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Global Trends: Asia rising and its
challenges
Paul Woodward
Managing Director, UFI
Bangkok, 25th September 2012
The basics remain the same



                                                        Bring them
 Identify a                 Promote      Identify and    together &
  market      Book venue   and sell to    market to       generate
opportunity                exhibitors      visitors       business
                                                        opportunity




                            © UFI 2012
Exhibitions are powerful tools
• SMEs still find exhibitions       • Blockbuster major events
  the most effective way to           continue to thrive
  promote their products                  – Companies want to ‘wave
  and services, find new                    the flag’ even in tough
  clients and open up new                   times.
  markets                                 – They become more
                                            conservative with
   – They have a strong need
                                            marketing budgets.
     for new business.
                                          – Safe choices are the top
   – They have a strong need to
                                            shows.
     identify and commercialise
     innovations.

                             © UFI 2012
But….

It’s not that simple
There are strong forces impacting us
                Economic Crisis
               Geographical Shift




 Technology   Exhibition               Changes in
                                    Exhibitor & Visitor
  Changes
               Industry                 Behaviour




                  Alternative
                   Formats
The impact
of the crisis
UFI Global Barometer: companies declaring
                                                                                                Global Exhibition
an increase in their turnover compared to the                                                         Barometer
same period the year before
         % of companies declaring an increase in their turnover when compared
       to the same period the year before (regardless of possible biennial effects)
100%




 50%




  0%
       Befor   1st half   2nd half   1st half   2nd half   1st half   2nd half   1st half   2nd half   1st half
         e           2009                   2010                 2011                  2012             2013
       Dec.
       2008
                      As declared in previous surveys                                As declared in June
                                                    © UFI 2012                              2012
UFI Global Barometer: companies declaring
                                                                         Global Exhibition
that the impact of the “economic crisis” on their                              Barometer
exhibition business is now over
            % of companies declaring – in the last 4 surveys - that the impact
            of the “economic crisis” on their exhibition business is now over
100%




                                                                                 Americas
 50%                                                                             Asian Pacific
                                                                                 Europe
                                                                                 Middle East/Africa




  0%
       June 2010   December     June 2011     December      June 2012
                     2010                       2011
                                       © UFI 2012
UFI Global Barometer: Anticipatedending                  Global Exhibition
year of the impact of the “economic crisis” for                Barometer
those who consider that it is not yet over

            63%




                    46%


                    44%
                                                              June 2011
                             30%                              December 2011
           27%
                                                              June 2012


  14%                       14%
                    15%                   15%
            10%
                             9%           8%
   4%
                                                   2%
                                          0%

                                                    0%
  2011     2012    2013     2014         2015   after 2015

                            © UFI 2012
There is some great strength in key
             markets




               © UFI 2012
But business strategies have been
               impacted
• Refocusing onto a smaller number of key shows.
• Most new business development of major
  companies tends to be focused on emerging
  markets.
   – BRICSA
   – MINT
• Even for the healthiest shows, waiting lists are
  shrinking as companies scale back expansion
  plans.
• Razor sharp focus on ROI

                        © UFI 2012
Asia’s growth prospects
• Some of the key Asian markets are entering a
  maturing phase.
• So, the very high growth rates of the past will
  be more difficult to achieve.
• There will be a flight to quality.
  – We are seeing the best organisers recording 20%
    growth in markets which overall are almost flat.
  – Shake-out of “me too” events which do not offer
    exhibitors real ROI

                       © UFI 2012
Asia growth focus
      China                 India                ASEAN

• Maturing market    • Highly              • Big opportunity
  – 55% of Asia        competitive           seen with
• Increased focus      market                increased intra-
  on domestic        • Good growth           ASEAN trade
  business &           prospects once        flows after free
  consumption          venue shortage is     trade zone fully
• Developing           resolved in key       implemented
  secondary cities     cities              • 1 – 2 key focus
                                             cities for ASEAN
                                             trade fairs will
                                             emerge


                           © UFI 2012
Threats and opportunities
The impact of technology on
       our business
                     © UFI 2012
Key technology trends

               Social media




   Smarter    Business        Mobile
  databases
              marketing




                 Tracking
               technologies




               © UFI 2012
Changing visitor & exhibitor
        behaviour




                            Understand how their
               © UFI 2012
                            demands are changing
There are demands….and demands
Today's picky customers




                     © UFI 2012
Exhibitor demands
                         Proving ROI




  More and
                                              Pressure on
better business
                                                budgets
 opportunities




                                        Turnkey
        Greater choice
                                       solutions



                          © UFI 2012
Lead the communities we have
created
• Understand the industries we serve
• Thought leadership
  – What does it mean?
     • Extend the powerful brands we control to generate
       value for our customers and for us year-round.
     • Use the knowledge of the industry we create and
       facilitate to enhance our customers’ business and our
       own bottom line.
• We are not in the exhibition industry: we are
  “in” the industry of every customer we serve.

