Look How Exposed Publicis Is In China

Publicis Groupe CEO Maurice Levy told Bloomberg he was worried about growth in China:

“What we have seen in the market are some profit warnings … When you have clients facing some difficulties, this is a little bit worrisome.”

How worried should he be? Very.

Bloomberg notes that Publicis has made more than a dozen acquisitions in China and other eastern markets this year.

Here, from Publicis’ own Q1 2012 report, is how exposed Publicis is in the region:


Photo: Publicis Groupe


Photo: Publicis Groupe


Photo: Publicis Groupe

To recap, nearly a quarter of Publicis’ revenues come from regions where like-for-like “organic” revenues are growing at rates of 15.3 per cent a year, and a full 11 per cent of its revenues come from China alone.

How sustainable is 15 per cent annual growth, every year, forever? It isn’t. In fact, growth in China is already slowing according to the country’s own government economists.


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