rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » 'Brand India' has taken a hit in past 2-3 years'

'Brand India' has taken a hit in past 2-3 years'

August 20, 2014 08:29 IST

'Brand India' has taken a hit in past 2-3 years'

     Next

Next

Renowned British ad-man Martin Sorrell, the owner of WPP Group that controls over 40 per cent of the domestic ad market, said on Tuesday 'Brand India' has suffered due to events of the past 2-3 years, and stressed on the need to correct the blurred image.

The billionaire businessman said foreign direct investment inflows play a key role in shaping a country's brand image, comments which come in the backdrop of the new government taking proactive steps to invite overseas investors in a range of sectors.

"I think there are some challenges facing Brand India as a result of what has been happening here in the past 2-3 years," he told reporters in Mumbai.

Please click NEXT to read further. . .


Image: A boy wears the head of an idol of Ganesh, deity of prosperity, during immersion of the 10-day-Ganesh Chaturthi, in Chennai September 15, 2013.
Photographs: Babu/Reuters

     Next

'Brand India' has taken a hit in past 2-3 years'

Prev     Next
Prev

Next

The Chief Executive of WPP Group, one of the largest advertising firms in the world, however, didn't elaborate on what went wrong in the last 2-3 years.

Citing the example of China, which has benefited immensely because of its strong image abroad, the adman said there is a direct co-relation between the foreign direct investment inflows and brand image perceptions of a country.

"There is a direct co-relation between a strong country brand and strong FDI inflows."

He pinned hopes on the Narendra Modi government to deliver on promises it made in run up to the elections.

"I think the Prime Minister has already indicated a willingness to think about those issues and do something about them."

Please click NEXT to read further. . .


Image: Finance Minister Arun Jaitley.
Photographs: Courtesy, PIB

Prev     Next

'Brand India' has taken a hit in past 2-3 years'

Prev     Next
Prev

Next

Sorrell, who was knighted in 2000, said there are a few things within India which he would like to see changed and specifically pointed out to stark inequalities on the income distribution front which he termed a big ‘downside’.

"You do see the difference in living standards, the vast differences that exist.

"That does worry me and this is a marked difference than China.

"China can manage that, you can argue rightly or wrongly, but they have managed it in a way from a practical point of view much more perfectly."

The advertising guru said the rising middle-class will be the engine of growth in the years to come here.  

Please click NEXT to read further. . .


Photographs: Reuters

Prev     Next

'Brand India' has taken a hit in past 2-3 years'

Prev     Next
Prev

Next

On Modi's victory, Sorrell said the people have high hopes from him and underscored the need for the PM to deliver otherwise disappointment will set in.

"Of course, expectations are being built up and therefore those expectations will have to be fulfilled, otherwise people will be disappointed."

As for WPP's India business, Sorrell said it touched $500 million mark last year for the first time and has been growing at 6-7 per cent per annum.

He, however, rued that India is ‘under advertised’ in comparison to WPP's operations here and China.

Please click NEXT to read further. . .


Image: Stock traders in Mumbai react.
Photographs: Reuters

Prev     Next

'Brand India' has taken a hit in past 2-3 years'

Prev     Next
Prev

Next

WPP holds over 40 per cent of the domestic ad market share with revenue of $500 million and employing 14,500 people as against 15 per cent it has in China with a revenue of $1.5 billion and over 16,000-strong workforce, he said.

WPP Group creative agencies in India include industry leaders like O&M and JWT, and smaller ones such as Bates.

Sorrell's media buying agency GroupM is the largest in the country.

Please click NEXT to read further. . .


Photographs: Jayanta Dey/Reuters
Tags:

Prev     Next

'Brand India' has taken a hit in past 2-3 years'

Prev     More
Prev

More

The British adman stressed on the need for domestic corporates to address the local opportunity first before going out.  

He made a succinct criticism on the way Indian businesses operate to drive the point.

"If I was an Indian oligarch, if that is what you call successful entrepreneurs here. . . I wouldn't mind opportunities here incisively until I have exhausted them before moving abroad," he said.

Sorrell was in Mumbai to launch the Group's debut of top 50 brands among the listed companies.


Image: The new government has announced some measures to tackle high prices for agricultural produce.
Photographs: Amit Dave/Reuters

Prev     More
© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.