Transcript Sonia Thomas

PERSPECTIVES ON THE
EXHIBITIONS SECTOR
PERFORMANCE AND
PROJECTIONS
From a UFI perspective
By Sonia Thomas
UFI Director of Operations
@UFI 2013
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What is UFI?
UFI is the Global Association of the
Exhibition Industry, uniting the industry’s
organizers, venues, associations and
partners of the industry
@UFI 2013
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UFI IMPACT
• 4,500 Exhibitions organised or hosted by UFI
members
• Presence of UFI members in 85 countries
including the 40 largest countries in terms of
GDP
3 UFI Offices
Headquarters in Paris,
Regional Office Asia/Pacific in Hong Kong
Regional Office in Middle East/Africa in Kuwait
ⓒ UFI 2012
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633 members
in 85 countries
46 “Partners of
the Industry”
(7.3%)
52 “Associations”
(8.2%)
79 “Venues
only”
(12.5%)
329
“Organizer
only” (52%)
127 “Venue
& Organizer”
(20%)
206 members with
“venue” activity
(32.5%)
456 members with
“organizer” activity (72%)
June 2013
ⓒ UFI 2013
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WHAT IS THE
CURRENT STATE
OF THE
ECONOMY?
@UFI 2013
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According to the IMF,
activity has stabilized
in advanced
economies, supported
by policies and
renewed confidence.
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Source: FT/Wall Street Journal
@UFI 2013
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What can we expect in 2013?
• The US Fiscal Cliff takes 1% off growth in the
Autumn. US close to recession in 2014
• Euroland stays in recession for whole year,
but Germany grows again Q3 fuelled by
demand from Asia
• Currency realignment; Euro weakens, Dollar
strengthens, another Eurozone panic
• Global equities fail to gather momentum after
initial burst in the Spring
Well run businesses with clearly
defined compelling reasons for
purchase will continue to
outperform regardless of the
economy
• No change in interest rates even though
inflation will trend upwards
Source: Roger Martin-Fagg, Economist
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UFI MEMBERS AND THE
ECONOMIC CRISIS
@UFI 2013
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Operating profits compared
to the previous year
Americas
Asia & Pacific
Europe
Middle East & Africa
100%
% of companies declaring stable
profits (between -10% and +10%)
or increases of more than 10%
80%
60%
40%
% of companies declaring profit
increases of more than 10%
20%
0%
2009
2010
10th Global Exhibition Barometer (January 2013)
2011
2012
10
% of companies declaring – over the last 6
Barometer surveys – that the impact of the
“economic crisis”on their exhibition
business is now over
100%
Americas
50%
Middle East & Africa
Asia & Pacific
Europe
0%
June
2010
Dec.
2010
June
2011
10th Global Exhibition Barometer (January 2013)
Dec.
2011
June
2012
Dec.
2012
11
Key challenges for exhibitions
• Competition (in some markets) from overcapacity in venues
• Certain sectors badly affected by the crisis
• Surprisingly, certain sectors are doing better
than ever
• GDP growth in certain countries: MINT,
BRICSA, MIST, CIVETS, N-11, MINTS! etc.
• Theme competition issues
• Pressures on business travel
• Cost controls and environmental constraints
@UFI 2013
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Key challenges for exhibitions
Online marketing and product news release
• Balance internet and face-to-face marketing
• Industry needs better to communicate how a
combination of these is the key to marketing
effectiveness.
• In-house activities and product launches have
eaten into traditional event spend.
• Source of tomorrow’s competition?
Targeting the Facebook generation with
real world events.
@UFI 2013
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SMEs
Exhibitions - most
effective way to:
• promote their products
Leading
shows = flying
the flag
and services,
• find new clients open up
new markets
• They have a strong need
for new business.
• They have a strong need
to identify & commercialize
innovations.
Doing well,
«safe
choices»
@UFI 2013
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UFI VENUES (INDOOR)
EXHIBITION SPACE IN 2011
Scale
5 million sqm
496 venues
15.6 million sqm
(48%)
389 venues
7.9 million sqm
(24%)
70 venues
1.3 million sqm
(4%)
ⓒ UFI 2012
184 venues
6.6 million sqm
(20%)
33 venues
0.8 million sqm
25 venues
(2%)
0.5 million sqm
(2%)
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UFI World Map of Exhibition Venues
Regional trends between 2006 and 2011
+7%
15,6
14,6
2006
2011
(Venues with a
minimum of
5,000 sqm indoor
exhibition space)
+5%
+38%
7,5 7,9
6,6
4,8
+7%
+16%
1,2 1,3
Europe
Market
share
ⓒ UFI 2012
North America Asia/Pacific
0,7 0,8
Central &
Middle East
South America
-6%
0,5 0,5
Africa
in 2006
50%
26%
16%
4%
2%
2%
in 2011
48%
24%
20%
4%
2%
2%
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The global top 10
Net space rented between 2008 and 2011
(in million net sqm)
1. USA
2. China
3. Germany
4. Italy
5. France
6. Spain
7. Japan
8. UK
9. Russia
10.Brazil
23,3 (*)
13,0
8,8
6,2
5,4
3,5
3,2
2,8
2,6
2,6
Trend since 2008
- 7%
+ 13%
- 5%
- 5%
- 8%
- 24%
- 3%
- 6%
- 13%
+ 4%
UTILIZED SPACE
Trends in the net space rented in several major national markets
(in sqm, UFI estimations)
in Europe
in Asia
120
120
Turkey
115
China
India
115
110
110
105
105
Korea
Germany
100
100
Italy
95
95
Russia
Japan
90
90
France
85
85
80
80
75
75
70
Spain
70
65
65
2008/9
2009/10
2010/11
2008
2009
ⓒ UFI 2013
2010
2011
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Events and Exhibitions
• Global exhibition market was worth $25bn in 2010.
