Chris Kyme’s Postcard from Hong Kong: A look inside the Beehive

Chris Kyme (pictured above) continues his ‘Postcard from Hong Kong’ series, this time looking into The Bees Group, a creative agency collective.

I first became aware of a creative agency collective known as The Bees Group after we had moved our office to Quarry Bay, where I slowly became aware of who our neighbours were in the area (the huge Ogilvy empire was housed in the big building directly opposite ours and we quickly had to install blinds to make sure that nobody with a pair of binoculars was looking down nicking our pitch ideas). I soon began to notice there was a distinct ‘buzz’ in the air. It was a very buzzy area. Young people buzzing around all the time. And before long it became known to me about the Bees Group, which as I understood was a cluster of smaller independent agencies who seemed to be very successful in tapping into considerably large clients who might traditionally been feeding their creative briefs into larger network agencies. Until quite recently, I only got to be aware of who those agencies were, and also, what held the whole idea together. Then recently I bumped into the The Bees Group founder, the King Bee (is there such a thing?) himself, CEO & Founder Mr KK Tsang. We met while both visiting a medical center in town actually and were discussing the merits of Pulmonary rehabilitation and contemporary breathing techniques when I suggested we catch up so I could learn more about his grand master plan. Which we did.

What fascinates me about the idea is that it completely turns the traditional agency model on its head. So where did he first get the idea for this lucrative creative honeypot?

“I was previously the CEO of a media agency group. During that time, I noticed a significant pain point: the lack of a fixed and transparent profit-sharing system. I couldn’t confidently promise my team how much of the company’s profits would be allocated to their bonuses, which created uncertainty and dissatisfaction. I was determined to address this issue. My idea was a clear and fair profit-sharing model called the “3-3-3” system. Under this system, when the agency made a profit, one-third would go to the staff as bonuses, one-third to shareholders as dividends, and the remaining third would be reserved for the company’s future development and contingencies. So the idea of founding The Bees Group didn’t come to me all at once—it evolved over time. And it was back in 2012 that I started my entrepreneurial journey with my first agency – The Bread Digital.”

Now, speaking as an advertising entrepreneur, and many of us have the dream of doing our own thing, our own way, I can relate to KK’s motives of wanting to find a better way to do things. But The Bees Group concept is not quite how it usually goes as he explains.

“A few months after launching The Bread Digital, two creative teams approached me. They were inspired by our philosophy and wanting to start their own agencies under our umbrella. I invested in them, and as we grew to three agencies, I realized it would be better to establish a holding company to manage them collectively. That’s how The Bees Holdings Limited came into existence. Today, The Bees comprises 28 agencies, offering a wide range of services, including advertising, public relations, events management, business consulting, brand design, digital marketing, performance marketing, and video production etc.”

Today, The Bees Group roster includes agencies such as The Bread Digital, Durian, No Two HK, Noah Workshop, Narrow Door and Secret Tour. When you consider that some of the world’s best creative agencies today all started life as independent outfits, many of which still are before they get swallowed up Pac Man style by the every-hungry conglomerates, it’s always inspiring to see ambitious individuals going their own way, and often or not better creativity comes with it. The Bees Group is like a breeding ground for young local creativity, a free-thinking stage whereby even the less experienced can compete and perform on major name clients. But it’s not always an easy path forward. Sacrifices have to be made, it takes a lot of courage, conviction and nerve as KK alludes to.

Pictured below: KK Kool & The Gang.

“To fund the launch of my first agency, The Bread Digital, I made the decision to sell the property I owned, which provided the necessary startup capital and covered my living expenses for the first two years, as I didn’t take a salary in the first year and only a minimal one in the second (been there – Chris). The Bread Digital was a small team of just four people, working out of a modest 500 sq.ft. office space. We started with zero clients, but shortly after launching, we secured our first major client, PCCW. This was a significant milestone that validated our approach and demonstrated the value we could deliver. As more clients began to buy into our vision and experience the benefits of working with us, our reputation grew. This steady growth allowed us to expand our team, refine our services, and eventually lay the foundation for what would become The Bees Group. Our hard work paid off quickly—within less than a year, we grew to a team of 10 and moved into a 3,000 sq. ft. office to accommodate our expanding operations.

Reflecting on this journey, my initial insights into the industry were about addressing systemic issues like profit-sharing and fostering a culture of fairness and collaboration. These principles not only shaped The Bread Digital but also laid the foundation for the growth and success of The Bees.”

