China a rising star on global auto show circuit
Visitors applaud a singer at the Beijing auto show last year. The emergence of China, India and Russia as viable markets have driven global vehicle makers to shift marketing capital and resources to expanding shows such as Shanghai, Beijing, Moscow, Seoul and Bangkok. File |
Several factors are affecting how today's auto shows are conducted. These include interaction with the media, how vehicle introductions are scheduled, the public attending the show after the press days and the placement on the calendar versus other shows. The staging of an auto show is essentially an industry unto itself, with strong competition between venues for key global vehicle introductions and investment in new displays by exhibitors.
In today's environment of emerging vehicle sales centers (China, India, Russia and others), the auto show circuit can be generally classified into three categories. Classifying shows involves considering the number of new vehicle introductions, the global importance of these, if the show is the "home" show of a vehicle manufacturer and the size and extent of the exhibits.
Until the early 1990s, the global auto show circuit essentially encompassed Paris or Frankfurt (these venues alternate every year) each autumn, Geneva in late winter, Tokyo every other autumn and Detroit right after the Christmas/New Year holiday. These would still be considered the main global shows on the calendar though a new cluster of global venues have risen in stature to steal some influence.
Emerging markets
The emergence of China, India and Russia as viable sales markets has driven global vehicle makers to shift marketing capital and resources to expanding shows such as Shanghai, Beijing, Moscow, New Delhi, Seoul and Bangkok. This new group of shows on the global scene is driving greater focus away from the traditional global shows as Western vehicle makers seek to shift sales to emerging markets and diversify their sales bases. New original equipment manufacturers (OEMs) in these regions are seeking to make an impression within their market but also on the global scene. Examples of vehicle makers looking to make more than a regional impact include Chery, Geely, Tata and AvtoVaz.
A third level of shows is growing in importance. These include super-regional shows that are attempting to divert investment from the traditional global shows or the new shows in emerging regions. Within North America these include Toronto, Los Angeles, Chicago and New York giving Detroit greater competition. In Europe, new venues such as Budapest underscore the shift of influence from traditional super-region shows such as London, Madrid or Turin. This trend will emerge in Asia it is only a matter of time as Asian markets outside of Japan grow.
Each auto show searches for character some trait that separates it as a venue from other shows. After all, auto show organizers and exhibitors are not trying to impress the ticket-buying public, which covers the vehicle makers' exhibit costs. More important is influencing the global media that are the first to attend. With this in mind, each show is focused on attracting as much investment and attention as possible, given the budgets of increasingly pressured vehicle manufacturers.
Showstoppers
Several venues have raised the bar high for several years. Possibly the best show globally is Geneva, Switzerland. Though it is focused mainly on vehicles developed by the European companies, it is small, intimate and focused on the task at hand showing concept vehicles and new vehicle introductions. Not every vehicle in a manufacturer's fleet will be on show only the key offerings. Media and public alike can walk from one end of the Geneva show to the other in less than five minutes, and it's all under one roof. Add the mountains and Swiss culinary delights and this is at the top of most regular auto show attendees' lists.
Smaller and focused would be an accurate description of the biennial Tokyo show. Though not under one roof, there is no need to step outside into the elements as its three main halls are interconnected. The Japanese OEMs use the Tokyo venue as their concept vehicle and technology platform no other show has such a high concentration of concept cars. Like Geneva, even the most skeptical auto show attendee values the Tokyo show.
The largest single venue is Frankfurt. Alternating with Paris every autumn, the IAA in Frankfurt, as it is better known, houses not only vehicle manufacturers' exhibits, but also those of the top component suppliers, sprawled over eight separate halls. Frankfurt's importance is so crucial that Mercedes has a permanent building on the grounds and BMW erects its own every show. In off years, Paris takes the baton. Though not as expansive as Frankfurt, Paris is also spread out over several buildings as both Renault and PSA Peugeot Citroen use the venue as their biennial showcase.
The annual Detroit show has risen in stature over the years mainly as manufacturers from outside the US look to make an impression in the crowded but lucrative US market. Detroit's organizers (known as the NAIAS) openly admit that a major focus is to expand the venue as space under one roof is at a premium at the riverfront venue. This will take several years to remedy.
In the end, each auto show has it own character and idiosyncrasies. A successful show is one which has ample, reasonably priced hotels, easy access to the city and airport, a venue that can house vehicle makers under one roof and organizers that aren't complacent who invest in the staging of the show. Placing the needs of the global media over that of the public is key.
Why all the focus on impressing the global media? The auto industry has transformed from a regional enterprise to a worldwide one.
The launch of the new BMW 3 Series sedan was on the Internet seconds after the cloth was pulled from its bonnet. Media outlets stream these scenes to interested buyers globally.
With more eyes on the introduction of a new model comes greater media attention. In essence, the most cost-effective way to gain attention for a new vehicle is to have the global media prioritize it in their coverage. The cost of buying ad space in every global daily paper, weekly trade journal or monthly car magazine is prohibitive. Better to garner the media's attention and have your vehicle front and center a more cost effective solution for all involved.
The size of their internal markets and growing domestic manufacturers will give these venues an advantage for years to come. The secret is to always improve and never stand still.
The author is Vice-President of Global Vehicle Forecasts for US automotive consultancy CSM Worldwide
(Shanghai Start 04/21/2007 page11)
