Gang Bangs Sir Martin over JV Dis.

It was reported in Saturday's NY Post and again in today's NY Times that the head of Beijing Guoan, a division of China International Trust and Investment Corp (one of China's largest state-owned companies) abruptly ended a 14 year partnership with WPP's Grey Agency in China.  The company's chief, Yan Gang, lashed out to reporters saying that the Knight of WPP, Sir Martin Sorrell, "had absolutely no manners, no upbringing and no culture,"  The cat fight evidently started over what Mr. Yan viewed as a snub by his holiness at a sit down in April to discuss issues with the partnership.  None of WPP's spokespeople could be found (no, as usual we didn't try), but it was believed that Sorrell didn't intentionally snub Yan but rather didn't see him given his severe height advantage over the Asian business leader.  And Sorrell is no Yao Ming himself if you get our drift.

This isn't the first time Sorrell's found himself on the the receiving end of personal insult.  The ad industry's gentleman of gentlemen, David Ogilvy once quipped that Sorrell was an "odious little jerk".  At the reporting deadline for this article, we still hadn't had time to look up "odious" but we're pretty sure it wasn't a compliment.

From an investor's perspective, the partnership doesn't seem that critical for the world's second largest advertising company.  In all, WPP has 13 partnerships in China contributing $500 Million in revenue and this one accounted for only 1% of that total.  That said, the Chinese are not known to take insults from whitie sitting down.  Don't be surprised if other partnerships start showing signs of fraying.

NY Post Article

NY Times Article

Comments

[east coast ad guy]

That is a pretty good mix of news and fun commentary. I learned and I laughed.

[Account lady in Shanghai]

Well, Well...we may live interesting times here in China where the Ying is bigger than the yang and the undercover motive is the opposite to the action. I wonder if Sir S. can cross the sea under Heaven's eye without the emperor noticing. Gosh golly, sound like a mid valley gal in Shanghai. I've obviously spent too much time in Shanghai. Time time for a break.

Bottom line: in China ignore the obvious and seek the underlying motive and as my grandma always told me, "Never marry a...."

[Account lady in Shangahai]

From a having worked in Shanghai for 5 years perspective:

Sir S,

Good move.