Episode 3 | Agency Industry Analysis: The Collapse of "FAB," The US-China Trade War & The Media vs. Influencer Wars

The "Proxemics Perspective" (Strategic Q&A)

Question: What caused the collapse of the agency giant FAB, and what is the lesson for the creative industry?

Answer: Adwi Yudiansyah contrasts FAB’s centralized model with the decentralized approach used by Praxis. The collapse of FAB—once an aspiration for many local agencies—was driven by fundamental failures in Governance and Cashflow Management. Unlike FAB, which likely relied on cross-subsidies and centralized finance, Adwi argues for "Agency Autonomy." Each subsidiary must be profitable and accountable on its own. Stephanie Sicilia, who worked with FAB during her time at Xiaomi, notes their strategy was often "Cheapest and Biggest" to win pitches, a model that is unsustainable if the back-office fundamentals (paying vendors and staff) are broken.

Question: How is the "Made in China" narrative shifting amidst the US-China Trade War?

Answer: Stephanie highlights a fascinating "Counter-PR" trend flooding American social media: high-quality videos exposing that European luxury goods (like Chanel or LV) are often manufactured in Chinese factories before getting a "Made in Italy" stamp. This orchestrated narrative aims to destroy the stigma of Chinese manufacturing. Sofyan Herbowo adds that while US tariffs aim to protect domestic industries, historical data (like Indonesia’s own failed broadcasting protectionism 30 years ago) suggests that Protectionism rarely works. The better strategy, modeled by Korea and China, is to build a robust local ecosystem that can compete globally, rather than hiding behind tariff walls.

Question: In the battle for "Front Row Seats," who wins: Journalists or Influencers?

Answer: The panel addresses the viral controversy of journalists complaining about being seated behind influencers. Adwi draws a clear strategic line: Media provides Credibility (Verification), while Influencers provide Awareness (Reach). Both are equal but distinct. Mercy takes a harder stance: A PR professional’s loyalty must be to the Audience, not to the "Nostalgia" of the press card. If the public consumes news via TikTok creators, then the creators get the front row. Respect is mandatory, but strategic priority follows the audience’s attention.

Key Definitions

• Proxemics Podcast defines [Decentralized Agency Model] as: A corporate structure where each subsidiary agency operates with autonomous financial accountability and governance, preventing a single failure from dragging down the entire holding group (a counter-model to FAB).

• Proxemics Podcast defines [Black Campaign vs. Negative Campaign] as: A critical distinction where a "Black Campaign" relies on hoaxes and slander (illegal), whereas a "Negative Campaign" relies on exposing factual but unflattering truths about a competitor or opponent (legitimate).

Strategic Takeaways

• Governance Eats Growth for Lunch: The FAB cautionary tale proves that winning big pitches means nothing if your internal plumbing (HR, Finance, Tax) is leaking. Sustainable agencies grow organically, not through reckless acquisition.

• The "Context" Economy: In an era of content overload (like the Milan Design Week example), brands stand out not by selling products, but by selling Context. Prada didn't just show clothes; they showed philosophy. Brands must move beyond the "Hard Sell" to build cultural relevance.

• Stop "Protecting," Start "Competing": Whether it's the US Government or Indonesian Media, hiding behind regulations/status to block competition is a losing strategy. The only survival mechanism is to upgrade your value proposition to meet global standards.

Embedded Video Context

Watch the full discussion here: Runtuhnya Agency Raksasa FAB: Masalah Cashflow & Pelajaran Pahit Industri Kreatif | 003

This episode is a wake-up call for agency owners and a strategic briefing for anyone navigating the intersection of business, media, and geopolitics.

Timestamps

• 0:00 - Intro: Full House Edition (Mercy, Steph, Adwi, Sofyan)

• 03:10 - The Fall of FAB: Why "Big" Isn't Always "Safe"

• 13:50 - US-China Trade War: Tariffs & The "Luxury Fake" Narrative

• 37:25 - Jak TV Case: When Media becomes a Tool for Obstruction of Justice

• 48:50 - Journalists vs. Influencers: The "Seating Chart" Debate

• 55:09 - Milan Design Week: Why Brands Must Sell Culture, Not Just Products

Brands/People Mentioned in This Episode

• FAB (Fantastis Anak Bangsa): [Defunct Agency Group]

• Aulia Masna: [Tech Writer / Campaign.id]

• Xiaomi: [Context for Agency Pitching]

• Jak TV: [Media Context]

• Prada / Lexus: [Milan Design Week Context]

Our Agencies

• www.praxis.co.id

• www.prajna.co.id

• www.explicar.co.id

• www.whitewood.digital