Takeshi Sano, who took over as CEO of Dentsu Japan in January this year and will soon assume an additional role as deputy global COO of the network, was in India recently. The go-getting Sano has exchanged business cards with 2,900 people in the last 11 months, he says. During his India visit, Sano met over a 100 people at an event for the agency’s clients. Excerpts from a conversation in which Harsha Razdan, CEO, Dentsu South Asia, and Yuichi Toyoda, global practice president of business transformation, also joined in:
Is there any significance to your India visit?
India is becoming an increasingly important strategic market for our Japanese clients. Naturally, markets that are important to our clients are also important to us. Also, many more Japanese clients are planning to soon enter India, which is one of the fastest growing economies. During my visit, we held an event for our Japanese clients — around 100 — to show them our collective capability from Dentsu India as well as Dentsu Japan. We wanted to assure them that we will find a way to support them from Japan as well.
We also wanted to tell the clients that Dentsu Japan is not just an advertising company but also a business transformation (BX) and customer experience (CX) partner.
We launched Dentsu BX in India last August. By integrating marketing, technology and consulting, we develop innovative strategies and solutions that address the complex challenges that clients face.
Additionally, we are opening Dentsu Labs, our R&D lab, in Mumbai and Bengaluru next year. Dentsu Labs was founded in 2014 in Japan, and this year has started to expand globally, starting from the EMEA (Europe, the Middle East and Africa) region. It will accelerate the creation of innovations for consumers, businesses and society.
How many Japanese clients do you have in India?
We have some 30 active Japanese clients.
So you anticipate the number will go up now?
Yes, and of course the existing Japanese clients will also increase their business. We are committed to assisting their growth.
Dentsu Japan has been one of the best performers for your network globally. What are you doing right that other markets can learn from?
I would say Dentsu India is good. But Dentsu Japan has done slightly better than other markets in the integration of our AX (advertising transformation), BX, CX, DX (digital transformation) practices.
From the client side, actually, they don’t care for our definitions of AX, BX, CX, DX… they’re focusing on growth. These are internal definitions for us. We function as the integrated growth partner for our clients. In India, we have an ‘integrated client lead’, who talks to our clients about these practices. In Japan this post was called ‘eigyo’, a Japanese term that means one person who owns everything.
How much of your business is coming from the BX practice?
Around 5 per cent. But it is really important as it gets us other businesses. We get a detailed idea of the clients’ business, challenges and agenda, and pitch other services. For instance, sometimes we may be working with clients on a culture transformation project. We can then do advertising of this culture transformation. From BX to AX, we get new business. Sometimes, during execution, we could help clients with a new B2C consumer model.
To give another example, we may do HR consulting for a company as part of our BX solution. Then, in the implementation phase, we get to do DX.
Most advertising networks have embarked on simplification. How is Dentsu, which has acquired a lot of companies, simplifying?
We have a One Dentsu operating model now (launched in 2023) which has simplified things.
On the client front, there is an ‘integrated client lead’ selling different practices. So, at least in Japan, we have well integrated the One Dentsu model and that’s why our numbers are good.
In Dentsu India, Harsha is leading that simplification.
Razdan: I have no shame in copying from Japan. And I think what Japan is doing is pretty much commonsensical.
Is non-advertising business 50:50 yet for Dentsu?
Globally around 30 per cent of our business is non-advertising. In Japan it is higher, at 40 per cent. In India it is about 10 per cent.
You are now competing with consulting businesses head on. What uniqueness do you bring to the table?
One big difference is that we can move people’s hearts. Consultancies tend to be clinical and just analyse, that’s all. Whereas we will do, and make it happen. We in advertising are in the profession of moving people’s hearts, not just consumers but employees, so we can command action.
Toyoda: So there are two major different approaches we bring and three unique things in the way we do consulting.
Our mission is marketing and advertising. We design transformation through a marketing lens. That’s where growth happens. Also, we execute transformation strategy keeping that goal.
Second difference is that we provide bespoke solutions. If there are 100 clients, they have a 100 different challenges, and we provide unique solutions to each client rather than a management model.
Uniqueness is that we have the communication edge. We have an expertise in moving people’s hearts and making a behavioural change. Second is, our creativity in the entire process of transformation; in identifying business challenges; in creating regional strategy that is unique to that client; and also creativity in the implementation phase of that strategy.
Lastly, we execute a strategy and implement. We don’t present 100 pages of strategy and leave, but we execute.
You have been talking about an East-meets-East strategy. How important is India?
India is the most important. There was a 30 per cent growth in investment from Japan into India in 2023 from the previous year.
In the APAC region, China, Taiwan and Thailand are also important. The APAC region has the highest percentage of Japanese clients — hence the East-meets-East strategy.
It doesn’t mean that America and Europe are not important for Dentsu Japan. Our competitive advantage as a network over there is because we are from the East. In my new role as global COO, I will be working to enhance the Japanese client growth in international markets. And I will come to India again in that role.
You have talked about the BX side. On the content side, which has been exploding, what is your strategy?
In Dentsu Japan, we have three business areas. First is marketing, second is transformation, and third is sports and entertainment. So we have been working with content in sports entertainment for a long time. We bring sponsorship to content. After that we invest in the content, and hold some rights, and we also help grow that content. For example, we have announced we are the growth partner of the basketball league in Japan.
In India, will you develop such properties?
Yes. So we have a lot of methodology in Japan, in the sports and entertainment area, and we will support the Indian market to grow those areas.
Razdan: That’s my next year’s business plan and strategy. Yes, we will bring it in with Dentsu Japan’s help!
The Koreans have rather stolen a march in selling their culture to India. What is Japan doing?
At the end of September, Dentsu helped organise the first authentic Japanese anime event in Delhi, officially endorsed by the Japanese government. It was called Mela Mela! The event attracted 47,000 attendees, far exceeding our target of 20,000. It was a big hit, and more than 40 Japanese companies supported the event.
Anime continues to have a significant impact as a gateway to interest in Japanese culture. For example, anime and manga often spark interest in Japanese food and sweets, anime songs lead to an appreciation of Japanese music and fashion.