For Young & Rubicam, the future in Asia has again become unclear. Three years after Chris Jaques returned to Asia to head the network, Y&R finds itself at a crossroads, mulling the departure of a popular leader who brought in some much-needed stability (Media, 30 June).
Jaques, more than most regional agency chiefs, came to define Y&R. Indeed, the consensus is that Jaques' reputation helped attract a number of notable names to the network, including China head Wei Wei Chen, Thailand chief Sohn Chongsrichan, regional planner Rob Campbell and regional creative director Rowan Chanen.
An exodus of talent from Y&R, then, must remain a distinct possibility after Jaques' departure. "There are certainly people within the organisation that joined Chris for what he wished to achieve within the Y&R network," says a source. "What Chris was within Y&R, was very different to Y&R."
Y&R's Asian presence has seen solid progress over the past three years, in some contrast to its global fortunes — which have been characterised by account and talent defections. Jaques departs a network in relatively sound shape. "Y&R offices are back on track new business-wise, creative work has improved, the spark is back," says an analyst. "They will be tough shoes to fill as few agencies have as little globally aligned business to provide a baseline."
The last comment is revealing, and has persistently bedevilled efforts to turn Y&R into a true regional force. Nowhere is this more apparent than in China, where the network remains weak, despite the attention that WPP chief Sir Martin Sorrell lavishes on its Chinese offerings. Jaques flatly denies that China was a factor in his decision to leave, but admits that Y&R still has much work to do on the mainland.
"The key is how we can build momentum through acquisitions, because we have no global clients," says Jaques. "We haven't been able to build on big local clients as we have done elsewhere. But an acquisition strategy takes time."
Another market where the paucity of global business has hurt is Korea, described by one Y&R insider as a "poisoned chalice". Y&R has been left stranded in the ill-fated LG Ad imbroglio, stuck with a chaebol agency that faces losing all of its chaebol business. "Following the wave of agency acquisitions in Korea by the major global holding companies, there are scarcely any feasible M&A prospects among the remaining sizeable local agencies," notes a source. This leaves Y&R with few substantial acquisition candidates should LG shift its business elsewhere, as seems likely, added the source.
Y&R's next leader will, however, find some considerable strengths. Singapore, of course, has become a powerhouse — winning and retaining big local and global business. Other bright spots are Malaysia and Thailand, while the nascent regional structure has reeled in a major win from Sony.
Wunderman, however, has suffered through the global IBM and Motorola shifts, though it still has Ford, and remains one of the few below-the-line players capable of effectively servicing multi-market clients in this region.
Meanwhile, four names from within Y&R are already being touted for Jaques' role: regional chief client officer Sanjay Bhasin, Singapore MD Tanuj Philip, and former regional DY&R co-chairman Arun Nanda. "What Chris has done is inject some stability, focus and excitement," says a source. "Whoever inherits it is actually inheriting a pretty good machine."
