Asia Comment
Back to basics
in Asia’s Rat race
4.
Björn Kempe asks whether the new cycle
for the Chinese zodiac could mean a new cycle
for the MICE industry?
s our Chinese friends
have been welcoming
in the Year of Rat, let us
remember that the rat
was the first animal that followed the
emperor’s task to reach the finish line,
ahead of the ox and other animals.
Continuing the sporting theme:
2020 is also an Olympic year, with the
Summer Olympics to be celebrated in
Tokyo.
On the political and economic front,
an initial trade agreement between
the USA and China has been signed,
but it remains to be seen whether it
will bring relief to the ongoing trade
and tariff tensions.
Geopolitical tension is not likely
to decrease this year, either in Asia
or in the rest of the world, and that
is not to take into account further
exacerbation of travel to and
from China as a result of the (fast)
developing coronavirus.
The other ‘crisis’ unfolding in many
parts of Asia is connected to pollution,
especially in India, Indonesia,
Thailand and China, where pollution
levels are reaching new highs.
Without setting out to be too
pessimistic, I think it’s important to
take a realistic view on our industry
and what may be in store.
Much vaunted in Western Europe
and the US, digitalisation is not really
the priority in Asian MICE circles,
as many companies struggle with
declining visitor numbers, increasing
prices and ever sharper international
competition.
I would instead highlight market
pressures and a back to basics
approach and suggest the focus
will be this year on what is, in fact,
w w w.exhibitionworld.co.uk
measurable in our region:
We have never seen as many
family companies selling their
businesses. Currently, I believe at least
80% of Thai, Malaysian, Vietnamese
and Indian business owners are
either actively selling their exhibition
businesses or are intending to do
so. With a new government coming
to power in Indonesia, I expect the
selling cycle to hit there only by end of
this year.
India saw a raft of M&A
transactions in 2019, with
Messe Frankfurt and Reed acquiring
stationery, gift, packaging and textile
shows. Indian business owners have
also realised that there is much more
potential in the country and the new
venues in Delhi are getting ready for
international organisers.
ASEAN has become a new
growth market. With top
notch venues such ICE, MITEC, BITEC,
IMPACT, etc, the exhibition industry
in the region is well prepared for
growth. Newly opened offices in
5.
1 .
2.
3.
Singapore by Deutsche Messe, Messe
Munich, and other Messe operators
likely to follow suit soon, is all
evidence that international players
are realising the opportunities.
International consolidation will
continue and private equity
owned companies or stock listed
exhibition companies should continue
a strong expansion path. Informa
Markets has gathered a very strong
team in Asia to drive aggressive M&A
in India, ASEAN and China. Tarsus
has recently acquired the Tyre series
in Singapore - proof that they have
the appetite for market expansion
in the ASEAN region and China. I
also foresee Comexposium, Reed
and Blackstone-owned Clarion will
announce bigger acquisitions in Asia
within the first two quarters. In the
second row, I see companies like VNU,
Montgomery Asia, Messe Berlin, Fiera
Milano, IEG Italy, Fiera Barcelona
and also Questex continuing to get a
good foothold in the Asian region by
launching several projects.
Hong Kong seems to have
calmed down and hopefully
the big exhibition organisers can
return to their business as usual.
However, some organisers like
Terrapinn and Messe Berlin have
moved shows away, so it will take
some work for Hong Kong to fully
regain its position for MICE in
Asia. Singapore could see some
consolidation of local organisers after
Singexpo begins to divest some shows.
Singapore should see a shift from
mega expos to more highly focussed
and niche events, as well as the confex
style of business.
I believe that all organisers in
Asia will have a fruitful Year of the Rat,
but that those that will succeed best of
all will be the ones going back to basics
and rethinking
their marketing
strategies to
achieve a mix
of good organic
growth and
aggressive
M&A.
Björn Kempe,
CEO ExposAsia
Issue 1 2020 43