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Perspectives on the Exhibitions Sector Performance and Projections From a UFI perspective

Perspectives on the Exhibitions Sector Performance and Projections From a UFI perspective. By Sonia Thomas UFI Director of Operations. What is UFI?.

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Perspectives on the Exhibitions Sector Performance and Projections From a UFI perspective

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  1. Perspectives on the Exhibitions Sector Performance and ProjectionsFrom a UFI perspective By Sonia Thomas UFI Director of Operations

  2. What is UFI? UFI is the Global Association of the Exhibition Industry, uniting the industry’s organizers, venues, associations and partners of the industry

  3. 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 Impact ⓒ UFI 2012

  4. 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%) • 206 members with “venue” activity • (32.5%) 127 “Venue & Organizer” (20%) 456 members with “organizer” activity (72%) June 2013 ⓒ UFI 2013

  5. Whatis the current state of the economy?

  6. According to the IMF, activity has stabilized in advanced economies, supported by policies and renewed confidence.

  7. Source: FT/Wall Street Journal

  8. 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 • No change in interest rates even though inflation will trend upwards Well run businesses with clearly defined compelling reasons for purchase will continue to outperform regardless of the economy Source: Roger Martin-Fagg, Economist

  9. UFI members and the Economiccrisis

  10. Operating profits compared to the previous year Americas Asia & Pacific Middle East & Africa Europe % of companies declaringstable profits (between -10% and +10%)or increases of more than 10% % of companies declaring profit increases of more than 10%

  11. % of companies declaring – over the last 6 Barometer surveys – that the impact of the “economic crisis”on their exhibition business is now over Americas Middle East & Africa Asia & Pacific Europe

  12. Key challenges for exhibitions • Competition (in some markets) from over-capacity 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

  13. 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.

  14. SMEs • Exhibitions - most effective way to: • promote their products 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.

  15. UFI VENUES (INDOOR) EXHIBITION SPACE IN 2011 Scale 496 venues 15.6 million sqm (48%) 5 million sqm 389 venues 7.9 million sqm (24%) 184 venues 6.6 million sqm (20%) 70 venues 1.3 million sqm (4%) 33 venues 0.8 million sqm (2%) 25 venues 0.5 million sqm (2%) ⓒ UFI 2012

  16. UFI World Map of Exhibition VenuesRegional trends between 2006 and 2011 +7% (Venues with a minimum of 5,000 sqm indoor exhibition space) +5% +38% +7% +16% -6% Marketshare ⓒ UFI 2012

  17. The global top 10Net space rented between 2008 and 2011 (in million net sqm) Trend since 2008 • USA 23,3 (*)- 7% • China 13,0 + 13% • Germany 8,8 - 5% • Italy 6,2 - 5% • France 5,4 - 8% • Spain 3,5 - 24% • Japan 3,2 - 3% • UK 2,8 - 6% • Russia 2,6 - 13% • Brazil 2,6 + 4%

  18. UTILIZED SPACETrends in the net space rented in several major national markets(in sqm, UFI estimations) in Europe in Asia China Turkey India Korea Germany Italy Russia Japan France Spain ⓒ UFI 2013

  19. 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.

  20. Events and Exhibitions • renewable energy • green building • internet retailing • are among the hottest show sectors, experiencing significant growth across the globe 

  21. UFI members: strategicresponse to the ecoomiccrisis

  22. Currentstrategicpriorities Stay within current scope of activities (as a venue, an organizer or a service provider) 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) WORLD Both these developments AMERICAS ASIA & PACIFIC EUROPE MIDDLE EAST & AFRICA

  23. and in relation to geographicexposure…. Stay in the same countries as those where I currently operate Operate in new countries WORLD AMERICAS ASIA & PACIFIC EUROPE MIDDLE EAST & AFRICA

  24. 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

  25. Evolution of trade fairs ⓒ UFI 2012

  26. 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

  27. Exhibitions and Congresses • 4:1 ratio of exhibition space:congressspacenow 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 • awayfrom square metres • Need to focus on service • Ficklecustomers, fiercecompetition, everythingisnegotiable

  28. Multi-dimensional events ⓒ UFI 2012

  29. 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?

  30. Meetings technology/smart destinations • Human interaction remains vital, • but engagement is more and more important • Destination promotion: • must alsobepushed by the venues • Associations are more cost-conscious– • Need for clear and relevant cost structures • Collaboration between associations and the meetings industry

  31. « Smart » destinations The technologyindustry continues to dictatetoday’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

  32. 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

  33. www.ufi.org

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