As I’ve said, I have personally found that clients today, in markets all over the world, are interested in exploring better offerings, which are not just price-related (often the perception) but better value for money that smaller operations can sometimes offer. And this is something where KK’s observations and philosophy have paid dividends.

“Our business model at The Bees is built on a combination of agility, collaboration, and specialization, allowing us to deliver comprehensive marketing communication services while maintaining the flexibility of smaller agencies. We operate as a marketing services group, offering a wide range of services, including advertising, business consulting, brand design, public relations, events management, digital marketing, performance marketing, video production, and photography etc.. Our structure is designed to provide clients with a one-stop solution for all their marketing needs. The building blocks for this are: Small and Agile Teams, Collaboration Across Agencies, Centralized Support Services, and importantly, a Profit-Sharing System. 1/3 to Staff, 1/3 to Shareholders, 1/3 to Reserves: The final third is retained as reserves for future growth, innovation, and unforeseen challenges. This system creates a win-win-win scenario. It helps us attract, retain, and motivate top talents, as employees are rewarded for their hard work and exceptional performance. Clients, in turn, benefit from working with a highly motivated and dedicated team, giving us a competitive edge in attracting and retaining clients. Ultimately, this drives profitability for the company, ensuring shareholders see a strong return on their investment.”

Personally I’m fascinated by all this. I love the idea and how it has given belief and courage to young talents, especially creative people, in the industry, showing them that there is another way and that they don’t have to be a slave to the big network system. They can forge their own paths, explore their own ideas and take responsibilities. However, since this is not a business publication and we’re really on the subject of creativity, how does all this lead to better work? KK himself notes the SonyA6000 work from 2014 as something he is particularly proud of:

But other notable success stories to me include the disruptive ‘Don’t download the app’ campaign for 7-11 by Noah Workshop, put on display through a series of eye-catching graffiti-style artworks.

Also (caught my eye anyway) by the same agency, the mad crazy spot for Tam Jai Sam Gor (“TJSG”) grand opening of their 100th store in Tsuen Mun, featuring the local dance group Otaku, designed to underscore the brand’s mission to bring bold flavours to every corner of Hong Kong.

A poster campaign for Durex by Durian (below), which used witty, well crafted copy lines to highlight the unique benefits of each product with classic simple art direction (a bit rare in outdoor these days if you ask me). And then there was the Ocean Park Halloween campaign “Horrors of the Hidden City” with its 2-minute launch film by The Bread Digital.

So how about the future? Where is The Bees Group going and how is it helping development in the industry? “Moving forward, my vision is to continue building on the success of The Bees, which has proven to be a win-win-win model for staff, shareholders, and clients. Over the past 13 years, our profits have grown more than 30 times. We are proud to be a key player in Hong Kong’s advertising industry, and we aim to strengthen our position by delivering exceptional value, fostering creativity, and maintaining the principles that have driven our success so far.

The advertising and creative industry in Hong Kong today faces several challenges that need to be addressed to ensure its sustainable growth. One major issue is the declining loyalty of clients. Many clients frequently switch agencies, leading to inconsistent branding and messaging for their businesses, a lack of continuity which can harm long-term brand building and make it difficult for agencies to deliver impactful results. Another issue is the systemic issue of uncompensated pitching, and last but not least, the difficulty in attracting and retaining creative talent. The industry must find ways to make agency careers more appealing to creative talent, whether through better rewards, career development opportunities, or a more supportive work environment. We are deeply committed to helping young people enter and thrive in the creative industry. One of the ways we do this is by hiring over 10 summer interns every year. Many of these interns join us as freelancers after their summer internship and later transition to full-time roles with us after graduation. In fact, five of The Bees’ subsidiaries were founded by individuals who started their careers as summer interns within our agencies. This reflects our belief in nurturing talent and providing opportunities for growth.”

Personally, and since I know that this article will be read outside of Hong Kong, I was wondering if this is a model which is exportable. Could we see The Bees Group setting up office in other markets in Asia for example? “Expanding beyond Hong Kong is something I’ve always considered. However, our industry is fundamentally a people-driven business, and success depends on finding the right individuals who share our philosophy, possess the necessary skills, and demonstrate high integrity. If we identify the right candidates in markets outside Hong Kong who align with our values and vision, we would certainly consider expanding internationally.”

It’s good to read an inspiring success story, let’s hope it continues for the good of the industry. Check out more on The Bees Group.