Open markets will create a more dynamic industry.
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Transcript of Open markets will create a more dynamic industry.
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Open markets will create a more dynamic
industry
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What is an open market?
1. Free and fair competition2. Level playing field for all3. Equal opportunities for all4. Absence of barriers to trade
a. Governmentb. local authorityc. legald. custom regulationse. legal requirements
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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
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Greatest challenge to the Russian industry
Build more space
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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
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How to finance new space
1. Governmenta. contribution to economyb. every employee generates 1.5 times average contribution across economyc. revenues to hotels and local economyd. Visitors stay longer as business tourists. Spend twice as much
2. City funding3. Mixed developments
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How to finance continued…
4. Outside developers
5. Bed tax or tourist tax
Make sure it is multi-functional
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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
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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 ina. government influenceb. terrorism
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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
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Comparisons of Russia with US, China and Europe
Populations:
Russia - 145 million
China - 1 billion
USA – 295 million
Europe (old) – 350 million
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Global venue comparisons
Size of Venues Nos of events
Germany 2,700,000
USA 8,000,000 13,000
China 3,500,000 2,500
Russia500,000 2,500
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Foreign trade partners compared to most active exhibition national groups
Principle foreign Most active exhibition
trade partners national groups
1 Germany 1 Italy
2 Belaruse 2 Germany
3 Ukraine 3 Poland
4 China 4 Turkey
5 Italy 5 France
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Foreign trade partners continued
Principle foreign Most active exhibition
trade partners national groups
6 Netherlands 6 China
7 USA 7 Spain
8 Poland 8 Finland
9 United Kingdom 9 USA
10 Finland 10 Czechoslovakia
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Cities have an obligation to provide flexible Exhibition
Centres1. To attract international trade
2. To create jobs
3. To provide public facilities
4. Public eventsa. cultural eventsb. religious events
5. Disaster and emergency management centres
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Cities have an obligation to provide flexible Exhibition
Centres continued6. Municipal Functions
a. Elections b. Examinations c. Weddings
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• 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.
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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
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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.
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To prosper we must
1. Constantly promote the need for face-to-face
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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
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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.
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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.
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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
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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