Profero to shut up shop in Hong Kong

Digital ad agency Profero will close its Hong Kong operation after six years to focus on building up its Greater China business in Shanghai and Beijing.From next month the UK-based independent network said staff from Hong Kong will either be transferred to other offices or made redundant as a result of its decision.The office has around six full time staff and according to its UK bosses is no longer strategically important.The decision comes one month after Hong Kong managing director Henry Wood resigned from the company.Speaking to Marketing from London, global CEO Wayne Arnold confirmed the agency would close at the end of October and admitted there would be some retrenchments. But he stressed the move was not an indication of its approach to Asia.The company recently hired Gavin Coombes as its new Asia Pacific CEO and announced its expansion into South Korea last week. This is on top of offices in Sydney, Tokyo, Singapore, Beijing and Shanghai.But the news is particularly worrying for Hong Kong's ad industry with Profero chief operating officer Chris Adamson admitting the local operation was merely a stepping stone into Greater China."We opened Hong Kong about six years ago as a relatively easy route into China, as a lot of UK companies do."Now we have a fully established business in Shanghai and a fully established business in Beijing and the relevance of Hong Kong is diminished," Adamson said.Across the region Adamson said the Profero business was strong, with Sydney up 40% this year and he said within its portfolio of offices, Hong Kong's role was fading."It's not that we think Hong Kong does not have opportunities - it clearly is an opportunity - but we have to rank our opportunities."