According to sources, local shop Union, a subsidiary of United, is involved in talks on the creative business, although a decision is not expected until later this month. It is believed the retail giant has also held initial conversations with McCann Erickson.
Media planning and buying, handled by Media Palette, is not affected by the review.
Saatchis Taiwan CEO Chris Fay said the review, rather than a formal pitch, was instigated by both parties after a relationship which began when Carrefour moved the account from Publicis in 2001. “We’re working with Carrefour to see if a new and continued relationship can be established. I’d love to continue with Carrefour, so long as it’s a mutually beneficial agreement,” he said.
It is also understood that Carrefour’s decision to review the relationship was sparked by economic factors in the market, including the recent credit card crisis coupled with news that consumer sentiment has reached a five-year low. “Carrefour is very active in Taiwan, but probably around 80 per cent of the work done does not involve television, and much of it is tactical,” said one source.
The decision to review follows Carrefour’s first major branding push over Chinese New Year, which for the first time moved beyond a ‘price-centric’ message. The campaign, ‘Guan Guan Carrefour’ (‘Discover, Explore Carrefour’) broke with national TV, and is supported by other mainstream elements including print, outdoor, online and POS.
Carrefour is aggressively expanding its operations in Taiwan after a takeover of Tesco outlets last year, a move aimed at consolidating its market lead position against key competitors RT Mart and Geant, the second- and third-ranked hypermarket brands in Taiwan respectively.
The push also comes after key competitor Wal-Mart acquired 35 per cent of Taiwan-based Bounteous for US$1 billion, with a view to expanding in mainland China, set to be the next battleground between the retailers. Carrefour had a 53 per cent leap in profits to Rmb 24.8 billion (US$3.2 billion) in China last year after expanding its network 50 per cent to 95 outlets.
