'India will be our global digital hub'
Euro RSCG Worldwide is part of the world’s sixth-largest advertising network, the Euro 1.47-billion (Rs 8,390-crore) Havas Group. Its Executive Co-Chairman Stephane Fouks, who has visited India several times and loves spicy Indian food, was in the country recently for Euro RSCG’s global managing committee meeting that was held in Mumbai — the first time the advertising agency’s global management meeting was not held at one of its two headquarters, Paris and New York — an indication of India’s importance in its scheme of things. Fouks spoke to BT’s Anusha Subramanian on his plans for the future and about the globalisation of the advertising business. Excerpts:
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Stephane Fouks |
Euro RSCG is one of the most original communication networks in the world. Why? Historically, most advertising networks have been US-centric and have grown globally on the basis of their links to US clients. We are the only major global agency that is not US-centric. Secondly, we have not built separate networks to provide different services to clients.
Instead, we have integrated all the communication disciplines in one agency to provide full services to the clients. Clients want solutions, not techniques. They want the agency to partner with them in resolving their issues.
We have, therefore, structured the organisation very differently. We have one global CEO, two global Executive Co-Chairpersons, one global Creative Director, one global COO and one global CFO. These six people give us the opportunity to do a lot more things than if there was only one global chief. Thus, we are a completely different agency network compared to our competitors.
How large is Euro RSCG?
Euro RSCG Worldwide contributed 64 per cent (Euro 942 million or Rs 5,369 crore) to the total revenues of Havas Network in 2006. Emerging markets like India, China and Russia contribute about 12-14 per cent to Euro RSCG Worldwide, and these markets are growing at 15 per cent annually.
Why has Euro RSCG Worldwide not been as aggressive as some of its global rivals?
As communications specialists, we realise the importance of being discreet about our achievements. Over the last few years, we have had more things to do than talk about ourselves. Our first and only priority is to deliver what we promise to clients. And this is paying off.
For the first time in our history, Euro RSCG Worldwide was named the Advertising Network of the Year for 2006 by Campaign, one of the most respected advertising trade publications in the UK and the world. The agency was praised for its agency management and its impressive streak of new business wins around the world.
Euro RSCG Worldwide has had more entries in The Gunn Report (one of the most respected reports on creativity in the advertising world) than all other network agencies, save only Wieden & Kennedy. This demonstrates that we are at the cutting edge of creativity across the world.
Since 2005, we have won the global Jaguar and the Charles Schwab accounts, as well as new business from Reckitt Benckiser, Veolia, Sanofi-Aventis (which quickly became one of our top three clients), EDF Energy, Alcatel-Lucent, Danone, Disney Theme Parks, LG, Harley-Davidson, and Dell. Our goal now is to continue on our ever-evolving quest for the next big idea that will propel our clients’ brands, and our agency, forward.
You have been a late entrant into India. Where does this country figure in your scheme of things?
We are happy with our operations here and have a good mix of domestic and international clients. There are some areas in which we need to improve to offer our clients the best solutions. Suman Srivastava, CEO, Euro RSCG India, has done a fantastic job. The right people can make all the difference to any operation, and we have been seeing those changes in Euro RSCG India since Suman took over the reins here. Secondly, we are concentrating on the digital domain.
The plan is to set up a strong digital office here in India to service not only our Indian, but also global clients. India will be the global hub for the digital business of Euro RSCG Worldwide. We are also looking at a strategic partner for the digital business. Thirdly, we want India to be seen as a thought leader. Some of our new initiatives here, like the Prosumer Survey and other such initiatives, are keeping the agency “future-ready”.
How has Euro RSCG India grown in revenue terms?
Euro RSCG India was set up a decade ago as a rare MNC “start-up” agency. The agency has been growing at an average rate of approximately 20 per cent year-on-year. We arrived in India 60 years late, but started with five offices, all of which are now profitable. We built an Indian agency with its own culture and that has worked for us.
You mentioned that you are looking for a strategic partner in the digital space. Can you elaborate on that?
