DIARY: Rant
<p>All the tea in China won't be enough payment to get me to operate
</p><p>an agency in Hong Kong these days. Here's why:
</p><p><BR><BR>
</p><p>Budgets are stagnating due to both short-term macro-economic weaknesses
</p><p>and questions about Hong Kong's long-term relevance given China's rising
</p><p>power. The result: a dog-eat-dog, fight-to-the-death and inter-agency
</p><p>competitiveness that works against the formation of a sustainable
</p><p>business model. Salaries and cost structures are out of whack versus
</p><p>China and Singapore benchmarks, leading to other cities' emergence as
</p><p>multinational hubs on agency, production and client sides.
</p><p><BR><BR>
</p><p>Companies operating in Hong Kong are increasingly adopting a short-term
</p><p>tactical business model. This shift away from brand building robs the
</p><p>industry of intellectual capital and, hence, negotiating clout with
</p><p>clients.
</p><p><BR><BR>
</p><p>For a decade or more, the best and brightest young professionals
</p><p>eschewed the industry altogether. And, more recently, some of the most
</p><p>far-sighted and savvy thinkers are migrating north of the border.
</p><p>Clearly, this is not a pretty picture.
</p><p><BR><BR>
</p><p>What's even more discouraging is that Hong Kong boasts natural
</p><p>advantages which, if harnessed, could trigger a renaissance within the
</p><p>industry.
</p><p><BR><BR>
</p><p>Its worldliness, an instinctive insight into the psychology of not only
</p><p>Chinese but pan-Asian cultures, its technological savvy, its incredible
</p><p>drive and resourcefulness and a blossoming creative culture that extends
</p><p>well beyond advertising (check out the new diversity in Hong
</p><p>Kong-produced films).
</p><p><BR><BR>
</p><p>So what should and can be done? Well, of course, there's no magic
</p><p>answer.
</p><p><BR><BR>
</p><p>We're not assembling an Ikea coffee table. But a few long-term remedies
</p><p>are readily apparent: recruit world-class managing directors from
</p><p>anywhere.
</p><p><BR><BR>
</p><p>These men and women, however, must be strategically-driven advertising
</p><p>people, not prisoners of the bottom line. If their contributions are
</p><p>self-apparent, they will overcome the "but-my-client-only-conducts
</p><p>meetings-in-Cantonese" charade; integrate mainland and local agency
</p><p>operations - and mindsets - through cross-pollination of staff,
</p><p>consolidation of balance sheets and legitimate managerial
</p><p>integration.
</p><p><BR><BR>
</p><p>Whoever you are, and whatever you want to get off your chest, send your
</p><p>rants to rant@media.com.hk, and we'll print them anonymously.
</p><p><BR><BR>
</p>
by
|
08/31/2001
All the tea in China won't be enough payment to get me to operate
an agency in Hong Kong these days. Here's why:
Budgets are stagnating due to both short-term macro-economic weaknesses
and questions about Hong Kong's long-term relevance given China's rising
power. The result: a dog-eat-dog, fight-to-the-death and inter-agency
competitiveness that works against the formation of a sustainable
business model. Salaries and cost structures are out of whack versus
China and Singapore benchmarks, leading to other cities' emergence as
multinational hubs on agency, production and client sides.
Companies operating in Hong Kong are increasingly adopting a short-term
tactical business model. This shift away from brand building robs the
industry of intellectual capital and, hence, negotiating clout with
clients.
For a decade or more, the best and brightest young professionals
eschewed the industry altogether. And, more recently, some of the most
far-sighted and savvy thinkers are migrating north of the border.
Clearly, this is not a pretty picture.
What's even more discouraging is that Hong Kong boasts natural
advantages which, if harnessed, could trigger a renaissance within the
industry.
Its worldliness, an instinctive insight into the psychology of not only
Chinese but pan-Asian cultures, its technological savvy, its incredible
drive and resourcefulness and a blossoming creative culture that extends
well beyond advertising (check out the new diversity in Hong
Kong-produced films).
So what should and can be done? Well, of course, there's no magic
answer.
We're not assembling an Ikea coffee table. But a few long-term remedies
are readily apparent: recruit world-class managing directors from
anywhere.
These men and women, however, must be strategically-driven advertising
people, not prisoners of the bottom line. If their contributions are
self-apparent, they will overcome the "but-my-client-only-conducts
meetings-in-Cantonese" charade; integrate mainland and local agency
operations - and mindsets - through cross-pollination of staff,
consolidation of balance sheets and legitimate managerial
integration.
Whoever you are, and whatever you want to get off your chest, send your
rants to rant@media.com.hk, and we'll print them anonymously.
