Chuo Senko (Thailand) turns focus on Asean expansion

In line with the implementation of the Asean Economic Community in 2015, the company targets 10-per-cent annual growth in the next couple of years, driven by new clients and new assignments from existing customers that increase their investment in the region.

President and chief executive officer Shuji Okawa said yesterday that Thailand would remain the key operating hub for the Japanese agency in the dynamic region. More than half of the company’s revenue comes from the Kingdom.

Okawa acknowledged that the Thai economic slowdown and concerns over the high level of household debt and rising living costs had resulted in lower consumption. This had also led to a slight drop in overall advertising spending in the first half of the year.

However, the advertising firm is sticking to its original target of 10-per-cent growth despite the economic slowdown, he said. 

The company will focus more on new local accounts from both the private and government sectors in order to maintain business growth, he said, adding that such accounts currently represent about 20 per cent of the client base, with Japanese clients taking the lion’s share.

To expand its customer base and fulfil new services in marketing communication, Chuo Senko (Thailand) this year has formed four subsidiaries in the Kingdom: Digital DNA for online business; RDSS for shop decoration; Ad Asia as its second-line agency for international clients; and Tangram Associations for business consultancy for Asean clients.

Meanwhile, last year, the company cooperated with Daiko, Japan’s fourth-largest advertising agency, to develop a news business for Japanese clients with a presence in the Asean region.

Okawa added that although competition in the advertising industry was intense this year, the company’s existing clients in the automotive, electronics, food and financial-service sectors were still spending on advertising, as well as on business expansion.

Apart from the domestic market, Chuo Senko is also placing more emphasis on other Asian countries.

Early this year, the company formed a joint venture – Chuo Senko India – with DDB Mudra Group to expand its business via its partner’s network in India, where DDB Mudra has 30 offices throughout the country. 

Offices have also been established in Myanmar and Cambodia.

To achieve a greater balance and secure organic growth in the future, the company expects this year’s revenue to be evenly split between domestic and overseas business. Last year, the Thai market contributed about 60 per cent of the group’s income.