Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of Indian PR industry is worth $ 3 billion.
Attrition now has seized PR industry with its rate exceeding 40% even if its growing at an annual rate of 32% and likely to double its size to over US$ 6 billion by 2010 from over US $3 billion presently since corporates are relying more on PR professional to hike their brand image to take maximum benefits of current economic boom for increased sales & turnover volumes.
These findings are result of a random survey carried out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on “ATTRITION VS. PR & ITS FUTURE PROSPECTS” in which over 400 PR professionals views were elicited , however, adds that a result of growing opportunities costs in PR industry, attrition has become a core concern.
Releasing its findings, the ASSOCHAM President, Venugopal N. Dhoot who himself is a lead consumer durables players said that over 90% of PR professional at entry levels with enthusiasm and passions for hard work are shifting for greener pastures with in the industry in a year’s time.
Venugopal Dhoot, whose group spends roughly Rs 3000 crore in building its brand image annually pointed out that the ASSOCHAM survey confirms the trends that a large number of corporates are opting to rope in PR professional for their increased sales turnover as one of finest marketing strategies”.
The survey reveals that pressures apart, in PR activities diversification of intellect is most attracting part which avail them lot of opportunities and that is why the attrition rate is so high, felt over 75% of the respondents.
A majority of PR professional said that in the economic boom, a huge competition has emerged for brand building as result of which PR agencies are in demand and quoting a very market driven prices for their services for which takers are available.
Since demand for PR professional are rising and so are opportunities galoring for relationship industries and it is because of this reason it has shown a growth rate of about 22-25% in last couple of years which has now risen to 32% and the trend will continue in future and even grow for better, said Mr. Dhoot. Quoting finding of survey, the ASSOCHAM Chief said that by 2010, the PR industry size would grow to more than US $6 billion.
According to estimates by the ASSOCHAM, the Indian PR industry comprises 1200-1500 agency with their manpower strength of between 30,000 to 40,000. Business is booming for the public-relations (PR) industry.
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the future. In terms of vertical markets, healthcare has been identified by several of the industry as the fastest-growing sector; however, the public sector, the environment and corporate social responsibility (CSR) are all emerging as growth areas for PR.
The overriding concern of the industry is the skills shortage. Almost all agencies are hiring, a trend that is itself indicative of growth, and some are looking outside the PR industry to bring in new skills.
Although there are many thousands of small agencies and individual consultants serving very local markets, larger agencies are forging partnerships across the globe to meet demand from clients that themselves are extending their global reach.
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations, Genesis PR, and Vaishnavi, medium size ones with 4-5 branches and smaller city specific PR agencies. Many of these are affiliated or are Indian subsidiaries of global PR companies. For instance, Weber Shandwick and O&M have their India offices. Likewise, Fleishman Hillard has affiliation with Lexicon. There are industry specific agencies like Text100 and 2020 for IT companies, Imprimis for health care companies, and Adfactors majorly to financial companies.
Public relation is being used as a supplement along with advertising to form an effective communication strategy. This is primarily because at times advertising does not suffice in communicating the exact message. Public relation services not only help in communicating their message but can also help in generating a favorable response.
One of the biggest challenges that the industry has to tackle is the rate of attrition, which approximately is around 40%, and the main reason for this is the job dissatisfaction amidst its employees. It was an unofficial survey that we undertook just in order to come closer to the working of our industry and the result we got was shocking but to an extent very true. The flaterers have it all and others are left with nothing that is what all the executives and people at managerial level in this industry have got to say as an answer to this crucial question. Apart from this, low salary against the huge mental work plays another very important role in letting the people flee. The major reason that keeps the employees intact is the challenge associated with this industry.