'The winners will be players with data and deep pockets'

Q&A: Olivier Fleurot, CEO of Publicis' new PR structure

Way back in 1996 when people were still struggling to understand the relevance of the internet and digital platforms, Olivier Fleurot, who was then with the French newspaper Les Echos, launched the first online French news website. Fleurot, who has taken over as the chief executive of Publicis’ new PR structure, which includes MS&L, Publicis, and Kekst & Company, and Publicis Events Worldwide, speaks to Sapna Agarwal on his target to increase the contribution of the Bric nations to his firm’s overall revenues to 25 per cent. Excerpts.

Has the focus on the Bric nations increased due to the slowdown?
The focus on the Bric nations was on our agenda much before the slowdown, as we had seen the slowdown coming and were preparing for it. About three to four years ago, we had set a goal of the region accounting for 25 per cent of our revenues by 2010. With the slowdown, the US consumer, who was the engine of growth, has now reduced his debts from 160 per cent of his total income to 120 per cent. It will take another two to three years before things stabilise. On the other hand, the Chinese consumers have savings of 20 per cent of their income. If they start spending and the Indian government also increases its spends on infrastructure, these economies would further grow. With infrastructure improving, tourism can become one of the top industries in India.

Where do you see the growth coming from?
Within Bric, the focus areas are China and India where the economies are already showing signs of revival post the global financial slump. The growth is also coming from the digital medium, which already accounts for 25 per cent of our revenues post the acquisition of Razorfish. We have recruited 300 people in this medium and this is remarkable given that we have lost over 1,000 personnel from the traditional agencies as we have downsized and have a replacement ratio of one for every three people leaving.

Besides the changing world economic order, what are the other changes influencing you, today?
If we look beyond the downturn, then we see a complete transformation taking place. There is a digital convergence across the hi-tech, media and entertainment and telecom industries. For example, look at the music industry. With the launch of the Apple Ipod and iTunes, Apple calls the shots and sets the pricing benchmark for traditional players in the space such as EMI, Warner Music, Universal Music and Sony. Google with its plans to have the largest digital library will impact media and content companies. Telecom players now provide internet and value added services like video on demand. In countries like France, France Telecom has also launched its own channels and is competing with leading traditional channel players for the premiering rights of national sports events like football. The winners in this age of confluence will be players with data and deep pockets.

What kind of spends and acquisitions can we expect from you in India?
We have a very active mergers and acquisitions team that is constantly looking at opportunities. We have in the past acquired Hanmer in India which was a large 350-people organisation. We are now open to more acquisitions largely in the digital space.