Yes, we are looking at small and medium-sized acquisitions globally as well as in India. Major digital companies have been bought out by big advertising groups at high prices. But we are not in a hurry to acquire companies. We would rather build on what we have and simultaneously target medium-sized companies operating in this space.
Globally, we are one of the biggest agencies in the digital space. The competition in this space is very high as there are so many digital agencies. Therefore, we are looking at building an agency that can service both domestic as well as international clients. We have the talent as well as the scope and opportunity to do a lot of work from here.
Why has digital advertising suddenly become so important today?
The digital domain is an important space within advertising today. I believe that this space has to lie at the core of every discipline, be it public relations or healthcare communications or any other discipline. What we have done is to integrate the digital business into the main agency so that we can do traditional advertising as well as digital advertising and offer integrated solutions that address the communications needs of our clients. But this is not really something unique. One has to be careful about the way one uses the digital medium. The ideal strategy should combine both traditional and digital advertising.
What are your other focus areas in India?
Television and Bollywood have good potential. They are big industries in India and the quality is also very good. But in-TV and infilm advertising are not very strong in this market. We are looking at this possibility for our clients. We also see India as a global hub for advertising commercials. India can create new concepts for the world. We are also open to the idea of having Indian agencies create ads for our global clients.
What are the more visible trends and opportunities in India for advertising?
I think the time has come to export Indian brands. India will be a country where more international brands will be developed. Euro RSCG is well poised to take an Indian brand global. There is a big evolution of the mass market here; this offers us a big opportunity. Contrary to the common perception that trends begin in big cities and trickle down to smaller towns, we are seeing that some trends are bubbling up from the Tier II cities.
Consumers in the smaller towns are looking for a better life and this is leading them to consume the best brands, adapting the latest styles and going in for makeovers. This is what we are calling the “Bunty Syndrome”. However, this market is still very complicated and very fragmented. Therefore, to be able to do good business, you need to be in all the key markets. Euro RSCG is currently present in Mumbai, Delhi, Bangalore and Chennai.
Are agencies in India under greater pressure to deliver considering that the Western markets are saturated?
Yes. There is a lot of expectation from this market and the people here. But I would not agree that European markets are saturated. There is a lot of potential for innovation and growth. In France, we are the leading agency and have a market share of 20 per cent. We are continuing to grow at 6 per cent per annum in the huge French market, but the market itself is shrinking. Being innovative in a declining market is key, and that’s where Euro RSCG scores over other networks.
Clients today are looking for innovative solutions and a creative network. They want the best of both the worlds. A fine example of this is Reckitt Benckiser, which is our global client now. Prior to giving us its global mandate, the company tested us in 41 countries to see if we were able to provide it with specific advertising and strategies pertaining to the respective markets and we were able to deliver.
Over the last few years, Euro RSCG has had some big wins both globally as well as in India. What is the success formula for this?
The formula is integration and the strong levels of creativity that we display globally. We are one of the most creative networks. Our mission is to directly impact our clients’ business performance through creative business ideas. Utilising the knowledge and disciplines of our integrated organisation throughout the globe, we deliver our clients’ brand messages through media-neutral campaigns that focus on the best solutions, and not the means.
Havas Network is a young group and Euro RSCG Worldwide is even younger. What challenges do you face when competing against older agency networks like WPP or the other large networks?
Being young in this industry is an opportunity for us. Since we are young, we have less bureaucracy. Therefore, we can move faster. Secondly, given the experience of our core team, we have more than 120 years of experience in this industry. (Each of the six members of the core team has spent over 20 years in the advertising industry). So, we think that this is enough for us to find the right solution for our clients.
Do you plan to launch Euro RSCG Life (Healthcare Communication) and Euro RSCG Leap (Brand Consulting) in India?
We will, eventually. Euro RSCG Leap, when launched, will pitch for clients independently. It is a very interesting part of our business. Given our strength in strategy, and the understanding of connecting brands with consumers, this unit will contribute positively to our operations here in India. Currently, we have specialised people working on projects in India for Life and Leap.
