First published in Aurora’s September 1998 edition.

During the course of a long and eventful career, S.H. Hashmi has, like the profession he in so many ways embodies, weathered the many storms that have buffeted the advertising industry. Today, once again, the industry is confronted with another challenge – that of surviving the present economic conditions. Aurora found S.H. Hashmi concerned but confident that the industry will forge ahead despite temporary setbacks.

Aurora: How will the present economic situation affect the advertising industry in general and Orient in particular?

S.H. Hashmi: In an economic crisis, the advertising industry is adversely affected because the first thing clients tend to do is cut down their advertising budgets. So yes, the present economic situation is likely to affect the industry for the next three to four months. The government has already effected a 50% cut in its advertising expenditure. On the other hand, the present crisis has also forced banks and other financial institutions to introduce various deposit mobilisation schemes, and this has led to a substantial increase in the volume of advertising by banks. As a result of the recession, I think smaller agencies may be wiped out, and the larger ones will have to downsize. We are a service industry, and as an industry, we employ people at a fairly high salary scale. Orient employs about 250 people in six offices. Of these, 100 earn between Rs 30,000 and 40,000 a month. To cover an expenditure of six crores, we have to generate billings worth Rs 50 crores. In an economic crisis, this becomes difficult, so downsizing becomes the only option.

A: You mentioned that the government has cut back its advertising by 50%. What about the commercial sector?

SHH: One look at the commercial sector tells you that Pakistan doesn’t have a single international product. We produce and export cotton, but we don’t manufacture finished cotton products. We have no added-value products to export. Take, for example, cotton lawn. At one point, lawn was extensively advertised. Now this has suddenly stopped. Why? Because while purchasing power is declining, the price of lawn is increasing. Under these conditions, why advertise? The only sector where advertising is on the increase is fast food. In fact, I believe the financial, beverage and fast food sectors will be the only ones that will continue to advertise on any significant scale.

A: What benefits has Orient drawn from its affiliation with McCann-Erickson?

SHH: In the beginning, I was totally against foreign affiliations, but the day the GATT agreement was signed, I decided to go for it. I knew that without a foreign affiliation, Orient would not be able to maintain a big setup. McCann-Erickson is a 90-year-old agency, and our affiliation with it has helped us in many ways. There is a lot of talent in Pakistan, and with a little training, technical support and exposure, we can easily excel. Also, through our affiliation with McCann-Erickson, Orient has attracted big accounts like Coca-Cola and Nestlé. Foreign affiliations are extremely important as we are operating within a global environment; the global village, so to speak.

A: Has McCann-Erickson expressed an interest in buying Orient?

SHH: Yes. But this is not a recent development. McCann has been wanting to buy Orient since our affiliation began with them five years ago. We haven’t closed the door to this. Presently, we are considering working on an equity-based arrangement.

A: Why are McCann-Erickson interested in buying Orient? What is it about the agency that attracts them?

SHH: With a presence in 123 countries, McCann-Erickson is the largest advertising agency in the world today. Orient is Pakistan’s number one advertising agency and has a countrywide network. Throughout our five-year association, the relationship between Orient and McCann has been exemplary. I think our impressive growth rate and our proven capabilities to conform to their standards have led McCann to want a closer relationship with Orient.

A: Orient has always had the largest number of clients of any agency in Pakistan. As a matter of fact, at one point Orient could boast a client base of 99. Why is this so?

SHH: Orient has tried to maintain its position as the agency with the largest number of clients for the last 20 years. We managed this because Orient believes in working in an ethical way. I am proud to say that Orient had a 60% growth increase in 1997, and we will try to continue to grow and maintain our client base. My sons have taken over, and they are more energetic and creative than I am.

A: Given the length of your experience in the advertising industry, of the new crop of agencies, which one do you think is worth watching out for?

SHH: The advertising industry has seen some good talent like Javed Jabbar and Taher Anwar Khan. I also think that the new generation is good. They are more creative, hard-working and talented. There are many good people in various agencies.

A: Do you think media buying houses have a role to play in Pakistan?

SHH: No. Because the media in general is not honest. It tends to undercut its rates when dealing directly with the client, with the result that clients believe that the agencies are cheating them, and this undermines our credibility. This is disastrous, as it seriously affects our relationship with our clients. Under these conditions, it becomes impossible to talk about media buying.

A: The PAA has often been criticised for its lack of organisational capabilities. How do you respond to that?

SHH: We should be working collectively, but a collective spirit is lacking. In our industry, everybody wants to work on their own. Some people proposed forming a separate club parallel to the PAA. We opposed the idea, and the agencies which went ahead and formed a separate club are still part of the PAA and agree with us on several issues. So why form a separate body when a common platform already exists?

A: That may be so, but it still remains a fact that organisationally the PAA remains very weak.

SHH: Well, we face a number of financial constraints. We don’t have the funds required to carry out many desirable activities. We get no help from the government. We have to manage on our own. Yet despite these constraints, we have established the Pakistan Advertising Institute, which will offer a two-year diploma course in advertising. We plan to start in September this year. The faculty will include senior people from the industry and top-class graduates from the business schools. The institute will be an important contribution made by the PAA to the advertising industry. On a personal level, I feel a great deal needs to be done in the education sector. Look at the business schools; there are just a couple whose standards are internationally recognised – IBA and LUMS. So I’m taking a personal interest in education. I am the first trustee of the College of Business Management. The college is run by an American dean and has already produced a batch of 400 students and maintains a good standard.

A: What are Orient’s plans for the future?

SHH: As a service industry, we will continue to improve the quality of the service we give our clients. We are in the process of building an eight-storey building next to our present premises. The first two storeys will house Orient, and we will rent out the other six to other businesses. This building signals our commitment to the industry and to Pakistan. Despite the current economic situation, which will continue for the next few months, this is a phase that we will overcome. I am confident of a bright future for the advertising industry in Pakistan.

A: You said your sons are gradually taking over the running of Orient. What are your plans for the future, and how will you spend your time?

SHH: My sons have been assisting me for quite a long time, and they are gradually taking over running Orient. However, in advertising, one never retires. And when I do eventually hand over all executive powers to my sons, I will continue my association with Orient and the advertising industry in an advisory capacity.