuals for future success, rather than plumbing a deep culture of creativity.
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This article was originally published in 17 December 2009 issue of Media.