Crisis And Challenges Of Foreign Exhibition Companies In China Market

In recent years, China's exhibition industry has never stopped the topic of foreign exhibition companies entering the Chinese market.

From the initial exclamation of wolves, the temptation to dance with wolves and the pition from wolf to dances, the rapid pformation of the Chinese Convention and exhibition industry has left the senior executives of foreign exhibition companies unprepared, forcing them to confess to the German media: "the prospect of German Convention and Exhibition giants in the Chinese market is worrying."

What makes the International Convention and Exhibition giant panic?

The progress of China's exhibition organizers is obvious, such as inviting professional buyers, increasing publicity in the international market, and requiring third party professional companies to monitor professional audiences and establish databases.

Despite the lack of high-quality talents in China's exhibition organization in more detail, all kinds of training institutions and professional institutions are making unremitting efforts, and everything is moving towards a more professional track.

The increasingly mature status of China's Convention and exhibition industry has forced the international exhibition giant to change their development strategy in the Chinese market.

In the process of change, China's exhibition industry began to think about how local exhibitions cooperate with international giants and how to run strategic capital.

At the same time, in order to seek more room for development, foreign giants have begun to switch to medium-sized exhibition cities.

The survival rule of the exhibition giant is not as easy as expected in the Chinese market.

At least, after the foreign companies get together to enter the Chinese market, the competition structure of China's exhibition industry is somewhat complicated: on the one hand, we must face the exhibition giant from outside China; on the one hand, we should also face with the resources of exhibition projects sponsored by the Chinese government or industry associations.

Under the pressure of dual competition, several major foreign investment exhibition giants based on Germany can be seen on thin ice in the Chinese market.

After 6 years of brand pplant peak, the expansion strategy of foreign exhibition giant has changed greatly.

Since 2006, some foreign exhibition companies have extended their tentacles to medium-sized exhibition cities.

After experiencing the bottlenecks of exhibition centers and exhibition resources in Beijing, Shanghai and Guangzhou, the international exhibition giant has found that some medium-sized exhibition cities have a pleasant development space. Although they are not well-known internationally, they hope to attract more international exhibitors and purchasers to show more business opportunities in China's medium-sized cities, with the help of their own international influence. This measure has indeed made China's medium-sized cities show their charm to the world.

As a result, foreign exhibition companies began their horse race activities in medium-sized exhibition cities.

With the frequent visits of International Exhibition giants to Chengdu, Chongqing, Shenzhen, Wuhan, Hangzhou and other cities, a wave of mid sized Convention and exhibition cities has been promoted.

But foreign companies are not as confident as they are when they first entered the Chinese market.

The exhibition magnates are particularly cautious about how to better grasp the regional resources and opportunities of medium-sized exhibition cities.

In August 23rd, the 2007 Qingdao International New Lifestyle Exhibition was held in Qingdao. This exhibition is the first self exhibition project of Munich Exhibition (Shanghai) Co., Ltd. after the brand exhibition was pplanted.

According to the Munich Exhibition (Shanghai) company executives, the exhibition's preliminary market research lasted for 2 years, its goal is to comply with the demand changes of the middle-income families in China's medium-sized cities, and guide new consumption trends such as holiday buying, financial investment and outdoor sports.

According to reporters, Munich has also conducted Market Research on Chengdu and Hangzhou, and has been interested in holding exhibitions in 2 cities.

Coincidentally, the exhibition giant Hannover, also from Germany, entered the "Chengdu International Automobile Exhibition" in 2006. This is only the first step for Hannover to enter the medium-sized exhibition cities. According to its development scale, it has to lock at least 7 medium-sized exhibition cities in the Chinese market and expand the plan of the auto exhibition project in the Chinese market rapidly.

The reason why foreign investors choose to enter the medium-sized exhibition cities is that the close competition between Beijing and Shanghai is very cruel.

Concerned about the fact that Dusseldorf Exhibition (China) Co., Ltd. entered the medium-sized exhibition city because the Hongkong Shanghai international shoe exhibition shoe material exhibition, which was held in Shanghai with the cooperation of the Asia style Exhibition Service Co., Ltd., after many publicity, finally cancelled the exhibition due to competition pressure.

Instead, she chose to hold the "China Dongguan international shoe exhibition shoe machine exhibition" in Dongguan, Guangdong.

Feng Peixi, managing director of Dusseldorf China exhibition company, explains: "a businessman must consider interests and rewards for every exhibition project."

Perhaps Feng Peixi has spoken the minds of all foreign exhibition companies.

Foreign medium scale exhibition companies are stepping into the huge exhibition market of China, which not only touches the sensitive nerves of the international exhibition giants, but also attracts the attention of some medium-sized international exhibition companies.

Just as the International Convention and Exhibition giant was anxious to find new breakthroughs, it seemed that the Convention and exhibition company, the first Chinese Convention and exhibition market, did not feel the pressure.

They even believe that the more competition, the more opportunities.

Grosman, President of the Nuremberg global exhibition company, said with great confidence that despite the fierce competition in the Chinese market, it would not affect their decision to enter the Chinese market.

She believes that this is the only way to better choose Chinese partners, to better compare and exchange, and to promote the development of the Chinese market in Nuremberg more effectively.

In October 2006, Nuremberg Exhibition (China) Limited established a wholly-owned subsidiary in Shanghai.

Grosman said that Nuremberg could not compare with the top 5 exhibition giants in Germany, but Nuremberg could operate more detailed exhibition projects in the target area of the Chinese market.

