Earlier this month, Carrefour named Leo Burnett Taiwan as its agency-of-record for its US$2.4 million creative account, after an informal two-month review process which also included local shop Union - a subsidiary of United - and McCann Erickson. Burnett has been tasked with developing brand strategy and tactical work for Carrefour. The retailer's media continues to be handled by Media Palette.
Saatchis Taiwan chief executive Chris Fay declined to be drawn on staff to be cut, but was adamant the number would be minimal. "Our Carrefour group is very large and no longer having this assignment will create some redundancies. But I have had months to manage this situation, so the impact on our staffing will not be significant," he said.
Saatchis had launched Carrefour's first brand-centric campaign in Taiwan,with its Chinese New Year push 'Guan Guan Carrefour' - breaking with national television, print and outdoor. The drive was a shift away from the retailer's more traditional strategy of using tactical creative with a price-focused approach.
According to Fay, the decision to review was mutual and was sparked by a series of market factors, including the recent credit card crisis coupled with the news that earlier this year consumer sentiment reached a five-year low. "Months ago, Saatchis made it clear to Carrefour Taiwan that our business relationship together would have to change in order to continue. No such new relationship was brought forth, so we wish both parties the very best."
The account is due to officially change hands in September.
Carrefour is 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.