Mustafa Ishaq Malik is the CEO and founder of Grey Circles Communication. He completed his undergraduate degree from FC College in 2016. Mustafa has a diverse background in both the arts and business. His experience in producing plays through his own production company, Mirrors Entertainment, provided him with an understanding of the importance of publicity and strategy in the theatre industry.
In 2018, Mustafa founded Grey Circles, a company that specializes in advertising and marketing for clients. Following are the edited excerpts of a recent conversation BR Research had with him regarding his venture:
BR Research: Tell us about your startup and the idea behind it.
Mustafa Ishaq Malik: I always had an interest to work on brand building, whether for the clients or myself. I started this agency back in 2018 and it has been doing well. The motto behind it was that we wanted to do something better than what others were doing. We wanted to give quality in terms of the progression of the economy. Our mission is to come up with the most thought-provoking concepts and ideas that challenge the current creative media. And we aim at building mutually beneficial relationships with our diverse range of clients over the long haul.
BRR: As a founder of Grey Circles Communication, what challenges did you face in setting up your own business?
MIM: The first challenge for setting up any business is finance. I started this company in 2018 with Rs1.5-2 million, which meant that I didn’t have the resources to hire a team and pay salaries. The only thing had was the dedication and a few friends and acquaintances who happened to be our initial clients. Wouldn’t hire a team when I first started; I used to handle all the client servicing, copywriting, content writing, strategy, and presentations. I had previous experience with branding and marketing, but I needed designer and developer support for which I hired new graduates as I could not hire experienced professionals. I was handling 80 percent of the work and we had a small team. But since then, we have been on a growth trajectory as we gained clients’ satisfaction, retained clients, and attracted new clients to increase our revenues and grow our team and departments.
BRR: So what is your team size now and what is your geographical presence?
MIM: We are Lahore-based with an Office in DHA, Y-Block. We have a team of 15-20 people now. We are also planning to open offices in Islamabad and Karachi, and we are also planning to other cities as well as international clients.
BRR: What is going to be your strategy in approaching these new clients?
MIM: We will be approaching them through digital mediums, word of mouth, and queries. We have been getting queries from Karachi and Islamabad as many head offices of companies are located there. Secondly, we will be hiring a team in these cities to get us more leads. And thirdly, we are looking at software development and digital advertising to attract international clients.
BRR: How is digital marketing driving business within the country? How do you see media evolution in the industry over the years?
MIM: Digital marketing in Pakistan has not touched its potential yet. I say digital marketing is the future growth engine for a few reasons. One, the reach is much more and you can get engaged with more customers. Second, you need financial muscle for conventional media and marketing. Whereas digital is much cheaper. And third, digital marketing is an excellent tool for people trying to do e-commerce even from far-flung areas. And it has so many platforms today like YouTube, TikTok, Facebook, Instagram, WhatsApp, etc. With these benefits, I believe that digital media will take over the masses and conventional media will become obsolete.
BRR: As you mentioned e-commerce in Pakistan has picked up tremendously over the last few years. What is the potential e-commerce in the country, and where do you see it headed over the next couple of years given the current economic turmoil?
MIM: The key challenges faced by the e-commerce sector are similar to the conventional trade and retail challenges. Right now are the rising inflation and the depreciating currency. Then there is political and economic instability that affects sales in both retail and trade as well as e-commerce. E-commerce sales have come down by one-fifth from what they were two years back. Despite these challenges, e-commerce has a lot of potential in the country.
There are businesses that understood the e-commerce model 8-10 years ago that are still thriving. Those that facing problems are mostly new ones. There are three aspects to it. One, the competition has increased so much that businesses are not getting the same share of the cake they were getting a few years ago. Second, the businesses are not up to date with the changes in the latest updates such as changes in algorithms. And third, digital media is taken to only include Facebook and Instagram in Pakistani; whereas, businesses across the globe are exploring opportunities and shifting to other social media platforms such as TikTok. And third, the currency depreciation has made product pricing really high, which again affects sales
BRR: Hence, where do you see the media industry headed in the current economic scenario, and the economy in general?
MIM: The way things have been progressing, I fear that many businesses will collapse with only a few players sustaining the pressures of the economic downturn due to their financial muscle. Businesses that run on day-to-day finances, and SMEs that run on short-term plans won’t be able to weather the storm. If the economic situation in the country continues to be as fragile as it is right now, I don’t see the business climate improving. We are an import-based country. With the ban on imports, businesses, in general, have not been able to import raw materials. Until there is some political, economic, and foreign exchange stability, the business and investment climate will continue to be a drag, which automatically affects branding and marketing activities and planning.
BRR: What are you planning for Grey Circles Communication over the next few years?
MIM: Right now Grey Circles is a baby project, and I have to achieve a lot. We are trying to touch the international market. For our local existing and prospective clients and business, we want to progress gradually and systematically, because we don’t want to be in a situation where we are not in the market in a couple of years. There are many ideas we want to work on, and you will see us not only as a digital marketing agency but also in some other category in the coming years.
BRR: For the growth you envision, do you plan to seek capital?
MIM: We have not decided yet which path to take. As I said, we want to grow systematically, and if we plan to raise funds, we will make sure that there is a specific need for it.