WPP to acquire mktg services agency XMKT Group in China
WPP has agreed to acquire XMKT Group, a marketing services agency specialising in customer experience management. Founded in 2010, XMKT Group has four key divisions: Events – providing strategy, concept and design as well as on-site execution and coordination of events for clients; Retail – specialising in marketing and promotional activities in entertainment facilities or retail shopping malls; Entertainment – offering consultancy on procurement and incorporation of entertainment properties and Digital – providing digital marketing strategy.
XMKT Group is headquartered in Shanghai with offices in Beijing, Guangzhou and Chengdu, as well as onsite management capabilities across 67 Chinese cities. The Group employs approximately 253 people. Key clients include Diageo and Uniqlo.
For the year ending December 31, 2013, XMKT had unaudited revenues of RMB 126 million, with gross assets of RMB 138 million as at the same date.
This acquisition marks a further step towards WPP’s declared goal of developing its networks in fast-growth markets and sectors.
In Greater China, WPP companies (including associates) generate revenues of USD 1.4 billion and employ over 14,000 people. Like-for-like revenue growth in Greater China was 4 per cent in 2013 (excluding associates). In the Asia Pacific region, WPP companies (including associates) generate revenues of USD 5 billion and employ over 48,000 people. Like-for-like revenue growth in Asia Pacific was 5.2 per cent in 2013 (excluding associates).
WPP recently raised its targets from 35-40 per cent for each of fast-growth markets and new media to at least 40-45 per cent over the next five years.