Since 2012, Reed China has introduced a number of new segments, acquiring a show in the auto aftermarket sector, launching a show in the energy sector, and making two new additions to its property, travel and publishing cluster. As befits the world’s largest organiser, operating in the world’s largest and fastest-growing exhibition market, Reed China has been busy.
The plan is to build these new projects, the China International Auto Aftermarket Fair, Oceanology International China, Mipim China and China Shanghai International Children‘s Book Fair (CCBF), into shows equal in stature and influence to its longest-standing events.
But its progress in 2013 has not been confined to fairs or the formations of new partnerships. Reed is always seeking new ways to better serve clients. In China, it was among the pioneers in exhibition management, realising the true magnitude of the growing role digital technology would come to play in enhancing today’s customer experience, as well as the importance of engaging participants via social networks to boost the success of events.
“You can see the outcomes of that realisation in how we have been swift and precise in rolling out sophisticated mobile applications that have become powerful tools for conducting global business,” says Nat Wong, president of Reed Exhibitions Greater China. “Participants in a growing number of our events this year, like G2E Asia (May), Aluminum China (July) and SinoFoldingCarton (August), were able to access important information more conveniently, including updated floor plans, pavilion attractions, special event schedules and up-to-date industry news, through versatile mobile apps.”
Branching out
And this includes expanding into new sectors. At the start of September, the Oceanology International (OI) series, a leading global exhibitions brand where industry, academia and government connect with the marine technology and ocean science community, launched in Shanghai to explore China’s abundant opportunities. As well as the introduction of OI China, November’s China Shanghai International Children‘s Book Fair will mark Reed China’s first ever foray into publishing.
The company is also developing new events in China’s second-tier, or less populated, cities. Last year its expansion efforts were marked by strong results in second tier cities like Chengdu, Dongguan, Hefei and Zhengzhou.
“Through successful editions of Nepcon West China, Interphex China, API (the China International Pharmaceutical Ingredients Fair), SinoCorrugated, SinoFoldingCarton and China (Chengdu) Gift Fair, we have managed to solidify a high profile presence across a number of the country’s fastest emerging markets,” says Wong. “We also entered Zhengzhou for the first time in 2012, by forming the Reed Hongda Exhibitions joint venture and establishing ourselves in the auto aftermarket. That strategy of mergers, acquisitions and new launches remains how we plan to explore numerous exciting prospects in China’s second tier destinations.
“If you look at our event calendar for 2013, you will see exhibitions in numerous second and third-tier destinations. Alongside those I’ve already mentioned, we also have shows in Wuhan, Suzhou, Xiamen, Guilin and Shenzhen.”
Reed Exhibitions Greater China is organising more than 50 trade events in 2013, serving 11 of the country’s fastest growing specialised sectors: Electronics Manufacturing & Assembly; Machine Tools, Metalworking & Industrial Materials; Converting; Life Sciences & Pharmaceuticals, Healthcare, Beauty & Cosmetics; Gifts & Homeware; Auto Aftermarket; Lifestyle; Gaming; Property, Travel & Publishing; Marine, Energy, Oil & Gas.
Wong claims that in each sector where Reed has had the chance to develop events over a sustained period, the shows have become leaders in their field. But how about outside China? Well, let’s take a look at what happened last year. Reed Elsevier, of which Reed China is a part, reported growth in revenue, operating profit and earnings. The global company’s income grew by four per cent and profits by six per cent in that 12-month period. Of that, Wong says the China contribution was significant. For a number of years now, its own growth rate has sustained at double-digits across both these areas.
Choosing when to place an event in Hong Kong and Macau, rather than Mainland China, is a decision based on potential speed of market growth, says Wong. “When we choose destinations in which to establish our events, the primary three considerations are: Is there a ready or fast-emerging market there? Is there, or will there soon be, the infrastructure to support us, on a logistical level?” he comments. “Is there enough room for us to raise the scope and scale of the event?” When the answers to these questions are positive, then, following the appropriate due diligence, the organiser makes its move.
“That is why, for example, you see that we have such a strong presence in South China, particularly with our electronics manufacturing events. That is the part of China that incubates demand for electronics on a larger scale than anywhere else in the country.”
Another example of this can be seen with Reed’s placement of G2E Asia, its popular gaming expo in Macau. Wong claims this territory recorded gaming revenue of US$38bn in 2012 – six times larger than that of the Las Vegas Strip, and projections are that casino revenue will grow at least another 10 per cent in 2014 as the global economy improves.
“This is the perfect illustration of how geography, demographics and industry can combine to provide powerful commercial opportunities,” he says. “So, you see, it’s always a balance between us choosing the location and the location choosing us. Certain parts of the country have established markets and industries, or the potential to support extensive growth for certain sectors.”
So are there any obstacles to the efficient operation of an exhibition business in China, and how are they being addressed? Wong says establishing a deep talent pool is key to a sustainable and thriving exhibition industry in the long term. “That is why Reed Exhibitions China this year launched yet another new development programme to provide training for candidates making their first foray into the job market,” he says. “We call it the Young Talent Program, and it is an entry level platform aimed at giving recent graduates hands-on experience and accelerating learning opportunities in Reed’s core marketing and sales functions.
The programme was introduced after the success of the 2010 Reed Management Associates Program (RMAP), and continues Reed’s establishment of learning and development plans targeted at every rung of the career ladder.
The Young Talent Program is the latest in a line of employee-enhancing initiatives that include Reed University China, a multiplatform series of learning events repeated over the course of a calendar year; and the High Potential Talent Development Program, a customised training programme to fast-track the career progression of 20 high potential members of staff and strong performers.
Reed’s efforts with personnel are, thankfully, being complemented by the Chinese government’s support of the exhibition industry in several areas, most notable of which is infrastructural development. In 2012, the number of convention and exhibition halls in China with a showfloor exceeding 5,000sqm was 316, nearly 20 per cent more than in 2011. At the same time, iconic venues like Shanghai New International Expo Center are being extended, creating a new range of exhibition halls that are hoped to show the rest of the world how it’s done.
“When the government provides support to construction, expansion and renovation projects for the exhibition industry, it has the knock-on effect of attracting inbound exhibition trade, promoting regional economic development, boosting employment and giving cities new and powerful identities,” says Wong. “Look at the transformation of Chengdu over the last few years. It wasn’t that long ago that the city was best known for being inaccessible and having only the most basic of facilities. Today, in 2013, it is one of China’s most important economic centers and manufacturing hubs.
“So it is thanks to the government’s development of Chengdu that we can organise such highly successful events for our electronics manufacturing and giftware clusters there.”
With its launch and acquisition drive, the rest of the world can expect big things from Reed’s efforts in China. And with a market of this size, replete with a blossoming middle-class and increasingly wealthy second-tier cities, how long will it be before the organisers lead events are moved to – or originated in – China, with their geoclones spinning out to potentially less lucrative regions such as Europe and the US? Ultimately events follow markets, and China’s gearing up to accommodate major shows and organiser in kind.
This was first published in issue 4/2013 of EW. Any comments? Email exhibitionworld@mashmedia.net
