Dentsu Inc. said Thursday it will take a 40 percent equity stake in the Suntrend Group, a major Chinese marketing firm, so it can serve more Japanese and other firms operating in China.
Japan's largest advertising agency aims to buy the shares from existing shareholders by June for an estimated ¥5 billion.
An increasing number of Japanese companies are setting up shop in China and trying to boost sales through in-store and street marketing.
Dentsu has decided to form a capital and business alliance with Suntrend, which excels in this type of sales promotion and operates throughout China.
Suntrend, based in Guangzhou, is active in more than 500 cities in China and serves multinational clients, including Nike Inc., conducting sales promotion services through stores and sending clients' samples to prospective customers.