CREATIVE INDUSTRIES IN LEBANON July, 2007 PREFACE The purpose of this project, a first of a kind in the country, is to create awareness, explore possibilities, develop a methodology and demonstrate viability. The project aims neither at being exhaustive, nor at presenting a fully operational level of detail with respect to any of the seven sectors identified in the study and listed on one page, of the report. The reason for this choice is not hard to find. A study of the kind we have undertaken derives its value not from being an operational plan ready to serve as an implementation manual, but rather from its being a clear demonstration of a methodology and a framework of analysis useful as a roadmap and as a pilot scheme. As a methodology, what we have done in this report is to provide a first-time document completed by a team of experts addressing Lebanon’s budding creative industries which obviously carry disproportionate importance given their potential for economic growth and stimulating exports. An additional reason why we opted for the methodology – driven approach followed, in the report was the fact, that as a first study, it was necessary for our attempt to cover a relatively broad spectrum of creative sectors by way of establishing an agenda and setting the scope. The importance of this key consideration can hardly be overemphasized. By broadening the scope, and suggesting an investigation methodology, we left the door wide open for subsequent vertical studies that would center around one particular sector with a view either to invigorate existing enterprises or launching startups. Such vertical studies would obviously have to have detailed feasibility analyses and carefully worked out business plans. Undertaking such studies should be considerably eased as a result of the availability of this first study that should be understood as a horizontal first-cut. Nor should we underestimate the multiple constraints that such a first study has had to overcome. In addition to the dearth of data and difficulty of access, there was the accompanying problem of double verification, data validation, and choice of relevant benchmarks in order for findings to be both meaningful and contextual. The sheer volume of this kind of work, and the need for a broad sweep, proved to be a major limiting factor in terms of how far we could go and at what level of detail. The methodology employed tried to strike a balancing act among several competing orientations; descriptive vs analytical, quantitative, vs qualitative, model-based vs empirical, cascading down to micro variables vs maintaining organic unity as one whole, not to mention primary vs secondary data. We did all we can to strike what we thought was an optimal balance in each case. Attention is drawn in particular to the section on “Challenges and limitations” on pages 4-7 in the report. These were but a sample of a much larger myriad of difficulties encountered. In addition to those mentioned, one should add others as diverse as sorting out conflicting agendas, overcoming behavioral resistance to reveal data considered privileged, tendency of sector representatives to over state their case vis-à-vis other sectors, and the fact that no outside benchmark offers a perfect fit. II We feel that the greatest value of our undertaking is to set the stage for seven follow up studies each of which will take-off from where we reached to provide comprehensive, in- depth analysis of each of the sectors covered. This ambitious step will undoubtedly complete the cycle forwards a serious blueprint for creative industries in Lebanon. George K. Najjar, Ph.D. Dean, Olayan School of Business American University of Beirut III ACKNOWLEDGMENTS The research team would like to thank the generous sponsorship of Association du Mecenat and the British Council, and acknowledge specifically the support and follow-up of Dr. Shadi Karam and Miss Lynn Sneige Keyrouz. Thanks are also due to Professor Steve Hill for his constructive feedback and comments on an earlier draft of this report. The research team would also like to thank the Agenda Culturel for supplying relevant and timely information from their archives and databases. We also thank the key sector informants and focus group participants and interviewees who took part in this study for their valuable input, which was critical and provided the infrastructure for this project. Research Team: Dr. Imad Zbib Dr. Dima Jamali Mrs. Leila Khauli Hanna Mr. Amir Ayoub Mrs. Nadia Azzam Research Assistants: Ms. Myriam Rabbat Ms. Celine Zabad Ms. Nadine Badr Ms. Noor Shaheed Ms. Hania Zantout Mrs. Sana Begdache Ms. Pascale Farra IV CONTENT ACKNOWLEDGMENTS ..................................................................................................... II CONTENT............................................................................................................................... V TABLES................................................................................................................................. IX FIGURES............................................................................................................................... IX BOXES ................................................................................................................................... IX ABBREVIATIONS ............................................................................................................... XI 1 Introduction .................................................................................................................... 1 1.1 Introduction ............................................................................................................. 1 1.2 Scope of Work ........................................................................................................ 1 1.3 Objectives ............................................................................................................... 2 1.4 Methodology ........................................................................................................... 2 1.5 Challenges and Limitations ..................................................................................... 4 1.6 Significance of the Study ........................................................................................ 5 1.6.1 Political, Economic and Cultural Contextual Realities ..............................5 1.6.2 Main Challenges and Opportunities in Lebanon ........................................ 6 1.7 Outline of the Study ................................................................................................ 7 2 Advertising Sector .......................................................................................................... 8 2.1 Definition ................................................................................................................ 8 2.2 Activities ................................................................................................................. 8 2.3 Related Activities .................................................................................................... 8 2.4 Academics ............................................................................................................... 9 2.5 Structure ................................................................................................................ 10 2.6 History ................................................................................................................... 16 2.7 Current Situation ................................................................................................... 17 2.8 Economic Data ...................................................................................................... 18 2.8.1 Industry ..................................................................................................... 18 2.8.2 Advertising Agencies ............................................................................... 22 2.8.3 Related Industries: TV Commercial Production ......................................23 2.9 SWOT Analysis .................................................................................................... 25 2.9.1 Weaknesses .............................................................................................. 25 2.9.2 Strengths ................................................................................................... 25 2.9.3 Threats ...................................................................................................... 25 2.9.4 Opportunities ............................................................................................ 26 V 2.10 Success Stories ...................................................................................................... 26 2.10.1 IMPACT/BBDO Lebanon Branch International Awards ........................26 2.10.2 Leo Burnett International Awards ............................................................27 2.10.3 Saatchi & Saatchi: .................................................................................... 28 3 Fashion Sector .............................................................................................................. 29 3.1 Definition .............................................................................................................. 29 3.2 Academics ............................................................................................................. 29 3.3 Structure ...............................................................................................................