Public Relations with Chinese Characteristics: Thoughts about the PR industry in China
By Nikki Lin, Director, Beijing
nlin@golinharris.com
Brad Burgess, Consultant, Beijing
bburgess@golinharris.com
When flipping through the pages of a European or North American newspaper, it is more than likely the reader will come across an article related to China. Mandarin Chinese is quickly being added to school curricula in the West as students and parents identify it as a key second language. The world is watching China and cares very much about what kind of country it is becoming as it takes a more prominent position on the world stage.
The public relations industry in China is in a similar position. Like China, the industry is growing at a very impressive rate. According to a recent survey conducted by the China International Public Relations Association, the public relations industry had grown by approximately 33 percent in 2006 compared to a year prior (2006 Report of the China Public Relations Industry).
In 2005, an article in PRWeek (UK) titled "News analysis: China's PR leap is brought to earth," claimed that 7,000 new staff would be needed in 2007 to work in the PR industry, and 9,500 in 2008.
What does all this excitement mean? It means that just like China's economy, the PR industry's rapid growth presents many opportunities-and many exciting changes.
Changing Trends
PR as an industry is relatively young in China. Some experts affirm that the industry is little more than 20 years old and that real maturation in the field has only come about recently (Mao Jingquan, chairman of the Shanghai Public Relations Association, Shanghai, October 18, 2006).
While this may be somewhat unsettling, the good news is that the PR industry is developing and professionalizing very quickly and positively. There are many reasons for excitement.
First, professionalization is raising people's perceptions of the industry. As most China watchers know, guanxi (the Mandarin term for relationships) has a very important place in Chinese life. The very epistemology of PR, which includes this term, is problematic in China. When one mentions working in the "connections" industry, it is understandable why most Chinese are confused as to just what that means. Many Chinese misunderstand PR as a job where beautiful practitioners wine, dine and provide services to clients. Thankfully, increased educational programs in PR and other factors are helping to change this perception.
Clients are also seeing the increasing value of PR to their brands, and they are seeking strategic communications counsel from their agencies. Public relations companies in China have traditionally been event-centric. This is changing. While events continue to play an important role in brand promotions, it is becoming increasingly recognized that they need to fit within an overall strategic framework supporting the brand communications strategy.
Second, the media environment in China is changing rapidly. China's media environment is one of the most complex in the world. There were nearly 12,000 publications nationwide in China as of 2006 (McCann). Going forward, there are some noteworthy changes worth paying attention to as media becomes more competitive. To increase sales, media coverage is becoming more edgy and critical. One of China's top financial magazines, Caijing, is known for its incisive and investigative coverage and is highly regarded by foreign media in China. There is also a trend toward more consolidation, moving away from fragmentation and complexity in the media.
Next, the very nature of communications is changing in China. Younger Chinese love sharing information with each other in online communities, such as blogs and BBS forums. As this group seeks authentic engagement and truth, these media and other new media are becoming increasingly important.
Issues
While the China PR industry is exciting, the industry faces some very real issues. One major problem is retaining staff. Again, there is a clear market demand for PR professionals. The natural downside of this is staff bouncing from one agency to the next seeking higher pay. Staff frequently receive phone calls from recruiters, and if company loyalty is low, the staff listen. This also allows salary packages to be renegotiated very quickly in exchange for retention. Many practitioners move up a position in a year's time. The dangerous result is the possibility that staff in management positions have not had adequate management experience.
Another major problem is that there are so many players in the industry. With more than 2,000 local agencies and most major international agencies operating in China, there is plenty of competition. While competition is good and will ultimately help agencies offer better services for clients and raise the bar in general for the PR industry, many of the agencies are very new and do not have specialized knowledge in strategic communications. Many entrepreneurs note the industry growth and decide to get into the game with little experience, skills or expertise.
Public relations is a very exciting field, and perhaps nowhere is the industry more dynamic than in China right now, where it is growing and changing at a rapid speed. Like many things in China, as the industry develops it will learn from others, but it will also develop a very Chinese character.