                           © UFI 2012
The visitor

The heart of our business: this is
what we offer those who pay us



              © UFI 2012
Visitor issues


   Time                Demographics




Alternatives                Budgets




               © UFI 2012
Demographics




    © UFI 2012
Demographics in Asia




        © UFI 2012
Time




© UFI 2012
Protect the power of serendipity
   “You make your luck”. One of the ways we should encourage
   our customers to make their own luck is to come to our
   exhibitions and find something new and unexpected.




                             © UFI 2012
Changing
              formats

© UFI 2012
Format issues


Entertainment            Sustainability


                           Targeted
  Content                 buyers and
                            sellers
            © UFI 2012
Multi-dimensional events
                              Conference




 Traditional
 trade show                                            Entertainment
    floor
                            Successful
                            new-look
                              events


           Unconventional
                                           Live-streaming
              layouts


                              ⓒ UFI 2012                               28
Conference trends
• Meetings will need to address a number of concerns
   – Pressures on delegate time – provide a good return on time
      • Shorter events
      • Shorter presentations
   – Pressures on budget
      • For delegate fees
      • For sponsorship
   – Offering learning experiences which cannot be easily achieved
     online
   – Address concerns about sustainability of business meetings
• Delegate-led content provides organisers with many
  challenges
• Directly linked to thought-leadership opportunity/challenge
  identified for exhibitions
                                © UFI 2012
From…




 ⓒ UFI 2012   30
…to




ⓒ UFI 2012   31
Last thoughts
• The industries we serve should be at the heart
  of our focus
• Know the customers – especially the visitors
  – If you deliver the visitors and satisfy them, all else
    will flow
• Focus on efficiency and effectiveness of your
  events
  – But don’t sacrifice the surprise which makes them
    worth coming back to

                          © UFI 2012
“Be the change that you wish to see
                      in the world”
                            Ghandi


