You have heard of The 99%? Well here’s another figure for you. 88%. That’s the population of the world that doesn’t include the US and Europe. Yep. The US and Europe only has 12% of the world’s population and it’s shrinking.
The 88% are rising up and taking market share from every sector of commerce known to man. From advertising revenues to retail, tourism to sports, dining to financial services every global organization is realizing that their future is in Asia, especially advertising.
According to the world’s largest advertising company, WPP , China (part of the 88%) is poised to become its second largest market. Like many global organizations WPP have realized that the future of the world is in the East and not the West.
WPP’s largest market is the United States, worth $5 billion. Britain currently holds the second position with a market value at $2 billion, followed by Germany at $1.3 billion (the 12%). China is currently bringing WPP revenues worth about $1.1 billion.
The announcement from WPP is more than just an estimate; it is a decision to focus on emerging markets (the 88%), as the Western economies (the 12%) are currently struggling. The company had to cut its 2011 outlook because of the slow growth in the United States and European countries (the 12%) whereas its fastest and best performing are was China and Asia (the 88%).
As the Western markets are facing troubles, WPP started to make some small acquisitions and investments in China which is smart as if they get in early they will pick up bargains and acorns that will grow with the growth of China and the Asian economy.
WPP is also going one step further and realisting that they will need skilled staff for their various new and growing Chinese businesses they have co-launched the WPP School of Marketing and Communications in
Shangai. The school will be part of the Shanghai Art & Design Academy and it is intended to train students in marketing and communications during a three year program. According to CEO Martin Sorrell, the WPP School of Marketing and Communications is a good recruitment market, as well as an opportunity to instill in potential employees a sense of firm loyalty. Smart move that will undoubtedly pay off in the long run.