the globalization of korean trade shows : challenges from a locally-based exhibition center jay hyo...
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The Globalization of Korean Trade Shows : Challenges from a locally-based exhibition center
Jay Hyo Kim, President & CEO, EXCOJuly 10, 2008
Agenda
I. Status quo of Korean Exhibition Industry
II. Challenges for Globalization
III. Strategies for Globalization : In a perspective of local exhibition center
Status quo of
Korean Exhibition
Industry
▷ Participation mainly in overseas exhibitions in 70’s ~ 90’s
- Export–oriented economy
- Concentration on established market and economic hubs
(North America, Europe, H.K and Dubai etc.)
◆ Trend of development in Korean Exhibitions
Ⅰ. Status quo of Korean Exhibition Industry
▷ Rapid growth in domestic exhibition industry in 2000’s
- Expansion of infrastructure ( 6 New centers ) : two more coming - Rapid increasing number of exhibitions
(163 exhibitions in 2000 / 354 exhibitions in 2007)
5,6475,337
7,722 7,9198,610
12,571
7,966
10,1759,598
15,423
10,689
Visitors
Source : KNTO ‘Status of Global and Korean International Conferences 2003, 2005 Association of Korean Exhibition Industries (2006 statistics only)
Ⅰ. Status quo of Korean Exhibition Industry
Source : KNTO ‘Status of Global and Korean International Conferences 2003, 2005’ Association of Korean Exhibition Industries (2006 statistics only)
A yearA year The number of The number of exhibitionexhibition
2000 163
2001 246
2002 299
2003 366
2004 399
2005 377
2006 353
2007 354
Review the Previous ShowThe number of exhibition per center (2007)
Source : Association of Korean Exhibition Industries (2007 statistics only)
aT Center 15BEXCO 37
CECO 21
COEX 137EXCO 40
ICC JEJU 1
KimdaejungCenter 17
KINTEX 39
KOTREX 12
SETEC 34
- Scale of Korea’s indoor exhibition space, 160,000 s/m in total : 28th in the world
◆ Underachievement of globalization in Exhibition Industry
Status of World Exhibitions by Country, 2006
RankingRanking CountryCountry Scale of CenterScale of Center
(1,000S/M)(1,000S/M)
WorldWorld
Share (%)Share (%)
1 U.S.A 6,130 22%
2 Germany 3,113 11%
3 China 2,517 9%
4 Italy 2,105 8%
5 France 2,006 7%
… …
28 Korea 160 0.6%
Status of Asia Exhibitions by Country, 2006
RankingRanking CountryCountry Scale of CenterScale of Center UtilityUtility(times)(times)
1 China 2,423(62%) 2.1
2 Japan 405(10%) 5.4
3 India 244(6.3%) 2.2
4 Thailand 199(4.3%) 1.9
5 Korea 166 (4.3%) 3.1
6 H.K 132(3.4%) 5.9
7 Singapore 124(3.2%) 1.6
8 Taiwan 96(2.5%) 4.3
- Korea’s Exhibitions occupy middle levels of the Exhibition Industry in Asia
- Higher utilization of space : H.K, Japan, Korea
Ⅰ. Status quo of Korean Exhibition Industry
Rented Space Rented Space
5,089(47.1%)
2,174(20.1%)
526(4.8%)
381(3.5%)
528(4.9%)
776(7.2%)
202(1.9%)
410(3.8%)
1,000 S/M (Share)1,000 S/M (Share)
◆ Fierce competition in Korea’s exhibition industry
(* ) KINTEX started its operation in 2005
Percentage of Exhibitions held in Convention Centers
- 9 exhibition centers in Korea
- Number of exhibitions : 354 in 2007
- Overlapping exhibitions, ‘Me-too’ shows
- Difficulties in developing locally-based exhibition
Ⅰ. Status quo of Korean Exhibition Industry
Challenges for
Globalization
◆ Trend of exhibition industry in Asia
- GDP Growth > IMF advanced economy
- Not one single market
- Strong growth in capacity and number of shows
- More capacity additions to come
- Many non-competing regional markets
- New entrants soaring in the market
- New business models
-Attraction from international organizers
Ⅱ. Challenges for Globalization
(J.Witt, UFI)
▷ Holding mainly small & medium sized exhibitions in Korea
- 19 exhibitions among 354 over 20,000sqm in 2007
