McCann’s relationship with Johnson & Johnson is, by all accounts, strong in the region. Nevertheless, it must relinquish business worth US$30 million without complaint.
Yes, J&J’s move is probably sensible as it explores ways to simplify its agency relationships after swallowing a chunk of Pfizer last year. If insiders are proved right, the company will hand out its business brand by brand to roster agencies which must wait for the news to materialise on their BlackBerrys.
JWT could do with some good news more than most. Its Asia-Pacific network has suffered from more than one global decision going against it (Unilever, Samsung), and sources reckon it is looking good to win J&J’s Reach account, at least. The review is, more than anything else, another painful reminder of how badly networks in Asia need international business. Monoliths like J&J serve as a healthy backbone as agencies wait for their local clients’ businesses to grow.
China industry ignores Wang at its peril
For all of China’s booming growth, restraint remains a theme that the Central Government returns to repeatedly. A recent manifestation of this, though, may seem a little odd, with Beijing mayor Wang Qishan castigating luxury property ads for promoting conspicuous consumption. Wang’s comments, though, should not be misconstrued as the words of a maverick; he is merely voicing the Party line — that a harmonious society cannot tolerate too much polarisation of wealth. Already, a drop in ultra-luxury outdoor advertising has become perceptible in Beijing.
Even if the mantra is unlikely to affect other cities, mainland advertising agencies will be aware that Wang’s view is not one that is confined to the ivory towers of the capital city.
Consumers, particularly the middle class that is fuelling China’s prodigious growth, see unbalanced wealth distribution as potentially destabilising; Central Government efforts to crack down on this kind of advertising are likely to receive broad support.
