Harindra Singh
(Vice-Chairman and Managing Director, Percept Ltd.)
Chatting with afaqs!, Harindra Singh, vice-chairman and managing director, Percept Ltd, talks about the organisation, the increased focus on Intellectual Properties, and his perspective on how communication and advertising ought to be.
From ad agency to media conglomerate, Percept has come a long way in the last 25 years. In this exclusive interview with afaqs!, Harindra Singh, vice-chairman and managing director, Percept Ltd, spoke about the Percept journey so far, how Intellectual Property (IP) will help steer the company into the next level of growth, and a tongue-in-cheek remark on advertising as we know it.
From ad agency to media conglomerate, Percept has come a long way in the last 25 years. In this exclusive interview with afaqs!, Harindra Singh, vice-chairman and managing director, Percept Ltd, spoke about the Percept journey so far, how Intellectual Property (IP) will help steer the company into the next level of growth, and a tongue-in-cheek remark on advertising as we know it.
Q. Take us through the Percept journey. How has Percept grown from being an ad agency to what it is today in the last 25 years?
'Roller coaster'. You have all the emotions -- thrill, excitement and fun, with the ups and downs on a roller coaster.
We got several distinctions in the first 10 years. And, then came the stage in the early '90s, when we were hit by this global paradigm shift.
When I got into this business, there was just one kind of agency, that is full service. And, then came a time when full service agencies were seen as useless doctors.
Super specialization was coming in. This unbundling was happening and we realised that if we do not change, we will die.
Whatever we have learnt, my brother (Shailendra Singh) and I, it has been on the stage, on the ground. When you have been on the street long enough, you develop that instinct, you are able to pre-empt; you don't wait for the hurdle to pop up, but find a way around it much before it happens.
We repositioned ourselves as Percept IMC (Integrated Marketing Communication) with a social marketing division, media division, PR division, event division, and production division. Most of what we did was in vacant slots. We were ahead of the times.
In Percept's history, it is an instinct that you have to create something new, do something different, find a way out of hurdles. Common sense, combined with instinct, propelled us.
Unlike in a multinational set up where an idea has to climb up the hierarchical ladder, at Percept, when we get an idea, we do it tomorrow.
Q. Percept has handled broadcast for Sahara for two years and has had good relations with Lachlan Murdoch. Didn't it ever occur to Percept to get into media in a more aggressive manner? Is it on the cards?
We have stayed away from media ownership. The closest we have got to media is with live events.
Otherwise, it is a fundamental conflict. We feel we are a doctor, writing out a prescription for a brand. In such a case, we can't own a pharmaceutical company, as my patient will lose trust in me.
Secondly, all our businesses are idea-based and not capital based, whereas it's the opposite in broadcasting, where crores of rupees are burnt. Where do we have such kind of money? (laughs)
“Clients do not want advertising, they want solutions. We are the only ones qualified to provide that solution.”
Q. Tell us about Intellectual Property. Why is IPs so important to Percept?
That is the next big step for us. We have realized that earning money is not the sole thing, you have to build assets. For us, there are two assets -- consumer insight and creativity. And, if I create intellectual properties out of these, I can ensure that money will keep on flowing even when I am not working.
The current model that we work on is to create a campaign for the client and get paid for it. Suppose we tweak it little. We ask the client to pay one rupee every time he uses the campaign. In that case, even if I am not working for the client, I will still be making money.
I also know it will be hard for any client to accept it for creative function. But, I can do this in other areas. I can create properties in the events space, or in Bollywood.
Q. What is advertising business's contribution to the company's topline? Has it taken a backseat at all?
No, it has not (taken a backseat). We are 1,200 people right now, and there would be around 600-700 in advertising. More than 50 per cent of our manpower is still in advertising. In terms of revenue, it is close to 40-45 per cent.
Q. What does Percept H stand for? Is it more Japanese, or Indian? What do the Japanese bring to the table?
Within advertising, we have two agencies at the top. The first one is called Percept H, and the second one is called Hakuhodo Percept. Both have a 50-50 partnership with the Japanese.
Percept H focuses largely on non-Japanese business, but we do have businesses such asToyota
Percept H focuses largely on non-Japanese business, but we do have businesses such as
We recently won a Canon pitch integrating resources from
“The current model that we work on is to create a campaign for the client and get paid for it. Suppose we tweak it little. We ask the client to pay one rupee every time he uses the campaign. In that case, even if I am not working for the client, I will still be making money.”
Q. How do you place yourself against the other big names/agencies in Indian advertising?
Look, my usual answer would be, 'Who are they?' I am being dead honest.
A client is a guy with a brand, and all that he wants is to get his message across to the consumer. He is not looking for advertising. He is looking for someone to tell him "what the **** to do".
A client is a guy with a brand, and all that he wants is to get his message across to the consumer. He is not looking for advertising. He is looking for someone to tell him "what the **** to do".
A big agency cannot do that. The moment a client goes to them, they will talk about a 30-second television ad. Think seriously! Clients do not want advertising, they want solutions. We are the only ones qualified to provide that solution.
It may sound really high-handed and conceited, but it is the reality. An advertising agency is an animal that should have died 100 years ago.
Somebody needs to shatter this way of thinking and say that this is a pseudo world.
I am not saying we are perfect. But, theoretically speaking, clients want a marketing solution and -- nine out of ten times -- that can be done without advertising.
The big agencies talk about engagement and activation in their presentations and strategies, but they don't do it. Because, it is so much of an effort to make so little money. Clients are doing it independently with small vendors. We have 200 people employed in our activation agency who are actually delivering consumer contact.
I am not saying we are perfect. But, theoretically speaking, clients want a marketing solution and -- nine out of ten times -- that can be done without advertising.
The big agencies talk about engagement and activation in their presentations and strategies, but they don't do it. Because, it is so much of an effort to make so little money. Clients are doing it independently with small vendors. We have 200 people employed in our activation agency who are actually delivering consumer contact.
Q. Are you dismissing creativity altogether?
No! This is creativity in business. I need to use that creativity to bring the customer to the doorstep. I am saying clients want customers. That is the focus. Agencies in the industry are selling creativity, though.
Q. What is the vision ahead?
We want to provide solutions where we can. This is the business we are in. If my client tells me that he would pay me only when I succeed, I will agree. Measure my success in a tangible manner and my success should be in my control, and I am willing to get paid on my success. No problem!
This is the shift that is happening, and we are adapting to it wherever we can.
(Source -: afaqs.com)