• Emerging from the 2008 economic downturn, the sector returned to
growth in 2011.
• AMR forecasts that the market will expand by 5% p.a. to 2015,
attesting to the ongoing demand for face-to-face contact between
buyers and sellers.
• Emerging markets such as China, Brazil, India and the Gulf Region
will spearhead the growth at almost 10% p.a.
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Events and Exhibitions
• renewable energy
• green building
• internet retailing
are among the hottest show sectors, experiencing significant
growth across the globe
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UFI MEMBERS:
STRATEGIC RESPONSE TO
THE ECOOMIC CRISIS
@UFI 2013
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Current strategic priorities
Stay within
current scope of
activities (as a
venue, an
organizer or a
service provider)
WORLD
Develop new
activities in terms
of live events or
virtual events
Develop new activities
within the classical
range of the exhibition
industry (venue /
organizer / services)
25%
36%
23%
16%
Both these
developments
AMERICAS
13%
25%
ASIA &
PACIFIC
EUROPE
MIDDLE
EAST &
AFRICA
38%
38%
20%
34%
39%
28%
10th Global Exhibition Barometer (January 2013)
25%
22%
23%
33%
17%
6%
17%
22%
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and in relation to
geographic exposure….
Stay in the same
countries as those
where I currently
operate
WORLD
46%
54%
43%
AMERICAS
ASIA &
PACIFIC
57%
59%
EUROPE
MIDDLE EAST
& AFRICA
Operate in new
countries
41%
42%
33%
10th Global Exhibition Barometer (January 2013)
58%
67%
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Opportunities for venues
• See exhibitions as real business opportunities, not « gap
fillers »
• « in-house» exhibitions: sometimes low quality
• Average survival rate of new shows: 8 – 10%
• Geocloning (take brand elsewhere)
• Joint ventureslocal partners work best in certain markets
• Exhibitions: provide reliable repeat business if handled
properly (Exhibitor renewal rates: 65%)
• Exhibitions have excellent cash flow possibilities
Stand space paid in full up to 1 year in advance
• Conferences: often one-off (due to rotation), long process
from tender to conference taking place
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Evolution of trade fairs
Selling space
• Square metres
• Complimentary
services
• Catalogue entry
• Basic technical
services
ⓒ UFI 2012
Service
orientation
• Integrated
services
• Stand building
• Catering
CRM
• Database
marketing
• Target group
orientation
• Bundling
• Exhibitor debit
card
• Online reorder
system
• Individual
placement of
stands
Thought
leadership
• New business
ideas for clients
• Inter event
activities
• Information
broking
• Matchmaking
@UFI 2013
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Associations => trade fairs
Representation worldwide:
• USA: 50 – 60%
• Europe: 15 – 20% (organizers)
• Asia: similiar to Europe (less developed)
For associations, trade fairs:
Enhance member experience
•
•
•
networking
Education
Business opportunities
Enhance associations
•
•
•
revenue
provide member value and ROI
Tradition
@UFI 2013
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Exhibitions and Congresses
• 4:1 ratio of exhibition space:congress space
now 2:1
• Revenue from exhibitions varies but remains
important for many associations. One sixth of total
income.
• Multi-dimensional and multifunctional
• Pricing model of exhibitions must move
away from square metres
• Need to focus on service
Fickle customers, fierce competition, everything is
negotiable
@UFI 2013
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Multi-dimensional events
Conference
Traditional
trade show
floor
Entertainment
Successful
new-look
events
Unconventional
layouts
ⓒ UFI 2012
Live-streaming
@UFI 2013
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Smarter databases are key
They are our key assets
• How do we move beyond them being a simple, functional tool
to being the heart of the communities we serve
CRM – knowing our customers is the key to
successful thought leadership, business
retention, improved sales, etc. etc. etc.
Matchmaking facilitator
• “The random contact model is over”
• High on the agenda for 5 – 10 years
But what real progress outside travel industry events?
@UFI 2013
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Meetings technology/smart
destinations
• Human interaction remains vital,
• but engagement is more and more important
• Destination promotion:
• must also be pushed by the venues
• Associations are more cost-conscious –
• Need for clear and relevant cost structures
• Collaboration between associations and the meetings industry
@UFI 2013
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« Smart » destinations
The technology industry continues to dictate
today’s « needs »
• Apps at the heart of the communication mix
• Significant bandwidth, privacy and commercial concerns on
switch from PCs towards tablets and smart phones
• Staying ahead in a constantly changing game
• Augmented reality an interesting tool but not a game changer
• Need for “state of the art” screens, projectors, etc. to enhance
meeting experience
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In summary:
• Enrich conferences with higher quality content, and
vice-versa for trade shows
• Provide more efficient return on time for attendees by
combining events
also addresses environmental and cost concerns about
multiple business trips
• Be a « smart » destination
• Trade fairs provide more reliable income streams for
associations
• Link key events into the heart of the year-round
dialogue in the industries we serve
• With margins of up to 40%, the events and exhibitions
industry is highly profitable
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www.ufi.org
@UFI 2013
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