China, as the world’s factory for consumer products, is frequently held up as the most competitive market in the world in which to launch new exhibitions. And if China is the busiest, then surely it is Shanghai that represents the jewel in the event industry crown.
Commerce, finance, technology and culture, Shanghai is home to businesses in many sectors. And the public sector is involved in any means of facilitating the city’s international business links with the increasing number of companies looking to Shanghai to expand their business.
The city is also reaping the rewards of an infrastructure system developed for the more 70 million visitors that attended the World Expo in 2010. This infrastructure, which includes two international airports, is tailored for the overseas visitor, one of the better legacies of hosting an event the size of the World Expo, or Olympic Games.
All of which opens the door wide to organisers of international exhibitions. Trade shows, of course, are an important platform for showcasing these products being developed in Shanghai. And not only to the outside world. China has a strong domestic market with products such as manufacturing technology a big draw for Chinese buyers.
“China is now the number-one producer of machine tools, machinery for the textile, plastic, packaging, printing, woodworking industry and automotive accessories in terms of quantity,” says Stanley Chu, chairman of Adsale Exhibition Services, and current UFI Asia Pacific chapter chairman.
Trade shows in China attract good numbers of international buyers from the developing economies, looking for high quality plant and machinery equipment at low cost.
“Shanghai, as the most important industrial and commercial centre in China, is attracting a lot of international manufacturing events,” adds Chu.
This could be part of the reasoning behind the creation of the world’s largest exhibition venue. A 500,000sqm complex is in the latter stages of construction in the Hongqiao commercial area of Qingpu District. The complex will be both above and under ground and will be three times the size of the Shanghai New International Expo Centre (SNIEC), the city’s current largest exisitng exhibition venue, when it opens at the end of 2014. This makes it bigger than the world’s largest exhibition hub, in Hanover, Germany.
“The development of the new venue in Hongqiao is necessary as the existing exhibition centres have reached their capacities for some mega shows,” says deputy GM of Comexposium Shanghai, Bjoern Kempe. “These shows require exhibition venues with more than 300,000sqm area. It will lead to even larger and more modern events that will be world-class. More venues will mean more and better shows – I believe there will be only winners.”
Currently Kempe sees the trend for service and consumer goods shows, as well as technological events. “Manufacturing events are still around but I feel the demand for manufacturing events his higher in the provinces of China,” he says.
“Shanghai is not a major production centre anymore and is developing more into a financial and service centre. The exhibitions are following this trend.”
Current UFI president Chen Xianjin, who was deputy director of the Shanghai World Expo, says the city’s credentials are being built with certain sectors in mind. “Beijing, which is developing its conference centres, will be developed around the service sector, while Shanghai will be built with technology exports in mind,” he says. Guangzhou, home to the Canton Fairs is expected to pick up the bulk of commodity trade fair business.
UBM Asia senior VP Wolfram Diener agrees with Kempe that there will be a genuine need for the new venue. “SNIEC has the highest space occupancy rate in the industry worldwide, so we as organisers are dealing with a sellers’ market in which venues can’t do enough to provide services up to international standards,” he says.
“This results in organisers like UBM, who are striving to improve customer experience, or health and safety, having to deal with certain operational matters which should be the responsibility of the venue.
“We hope intensified competition through supply of more exhibition floor space will help improve this in the mid-term,” he adds.
Nonetheless, if you want to find a foothold for general international exhibitions in China, Shanghai is the number one-choice for most organisers. Other exhibition cities in China tend to serve different niche markets. This can be extrapolated, to a lesser extent, to the rest of Asia, says Chu.
“Hong Kong is famous for international consumer products sourcing fairs. Singapore is home to technological shows for predominantly Asean countries. and Japan seems to serve the Japanese market in principle, with lessening influence towards the rest of Asia in terms of trade shows.
“Needless to say, Shanghai is the only city in Asia that can host international events up to 200,000sqm under one roof other than Guangzhou.”
Chu adds that China has little protectionism for its exhibition industry. “International organisers are free to set up their wholly owned subsidy in China and to apply for show licences in competition with their local counterparts.”
So while Shanghai’s exhibition market represents opportunities, it is also highly competitive since most big international players as well as strong local organisers are in fierce competition. Diener says the solution is to forge a strong concept and work with a local partner to ensure international attendees meet with the right people in the right way.
“It is not that easy to get even a crumble of the cake without a strong concept or brand,” says Diener.
“In most cases local expertise is needed to be successful and UBM is often joining forces with local companies that recognise the synergy in partnering with us.”
General manager of SNIEC, Hans-Joerg Geduhn, says doing business in China isn’t as complicated for international partners as some might suggest. “The Chinese business has, of course, its special character. If you know how to play the game, then you can become a winner,” he says. “But if you ignore the rules and try to follow the model procedure of other places, it could be quite difficult.”
And even the GM of SNIEC, which will arguably be the biggest victim as a result of the development of the new super-venue, says Shanghai will benefit. “For the time being, the need is not very urgent, but the market will develop in the coming years and the additional space will be needed,” comments Geduhn.
Ultimately all the major exhibitions in Shanghai have grown, despite an unstable global economic environment. The city is building momentum.
“I think Singapore, Hong Kong and Tokyo are fearing Shanghai more than the other way around,” says Kempe.
“Exhibitions in Shanghai are really addressing international standards.” Now is the time for organisers to show it what they’re made of.
This was first published in issue 2/2013 of EW. Any comments? Email exhibitionworld@mashmedia.net