                             Thank you
                            pw@ufi.org


               © UFI 2012
© UFI 2012

More Related Content

Woodward bangkok presentation 25 9-12

  • 1. Global Trends: Asia rising and its challenges Paul Woodward Managing Director, UFI Bangkok, 25th September 2012
  • 2. The basics remain the same Bring them Identify a Promote Identify and together & market Book venue and sell to market to generate opportunity exhibitors visitors business opportunity © UFI 2012
  • 3. Exhibitions are powerful tools • SMEs still find exhibitions • Blockbuster major events the most effective way to continue to thrive promote their products – Companies want to ‘wave and services, find new the flag’ even in tough clients and open up new times. markets – They become more conservative with – They have a strong need marketing budgets. for new business. – Safe choices are the top – They have a strong need to shows. identify and commercialise innovations. © UFI 2012
  • 5. There are strong forces impacting us Economic Crisis Geographical Shift Technology Exhibition Changes in Exhibitor & Visitor Changes Industry Behaviour Alternative Formats
  • 7. UFI Global Barometer: companies declaring Global Exhibition an increase in their turnover compared to the Barometer same period the year before % of companies declaring an increase in their turnover when compared to the same period the year before (regardless of possible biennial effects) 100% 50% 0% Befor 1st half 2nd half 1st half 2nd half 1st half 2nd half 1st half 2nd half 1st half e 2009 2010 2011 2012 2013 Dec. 2008 As declared in previous surveys As declared in June © UFI 2012 2012
  • 8. UFI Global Barometer: companies declaring Global Exhibition that the impact of the “economic crisis” on their Barometer exhibition business is now over % of companies declaring – in the last 4 surveys - that the impact of the “economic crisis” on their exhibition business is now over 100% Americas 50% Asian Pacific Europe Middle East/Africa 0% June 2010 December June 2011 December June 2012 2010 2011 © UFI 2012
  • 9. UFI Global Barometer: Anticipatedending Global Exhibition year of the impact of the “economic crisis” for Barometer those who consider that it is not yet over 63% 46% 44% June 2011 30% December 2011 27% June 2012 14% 14% 15% 15% 10% 9% 8% 4% 2% 0% 0% 2011 2012 2013 2014 2015 after 2015 © UFI 2012
  • 10. There is some great strength in key markets © UFI 2012
  • 11. But business strategies have been impacted • Refocusing onto a smaller number of key shows. • Most new business development of major companies tends to be focused on emerging markets. – BRICSA – MINT • Even for the healthiest shows, waiting lists are shrinking as companies scale back expansion plans. • Razor sharp focus on ROI © UFI 2012
  • 12. Asia’s growth prospects • Some of the key Asian markets are entering a maturing phase. • So, the very high growth rates of the past will be more difficult to achieve. • There will be a flight to quality. – We are seeing the best organisers recording 20% growth in markets which overall are almost flat. – Shake-out of “me too” events which do not offer exhibitors real ROI © UFI 2012
  • 13. Asia growth focus China India ASEAN • Maturing market • Highly • Big opportunity – 55% of Asia competitive seen with • Increased focus market increased intra- on domestic • Good growth ASEAN trade business & prospects once flows after free consumption venue shortage is trade zone fully • Developing resolved in key implemented secondary cities cities • 1 – 2 key focus cities for ASEAN trade fairs will emerge © UFI 2012
  • 14. Threats and opportunities The impact of technology on our business © UFI 2012
  • 15. Key technology trends Social media Smarter Business Mobile databases marketing Tracking technologies © UFI 2012
  • 16. Changing visitor & exhibitor behaviour Understand how their © UFI 2012 demands are changing
  • 17. There are demands….and demands Today's picky customers © UFI 2012
  • 18. Exhibitor demands Proving ROI More and Pressure on better business budgets opportunities Turnkey Greater choice solutions © UFI 2012
  • 19. Lead the communities we have created • Understand the industries we serve • Thought leadership – What does it mean? • Extend the powerful brands we control to generate value for our customers and for us year-round. • Use the knowledge of the industry we create and facilitate to enhance our customers’ business and our own bottom line. • We are not in the exhibition industry: we are “in” the industry of every customer we serve. © UFI 2012
  • 20. The visitor The heart of our business: this is what we offer those who pay us © UFI 2012
  • 21. Visitor issues Time Demographics Alternatives Budgets © UFI 2012
  • 22. Demographics © UFI 2012
  • 23. Demographics in Asia © UFI 2012
  • 25. Protect the power of serendipity “You make your luck”. One of the ways we should encourage our customers to make their own luck is to come to our exhibitions and find something new and unexpected. © UFI 2012
  • 26. Changing formats © UFI 2012
  • 27. Format issues Entertainment Sustainability Targeted Content buyers and sellers © UFI 2012
  • 28. Multi-dimensional events Conference Traditional trade show Entertainment floor Successful new-look events Unconventional Live-streaming layouts ⓒ UFI 2012 28
  • 29. Conference trends • Meetings will need to address a number of concerns – Pressures on delegate time – provide a good return on time • Shorter events • Shorter presentations – Pressures on budget • For delegate fees • For sponsorship – Offering learning experiences which cannot be easily achieved online – Address concerns about sustainability of business meetings • Delegate-led content provides organisers with many challenges • Directly linked to thought-leadership opportunity/challenge identified for exhibitions © UFI 2012
  • 30. From… ⓒ UFI 2012 30
  • 32. Last thoughts • The industries we serve should be at the heart of our focus • Know the customers – especially the visitors – If you deliver the visitors and satisfy them, all else will flow • Focus on efficiency and effectiveness of your events – But don’t sacrifice the surprise which makes them worth coming back to © UFI 2012
  • 33. “Be the change that you wish to see in the world” Ghandi Thank you pw@ufi.org © UFI 2012

Editor's Notes

  • #2: Mile wide, inch thick scamper through the key issues – setting the scene for the rest of the seminarDrawing on my good fortune in meeting people in the industry around the world and hearing the latest thinking from many smart people at our UFI conferences and those organised by our partners and members around the world. Thanks also to UFI team for their thoughts and contributions to this.
  • #3: Ours is fundamentally a simple businessThe keys to this process are “opportunity” – at the beginning and end of the process.In order to maximise this opportunity, we have to focus on developing an ever more thorough understanding of the markets we serve.
  • #4: This is the good news. Our industry continues to thrive. Some of you are, of course, doing better than others. Some countries are doing better than others and I’ll speak to that in a few minutes.But overall, we remain an enormously effective tool for marketers77% of exhibitors in German trade shows are SMEs (revenues less than €50 million)Most of you in the room are UFI members. As UFI member organisers, your UFI Approved Events are, by definition, the leading shows in the industries you serve. So, the points on the right hand side of the screen here apply to most of you. We know this. It’s worth repeating. When you control the leading exhibition for your market, you are in a very powerful position to provide a tremendous service to the industries you serve. As they become more conservative, which they are doing now, they will turn to you. There lies our opportunity. There lies the future. We are in a great business.I should perhaps stop right now…
  • #5: But, I wouldn’t be up here if I was just being asked to give you a two slide pep talk on why we’re in a great industry.
  • #26: • “You make your luck”. One of the ways we should encourage our customers to make their own luck is to come to our exhibitions and find something new.