In November, further demonstrating China’s emergence as a major player in the international exhibition industry, the former deputy director of the 2010 Shanghai World Expo Chen Xianjin became the first Asian president in the history of global exhibition organiser association UFI.
EW caught up with the current chairman of the Organising Committee of China Association for Exhibition Centers to discuss the nation’s influence on the global exhibition landscape, and the development of a certain 400,000sqm venue destined to join the Shanghai skyline in 2014.
Did the Shanghai World Expo deliver a major milestone in the maturity of the Chinese
exhibition industry?
The World Expo Shanghai China was very successful, with more than 200 official participants and 73 million visitors; a record in the history of expo. The theme ‘Better City, Better Life’ reflected a topic people were concerned about. The World Expo was a mega event, therefore the successful hosting of the expo promoted the development of the exhibition industry by elevating our importance in developing economy and society; enhancing opening-up and cooperation; promoting innovation-driven development, and attracting and cultivating competent personnel.
What new developments are taking place in Shanghai today?
Shanghai’s economy keeps growing at a sustained pace despite the challenges from home and abroad. The city’s GDP grew 8.2 per cent in 2011, while its per capita GDP reached US$12,784, which was about the level of a medium-developed country. The city has transformed its growth and upgraded its economic structure. Progress has been made in developing the city into an international economic, financial, trade and logistic centre. Now it seeks to boost domestic demand and maintain steady growth.
The China Expo Complex is a national exhibition project launched jointly by the Shanghai Government and the Ministry of Commerce at the center of Shanghai Hongqiao Central Business District. The total construction area of the venue is 1.5m sqm, presenting an exhibition complex with 400,000sqm of indoor space and 100,000sqm of outdoor space, making it capable of hosting several large exhibitions and events over the same period. Construction started on 28 July this year and is planned to be completed by the end of 2014.
Why is the development of the exhibition industry in China so outpacing development of the exhibition industries in India, Russia and South America?
The development of the exhibition industry in China correlates with the economic situation and economic policies of the country. China has a larger exhibition market because it has a greater population and higher demand for an exhibition industry. The country has focused on ensuring stable growth, adjusting economic structure, improving people’s wellbeing, deepening reform and promoting harmony, efforts that have ensured the stable performance of China’s economy as well as the exhibition industry.
Is this development partly a result of government support for the industry? Or is China simply seen as a more attractive industrial market for international organisers to try and break into?
The short answer is yes. Government support has played an important role in our exhibition industry’s development. Some regional governments regard the exhibition industry as a positive way to set up and promote the city brand, a booster to accelerate economic development.Therefore, some governments invest to actively build the exhibition and conference centres, developing the exhibition industry in those areas. On the other hand, some governments have evolved to organise exhibitions in growing sectors for that city.
More and more international organisers are entering this market. Almost all the international exhibition companies have set up branch companies or representative offices in China. Some of them transplanted their exhibitions in China, some of them seek local partners to organise exhibitions. As a result, ownership of the Chinese exhibition industry is quite diversified.
Chinese companies now comprise the greatest proportion of UFI members. How has this helped grow international relationships with China?
UFI, as an international exhibition association, represents the most important and influential companies and exhibitions in the industry. Many Chinese exhibition companies consider UFI a brand of quality and honour. UFI is a good platform to communicate and exchange ideas with the leading companies in the world. For that reason, in recent years we’ve seen more and more members in China take part in the UFI events, education programmes and seminars. UFI plays a unique role as the association representing the leaders of the exhibition industry and I will be encouraging our Chinese organisers and venue managers to play an active role within the association. I look forward to continuing the good work of my predecessors as UFI promotes the business benefits of this dynamic marketing medium.
Is China seeing more competition for events in Asia from the ASEAN region?
The development of China’s exhibition industry is closely related to that in the ASEAN region. The Chinese exhibition market is huge, attracting more and more companies from the ASEAN region to invest and join in. The competition doesn’t only exist among local companies, but from the whole region.
What can the rest of the world learn by observing the way in which China’s exhibition industry is developing?
The world has recognised the development of China’s exhibition industry. I would prefer to think China is finding its way according to the specific situation it’s in. We learn the model and the way to develop the exhibition industry from other regions, such as Europe and the US, but we do not completely copy them.
Innovation is crucial to accelerating our growth model, but we still need to gain experience from the rest of the world.
Is it fair to say that China’s exhibition industry is expanding into second-tier, more provincial cities?
Lack of balance, coordination and sustainability still weigh on China’s economic growth, especially in the middle and western areas. This situation is also evident in the exhibition industry. The exhibition industry in the east coast cities Shanghai, Beijing, Guangzhou and Shenzhen is very competitive, with fast economic growth and a mature exhibition market. But here too the exhibition industry has expanded into the second-tier cities, especially provincial cities like Chengdu, Wuhan, Zhengzhou and Chongqing. Those cities have good infrastructure and positive support from the local government. There are also cities in the western area of China that are paying more attention to the exhibition industry, like Xinjiang and Neimeng.
How is China’s government planning to support this ongoing exhibition industry development?
Exporting is a very important business model for China. Much of the country’s economy is built around this industrial reputation. With this in mind, the Ministry of Commerce has singled out three cities in which it plans to develop the international exhibition industry, according to what it believes is the most effective export model for that region.
Guangzhou, which is famous for the Canton Fair, is to be developed around trading commodities. Beijing, which is developing its conference centres, will be developed around the service sector, and Shanghai, where the new 400,000sqm venue is being developed, will be built with technology exports in mind.
Will this promotion be promoted through concessions for events in those sectors?
That is the intention. For 20 years China’s export industry has been built around labour and resources. Now it wants to change these platforms. This is something I would like to help it achieve.
Finally, how do you like to relax and what would you be doing if you weren’t in this industry?
A career in the exhibition industry is one with many challenges and interests. I have been engaged in this industry for more than 30 years and participated in the hosting of the Shanghai World Expo for 10 of these. I have a passion for this industry and it has been a part of my life. I’ve witnessed the development of China’s exhibition industry.
I feel honoured to be elected as UFI’s president for 2013, which is not a reward for my effort to the industry, but recognition from the world of China’s contribution to the global exhibition industry.
Despite working hard, I still lead a rich leisure life. I like physical exercise, such as walking and table tennis. Reading, especially historical books, and music are among my hobbies.
This was first published in Issue 4 of 2012 EW. Any comments? Email exhibitionworld@mashmedia.net
