Is global pedigree losing shine in the Indian market: The W+K India story sparks debate

The Indian market has always been complex and distinct, with cultural nuances, diverse languages, and a rapidly growing economy. For advertising agencies, the question arises—how important is global pedigree in navigating these intricacies, and do large marketers in India seek agencies with international expertise?

Globally recognised network, Wieden+Kennedy faced significant obstacles. Surprisingly, none of W+K's hallmark global clients—Nike, McDonald's, or Ford—extended their business to India. This meant that W+K India was largely on its own, building its clientele from the ground up. While the agency managed to secure local brands like Hero MotoCorp, Jindal Steel, and PokerBaazi, it lacked the advantage of leveraging global accounts for a boost.

This situation raises a broader question: How much do Indian agencies of global networks depend on international accounts to thrive?

Like Aalap Desai, CCO and Co-Founder, tgthr said, “In this new world post the pandemic the advantages of agency networks have been reduced considerably.”

“One of the biggest advantages used to mean getting global clients aligned with your agency. That has reduced because, in pursuit of saving money during the pandemic, clients associated with smaller and cheaper independent agencies and either stuck with them or still associated in the form of projects. Post the pandemic that frequency never went back to how it used to be. That behaviour is also understandable because to sustain their scale, networks compromised immensely on their talent and hence their quality,” he added.

On the other hand, according to him, the advantage of a network that remains till date is stability.

Simply put, they can still manage to keep people around longer in the hope of revenue than independent agencies.

Desai was former CCO of Dentsu Creative West and Experience, India, who started his agency just last year.

Sudhir Nair, founder and CEO, 21N78E Creative LabsUsed, who used to be the managing director Omnicom Media Group before starting his own company, feels a global pedigree brings in name and a perception that helps in getting to the pitch stage at times but it does not come free.

However, the biggest advantage that one has is when there is a global brand conducting a global pitch, you get the business even if you may not be a top player in the local market, he noted. And that helps in setting up the teams for other businesses to follow.

“But all these scenarios are far and few and not uniform across networks,” Nair added.

Is global pedigree necessary for claiming the big clients in the Indian market and do large marketers look for agencies with global expertise?

“That is the unfortunate reality of our market though we are unlike any global markets. Some big clients do look for global credentials and at times are also willing to pay a premium (to whatever extent) for them. And that’s got to do more with perception and who you are associated with,” said Nair.

In fact, Nair recalled how they had once been explicitly told by a brand, which they had supported throughout its growth phase, that the brand now felt the need to partner with a globally established agency. Consequently, they made the decision they believed was in their best interest.

 However, there are an equal number of big clients who look beyond the global credentials and rely on the expertise and intelligence of the team they are dealing with.

“In fact, many clients ask for local experience across different markets within the country and multiple categories. And that is a visible shift. The success of all independent agencies is symbolic of that,” he added.

According to Nair, Wieden+Kennedy’s local leadership, which included several prominent figures, played a significant role in securing business for the agency, likely with minimal support from the global network.

He questioned the value of being part of a global network when global clients were not extended to the Indian office, apart from contributing to the overall global revenue.

While acknowledging that being part of a network has both advantages and disadvantages, he emphasised that in a people-driven business, the individuals involved ultimately matter most.

“I wonder who needs whom more. To me Piyush Pandey is equal to O&M in India,” Nair noted.

According to brand coach Ambi Parameswaran, global agencies often struggle in India if they fail to secure global clients locally or adapt to the long-term relationship-driven market.

 “A more successful approach involves partnering with strong local agencies, as seen with FCB Ulka or Leo Burnett-Chaitra. W+K initially thrived under V Sunil’s leadership but faltered after his exit, lacking a robust long-term strategy. Agencies need patience, investment, and support from their global clients to succeed in India,” he said.

It’s not that the Indian market is unimportant for large brands or global agencies.

In fact, the unique dynamics of India require tailored approaches.

The closure of Wieden+Kennedy’s (W+K) Indian office underscores a broader trend in the advertising world, where even agencies with a global pedigree aren’t immune to the challenges of local markets. W+K is renowned for its innovative and creative output, but in India, the advertising ecosystem operates with unique dynamics, said industry expert Gopa Menon.

“A global pedigree certainly helps in creating an initial buzz or credibility in India, especially among multinational clients who are familiar with the agency’s work on a global scale. Such backing provides access to global tools, resources, and sometimes high-profile global accounts. However, pedigree alone doesn’t guarantee success in India. The local advertising landscape is complex, and agencies must have a deep understanding of the cultural nuances, regional languages, and consumer behaviour that vary significantly from other markets.”

While global networks can provide strategic guidance and operational support, Indian outposts are often left to figure out how best to navigate the local market. The ability to localise creative strategies and approaches, often using ingenuity and local insights, becomes crucial. The key is being consistent with policies and people and being patient. Most often the pressure on delivering numbers which is also very important takes away the focus on culture, talent and the rest.

Even with global resources at their disposal, the most successful agencies in India have thrived by fostering local talent and using a mix of traditional and digital platforms to create regionally resonant campaigns.

In many cases, the global entity may focus more on maintaining overall brand consistency and securing large multinational clients, while the day-to-day execution and client servicing are handled independently by the local team. The autonomy allows local branches to build relationships with Indian brands and leverage their understanding of local media and trends. However, without strong local leadership or the flexibility to adapt global strategies to local needs, even a globally renowned agency can struggle to stay relevant.

As Dimpy Yadav, head of digital strategy at Mindshare India, pointed out, the Indian advertising ecosystem stands apart due to its local context, multiple languages, and cultural nuances.

“While there is an influence of global trends and companies in the Indian advertising industry, the local context, diverse languages and dialects, emotional appeal and cultural nuances require a distinctive advertising approach.”

“However, with recent developments in India’s rapid growth in internet and smartphone penetration India has been considered a priority market for many global companies to drive digital advertising growth and engage within the Indian digital landscape. Also, since India is becoming the hotbed for evolving technologies and digital trends, it is driving a two-way momentum in scaling operations and solutions for global companies in India as it is more economical and provides affordability for delivering comprehensive media projects to global shores,” she added.

This highlights that India is not just a market for global expansion, but also a centre for innovation and resourcefulness.

With inputs from Neeta Nair, Chehneet Kaur and Shantanu David