By Nikki Lin, Director, Beijing
nlin@golinharris.com
Brad Burgess, Consultant, Beijing
bburgess@golinharris.com
When flipping through the pages of a European or North American newspaper, it is more than likely the reader will come across an article related to China. Mandarin Chinese is quickly being added to school curricula in the West as students and parents identify it as a key second language. The world is watching China and cares very much about what kind of country it is becoming as it takes a more prominent position on the world stage.
The public relations industry in China is in a similar position. Like China, the industry is growing at a very impressive rate. According to a recent survey conducted by the China International Public Relations Association, the public relations industry had grown by approximately 33 percent in 2006 compared to a year prior (2006 Report of the China Public Relations Industry).
In 2005, an article in PRWeek (UK) titled "News analysis: China's PR leap is brought to earth," claimed that 7,000 new staff would be needed in 2007 to work in the PR industry, and 9,500 in 2008.
What does all this excitement mean? It means that just like China's economy, the PR industry's rapid growth presents many opportunities-and many exciting changes.
Changing Trends
PR as an industry is relatively young in China. Some experts affirm that the industry is little more than 20 years old and that real maturation in the field has only come about recently (Mao Jingquan, chairman of the Shanghai Public Relations Association, Shanghai, October 18, 2006).
While this may be somewhat unsettling, the good news is that the PR industry is developing and professionalizing very quickly and positively. There are many reasons for excitement.
First, professionalization is raising people's perceptions of the industry. As most China watchers know, guanxi (the Mandarin term for relationships) has a very important place in Chinese life. The very epistemology of PR, which includes this term, is problematic in China. When one mentions working in the "connections" industry, it is understandable why most Chinese are confused as to just what that means. Many Chinese misunderstand PR as a job where beautiful practitioners wine, dine and provide services to clients. Thankfully, increased educational programs in PR and other factors are helping to change this perception.
Clients are also seeing the increasing value of PR to their brands, and they are seeking strategic communications counsel from their agencies. Public relations companies in China have traditionally been event-centric. This is changing. While events continue to play an important role in brand promotions, it is becoming increasingly recognized that they need to fit within an overall strategic framework supporting the brand communications strategy.
Second, the media environment in China is changing rapidly. China's media environment is one of the most complex in the world. There were nearly 12,000 publications nationwide in China as of 2006 (McCann). Going forward, there are some noteworthy changes worth paying attention to as media becomes more competitive. To increase sales, media coverage is becoming more edgy and critical. One of China's top financial magazines, Caijing, is known for its incisive and investigative coverage and is highly regarded by foreign media in China. There is also a trend toward more consolidation, moving away from fragmentation and complexity in the media.
Next, the very nature of communications is changing in China. Younger Chinese love sharing information with each other in online communities, such as blogs and BBS forums. As this group seeks authentic engagement and truth, these media and other new media are becoming increasingly important.
Issues
While the China PR industry is exciting, the industry faces some very real issues. One major problem is retaining staff. Again, there is a clear market demand for PR professionals. The natural downside of this is staff bouncing from one agency to the next seeking higher pay. Staff frequently receive phone calls from recruiters, and if company loyalty is low, the staff listen. This also allows salary packages to be renegotiated very quickly in exchange for retention. Many practitioners move up a position in a year's time. The dangerous result is the possibility that staff in management positions have not had adequate management experience.
Another major problem is that there are so many players in the industry. With more than 2,000 local agencies and most major international agencies operating in China, there is plenty of competition. While competition is good and will ultimately help agencies offer better services for clients and raise the bar in general for the PR industry, many of the agencies are very new and do not have specialized knowledge in strategic communications. Many entrepreneurs note the industry growth and decide to get into the game with little experience, skills or expertise.
Public relations is a very exciting field, and perhaps nowhere is the industry more dynamic than in China right now, where it is growing and changing at a rapid speed. Like many things in China, as the industry develops it will learn from others, but it will also develop a very Chinese character.