Four vie for $20m Richemont work

<p>HONG KONG: Luxury brands group Richemont is looking to consolidate its </p><p>US$20 million regional media account with one agency as it seeks </p><p>to establish a more cost-efficient buying platform. </p><p><BR><BR> </p><p>Richemont is the world's second-largest luxury brands group after LVMH </p><p>and its proposed consolidation follows the completion of its rival's </p><p>consolidation with CIA at the beginning of the year following the </p><p>clinching of the Moet-Hennessy account. </p><p><BR><BR> </p><p>Richemont owns 10 luxury brands, including Cartier, Baume & Mercier, </p><p>Alfred Dunhill, Van Cleef & Arpels, Jaeger-LeCoultre, Piaget and </p><p>Shanghai Tang. </p><p><BR><BR> </p><p>It currently employs a roster of agencies. Motivator is believed to have </p><p>the largest chunk of the business from its handling of Cartier, which is </p><p>Richemont's biggest-spending brand. </p><p><BR><BR> </p><p>Five agencies, including incumbents, were asked to pitch: Initiative </p><p>Media (Mont Blanc), Carat (Dunhill), Motivator, Starcom and OMD, but </p><p>after the first round only four were left standing. </p><p><BR><BR> </p><p>The first round, in which agencies presented systems and procedures </p><p>which would enable Richemont to buy media more efficiently, took place </p><p>last month. </p><p><BR><BR> </p><p>A second round of presentations is scheduled next month. </p><p><BR><BR> </p><p>Sources said Richemont's move to consolidate the media account was not </p><p>sparked by LVMH's consolidation earlier in the year. </p><p><BR><BR> </p><p>"It's more a question of getting more value for every dollar spent on </p><p>advertising to beat the current economic slowdown in Asia. </p><p><BR><BR> </p><p>"But because they are using a number of different agencies to plan and </p><p>buy media, they have zero co-ordination and absolutely no synergy," one </p><p>source said </p><p><BR><BR> </p><p>Another added: "It's a logical thing to do because all the brands </p><p>Richemont has are luxury ones. </p><p><BR><BR> </p><p>"They might be in different product categories but their demographic </p><p>targets are largely the same and added to that is the fact that </p><p>Richemont handles a large number of watch brands." </p><p><BR><BR> </p><p>Hong Kong is Richemont's biggest market in Asia, underlined by the fact </p><p>that its adspend in the city is just under half the regional total. </p><p><BR><BR> </p>