Opportunities and Threats in ASEAN exhibition market Jimé Essink, President & CEO of UBM Asia TCEB...
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Transcript of Opportunities and Threats in ASEAN exhibition market Jimé Essink, President & CEO of UBM Asia TCEB...
Opportunities and Threats in ASEAN exhibition market
Jimé Essink, President & CEO of UBM Asia
TCEB Exhibition Forum 2011
Bangkok, 20 January 2011
Topics
• Brief introduction on UBM Asia• Exhibition market worldwide and in Asia• Focus on SE Asia• Opportunities/Risks for Thailand• Discussion
UBM Asia offices
Tokyo (56)
Bangkok (41)
Mumbai (136)
New Delhi (17)
Chennai (2)Bangalore (6)
Chengdu (1)
Hong Kong (178)
Shanghai (197)
Beijing (20)
Taipei (9)Guangzhou (80)
Singapore (10)
Seoul (8) Japan
China
Thailand
India
Hangzhou (59)
UBM Asia 3
TurkeyIstanbul (21)
Hyderabad (1)
Korea
Singapore
Taiwan
More than 800 staff in 17 offices all over Asia
44UBM Asia 4UBM Events in Asia
UBM Asia: Leading B2B media operations throughout the region
UBM Asia has subsidiaries in 10 countries and regions and organises eventsin 25 cities. • Offices in Hong Kong, Shanghai, Beijing, Guangzhou, Hangzhou, Chengdu, Tokyo,
Seoul, Taipei, Singapore, Bangkok, Mumbai, New Delhi, Bangalore, Chennai, Istanbul and New York
• Over 800 staff
• 150 events (130 exhibitions)• 34 publications• 12 B2B vertical portals• A million plus customers,
including exhibitors, visitors, conference delegates, advertisers, subscribers and portal members
55UBM Asia 5
History of UBM Asia
First establishment of UBM Asia, with headquarters in Hong Kong.Combination of transfer of pre-existing Asian B2B exhibitions from parent company and three acquisitions: two leading Asian exhibition organisers and a publishing company, all based in Hong Kong.
Acquisition of KSS, a leading Japanese B2B publisher and exhibition organiser by UBM Japan. Acquisition of Japan Jewellery FairSet up UBM China (Guangzhou), the first wholly-owned company in China.
Through organic growth and acquisitions, UBM Asia is long established as the leading commercial exhibition organiser in Asia, with related publications and on-line media.
Acquisition of majority share of Sinoexpo, the leading commercial exhibition organiser in Shanghai. UBM Sinoexpo continues to be jointly run by UBM Asia and the original owner.
Further acquisitions of individual exhibitions by UBM Sinoexpo in China followed, such as Hotelex, a hotel equipment exhibition, and China Ceramic Fair, now part of our Expo Build China.
Acquisition of a majority share, with our Italian partner BolognaFiere, of the Guangzhou Beauty Expo.
Established a new company in India, UBM India.
Acquisition of China International Optoelectronic Expo in Shenzhen, the world’s largest optoelectronic event(now part of eMedia Asia, a UBM JV)
Acquisition of Sign China & LED China and formed UBM Trust in Guangzhou.
Acquisition of Children-Baby-Maternity Products Expo and set up UBM China (Hangzhou) office
Acquisition of Istanbul Jewelry Show and formed UBM Rotaforte
5UBM Asia
19942001- 2005 2007
2010
19981999-2000
20062009
Continuous organic growth and more than 50 new launches and acquisitions
6
UBM Asia: Revenue development
241
182
68 72 76 8492
111124
155 160 173
0
50
100
150
200
250
300
ACT00 ACT01 ACT02 ACT03 ACT04 ACT05 ACT06 ACT07 ACT08 ACT09 3QF10 BUD11
Year
US
$'m
9/11 SARS H1N1 Flu Global Recession
7
UBM Asia: Revenue by geographical region
0
20,000
40,000
60,000
80,000
100,000
ACT05 ACT06 ACT07 ACT08 ACT09 3QF10 BUD11
Year
US
$'m
Hong Kong China Japan India SE - Asia Others
88UBM Asia
UBM Asia: Top 20 events by revenue
Product Sector Net exhibition space(SQM)
1 Hong Kong Jewellery & Gem Fair (September) Fashion 62,722
2 Furniture China Lifestyle 115,729
