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Open markets will create a more dynamic industry.

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Presentation on theme: "Open markets will create a more dynamic industry."— Presentation transcript:

1 Open markets will create a more dynamic industry

2 What is an open market? 1.Free and fair competition 2.Level playing field for all 3.Equal opportunities for all 4.Absence of barriers to trade a. Government b. local authority c. legal d. custom regulations e. legal requirements

3 Why open markets? 1.Builds markets faster 2.Creates wealth for all sectors in the industry 3.Builds confidence in exhibitions 4.Creates the best environment for the development of trade shows

4 Greatest challenge to the Russian industry Build more space

5 Effect of lack of development 1.Shows cannot grow 2.Competitive media gain advantage 3.No new stand contractors 4.Costs rise – questionable ROI 5.Outside investors look elsewhere

6 How to finance new space 1.Government a. contribution to economy b. every employee generates 1.5 times average contribution across economy c. revenues to hotels and local economy d. Visitors stay longer as business tourists. Spend twice as much 2.City funding 3.Mixed developments

7 How to finance continued… 4.Outside developers 5.Bed tax or tourist tax Make sure it is multi-functional

8 Challenges to the Russian industry 1.Continue to improve infrastructure in Moscow and St Petersburg 2.Develop infrastructure in other major cities 3.Expand through the regions 4.Lift customs barriers and tariffs 5.Official auditing of events

9 Challenges continued 6.Difficulty between Russian law and other countries 7.Language difficulties 8.Visa application difficulties 9.Convincing foreigners that Russia is safe to do business in a. government influence b. terrorism

10 Benefits of partnerships and strategic alliances 1.Fastest route to market 2.Immediate brand awareness 3.Internationalisation 4.Defence against competition 5.Shared best practices

11 Comparisons of Russia with US, China and Europe Populations: Russia - 145 million China - 1 billion USA – 295 million Europe (old) – 350 million

12 Global venue comparisons Size of Venues Nos of events Germany 2,700,000 USA8,000,00013,000 China3,500,0002,500 Russia500,0002,500


14 Foreign trade partners compared to most active exhibition national groups Principle foreignMost active exhibition trade partnersnational groups 1 Germany1 Italy 2 Belaruse2 Germany 3 Ukraine3 Poland 4 China4 Turkey 5 Italy5 France

15 Foreign trade partners continued Principle foreignMost active exhibition trade partnersnational groups 6 Netherlands6 China 7 USA7 Spain 8 Poland8 Finland 9 United Kingdom9 USA 10 Finland10 Czechoslovakia

16 Cities have an obligation to provide flexible Exhibition Centres 1.To attract international trade 2.To create jobs 3.To provide public facilities 4.Public events a. cultural events b. religious events 5.Disaster and emergency management centres

17 Cities have an obligation to provide flexible Exhibition Centres continued 6.Municipal Functions a. Elections b. Examinations c. Weddings

18 The emphasis is not on “have we got too many exhibition centres” but “how can these centres best serve the needs of the communities they serve”. 70% of exhibitors in Frankfurt are SME with less than 260 employees. There are more than 20 exhibitions covering the food and hospitality sectors within 90 minutes flying time of London in excess of 30,000m2.

19 So what are the new challenges? Perception that there are too many international events 1. Competition a. Regional b. Amongst local organisers c. Between cities d. From internet e. Spend on other media f. Shifting event dollars / roubles

20 So what are the new challenges? (cont.) 2.Industry consolidation. 3.Fewer customers / fewer visitors. 4.Short term commitments. 5.No shows. 6.Facility growth lagging event growth.

21 To prosper we must 1.Constantly promote the need for face-to-face

22 To prosper we must continued... 2.Provide a template to prove return on investment. 3.Take the hassle factor out of attending as either an exhibitor or visitor 4.Maximise the use of technology. The internet is our friend not a competitor

23 To prosper we must (cont.) 5.Keep our events live through a virtual market place. 6.Remain innovative and flexible. 7.Control the costs of our exhibitors. 8.Improve traffic density and verify show attendance. 9.Choose long term partners. 10.Create the right strategic alliances.

24 The Challenge Better cooperation between cities and regions. Hall owners need to realise they are the facilitators and have responsibility for the control of what happens in their halls. Keep prices at levels which can keep the cost of exhibiting to a realistic level. Work with organisers, contractors and suppliers to achieve a satisfactory return on investment.

25 Factors affecting the global economy 1.Oil price 2.Commodity prices 3.Outcome of North American election 4.Stability in the Middle East 5.Sluggish growth in Euro area 6.Terrorism

26 Effect of joining WTO 1.Big international interest 2.More transparency 3.Fewer barriers 4.Benefit from low cost labour economy 5.Big potential increases in exhibition industry 6.Full development of retail and consumer style shows

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