(cf. 676 among 15,000 in the world)
- 17 UFI-endorsed exhibitions (China 66, Germany 108)
Exhibitions over 20,000 sqm. abroad (2004)
5.4%
4.8%
2.7%
0
1
2
3
4
5
6
2004 2006 2007
2.7%
6.4%
12.4%13.6%
25.6%
0
5
10
15
20
25
30
Germany HK J apan China Korea
Exhibitions over 20,000 sqm in Korea
Ⅱ. Challenges for Globalization
◆ Tasks of the Korean Exhibition Industry
Gyeonggi Prov. 11%
Daegu 11%
Gwangju 4.8%
Daejeon 3.4%
%
Busan 10.4%
% of Exhibitions held in Seoul & Gyeonggi
%
Seoul 53%
Source : Association of Korean Exhibition Industries ( 2004~2007 statistics only)
▷ Concentration of exhibitions in the Capital Area
(Seoul & Gyeonggi Province)
- Many similar shows due to excessive competition - Difficulties in developing specialized exhibitions locally, linked to local industries
Ⅱ. Challenges for Globalization
◆ Tasks of the Korean Exhibition Industry
Strategies for Globalization
◆ Encouraging Regional Trade Show to National & International Trade Show
- Status quo : ratio of regional show in locally-based exhibition centers up to 70% * Should be 50:50
◆ Cohesive cooperation in dynamic Asian exhibition industry
- Mutual cooperation of Big 5 (China, Japan, India, Hong Kong, and Korea)
- Networking, cross participation and support, co-organization, etc.
* Export of exhibition brand into the other regions
Ⅲ. Strategies for Globalization
◆ Improve the brand power of Korean exhibitions
- Strengthening partnerships
- Increasing the number of exhibitors & buyers
◆ Train exhibition experts
◆ Raise funds from local government
◆ Attract overseas investment : M&A
Ⅲ. Strategies for Globalization
Success Case :
Daegu Int’l Green Energy ExpoOrganized by EXCO
◆ Fact Sheet
- Participation of top 20 global companies (Sharp, Q-cells, DuPont, SIMENS etc.)
- 190 exhibitors, 478 booths from 15 countries
- 25,219 professional visitors from 31 countries
- 40 sessions of International Conference, Seminar
▪ Review the previous show ▪ Oversea exhibitors
Ⅳ. Success Case
□ Daegu Int’l Green Energy Expo
◆ International business networking
- Partnership with Germany's Federal Ministry of Economics and Technology
- A number of overseas exhibitors & buyers
- Organizing international conferences linked to associations and institutes
- Bartering a booth with international exhibitions
CountryCountry ClassificationClassification OrganizationOrganization
Germany Government Germany's Federal Ministry of Economics and Technology,
N.R.W (North Rhine-Westphalia)
Institute ISES (International solar Energy Society)
Agent REECO
China Institute Shanghai New Energy Industry Association,
Shanghai Lead Exhibition,
Agent Top Land, BCO
Japan Institute NEDO
Thailand Government National Science and Technology Development Agency
▪ Strategic networking with international organizations
Ⅳ. Success Case
◆ International Marketing
- PR & Advertising on international magazines
: Photon-International, Sun & Wind Energy, Renewable Energy
* Photon-Int’l : Selected Top 24 together with ‘Green Energy Expo’ among 300
similar of its kind exhibitions World wide
- Promotion at international exhibitions
: InterSolar in Germany, GENERA in Spain, PV EXPO in Japan
- On-line marketing by e-newsletter and official website
- Sponsorship by global companies : SunPower, DuPont,Suntech, Yingli, Q-Cell etc.
Ⅳ. Success Case
◆ Specializing locally-based exhibitions
- Daegu is well-known as the most representative Solar City in Korea
- International Solar Cities Congress 2004 in Daegu
- Largest solar cell manufacturer located in Daegu (e.g. Millinet Solar)
- Numbers of solar projects in Daegu and Gyeongsangbuk-Do (Solar Canopy Project, East Coast E-cluster project. etc.)
Ⅳ. Success Case
Thank you.