The Growth Conversation: S4Capital’s Sir Martin Sorrell
- Advertising titan, Sir Martin Sorrell, reflects on the future of marketing, and why Chinese brands need to master the art of storytelling.
Sir Martin Sorrell, founder and executive chairman of S4Capital, views Asia as a powerhouse of opportunities. And he says in order to thrive, marketers must innovate, adapt, and stay ahead in a rapidly evolving landscape. Because the future of marketing lies with those who embrace change, tell compelling stories, and harness technology with bold creativity.
Bullish on Asia
With decades of experience transforming the global advertising industry, and citing forecasts, Sir Martin notes that by 2053, three of the top five global economies will be in Asia, and led by China, India, and potentially Indonesia. “I remain hugely optimistic and bullish on Asia,” he says, and adds that for marketers, this means focusing on the region’s driving growth, including the US, Latin America, the Middle East, and Asia-Pacific.
However, he balances that with the caution that the world is becoming increasingly fragmented. “We’re no longer in the golden era of globalisation,” he explains, and highlights geopolitical tensions, inflation, and trade tariffs as complicating factors.
The Rise of Chinese Brands: Performance Over Storytelling
To this end, he believes that Chinese brands, particularly of consumer goods and electric vehicles, have achieved remarkable success through scale and cost efficiency. However, he points out that a significant component is missing in their approach: branding. “The Chinese brands I work with are all about performance marketing. There’s no branding, no storytelling,” he observes.
He contrasts this with Western brands like Nike, which sells by leveraging aspirational storytelling, and says he doesn’t “think Chinese companies invest enough in branding. They see it as an added cost rather than an investment.”
According to Sir Martin, this lack of focus on narrative building could limit Chinese brands’ global ambitions, as storytelling is essential for creating emotional connections with consumers, and for building long-term brand equity.
“That’s the power of storytelling. It’s a business you build over time,” he explains. Although, he also acknowledges that short-term consumer mindsets and market pressures could make this difficult. “The consumer is becoming more short-term, and we may need to adjust to this while keeping an eye on long-term brand building,” he says.
Embracing Technology, Data, and AI
On that note, he says that with the rise of artificial intelligence (AI) and data analytics, the role of a chief marketing officer (CMO) is evolving. According to Sir Martin, modern CMOs must be multifaceted, and be able to blend creativity with technological and financial expertise. “The CMO has to have a fundamental understanding of technology, data, and cost efficiency. They have to be CIOs, CDOs, and even CFOs,” he says.
However, even with the help of technology, Sir Martin warns that businesses must not overlook more conventional hurdles. Because change management, breaking silos, and fostering collaborations will always remain critical challenges for organisations across all industries.
Breaking Down Silos
Sir Martin argues that at the end of the day, politics and legacy systems within organisations is what often hinders progress.
“The ability of people to subvert purpose inside corporations is endless,” he notes, and cites Best Buy’s transformation under Hubert Joly, who succeeded by focusing on change management. “Joly realised that change wasn’t about technology — it was about people, and so he changed the management,” Sir Martin says.
He also emphasises the importance of democratising information within organisations. “If you make information available to everybody, you can galvanise teams,” he says. Breaking down silos and creating a culture of transparency is essential for fostering innovation and alignment.
The Power of Storytelling in Luxury and Beyond
Turning to luxury brands, Sir Martin admits that they face unique challenges; especially in today’s post-Covid-19 era, as high pricing strategies have alienated some consumers. However, he points to brands like Hermès and Cartier, which have successfully maintained their allure (and prices) through careful storytelling and supply management.
However, storytelling isn’t something exclusively reserved for luxury brands. In fact, according to Sir Martin, it is vital across all sectors. Because it creates differentiation, builds emotional connections, and drives long-term value. For marketers, the lesson is clear: invest in narratives that resonate with consumers.
The Changing Role of the Marketing Leader
Dissecting the role of marketers, Sir Martin laments that despite their vital role, marketers continue to struggle for recognition at board level.
“Marketing is seen as a cost, not an investment,” he says, and shares that he believes the best CEOs are also great marketers who are able to blend creativity, strategy, and business acumen. “The CEO is the chief marketing officer, brand officer, and strategist — all in one,” he says, citing examples like Steve Jobs and Michael Dell.
With this in mind, he encourages marketers to elevate their role by expanding their skill sets, and taking a more serious approach to understanding their businesses. “There’s no excuse for not being fully briefed on a business when you meet it,” he says. Because for marketers, the path to leadership lies in mastering technology, data, and brand strategy, while demonstrating tangible business impact.
Illustration: David Despau