As the global financial crisis forces companies to cut cost, public relations firms are facing the heat as business houses are going slow on image building and advertisement campaigns.
According to Assocham, the Indian PR industry, which till some time ago was witnessing a massive growth rate of more than 30 per cent, is struggling to retain clients.
"As against the normal 25-30 per cent growth rate the industry has been experiencing over the past five years, growth this year may be 10-15 per cent," says Adfactors Public Relation Managing Director Madan Bahal.
"The Indian PR industry is an integral part of the larger business landscape. Anything that impacts global or Indian business will indirectly impact the industry here," he says.
Industry sources say that PR companies are working hard to renegotiate terms with clients, who are, at least for now, finding it difficult to spend hefty amounts on public relations.
"Cost reduction is a natural pursuit for all corporates under these circumstances and expenditure on marketing-related activities would be no exception," says Shrishti Communication Managing Director Ashish Datta.
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"As far as it is manageable and affordable, we are not against giving some relaxation to the suffering business houses," a top executive in the industry says, adding the industry is ready to help out their clients of the trouble.
Integral PR CEO Sharif Rangnekar feels, "It is a bit early to say whether the industry is hit. But certainly there is a concern about the foreign clients and the clients who are operating on the international level."