SHENZHEN: Ogilvy & Mather Hong Kong has scooped two southern China
assignments worth a total of US$1 million at a time when the
agency is in an aggressive drive to build its share of business from the
nearby Pearl River Delta.
The China Merchants real estate and Huawei Technologies accounts were
won without a pitch, according to Joseph Wang, group managing director
for Hong Kong and southern China and vice-chairman for China.
Both accounts will be serviced by the agency's Hong Kong operation,
which expects to grow its share of business from southern China to about
10 per cent of total revenue in the next two years.
"We find that clients in southern China tend to gravitate towards
agencies in Hong Kong. They feel we can bring expertise from outside,
which is relevant to them because they are looking to grow their
business and export their products beyond China," Wang said.
"In revenue terms to the agency, the accounts are not huge, but we are
only at the start and the potential is very great - both companies
understand that they need to develop a brand positioning going
forward."
China Merchants appointed the agency to handle its brand consultancy
assignment, having previously worked with a number of different local
shops on a project basis.
The conglomerate started out in the shipping business and diversified
into tourism, finance and industry. Its move into real estate came after
it was granted a remit to develop Shekou in southern China.
"China Merchants wants to develop a brand profile as a national builder.
They want to be positioned against the other big mainland developers,
including Vanke (China's biggest-listed real estate developer)," said
Wang.
The Huawei brand consultancy brief grew from a crisis PR assignment O&M
had earlier secured to help the privately-held communications technology
and equipment provider counter charges by the Bush administration that
it had supplied fibre optic products to Iraq.
Wang said Huawei had its eye on exporting to Eastern Europe and Latin
America, where it believed its experience in supplying to a developing
economy like China would prove useful. Huawei pulled in sales of close
of US$2.7 billion last year.
