Will WPP India survive Sorrel’s resignation?
Martine Sorrel resigned from worlds largest advertising and PR company ( $25 bn valuation).
Martine Sorrel resigned from worlds largest advertising and PR company ( $25 bn valuation).
How big is WPP India?
India ranks number 7 in WPP’s top ten markets of the world.
Yearly business of $700 mn.
Annual billing of $4.5 bn.
Half of China’s business.
Employs 16k to 17k people.
WPP controls nearly 50% of the market share in India.
How will it impact India?
Martin Sorrel was famous for squeezing agencies.
Gurgaon and Mumbai spearhead WPP’s India.
Holding model may end. There may be bundling ( mergers) and unbundling (demergers).
He was also bullish on India. Martin Sorrel thought India is under-branded, as a proportion of its GDP. So, there is a huge scope for growth.
Agency business is under threat, due to less margins, and digital onslaught.
Sorrel’s style matched that of sweatshops, with more focus on revenues, and less on the core, which is creativity. It may change.