Although not a pure-bred exhibition organiser, publishing giant Informa runs 130 exhibitions around the world. Peter Rigby has been chief executive of the US$4.2bn global business since 1988, then trading as Informa Business Communications. Today, one third of the company’s profits come from exhibitions, conferences and corporate training. Its business is expanding rapidly.
As a niche provider of information and knowledge, many of the company’s exhibitions came from larger conferences, magazines or newspapers, with others spawned from partnerships with media companies or trade associations.
The company recently formed a new single brand of 10 global business companies under the name Informa Exhibitions, including IIR and Euroforum.
Informa Exhibitions will promote and manage its shows in the US, Europe, South Africa, Middle East, BRIC and Australia. Its top exhibitions include the Monaco Yacht Show, Arab Health and IPEX, the quadrennial global printing industry event.
Here, Informa chief executive Peter Rigby tells EW that exhibitions and tradeshows were the company’s most resilient products in 2010, soon to provide the mainstay of the company’s events revenues.
How did you get into the international exhibition business?
I joined Stonehart Publications in 1983 as finance director. Stonehart was the forerunner to Informa and was already in the conference and small exhibitions arena. From relatively humble beginnings and a combination of organic launches, mergers and acquisitions within Informa we now have 130 exhibitions.
Having been an accountant in 1983, I became chief executive of the Group in 1988 and stumbled into the exhibition business having been cured of accountancy. For us it has been an exciting ride from what was a very small company to one with a current market capitalisation of £2.5bn and on the verge of the FTSE 100.
What are Informa’s goals for the next 12 months? Five years?
Over the last three years, Informa has experienced tough times like many companies. We have been somewhat protected by our publishing businesses although experienced some weaknesses within events.
For many people in events, Informa included, 2011 has to be the year when growth returns. Certainly the stock market is expecting that of us. This year is a year of expansion for us and we expect to run 30 more shows than we did in 2010 which will be a mixture of organic growth and acquisitions. In addition we expect to see good growth from our existing shows.
Beyond five years is difficult to predict, especially when we live in such a volatile economic and geo-political world. In broad terms though I would expect us to be 50 per cent bigger than we are now in emerging markets, which will go broader than the BRIC nations.
I see exhibition revenues becoming the biggest element of our events business due to the growth of exhibitions rather than declines elsewhere.
What challenges does Informa face? How are you addressing them?
I am not sure we are facing more challenges than any other company.
The biggest challenge is the pace of change in the world, which could be as much of an opportunity as a threat. Technology is changing quickly, people are changing jobs more rapidly. Suppliers’ and customers’ expectations and aspirations are also very different from what they were. More broadly, the world order is changing too.
At Informa we address all these issues/challenges and many internal ones by being faithful to our business model. Essentially we embrace change quickly and are fully aided by being flat, un-bureaucratic and nimble as an organisation.
We try to make the business a rewarding place to work and have been hugely successful with CSR and other initiatives.
What new technologies are you backing?
I find this a very difficult question because it is absolutely uncertain what the future will bring. Even more so, it is very hard to see how technology will evolve and which will win. However, things will change. I think the most important thing is that we are able to fit into any technology rather than us determine the pace or type of change.
I think technology should be simple, albeit in a complex world, moreover it should be flexible and fit for purpose. I actually think that investment in one technology while forsaking all others is a guaranteed route to disaster.
How has the exhibition industry changed and where is it headed?
Obviously the exhibition business has changed a lot and it has become more specialised and niche. In particular the demands from exhibitors and sponsors in terms of return on investment have rightly increased in importance.
The exhibition organiser has a fantastic opportunity if it stops being just an organiser and becomes a partner with venues, visitors, exhibitors and suppliers in order to enhance the overall experience.
With the likely structural demise of the trade magazine market, due to the lack of ROI and the arrival of the internet in my opinion, the exhibitions market has a great opportunity to pick up on this revenue stream and enhance the opportunities that arise from face-to-face meetings.
It is our job to accept that this has happened and work harder on putting together buyers and sellers in an appropriate environment. People talk long and hard about virtual conferences and virtual exhibitions. There is a place for this but we shouldn’t expect that just because we are in a technological world that people will never, ever leave their desks.
I think the future is very exciting and I look forward to ensuring that within Informa we are pro-active in virtual and online events but only where the customer requires it.
What kind of partnerships/joint ventures will you use to expand in China and the Middle East?
If we had a choice and generally speaking we do, we would prefer to own our properties completely, rather than have partnerships and joint ventures.
However, in some parts of the world and not just in China and the Middle East it is preferable and even vital to team up with other organisations. These could include trade associations, government bodies or local commercial entities.
Wherever in the world, maybe more so in emerging nations, whether we have a partner or not it will be taken on a case-by-case basis. It may be more important/crucial if starting up from scratch without a local presence where the existence of a local company as a partner may be hugely beneficial.
Sometimes it is only possible to do business in certain areas of the world if you have a local partner and on other occasions it is just better commercially. So that is why, in terms of structure, there is no preferable one and they can vary from commission deals to commercial joint ventures and equity partnerships with different levels of equity participation.
You can imagine ventures are based on branding, on soft dollar swaps and even arrangements as simple as cross selling and cross marketing.
Do you have any plans for further expansion in Turkey, Indonesia, Mexico or other non-BRIC emerging markets?
Turkey, Indonesia and Mexico are all markets that are exciting and very much emerging, but with local difficulties at times.
We have been cautious thus far about capital investment; not just in these countries but elsewhere too. We are able to use our network of international offices and more or less test the water and succeed if we get the product offering right, whether we have a local office or not.
What do you do when you’re not working?
I enjoy sport in general and specifically skiing and golfing. I live in Switzerland which is great for walking and biking. Having usually spent all week in an office or on a plane the most important thing is to be outside on a weekend.
Any comments? Email exhibitionworld@mashmedia.net
