We have a lot agency customers. If you say their COGS is smaller when compared with manufactures, that’s true. If you want infer they are necessarily more lucrative business, makes more money in term of bottom line, or easier to run, then you have to stop right here again.
I’ve seen agency with 50+ people, who will be considered decent regional player, went down in a year to 10 people. That’s when they made prompt adjustments. Many just closed in these years. For big players like Interpublic, Omni... major contracts will be renew/rebid every 2-5 years. CMO (if the company does marketing in house), on average, have life time of 3 years or less.
It’s cut-throat business. And it’s very localized. You have no idea what you are talking about.
Looking at from another direction:
US fabric and textile industry. China took it, it’s dead in US.
Furniture industry
Light manufacturing
中低端重型制造
华为
……
So do US have more and more, or less and less. I really don’t see your logic, 现在肥了欧美分销商和零售商?