3 Cosmoprof Asia Lifestyle 31,089
4 Marintec China (2009 biennial event) Trade & Transportation 26,367
5 CPhI and P-MEC China Ingredients 45,018
6 Hong Kong Jewellery & Gem Fair (June) Fashion 24,210
7 CPhI and P-MEC India Ingredients 24,096
8 APLF - Materials, Manufacturing & Technology Fashion 12,145
9 Sign China Other 30,927
10 APLF - Fashion Access, Spring Fashion 9,673
11 Hotelex Shanghai Lifestyle 30,838
12 All China Leather Exhibition Fashion 10,281
13 Children-Baby-Maternity Products Expo Lifestyle 25,645
14 Health Ingredients Japan Ingredients 7,614
15 Asia's Fashion Jewellery & Accessories Fair (June) Fashion 8,625
16 Sea Japan (biennial event) Lifestyle 4,621
17 Tokyo Health Industry Show Health 5,760
18 CPhI Japan Ingredients 4,240
19 China International Boat Show Lifestyle 9,707
20 Asia's Fashion Jewellery & Accessories Fair (September) Fashion 6,183
9
Global exhibitions: a $29 billion marketExhibitions market by geography Exhibitions market by operator
$bn % Events & venues
Events only
Asia is US$ 3.4 billion and only 12% of world market
Percentage of world GDP
11UBM Asia
Size of the exhibition business in Asia
Trade fair market by estimated revenues, 2009Market No. of exhibitions identified Estimated annualised revenue
(US$ millions)Annual revenue per fair
(US$ millions)
China 514 1,136.3 2.2
Hong KongMacau
8815
331.424.5
3.71.6
Greater China 1,492.2
Japan 326 816.1 2.5
Korea 154 228.3 1.4
Australia 166 176.0 1.0
India 112 157.2 1.4
Thailand 75 149.4 2.0
Singapore 74 93.1 1.2
Taiwan 63 86.5 1.3
Malaysia 43 75.8 1.7
Indonesia 43 43.5 1.0
Vietnam 47 42.0 0.8
Pakistan 26 18.2 0.7
Philippines 36 15.8 0.4
Total 1,782 3,394.1 1.9
Source: The Trade Fair Industry in Asia Report (6th Edition 2010) by Business Strategies Group
Total SE Asia is US$ 420m, 12.5% of total market. China is 33.5% and India is 5%.
UBM Asia 11
12UBM Asia
Southeast Asia
12
Population (mn) : 593GDP : US$1.8 trillion (India is US$1.24 trillion) GDP per capita : US$2,995
13UBM Asia
Southeast Asia (ASEAN)• 10 economies: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand and Vietnam.
• Asean Economic Community (AEC): common market by 2015. Free flow of goods, services, capital and people
• Free trade agreements with China and India
• Potential to develop SE Asia regional events
– More interest from international and local exhibitors– More overseas visitors from SE Asia and outside SE Asia
• Which country in SE Asia is best placed to take advantage??
13
Singapore
14
Population (mn) : 4.8GDP : US$181.9 bnGDP per capita : US$37,600
Singapore market
• Mature market• Moderate decline in 2008 and 2009, growth expectation in 2010 and
2011• Limited home market, competition from Hong Kong and Bangkok
• The Sands Expo and Convention Center at Marina Bay Sands will boost Singapore as a destination for conferences and exhibitions
• Singapore Tourism Board is very active in promoting the exhibition industry
• No competition from government • Excellent venues/infrastructure
15
Singapore: Top 6 exhibition organisers’ market share
16
Total market in 2009 (US$ million): 93
Malaysia
17
Population (mn) : 27GDP : US$193 bnGDP per capita : US$7,029
Malaysian market
• Quite a mature market, sandwiched between Singapore and Bangkok as stronger developed exhibition markets
• Small domestic market• Good venues, but rather small (total 80,000 m2 gross versus Thailand
200,000 m2)• Good infrastructure and suppliers• Associations play mostly a supportive role• Government does not organise exhibitions• Set up MyCEB (Malaysia Convention and Exhibition Bureau) to
coordinate MICE promotions:
– In 2009: incentive of US$28,000 per event > 300 foreign visitors• International events in Malaysia > 500 foreign visitors are exempted from
profit tax!
