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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

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• 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: jrussell@northheadcomms.com www.northhead.com +86 10 8591 0056