Ogilvy forms joint venture with Apex in Chengdu

The joint venture gives Ogilvy a majority share in the Chinese agency.

Existing Apex chairman and general manager Jianxiu Fan will continue to serve in the top role at Apex Ogilvy, reporting to TB Song, chairman of Ogilvy & Mather Greater China.'

"Ogilvy's expansion into the west of China is almost the final phase of our china plan," said Paul Heath, chief executive officer Ogilvy & Mather Asia Pacific.

The push, Heath said, not only comes from the government's "going west" strategy, but also from Ogilvy's clients.

"This will be the final chapter filling out Ogilvy's offer in this part of China," he said.

At a press conference held in Chengdu this morning, Apex also announced that it has been appointed by the local government of Changning county and New Hope (Xin Xi Wang) Dairy to handle its brand business.

Established in 1993 and acquired by WPP in 2006, Apex is the largest agency in the region. Its clients included Chengdu Municipal Government, Sichuan Toyota and Chinese spirits brand Guojiao 1573, as well as the hugely popular Mengniu Yogurt Super Girl Contest – which is often regarded as the Chinese version of American Idol.

The cooperation is expected to strengthen Apex's key business offerings and push the agency to the next level of growth. Meanwhile Ogilvy is able to further extend its network into China's second tier cities and gains a wealth of knowledge and insight into consumer and business cultures in Sichuan province.

The JV also expands Ogilvy & Mather's presence in Greater China to more than 15 agencies in 17 cities.

"As one of the most important cities in China's western region, we have had our eye on Chengdu for a long time," said Song. "With the full attention of the government, global business community and clients shifting to support China's 'Go West' priorities, we believe the timing is now right to expand Ogilvy's presence in western China."

Apex and Ogilvy PR Beijing recently partnered to launch Chengdu's 'Global search for a Chengdu Pambassador'.