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SCMP Reporter

THE entry of Edelman Public Relations Worldwide into the Chinese market is being viewed as a two-way street, according to the company's chairman and chief executive officer.

  Daniel Edelman said with the acquisition of Interasia Communications, the largest public relations firm in China, the company would be looking at tapping into China's economic expansion both inside and outside of the country.

   ''As Chinese businesses move out of their country, into the region and beyond, we believe they will need sophisticated public relations to get their message across,'' Mr Edelman said.

   ''By establishing ourselves in China, we can garner the goodwill among Chinese enterprises and officialdom so, when they do move out of the country, we will be in the position to assist them.''   On a 12-day visit from his base in the United States, Mr Edelman has been in Hong Kong and China overseeing the takeover and attending ceremonies at the company's offices in Beijing, Shanghai and Guangzhou.

  Beijing will be firm's headquarters.

  Mr Edelman said the firm's worldwide network put it in the ideal position to do business for the Chinese.

  The company is the largest independent and fifth largest public relations firm in the world with 30 offices in the US - its base - Europe, Canada, the Asia-Pacific region and Mexico.

  The acquisition of the three Chinese offices of Interasia brings the number of offices in the Asia-Pacific region to nine, including Hong Kong, Singapore and Tokyo, places that Mr Edelman sees, initially, as ideal to do public relations business for Chinese enterprises moving beyond their borders.

  He said the choice of Beijing as the main office would assist relations with government departments.

   ''Good government relations is helpful in China, and Interasia has already established links with government officials,'' he said.

  While Mr Edelman sees the shifting tide of Chinese business as a future bonus for the company, immediate concentration will be on building up existing business within the country.

  Through the acquisition of Interasia, Edelman already has an impressive list of multinationals on its books, including Kodak, Mars Inc, Compaq Computer, Kentucky Fried Chicken, Du Pont, Christian Dior and Hennessy.

  Mr Edelman said the firm would also be looking at existing clients if, and when, they moved into China.

  ''We will be letting our clients know we are moving into China and maybe this will provide the spark for some of them to also make the move.''   He would not disclose the price of the acquisition, in which Edelman gets 80 per cent of the operation, other than to say it was ''costly''.

  The remaining 20 per cent is owned by two mainland investors. Interasia wrote about US$1 million worth of business last year and this year it is likely to be double that amount.

  Worldwide, Edelman wrote US$63 million worth of business last year, two thirds of that in the US.

    But Mr Edelman sees the acquisition of Interasia as the foundation on which to push the emphasis of business a little further away from the US.

   And he sees it coming at the right time.

  ''We have come to China because there is a tremendous need for expanded public relation services.''         ''Now that the country has undergone significant industrial development, there is a greater need for companies to explain and promote their products and services to consumers, investors and trade.''    He believed the firm's growth would be aligned with the growth of the Chinese economy, although the firm had set no specific target.

   But as in any new venture, there was always an element of risk.

  The choice of Interasia as Edelman's China vehicle was based on its prior record, Mr Edelman said.

  ''Really, in the end, there was no competition. It is the premier public relations firm in China.''    He said negotiations with Interasia had been going on for about a year.

   Serge Dumont, chairman of Interasia, will become general manager of the new firm - Edelman Public Relations Worldwide/China. Interasia's 35 staff will remain with the firm.

  Interasia was founded in 1985 with its first office in Beijing. It was the first public relations company in China to be granted joint-venture status.



Edelman moves into China market