18
Malaysia: Top 5 exhibition organisers' market share
14%
11%
3%
3%
2%67%
MES
MIFF
Trade Link
ECMI
AMB Exhibition
Others
Total Gross Space Occupied: 467,500 sqm
The Philippines
20
Population (mn) : 91.9GDP : US$161 bnGDP per capita : US$1,752
The Philippines market
• Small domestic market• Limited venue space (Total 40,000m2 gross)• Government (CITEM) is involved in organising trade shows: export-
oriented but invite more and more local importers.• CITEM subsidised, so price competition with commercial organisers• No incentives from government• Associations also organise events, mostly low prized • Tedious process in clearing exhibition goods (Philippines is not a
member country of ATA Carnet)• No international organisers, mostly local organisers focusing on
consumer events
21
The Philippines: Top 5 exhibition organisers' market share(Mostly consumer shows)
13%
11%
9%
5%
5%
57%
Global Link
Worldbex
TIME
Premier Events Plus
CITEM
Others
Total Gross Space Occupied Year 2009: 180,000 sqm
Vietnam
23
Population (mn) : 87.2GDP : US$90 bnGDP per capita : US$1,032
Vietnam market
• Strong growth of economy, especially the manufacturing sector• Limited venue space and rental prices are high (total 45,000m2
gross)• License needed from Trade & Industry Department of the City, need
of a local partner• No rules, so risk licenses for same sectors at the same time• No government involvement in organising exhibitions, support is
only for overseas exhibitions• Limited association involvement• Low price of participation versus high costs• Strong need for information, few quality trade shows• Several international organisers are active in Vietnam
24
Vietnam: Top 5 exhibition organisers’ market share
5%3%
3%2%
2%
85%
IIR
SES
Chanchao
Reed Tradex & Adsales
Top Repute
Other
Total Gross Space Occupied: 282,500 sqm
Indonesia
26
Population (mn) : 237.5GDP : US$510.8 bnGDP per capita : US$2,150
Indonesia market• No internationa interest before: political instability and bombing threat • Change in political outlook• Stable GDP growth (5%)• Massive population: 240 million• Two reasonably good venues in Jakarta: Jakarta Convention Center
(20K gross m2) and Jakarta International Expo (25K gross m2)• At present: 51% by foreign-owned exhibition company (100% foreign-
owned was possible for a short period in 2010)• Corruption issue is there, but not much worse than in some other
countries• Exhibitions/face-to-face is important in Indonesian culture• No involvement/competition from government or associations• Mostly smaller local players
27
Indonesia: Top 5 exhibition organisers’ market share
28
Total market (US$ million): 43
Thailand
29
Population (mn) : 67GDP : US$273.2 bnGDP per capita : US$4,080
Thailand market
• Large and growing domestic market, export-related manufacturing is strong
• Excellent infrastructure: venues, airport, roads, hotels, contractors• Attractive location: excellent price/quality• TCEB plays an active role in promoting MICE: incentives for
bringing overseas exhibitors/visitors and “Better the Best Program”• Limited competition from associations
• Government (DEP) is active in exhibitions for finished products with subsidised rates. Competition with commercial organisers.
• Political instability: red/yellow conflict
30
Thailand : Top 6 exhibition organisers’ market share
44%
12%
6%
5%
3%
2%
28%
DEP
REED
UBM
BES
NEO
TTF
Others
Total Gross Space Occupied: 933,000 sqm
65%
17%
7%
4%3% 2% 2%
IMPACT
BITEC
QSNCC
Royal Paragon Hall
Central World
PSUICC
PEACH
Total Gross Space :209,905 sqm
Thailand: Exhibition venues
Going Green for the Future
10 - 25 November 2011
IMPACT Exhibition and Convention Center
BOI Fair 2011 Management: UBM Asia (Thailand)
The Pride of Thailand
Objectives:• To celebrate special year for His Majesty (the King)• To highlight the achievements of Thai industry and create a platform
to meet and do business• To build confidence in Thailand’s economy with special attention to
society and natural environment
Size:• Total exhibition space: 240,000 m2 gross• Total visitors: Five Million over 15 days
34
Floor Plan
Perspective
Royal Pavilion
Activity Stage at Lakeside Area
BOI FAIR 2011 at Night
Key Exhibitors
Toyota Motor Asian Honda Motor
Nissan Motor (Thailand) General Motors Thailand
Mitsubishi Motors (Thailand) Tri Petch Isuzu Sales
PTT Public Company Panasonic Management
Thai Samsung Sony Group Thailand
Hitachi Asia (Thailand) LG Electronics (Thailand)
Toshiba Thailand Double A 1991 PLC
Conclusions
• Thailand is very well placed to take a central role in ASEAN exhibition market, IF:
– Politically stable– Reduce activities of DEP– Continuous promotion by TCEB
• Singapore is the most serious contender in the short term• Indonesia could play an important role in the future• Other SE countries are too small and/or there are too many
restrictions affecting them in playing a significant role
41