 "Local clients want attention from senior management: Stephen Li")
Stephen Li had joined MEC, one of Group M's agencies, in 2005 and took over as the CEO for Asia-Pacific in 2010. Apart from deciding MEC's road map for its fastest-growing region in the world, he is also the senior leader for international clients (across regions) like Citibank. The India business boasts of Colgate-Palmolive, Britannia, Reliance Communications (telecom) and Flipkart, among others. He tells Sayantani Kar about the biggest concern his Indian teams have and how MEC has covered ground despite a late entry. Edited excerpts:
You say you are as good as your people in different markets who do the hard work. What challenges are they facing?
In communications, the conversation is always going to be about digital. So, the teams have pointed out the need for stronger digital talent, which is hard to find. India is a talent-export-driven market, especially in communications. That is because the talent force is very comfortable in dealing with ambiguity, while seeking outside opportunities and speaking English well. The Phillipines has a very similar problem too.
Do you find more Indian talent outside of India?
How does MEC differentiate from other Group M agencies?
Within Group M, all the four of us (the major ones like Mindshare, Maxus, MEC and Medicacom) are at distinct places. There are two main characteristics that differentiate us. I genuinely believe that we are at the sweet-spot of what Asian clients are looking for.
What I mean by that is, we are no longer the small street-fighting guerilla agency from 3-4 years ago. We have achieved scale, we are much more system-oriented and professionalised. Regardless of how complex the client's situation is, we can handle it very comfortably, be it at the local or multi-market levels. The second trait is while we have gained scale, we are still not so large that we become a machine. While we all want the trappings that come with growth, agencies pay a price for a monolithic client because its needs then drive the style and substance of the agency's work.
So, Colgate-Palmolive won't be that monolithic client for you?
Of all the agencies, we probably have an even and equitable blend of clients. For example, Colgate is our biggest client globally, but again, it is probably a third of the size of a really large FMCG group. That forces us to be a more balanced agency. So, for markets like India, we are less reliant on a central, global relationship to drive our revenue growth.
But why will this combination make clients in Asia favour you?
So, in India, we have Britannia and Reliance (Communication's telecom business). For us, those are important relationships in India. They are looking to not only benefit from our scale but also be handled with the flair and creativity that a smaller agency might have. They know that they are not going to be second-rung clients for us. Local clients in the growing economies want that attention from senior management.
Our culture is also geared for creativity. It has never been just about media planning and buying.
What do you mean by creativity in media?
There have been many examples in the last two years. For example, the Citibank Dil vs Bill campaign was a fantastic way to maximise a limited budget. It was not pure-play media, as it involved activation too. Some of the Colgate work we have done in the last two years too set us apart.
Where does MEC India stand in your global pecking order?
India is now my third-biggest market in Asia, after China and Australia. In terms of revenues, it gives the Asia-Pacific arm about 15-18 per cent. By the end of this year, we would have grown about a 120 per cent in four years. We are the youngest Group M agency in India, and are number three, after Mindshare, which is in the lead, followed by Maxus.
You say you are as good as your people in different markets who do the hard work. What challenges are they facing?
In communications, the conversation is always going to be about digital. So, the teams have pointed out the need for stronger digital talent, which is hard to find. India is a talent-export-driven market, especially in communications. That is because the talent force is very comfortable in dealing with ambiguity, while seeking outside opportunities and speaking English well. The Phillipines has a very similar problem too.
Do you find more Indian talent outside of India?
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I find a lot of Indian talent in Asia-Pacific markets, and, particularly, southeast Asian countries, such as Indonesia, Vietnam and Malaysia - both at the agency-leadership and client-leadership levels.
How does MEC differentiate from other Group M agencies?
Within Group M, all the four of us (the major ones like Mindshare, Maxus, MEC and Medicacom) are at distinct places. There are two main characteristics that differentiate us. I genuinely believe that we are at the sweet-spot of what Asian clients are looking for.
What I mean by that is, we are no longer the small street-fighting guerilla agency from 3-4 years ago. We have achieved scale, we are much more system-oriented and professionalised. Regardless of how complex the client's situation is, we can handle it very comfortably, be it at the local or multi-market levels. The second trait is while we have gained scale, we are still not so large that we become a machine. While we all want the trappings that come with growth, agencies pay a price for a monolithic client because its needs then drive the style and substance of the agency's work.
So, Colgate-Palmolive won't be that monolithic client for you?
Of all the agencies, we probably have an even and equitable blend of clients. For example, Colgate is our biggest client globally, but again, it is probably a third of the size of a really large FMCG group. That forces us to be a more balanced agency. So, for markets like India, we are less reliant on a central, global relationship to drive our revenue growth.
But why will this combination make clients in Asia favour you?
So, in India, we have Britannia and Reliance (Communication's telecom business). For us, those are important relationships in India. They are looking to not only benefit from our scale but also be handled with the flair and creativity that a smaller agency might have. They know that they are not going to be second-rung clients for us. Local clients in the growing economies want that attention from senior management.
Our culture is also geared for creativity. It has never been just about media planning and buying.
What do you mean by creativity in media?
There have been many examples in the last two years. For example, the Citibank Dil vs Bill campaign was a fantastic way to maximise a limited budget. It was not pure-play media, as it involved activation too. Some of the Colgate work we have done in the last two years too set us apart.
Where does MEC India stand in your global pecking order?
India is now my third-biggest market in Asia, after China and Australia. In terms of revenues, it gives the Asia-Pacific arm about 15-18 per cent. By the end of this year, we would have grown about a 120 per cent in four years. We are the youngest Group M agency in India, and are number three, after Mindshare, which is in the lead, followed by Maxus.