Industry pushes back as Profero questions Hong Kong’s relevance

The Hong Kong advertising industry has pushed back against claims by UK agency Profero that the city is no longer a strategically important market in Asia.

Following the surprise announcement that the digital agency would close its Hong Kong operation, industry groups have defended the city’s role within the Greater China region.

Richard Thomas, chairman of the Association of Accredited Advertising Agencies of Hong Kong, said it was wrong to generalise based on the decision of one agency.

“I completely disagree that Hong Kong is not a strategic market any longer in Asia,” Thomas said.

“It is clear that Mainland China is a massive and growing market, to which all companies need to give serious attention, but this does not mean Hong Kong no longer has importance.”

Earlier this week, Chris Adamson, Profero’s global chief operating officer, told Marketing that Hong Kong was no longer strategically important for the group and confirmed the agency would shut its local office at the end of October.

Marketing understands rival digital agencies are already moving to recruit Profero’s Hong Kong staff.

Andrew Davis, associate director-general of investment promotion at Invest Hong Kong, said the city continues to offer strong advantages for creative businesses.

“We see Hong Kong and Mainland China as complementary, with Hong Kong having enduring advantages that are particularly attractive to creative industries, like freedom of expression and intellectual property rights; while Mainland China is enjoying strong economic growth and a big consumer market,” he said.

“We have seen new creative industry companies and related businesses coming to Hong Kong this year. Start Creative has already set up and is expanding its office here. Figtree, another boutique design agency, has also opened in the city to capture Asian market opportunities. Mainland sportswear brand Li Ning has also chosen Hong Kong to establish its design and R&D centre.”

Thomas added that Hong Kong continues to offer a unique mix of international expertise and talent.

“We do not believe that Hong Kong has to suffer as China grows. In fact, we believe strongly that it is of real benefit to both Hong Kong and China,” he said.