The exhibitions world: today and tomorrow

Paul WoodwardManaging Director UFI

ICCA Congress, Leipzig24th October 2011

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The power of events• "…improvements in information

technology can lead to more demand for face-to-face contact, because face time complements time spent communicating electronically. All those electronic interactions are creating a more relationship-intensive world…"

• "Better connections between people create far-ranging opportunities for trade and commerce”

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Today

Global overview & trends Looking to the future

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The exhibition world today

Approximately30 700 Exhibitions

per year corresponding to 103 million sqm

of total net exhibition spaceand where

2.8 million direct exhibiting companies welcomed

260 million visitors

The global top 10Net space rented

(in million net sqm) Trend since 2008

1. USA 23,3 (*) - 7%2. China 13,0 + 13%3. Germany 8,8 - 5%4. Italy 6,2 - 5%5. France 5,4 - 8%6. Spain 3,5 - 24%7. Japan 3,2 - 3%8. UK 2,8 - 6%9. Russia 2,6 - 13%10. Brazil 2,6 + 4%

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Based on the data collected among 178 organizing companies (and their subsidiaries)

Breakdown by event location

Exhibitions organized by UFI Organizers

Total net space rented(indoor + outdoor, in million sqm)

In 2006• 1,062 venues (with a minimum of 5,000 sqm

indoor exhibition space) identified worldwide

• Total indoor exhibition space: 27.6 million sqm

By 2010• 1,104 venues, including:

14 venues with less than 5,000 sqm in 200630 new venues 1, closed in 2006, will be reopened 3, operating in 2006, will be closed

• Total indoor exhibition space: 31.1 million sqm (+13%)

MAIN GLOBAL RESULTS of the World Map of Venues (2007)

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VENUES AND INDOOR EXHIBITION SPACE IN 2006

6millionsqm

200 venues

32 venues (3%)0.6 million sqm (2%)

25 venues (2%)0.5 million sqm (2%)

38 venues (4%)0.9 million sqm (3%)

16 venues (2%)0.3 million sqm (1%)

127 venues (12%)3.9 million sqm (14%)

359 venues (34%)7.1 million sqm (26%)

465 venues (44%)14.3 million sqm (52%)

Scale

Number of venues (World share)Exhibition space (World share)

Key figures

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Trends 2006-2012 for all UFI venues

Today, UFI Members operate 211 venues worldwide (+12 since 2006)

+ 2.3% per yearbetween 2006 & 2010

Gross indoor exhibition space(in million sqm)

+ 0.9% per yearbetween 2010 & 2012

Increase of gross indoor exhibition spacebetween 2006, 2010 & 2012

by region

How the industry fared in the crisis

Findings from UFI’s latest Global Barometer research

10

0%

50%

100%

before31 Dec.

2008

1st Half2009

2nd Half2009

1st Half2010

2nd Half2010

1st Half2011

2nd Half2011

1st Half2012

Americas

Asia / Pacific

Europe

Middle East / Africa

1. Gross Turnover

1124 June 2011

% of companies declaring an increase of their turnover when compared to the same period the year before

(regardless of possible biennial effects)

Confirmation of the return of growth of Gross Turnover for a majority of companies (since the end of 2009 for AP, early 2010 for AM & end of 2010 for EUR – MEA hardly affected)

3. Perception of the economic crisis

1224 June 2011

% of companies declaring – in the last 3 surveys - that the impact of the “economic crisis” on their exhibition business is now over

0%

50%

100%

June 2010 December 2010 June 2011

Americas

Asian Pacific

Europe

Middle East/Africa

Confidence in the future is still rising in AP (65%). It increases in EUROPE, but there is a “half/half” feeling everywhere except AP. Note: MEA 49% (71% in Dec. 2010) is a chosen combination of a 29% for RSA and 55% for the rest of MEA.

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23%

19% 18%18%

9%

6%5%

2%

State of thenational/regional

economy

Local/nationalcompetition from

within theexhibitionindustry

Internalmanagement

challenges (ex.finance, humanresources, staff,

training)

Global economicuncertainty

Environmentalchallenges(customer

expectations,regulations, etc.)

Competition withother media (ex.internet, virtualtrade shows,social media)

Integration withother media

(same as above)

Other

4. Most important business issues

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Distribution of all issues selected as the 3 most important ones

This order is remarkably stable across surveys. “General economic” considerations, “local competition” and “internal managements challenges” are at the top of the agenda. Environmental and “other media” issues are not getting much priority…

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Help yourself!

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Key trends

Based on UFI Delphi research and member interviews

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Key growth areas

• Emerging markets: take your acronym pick– BRIC– BIC– BRICSA– CIVET– MINT

• Hybrid events• Multi-dimensional, non-traditional events• Developing event “content”

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Declining areas

• Mid-sized national fairs– Head office support for all but the biggest

international events is sinking.– The ‘marquee events’ are thriving.– New forms are taking their place.

• IT and other industries where marketing events agencies are strong– Own company events are a real-challenge.– Non-traditional business events are testing the

unimaginative organiser.

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Key challenges for exhibitions• Competition (in some markets) from over-capacity in venues• Online marketing and product news release

– Continued uncertainties over balance of internet and face-to-face marketing

– The 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 events spend.

– Will this be the source of tomorrow’s competition?• Targeting the Facebook generation with real world events.• Pressures on business travel

– Cost controls– Environmental constraints

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Tomorrow’s competitors?

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Already happening…

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Future opportunities: linking traditional event models with…

Integration with social

media

Virtual events

Multi-dimensional events

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Multi-dimensional events

Successful new-look

events

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UFI’s Delphi Study

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Evolution of trade fairs

Selling space• Square

metres• Complimentar

y services• Catalogue

entry• Basic

technical services

Service orientation• Integrated

services• Stand building• Catering

CRM• Database

marketing• Target group

orientation• Bundling• Exhibitor

debit card• Online

reorder system

• Individual placement of stands

Thought leadership• New business

ideas for clients

• Inter event activities

• Information broking

• Matchmaking

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The key trends

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Thought leadership

• “Together with exhibitors, visitors, specialized associations and the media the leading brand trade shows can become the place to meet all year long”.

• “But we have to be careful: It is not just content, but valuable content and leadership in new ideas”.

• “The role of trade shows will be changing. Trade shows will more and more act as community integrators, knowledge providers, discussion platforms, social network live grounds, etc.”

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From…

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pw@ufi.orgwww.ufi.org

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