2009 has been a tough year for everyone. Is there any sense of optimism for the fourth quarter in China’s exhibitions industry?

Exhibitions are a good indicator of the strength of a particular market. Expenditure for exhibitions comes from a company’s marketing budget and this is often first to be axed in a recession. Fortunately, marketing budgets are also first to be reinstated at the slightest indication of a recovery. This was evident from the results of exhibitions in Shanghai from January–June 2009. All exhibitions were smaller than in previous years, occupying between 10-50 per cent less space, and all shows attracted fewer visitors. We ran WoodMac China 2009, for the woodworking technology industry supplying the furniture manufacturing sector, in February 2009 - possibly the time at which business confidence in China was at its lowest. This show shrank from four halls at Shanghai New International Expo Centre (SNIEC) down to two in a matter of six weeks. Fortunately, the event is recognised worldwide and the good numbers attending from outside China in search of Chinese technology made up for the smaller number of Chinese visitors.  

By June 2009, business confidence had picked up and we witnessed a gradual rise in space bookings. By July, at our ProPak and China Bevtek, packaging and beverage technology expos, we booked the same area as in 2008. “Business as usual” was the word coming from the exhibition floor, with better than expected results for international companies selling labour saving and energy efficient technology to Chinese manufacturers keen to find new ways to reduce cost of production. Now in the final quarter, the indicators for our Food and Hospitality China expo, the largest imported food and wine trade show in the country, look very positive. We have sold more space than ever before, but also experienced more cancellations than ever. However, with 13 new country pavilions attending, this is a very encouraging sign of increased interest in the market for the future. 

 

Shanghai and Guangzhou lead the way in exhibitions space in China. Will these remain the key locations for major exhibitions, and which other cities are ‘ones to watch’?

Yes, Guangzhou has more available exhibitions space than any city in China, with a total of 450,000 square metres of exhibition space. The majority of this is at the massive Pa Zhou expo hall, the venue of the Guangzhou Fair (formerly Canton Fair), which now takes place three times per year. Shanghai is currently just behind Beijing, which has 240,000 sqm. However, Shanghai will increase available exhibitions space by 76 per cent by the end of 2010, rising from 210,000 sqm to 370,000 sqm. The largest single growth coming from the completion of the remaining seven halls at SNIEC in Pudong and new permanent halls at the Shanghai World Expo 2010 site. These three cities will remain the first choice in China for organisers of international standard fairs. 

China has more exhibitions halls than any other country. There is no shortage of potential new destinations and there are hundreds of local exhibitions held in these venues every year. Every city seems to have an Auto show, several building and real estate shows, farmers' markets and other events targeting the local domestic consumer. Picking the right time to enter the second and third-tier cities with international exhibitions is the question on every organiser’s lips - and where do you start? Dalian, Qingdao, Wuhan, Chongqing and Kunming, amongst, others all have their advantages and I am sure they will continue to grow as important destinations for the future. I have been particularly impressed with the development of Chengdu, which I first visited 10 years ago. I believe this city, which acts as a natural trade centre for the whole of Southwest China and many Northwest cities has the venues, airport and international standard hotels, all of which are necessary first steps for any future exhibition city.  

 

Beyond the global recession, which industry sectors offer the most promise for exhibitions growth in China?

Now, if I knew the answer to that I would be busy organising them. China offers so many opportunities that the challenge is to select the right opportunity for your business and at the correct time. Unfortunately, the more opportunities that exist are matched by increased business failures in this challenging market. 

However, one trend in China is very clear: the global recession has thrown the spotlight on the Chinese domestic market. World manufacturers from consumer goods to high-end energy and labour saving technology hope China will help them return from recession. The much debated, but never realised, domestic market of 1.3 billion potential consumers has seen many early market entrants fail - for the simple reason that the real market for imported products is probably more like 200 million and spread across the whole country, but concentrated on the coast. Prompted by a combination of the government stimulus package, decline in world markets and a gradual increase in consumer spending power, the emerging Chinese middle class now offers a realistic market not to be ignored by any industry. If forecasts are realised, the Chinese middle income consumer is tipped to jump from the current 200 million to over 500 million in the next five years. There are opportunities for every industry, manufacturing and service and I expect exhibitions will grow or be created to serve them all.  

 

Food & Hospitality China is now in its 13th year. How would you assess its growth and diversification in recent years?

The growth of FHC has exactly mirrored the development of the food and hospitality industry in China. Our first event in Beijing in 1994 was 9,500 sqm - an incredible size for a first show in a new market. Every food marketing organisation in the world was eager to find out the reality of the China market. There was much talk of “market potential” and you needed considerable determination to stick with a market that offered no easy sales. Back then, supermarkets did not exist in China and imported foods could only be found in selected star-rated hotels. The majority of our visitors were from hotels keen to buy imported foods they were otherwise unable to buy due to strict import regulations. 

2007 was the first year that visitors from supermarkets and retailers exceeded the hospitality sector. This reflected not a decline in hotels and restaurants, as total visitors to the show were increasing rapidly, but that retailers had grown to become a significant aspect of the market, boosted by the emerging Chinese consumer. At FHC 2008, the retail trade accounted for 37 per cent of them more than 20,000 visitors, while hospitality accounted for 26 per cent and importers 24 per cent.

With 98 per cent of all exhibitors at FHC China being international manufacturers or their agents, the focus is on helping foreign manufacturers sell to China. As only registered importers can obtain licences to bring products into the country, they are the key element of this industry. We are proud that FHC attracts the top importers in China to participate as exhibitors, offering a vital, on the spot customer base for our many foreign exhibitors.

 

What new features have been added to this year’s FHC China show, and how are you looking to evolve the exhibition further?

This year, FHC runs from 18-20 November, and we have added three new focused areas to the exhibition: Meat China; Wine & Spirits China; and Tea and Coffee. Each subject has been identified as offering particular growth potential for the future and sufficient interest from both exhibitors and visitors to warrant a separate area within FHC. 

Zoning specialist companies together in one area offers visitors a convenient one-stop opportunity to locate and compare many similar products quickly within this large show. Supporting the exhibitor’s stands, we will also organise competitions, tutorials and products demonstrations. One event of note will be the China Sommeliers Wine Challenge, taking place the week before the show with results announced on the first day of the exhibition. This is a blind tasting for some 180 wines from around the world by China’s top sommeliers and VIP guest sommeliers. Winning wines will receive Gold, Silver, Bronze and Seal of Approval awards, which provide an easily identifiable guarantee of quality for the consumer. 

In addition, FHC will repeat other focused events that have proved successful in the past. These include the 11th FHC International Culinary Arts Competition, where 250 chefs will test their skills over 13 different categories. Great Chefs of Shanghai Gala Lunch and the Great Italian Chefs of Shanghai Gala Lunch; Ice Cream Theatre; Butchery classes, Sommelier tutorials and professional industry seminars.  Our goal is to provide the largest possible range of products at one show for buyers from the food and beverage industry.

 

For more information, visit www.fhcchina.com