Our competitive advantage is that we are from the East: Takeshi Sano

India is becoming an increasingly important strategic market for Japanese customers. Naturally, markets that are important to our clients are also important to us. Additionally, more Japanese clients are soon planning to enter India, one of the fastest growing economies. During my visit, we held an event for our Japanese clients (approximately 100 people) to showcase the collective strengths of Dentsu India and Dentsu Japan. We wanted to ensure that we find a way to support them from Japan as well.

We also wanted to convey to our clients that Dentsu Japan is not just an advertising agency, but also a business transformation (BX) and customer experience (CX) partner.

We launched Dentsu BX in India in August last year. By integrating marketing, technology and consulting, we develop innovative strategies and solutions that address the complex challenges our clients face.

Additionally, the company plans to open Dentsu Labs, its research and development hubs in Mumbai and Bangalore next year. Dentsu Labs was founded in Japan in 2014 and began expanding globally this year, starting with the EMEA (Europe, Middle East, Africa) region. Accelerate the creation of innovation for consumers, businesses, and society.

We have approximately 30 active Japanese clients.

Yes, and of course our existing Japanese customers will also expand their business. We are committed to supporting their growth.

I think Dentsu India is good. However, Dentsu Japan has performed slightly better than other markets in integrating AX (advertising transformation), BX, CX, and DX (digital transformation) practices.

In fact, from the client side, they don’t care about our definitions of AX, BX, CX, DX, they are focused on growth. These are our internal definitions. We act as an integrated growth partner for our clients. In India, we have an “integrated client lead” who talks to clients about these practices. In Japan, this position is called “Eigai,” meaning one person who owns everything.

It’s about 5%. But it’s very important because it brings us other business. We get a detailed idea about our clients’ business, challenges and agenda and suggest other services. For example, we may work with clients on culture change projects. Then you can promote this cultural change. Acquire new business from BX to AX. In some cases, we may be able to assist clients with new B2C consumer models during implementation.

Another example might be HR consulting for a company as part of a BX solution. Then, in the implementation phase, we will execute DX.

We now have the One Dentsu operating model (released in 2023), which simplifies things.

On the client side, there are “integrated client leads” that sell different practices. So, at least in Japan, the One Dentsu model is well integrated and that’s why our numbers are good.

At Dentsu India, Harsha is leading that simplification.

Razdan: I have no intention of being ashamed of imitating Japan. And I think what Japan is doing is quite common sense.

Approximately 30% of our business worldwide is non-advertising. In Japan, it’s higher, at 40%. In India it is about 10%.

The big difference is that you can move people’s hearts. Consultants tend to be clinical and just analytical. On the other hand, we do it and make it happen. Those of us in the advertising industry are in the business of touching people’s hearts, not just consumers but also employees, so we can dictate their actions.

Toyota: So there are two very different approaches and three unique aspects to the way we consult.

Our mission is marketing and advertising. We design change from a marketing perspective. That’s where growth happens. And execute your transformation strategy while maintaining that goal.

The second difference is that we offer bespoke solutions. We believe that if we have 100 clients, there will be 100 different challenges, so we provide unique solutions for each client rather than a management model.

What is unique is that we have a communication advantage. We have the expertise to move people and change behavior. The second is our creativity throughout the transformation process. When identifying business challenges. When creating a regional strategy specific to that client. It also requires creativity in the implementation phase of that strategy.

Finally, create a strategy and execute it. We don’t give you a 100-page strategy and walk away; we execute.

India is the most important. Investment from Japan to India in 2023 increased by 30% compared to the previous year.

In the APAC region, China, Taiwan, and Thailand are also important. The APAC region has the highest proportion of Japanese customers, so an East-meets-East strategy is adopted.

This is not to say that America and Europe are not important to Dentsu Japan. The reason we have a competitive advantage as a network over there is because we come from the East. In my new role as Global COO, I will work to strengthen the growth of our Japanese clients in international markets. And I plan to come to India again in that role.

Dentsu Japan has three business areas. The first is marketing, the second is transformation, and the third is sports and entertainment. That’s why we’ve been working on sports entertainment content for many years. We offer sponsorship for our content. We then invest in the content, retain some rights, and also contribute to the growth of that content. For example, we announced that we are a growth partner for the Japanese Basketball League.

yes. Therefore, we have many methodologies in Japan in the sports and entertainment sector and will continue to support the Indian market for the growth of these sectors.

Razdan: That’s my business plan and strategy for next year. Yes, we will introduce it with the cooperation of Dentsu Japan!

At the end of September, Dentsu supported the holding of the first full-fledged Japanese anime event officially sanctioned by the Japanese government in Delhi. It was called Mera Mera! The event attracted 47,000 participants, far exceeding the target of 20,000. It was a great success, with over 40 Japanese companies supporting the event.

Anime continues to have a great influence on people as a gateway to Japanese culture. For example, anime and manga can lead to an interest in Japanese food and sweets, and anime songs can lead to an interest in Japanese music and fashion.