China's entry into the World Trade Organization (WTO) is expected to spark greater demand for public relations (PR) nationally -- both the international and local firms vying to take advantage.
Richard Edelman, president and CEO of Edelman Public Relations Worldwide, predicted the Chinese PR market would become the second largest in the world following the nation's integration into the global economy.
Alistair Nicholas, general manager of Edelman PR Worldwide (China) Co Ltd, was even more optimistic and said the Chinese market would probably become the largest in the future along with sustained economic growth.
Research conducted by the China International Public Relations Association (CIPRA) showed the business volume of China's PR market rose by 50 per cent to hit 1.5 billion yuan (US$180.7 million) last year.
Of the top 20 PR companies in the world, half have entered the Chinese market. And the growth momentum is set to continue as more overseas companies enter China after the country joins the WTO. Foreign companies with a foothold in the country will continue to expand their presence.
All these will result in surging demand for PR services, said Nicholas.
For international PR companies, which are facing stronger challenges from their Chinese counterparts, the country's WTO entry will create a new customer base. As Chinese companies will see the competition in the domestic market intensify after WTO, they will come to appreciate the value-added work that PR agencies can do.
More Chinese companies will become strong enough to build up their brands in the international market.
With their international network and experience in helping multinational companies build up their corporate image, international PR companies seem to have gained the upper hand over their Chinese counterparts in helping domestic firms reach their goals.
But Edelman said his company will make more efforts to gain more Chinese clients.
Edelman, the world's largest independent public relations consultancy, has been doing business in China for 15 years, but most of its customers are still multinational ones.
"We want to work with local companies," he said. "I think the future is very good for Edelman in China."
He said the company will become more involved in China's western regions, planning to open more offices in that area of the country in two or three years.
In the face of such an aggressive strategy in the post-WTO era, domestic PR firms are confident about their future development.
(China Daily November 6, 2001)
