Exhibition market leader branches out into new areas
To Dan Londero, each exhibition is a reflection of the market, and it is also the reason that brought him to China.
"China's exhibition market is developing very fast, and we are also growing very rapidly here," said Londero, president of Reed Exhibitions China.
As one of the leading exhibition companies in the world, Reed runs 34 exhibitions in China, some of which have become industry leaders.
Already active in China's first-tier cities like Beijing, Guangzhou and Shanghai, the company has also set its sights on second-tier cities such as Dongguan, Harbin and Kunming.
The company has become the leading exhibition organizer in China in some areas such as pharmaceuticals and medical equipment, electronics, converting and packaging; it has also made substantial efforts to expand in some other areas.
This June, the company will launch "100 Percent Design Shanghai Preview", an exhibition on design and decoration, which is the first design exhibition by the company in China.
"We also plan to enter the cosmetics sector next year, an area in which we are doing very well in some other markets," said Londero.
The company has set up two joint ventures in China to better understand the market.
"CMEF, a medical equipment exhibition run by Reed Sinopharm, has become our largest exhibition in China, and also the leading one in the industry," said Londero.
"Now our growth rate in the Chinese market is in double digits, much higher than our average worldwide," he added.
The exhibition market
China's exhibition market will continue to grow at a fast pace and will see some rationalization in the next few years, according to Londero.
The market is also very competitive, he said, adding that his company is facing a lot of competition. "We are facing competition from foreign exhibition giants, local companies, and some government-dominated events as well."
Some mergers and acquisitions are inevitable, said Londero. "Reed Exhibitions has been involved in mergers and acquisitions in China in the past. This year we will make at least two acquisitions," he said.
"Merger and acquisitions are a good way for us to expand. With acquisitions we will enter some new areas within a relatively short period, and it will give us a better understanding of the market."
IPR issue
Although the Intellectual Property rights (IPR) issue is not unique to China, it is a real problem in China's exhibition market, according to Londero.
"In fact, our exhibitions in China have not seen many IPR cases as most of them are about high technology," he said.
"But if your exhibition displays products that are highly design-oriented, many international SMEs will be reluctant to exhibit in China. Part of our work is to educate these companies on how to protect their products in exhibitions."
Take 100 Percent Design Shanghai Preview for example, the company will only invite people who totally fits the industry to visit the show.
"By inviting industry insiders only, we convince our customers to exhibit," said Londero.
"Some steps are being taken to improve the situation in China. We welcome the IPR regulations for the exhibition industry published by the Chinese government, "added Londero.
The new set of regulations specifically targeted at exhibitions will address the IPR problem in China's exhibition industry.
Under the regulations introduced last year, organizers are now required to establish an office to handle IPR infringement complaints if their event runs for more than three days.
Any exhibition organizer or participant found IPR infringements will be barred from holding or participating in future exhibitions.
(China Daily 04/14/2007 page4)
