Global Special Feature 2. China

Transcription

1 Global Special Feature 2 China Kunihiro Matsushima, an Executive Officer of Dentsu Inc. and Director for Dentsu s operations in China, answers questions about the current status and future prospects of the Group s business in the country. Dentsu nnual Report 2011

2 China Kunihiro Matsushima Executive Officer, Dentsu Inc. Kunihiro Matsushima joined Dentsu in 1978 and started out his career in Osaka in the Newspaper and Magazine Division. He moved to Hong Kong to work in client services for Dentsu Young & Rubicam Inc. from 1990 to fter returning to Japan he worked in the ccount Management Division and International Headquarters. In February 2008 he was appointed Director of the Dentsu Beijing Office where he boldly restructured the business framework in China. In addition to delivering conventional advertising communications services in the Chinese market, Matsushima enhanced Dentsu s offerings in specialized services such as promotional activities and the digital domain. In June 2008, he was appointed Executive Officer, and now oversees the Greater China region, the Republic of Korea, Russia and sia (excluding Japan). Global Special Feature 2: China - 1 Dentsu nnual Report 2011

3 How would you sum up the Dentsu Group s performance What areas are you focusing on currently? in China in fiscal 2010? China s advertising market grew faster in fiscal 2010 than in the previous fiscal year, and net sales by the Dentsu Group in the region outperformed that growth. Furthermore, with five of the Group s six consolidated subsidiaries in China achieving operating profitability, Dentsu s operations in this market are poised to continue improving profits. The results of Beijing Dentsu dvertising were particularly impressive. The company recorded considerable sales growth as a result of excellent business from major clients, along with the acquisition of new accounts with major Chinese companies and Western firms in China. Consequently, in Modern dvertising magazine s 2010 rankings of advertising companies in China 1, Beijing Dentsu dvertising retained the leading spot in terms of revenue 2. In addition, the Dentsu Group established a media firm, Dentsu Media Hong Kong, in order to strengthen its network of companies in the greater China region. 1 In the No. 14, 2011 issue of Modern dvertising, published by the China dvertising ssociation 2 The rankings define revenue as the total net taxable amount of media commissions, fees and creative production costs. long with our conventional advertising business, we continued to work during 2010 to expand our operations in specific business fields. This is because clients in China expect advertising communications services to be integrated and specialized, using not only mass media but also incorporating other areas such as in-store marketing and street events, public relations and digital media. case in point is our investment in Brandmax, a group that develops promotional events in over 500 cities, including cities in inland China. By including Brandmax in the Dentsu Group, we considerably increased Dentsu s ability to provide marketing and sales promotion services in the inland region of the country. In the public relations domain, an essential form of communications in China, we established Dentsu BlueFocus (Beijing) Public Relations Consulting as a joint venture with BlueFocus Communications Group, a major PR firm with the largest network in China. nother important domain is Internet advertising, for which Dentsu established the specialized agency, &c., in Since then, the company has grown remarkably, riding the wave of fast growth in China s Internet advertising market. In addition to its Japanese clients, &c. has gained new accounts with clients from the mericas and Europe to further secure its position as a top-class interactive agency in China. Global Special Feature 2: China - 2 Dentsu nnual Report 2011

4 Please tell us about the Group s strategies for achieving future growth. The rapidly growing Chinese market is an extremely important market for the Dentsu Group s growth strategies. s such, we are confidently moving ahead with developing local management and transferring decision-making accordingly, with a solid commitment to doing business in China going forward. With this approach, we aim to further enhance Dentsu s presence and increase our share of the market as a whole, expanding the proportion of Chinese firms as well as Western multinational firms in our client portfolio. long with that, we are investing in the human resources and capital needed to sustain business in specialized domains, while actively pursuing mergers and acquisitions. Internet advertising in particular is undergoing dramatic changes and growing remarkably. With &c. taking the initiative, our aim is to outpace the growth of the Internet advertising market in China by investing in companies involved in digital media businesses as a means to further expand our services and business in this domain. We are also in the process of developing a new business management structure and framework to integrate the operations of Dentsu Group companies in China, designed to accelerate the growth of each individual company while simultaneously exploiting the synergies between them. Through all of the strategies I have mentioned, we are targeting a rate of growth that exceeds the high growth seen in the Chinese market. Global Special Feature 2: China - 3 Dentsu nnual Report 2011

5 Dentsu in China Featured Subsidiaries and ffiliates &c. Inc. Headquarters: Beijing Establishment: 2008 Dentsu Group s shareholding ratio: 100% &c. is a top-class digital agency at the forefront of the rapidly growing Internet market in China. Based on its expertise and original media tools in interactive services, the company offers services for Japanese, Chinese and Western clients, including strategic planning, media buying and creative communications. Brandmax Group Headquarters: Guangzhou Establishment: 2010 Dentsu Group s shareholding ratio: 40% (a non-equity method affiliate established through a capital and business alliance; formerly Suntrend Group) The Brandmax Group maintains the largest sales promotion network in China, covering over 500 cities. With more than 900 employees, the company offers an array of services for major companies operating in such industries as consumer products, automobiles and telecommunications. Services include the planning and execution of storefront sales promotions, product sampling events, indoor and outdoor sales campaigns, exhibitions and new product launches. Dentsu BlueFocus (Beijing) Public Relations Consulting Co., Ltd. Headquarters: Beijing Establishment: 2010 Dentsu Group s shareholding ratio: 49% (an affiliate accounted for by the equity method) The company was established as a joint venture between BlueFocus Communications Group Co., Ltd., the top PR company in China; Dentsu Public Relations Inc., the top PR company in Japan; and Dentsu Inc. Dentsu BlueFocus offers high-quality services by combining the superior expertise of the BlueFocus Communications Group in media and government relations with the extensive know-how of the Dentsu Group in the domains of public relations and communications. Global Special Feature 2: China - 4 Dentsu nnual Report 2011