M&C Saatchi will make a decision within the next 12 months about
whether to establish a presence in China, according to Asia-Pacific
executive chairman Tom Dery.
"It's all a question of timing," said Mr Dery, adding that China was
currently capably handled by the M&C offices in Hong Kong and
Singapore.
Mr Dery was talking at a press conference as part of the agency's 5th
anniversary celebrations, and announced billings in Asia-Pacific (Hong
Kong, Singapore and Australia) of USdollars 210 million and staff of 250
(compared to dollars 780 million worldwide and 1,000 staff).
M&C Saatchi flew about 300 staff to Australia for the 5th anniversary,
culminating in a massive dockside party in Sydney.
China has been a particular growth area, albeit from a low base.
Growth in the year 2000 alone will be 80 per cent and the agency
recently formalised a media alliance with Carat, giving it access to an
executional network in China.
Mr Dery said that in 2000 the total Asia-Pacific profit would top
USdollars 3 million and that revenue growth worldwide had averaged 100
per cent continuous year on year from 1995-2000.
The conference was also attended by Lord Saatchi, who when asked what
the immediate plans were, said: "More of the same would be a very fine
goal."
Lord Saatchi also shot down talk of plans to go public.
"The merit of going public is to raise funds for expansion and
acquisitions.
So far, we don't need to do that."
Mr David Kershaw, London-based founding partner, when asked about
further expansion, said every M&C Saatchi office had to survive in its
own right.
Mr Kershaw said the future for advertising agencies was that, instead of
bleating about management consultancies stealing their business, they
should have more skills than them.
"Agencies need the right talent and brainpower that allows you to
contribute at a higher level rather than as a creative studio. It's all
about brainpower linked to understanding consumers."
(See also story on page 22.)
