Two agency formula: How Flipkart won with their choice of communication partner

Yesterday, it was official. Flipkart has awarded their creative account to Lowe Lintas, the incumbent agency being Happy Creative Services. Happy has been the agency on record for Flipkart since Flipkart’s launch in late 2011.

In an interesting twist, Flipkart continues to retain Happy’s services, even as Lowe will certainly be the lead agency from this point on.

The two-agency formula is not new; for example, Lowe and Metal Communications work in harmony and in tandem in creating the communication for Axis Bank.

One would have thought that, in this instance, Happy wouldn’t be too happy to be told that they would have to share the account with Lowe, so one didn’t quite expect this:

This is what Happy published on their Facebook page and amplified on Twitter - an overt, gracious and generous acknowledgement that they were no longer the only fish in the fish bowl, having to share space (and revenue) with Lowe.

It’s also an acknowledgement of the new world. More and more large brands will work with multiple agencies simultaneously, as the hyper-competitive environment will see marketers casting their nets wide for communication ideas. In such a circumstance, agencies with an attitude that embraces collaboration will find favour, while those who resist sharing duties and revenue will find the going tough.

While, overtly, Happy’s welcome message is superbly gracious, the grace could not have come easy. Happy has created every single piece of communication for Flipkart since launch: all their above the line communication, all their BTL communication, even their social media communication. I would estimate that they have created at least 50 television commercials and a few hundred print ads in the past three years.

That’s why Flipkart’s decision to retain Happy in addition to newcomer Lowe Lintas deserves praise as well. Flipkart has grown to become a $7 billion company in just a few years and it was certainly time to add some communication muscle and firepower, which they now have in Lowe Lintas. But the retention of Happy suggests that Flipkart understands the brand knowledge and experience that resides in Happy’s DNA - and Flipkart has resisted the temptation to throw away the baby with the bath water.

Welcome to the new world - where your enemy may no longer be your enemy - and you might have to share space in a small fish bowl.