1 Chinese PR Market Trends By John Russell, North Head
Dec 25, 2014
1
Chinese PR Market Trends
By John Russell, North Head
• Legitimacy of new administration
• Anti Corruption
• Reform: “decisive role” of markets
• Consolidation and Centralization
• China Rising
Government - Notable Features
3
• Lower growth
• Activist industrial policy: consumption & services
• Local level – opportunities & challenges
• Diversified incentive structure of officials
• Rise of civil society (CSO)
Implications for Business
How this will impact the media and PR industries?
Evolving Chinese Media
• Diversified and huge
• Propaganda arms of Party
• Commercial pressures
• Mixed professionalism
• Rise of social media
Stricter censorship
More nationalistic
More commercial
Prone to corruption
Recent Trends
Chinese PR Industry Overview
• Diversified market: market value USD 5.7B, growth 12.5%
• Top 25 average income USD 22M (Blue Focus USD 228M)
• Average income by headcount USD 8.3K
• 80% PR firms optimistic
• Strong distinction between local & MNC clients
• GR/PA normally separate from PR
Chinese PR Industry Overview
• Steady growth, yet lower pace
• Digital grows fast ( up to 50% of revenues)
• Sluggish for event firms
• Opportunities for corporate, crisis management & public affairs
• More balance: healthcare, dotcom & city branding rising
• MNC firms spreading to 2nd and 3rd tier cities
Notable Features
• Fierce competition: MNC revenue per headcount
Local firms flexible but turbulent
• Talent, talent, talent!
• Social media a new service model ?
• Impact of anti corruption campaign
• Need for industry consolidation
Notable Features (1)
You can contact us at: [email protected] www.northhead.com +86 10 8591 0056