With a 40 per cent attrition rate, PR industry to grow to $6 billion by 2010: ASSOCHAM

12 March 2008

Mumbai: Industry body ASSOCHAM says that the PR industry is likely to double its size to over $6 billion by 2010, from the current $3 billion, as companies increasingly rely on PR professionals to enhance their brand image in order to maximise benefits of the current economic boom for increased sales and higher turnover volumes.

The above findings have been arrived at by a random survey carried out by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) on ''Attrition Vs. PR & its future prospects'', in which views of over 400 PR professionals were elicited. It highlights that as a result of growing opportunities costs in PR industry, attrition has become a core concern.

Releasing its findings, the ASSOCHAM President Venugopal Dhoot, himself a lead consumer durables player, said that over 90 per cent of PR professionals at the entry level, with enthusiasm and a passion for hard work, are moving on in search of greener pastures within the industry in less than a year's time.

Dhoot, whose Videocon group spends roughly Rs3000 crore in brand building initiatives, pointed out that the ASSOCHAM survey confirms the trend that a large number of corporates are opting to rope in PR professional for increasing sales turnovers, as one of finest marketing strategies.

The survey reveals over 75 per cent of the respondents said that pressures apart, PR activities demand a diversification of intellect, which is most attractive when availing numerous opportunities, is why the attrition rate is so high.

A majority of PR professional said that the economic boom has resulted in immense competition in brand building, as result of which PR agencies are in great demand, and are quoting market driven prices for their services. It also says that takers are available at these prices as well.