Demand for consulting, PR services growing
By Xiao Sun (China Daily)
Updated: 2004-06-14 09:09

Demand for good consulting and public relations (PR) services is rising rapidly among Chinese enterprises as the globalization of the economy increases awareness of public image and brand building.

That has given consulting and public relations companies fresh business opportunities.

According to a survey by the China International Public Relations Association (CIPRA), China's PR business witnessed 32 per cent revenue growth last year, in spite of the impact of Severe Acute Respiratory Syndrome (SARS).

Industries experiencing the biggest demand for PR services include information technology, telecommunications, durable consumer products such as automobiles, and fast-consumption products.

There is also great demand in the financial, real estate, medical, sports and culture industries.

The survey predicted the PR business would expand by another 30 per cent in China in 2004, based on the rosy state of the economy and faster pace of opening-up.

Beijing, Shanghai, Guangzhou and Chengdu are the biggest PR markets.

PR services help enterprises improve external communications and improve their transparency, said Serge Dumont, chairman of Springford Investment Ltd, an international consulting company.

Many Chinese enterprises have product quality equal to that of big multinationals, but they need to catch up in brand building and marketing in order to enter international markets, he said.

Professional PR companies can offer expertise in this area.

Dumont was among the first foreigners to open a PR business in China in the mid-1980s and has been active in the business since then.

He also recently launched a scholarship at Tsinghua University to help Chinese students interested in the communication industry.

Many domestic companies have felt mounting pressure to upgrade their marketing strategy as competition intensifies, said Dumont.

Foreign companies that are seeking to expand in China also need PR services to localize and better communicate with Chinese customers.

However, despite the big market potential, there is still a shortage of PR professionals in China.

International PR companies still take a dominant market share of high-end customers. Many are trying to become more localized to better serve local enterprises, according to the CIPRA survey.

It will take some time for Chinese companies to catch up, but ultimately some local PR companies will grow into international companies and become internationally competitive, Dumont said.

Experts also predict an increasing number of mergers and acquisitions in the industry. And more international PR companies will be able to enter the Chinese market through launching solely foreign-owned companies.

The consulting industry fully opened up to foreign companies for the first time last year.

International PR companies, including Text 100 Public Relations, moved their Greater China region headquarters to Beijing and other major cities during the year.

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