At present, there are "international windows and curtain walls Exhibition" and "international organic products exhibition" held by Nuremberg in Shanghai.

It is understood that Nuremberg focuses on the exhibition of professional and technical subjects. Its responsible person believes that although professional exhibitions are small in scope, they are easy to expand rapidly in a certain field.

Once there is a chance, Nuremberg will also consider pplanting its professional brand exhibition to China.

Nuremberg executives believe that the wholly-owned subsidiary set up in China will further stimulate the growth of Nuremberg's overseas business, and it is also an important measure for Nuremberg to strengthen its international expansion.

Unlike other exhibition giants who have been stationed in Shanghai, China, EWI2006 announced in August that apart from Losangeles, Chicago and Detroit, the three largest operation centers in North America, the first overseas subsidiary was set up in Shanghai, China.

According to people familiar with the matter, EWI chose to enter China last year. Besides the development of China's auto industry, it also valued the opportunities of the 2008 Beijing Olympic Games and the 2010 Shanghai World Expo.

According to the reporter, in order to grasp the business opportunities in World Expo ahead of time, EWI has become a member of the Shanghai Exhibition Industry Association, a strategic partner of Shanghai Automobile Exhibition Center, a subsidiary of the Expo Group, and a partner of Shanghai foreign economic and trade exhibition company.

EWI has been thinking for a long time in the Chinese market.

Mathew E Harbert, marketing director of EWI, told the media that 5 years ago, after the first contact with China's exhibition industry, EWI had created an idea of opening an office in China, and decided to take China's exhibition and exhibition to the world and bring foreign exhibition into China.

EWI executives said that the level of China's exhibition companies is also very high, but there is still a gap compared with the international exhibition companies.

The senior manager believes that although China's exhibition industry has such problems, it has the advantage of low cost which can not be duplicated.

EWI is willing to make full use of the low price of labor and materials in China, so that its operating costs meet the needs of the Chinese market.

In the upcoming 2007, the exhibition of the exhibition giant in Greater China has attracted the attention of the Chinese exhibition industry, including the restructure of the Greater China District, such as Li exhibition, Bo Wen and Munich.

Among them, the high-level restructure of Li exhibition is different.

In November 22nd, Lan Delong, President of Greater China, reed exhibition group, announced the establishment of the "China Scholarship" in Beijing International Studies University's hard work hall. This is the first time that the international exhibition company has set up a conference and Exhibition scholarship in China.

In addition, the industry is more concerned about this is the last time landlandon hosted the official event in the capacity of president of Greater China.

In October 17th this year, the British headquarters of reed Expo Group has officially announced that Lan Delong will be the executive director of the international sales department (ISG) of reed Exhibition Group in January 2008. Its permanent office is the global headquarters of reed UK. At the same time, Lan Delong will also join the global board of reed exhibition.

Taking the post of president of Greater China in reed exhibition group, PreechaSananwatananont, who is president of Thailand reed company for 22 years (Chinese Name: Chen Hanwen), has rich experience in the exhibition industry.

In 3 years of working in China, Lan Delong has bought and sold "national medicine", "International Machine Tool Exhibition" and "Shenzhen China Expo", making reed exhibition a myth in China's exhibition industry.

Similarly, the high level restructuring has attracted the attention of the industry.

At the beginning of November, Ai Xin Ke took the post of former Sun Bingde as the chief executive officer of Asia.

Although Asia has been very cautious in its interview with our reporter, he has had 15 years' experience in managing business and has been employed in VNU Exhibition Group since 1999.

Ai Xin Ke has been the chief executive officer of Shanghai Wan Yao dragon Exhibition Co., Ltd., managing the information of more than 20 exhibitions held by VNU in Shanghai, Guangzhou, Beijing and Hongkong.

We can see that Ai Xin Ke is not only experienced but also able to work well.

But his post as Asia's chief executive is not easy.

According to the development strategy of his predecessor, the goal of Asia Expo in China's Convention and exhibition market is to do large and professional exhibitions and promote the development of different industries.

So far, there are 13 industries in Asia Expo held in mainland China.

Although Asia has already established market areas in Shanghai, Guangzhou and Beijing, Beijing is not an important target market at present.

His predecessor has revealed that in January 2008, it was possible that Asian Expo would hold a new exhibition in Macao, which might be the first challenge for Ai Xin Ke.

Munich International Expo Group Asia's management restructuring is slightly faster than the above 2 actions. In October 16th, Mao Da Ben, general manager of the Beijing international joint venture company Jing Mu exhibition company of Munich International Expo Group, took over the post of managing director of Shanghai sub company of Munich International Expo Group.

His predecessor, Zhang Shuqing, executive vice president of Asia holding company, is responsible for China's mainland business.

It is mainly responsible for liaison and communication between Shanghai and Chinese government departments, associations and exhibition projects partners. It also coordinates the exhibition business conducted by Munich International Expo Group, Asia holding company, Shanghai subsidiary and Munich Overseas Exhibition Co., Ltd. IMAG.

Editor's note: foreign exhibition companies have used their advanced exhibition concept, huge marketing network and mature exhibition experience to pplant their brand exhibitions to China, and have formed a competitive situation with China's local exhibitions, which has effectively promoted the rapid development of China's Convention and exhibition industry.

Although China's exhibition industry is still not very standardized, it has attracted the attention of the industry and related institutions.