Publicis to merge with Fallon, Beacon

TOKYO - Publicis Japan will cease trading at the end of this year, after its parent holding company Publicis Groupe decided to fold the agency into sister shops Beacon Communications and Fallon Tokyo.

The move will see the bulk of the agency’s business transferred to Beacon, a joint venture with Dentsu in which Publicis Groupe holds the majority stake. The agency’s key L’Oréal business, however, will shift to Fallon Tokyo, because of conflict with Beacon client Procter & Gamble.

According to Publicis Groupe EVP Bertrand Siguier, L’Oréal will benefit from the creative firepower on offer at Fallon Tokyo’s 60-person agency, combined with the addition of Publicis’ luxury team.

Of Publicis’ 35 staff in Japan, the majority - says regional CEO Matthew Godfrey - have accepted positions at either Fallon or Beacon.

“Given the added benefits, scale and size that Beacon brings to both clients and staff, via its existing scale and its relationship with Dentsu, it makes perfect sense to align ourselves with that organisation,” said Godfrey.

Publicis Japan chief executive Sam Cassels will remain with the group, although his new role remains unclear.

According to a Publicis Groupe spokesperson, Cassels will join Beacon’s senior management. In addition, PR agency MS&L will be split off from Publicis as a separate entity from 1 January next year. “MS&L Japan will emerge as a much more dynamic player as a fully independent entity,” added Siguier.