Ogilvy HK scoops $1m southern China briefs

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.

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