[Exclusive] Senior Figures Depart at Two of GFK’s China Units

WANG ZHEN & LIU GONGPING

(Yicai Global) Aug. 22 — General managers at two of GFK’s China units have left their roles, Yicai Global has learned, leading to speculation that the German market research giant may try a different approach to the local market.

Jia Dongsheng and Zhou Qun, the respective GMs at China Market Monitor and GFK China, stepped down from their posts recently, though neither company has officially confirmed their departure.

“I want to take a rest,” Jia told Yicai Global when questioned over his next step. “It’s a rare opportunity, and I want to mull things over first.”

Zhou said he was yet to decide on his own future plans, adding that his leaving was “a long story” but a positive move for himself.

Global private equity fund KKR has been GFK’s major shareholder since last year and the pair’s departure may be related to recent management reshuffles within the Nuremberg-based firm. The company also reached a EUR105 million (USD121 million) deal with industry rival Ipsos late last month to sell off its global divisions concerning customer experience, experience innovation, health and public affairs, which span 25 countries including China.

Deputy GM Peng Yu has taken over Jia’s position to cover day-to-day operations at CMM, while an Indian manager from GFK’s Asia Pacific unit will oversee Greater China operations for the time being.

The two leavers served for many years as top executives at the Beijing-based enterprises, which both focus on the home appliance market. They have extensive connections in the sector and many entrepreneurs in the industry have sought their advice before.

Commenting on the departures, an internal source told Yicai Global that they may signify a follow-up move by KKR to adjust GFK’s operations in the region.

KRR brought in major changes to management boards at GFK’s headquarters and in the Asia Pacific region last year following the takeover. For example, Zhao Xinyu, the firm’s former general manager for the northeastern Chinese market, departed for Nielsen, the source pointed out.

GFK’s China Strategy

The German firm’s multi-brand approach to China has entailed extra costs so it may consider simplifying its structure in the future, Wen Jianping, the chairman and general manager at Chinese big data solutions provider All View Cloud told Yicai Global.

Market research firms need to catch up with the changes, otherwise, they will face elimination, he added.

Yicai Global learned that GFK and CMM continue to operate independently from each other and it remains unclear as to whether they would look to strengthen synergies in organizational structures going forward.

Pressure From E-Commerce

The rapid rise of e-commerce in China has resulted in the biggest players such as JD.Com and Alibaba Group Holding’s accruing tremendous amounts of data on home appliance consumers and sales. At the same time, they have pursued data sharing agreements with manufacturers, providing them with a new channel to collect market information.

Against this backdrop, market research agencies need to change their role and, as Wen advises, focus more on improving the effectiveness and the value proposition of data that they provide, in addition to how it is gathered.

Another senior market researcher echoed his view noting that the existence of market research agencies is justified despite the growing presence of e-commerce Big Data, though the advent of the Internet of Things will enable consumers to shop at any time and any place, meaning that market monitoring techniques must also evolve to the increasingly fragmented and diversified shopping scenarios.

Agencies cannot survive unless they manage to align themselves with the changes, the source added.

Editor: William Clegg