Asia Comment
Out with the old…
A festive review of the
Asia market by Bjoern Kempe
nother year is drawing
to a close, so a good time
to recap my columns
for the magazine as
well as to share some wishes and
expectations for the next year.
Over the past two months in Asia,
Comexposium and Tarsus made the
news with significant investments
in China for their core verticals,
and both entered South China. Both
organisers paid fair price to earnings
ratio – Comexposium for the largest
printing and stationery show in South
China, with an estimated EBITDA of
US$3m, and Tarsus a smaller show in
Shenzhen.
With multiple millions spent, it is
clear that China is currently on the list
of almost every company and I expect
several M&A activities in the coming
months by Blackstone, Comexposium,
Tarsus, Informa, Reed and possibly
GL, as well as Deutsche Messe
Hanover, DMG and Munich.
China, currently, is the last market
that offers a strong domestic economy
regardless of geopolitical tensions.
Although the GDP is currently revised
at about 6%, the exhibition market in
China currently offers stable growth
and niche opportunities for all
organisers. We also see the multiples
coming down from double-digit to
single digit at around 8.5-10.5, which
is good news for potential buyers.
Another exciting market seems to
be India where Reed, Informa and
Messe Munich are currently on top.
German Messes and UK companies
have been exploring the region and
could bring some warm air in the
winter. Similar to China, India still
offers great opportunities for new
launches and M&A, so it’s no surprise
that Informa recently launched its
medical vertical in India and many
others are on a ‘shopping tour’.
w w w.exhibitionworld.co.uk
I expect Reed, Informa,
Comexposium, Nuremberg,
Dusseldorf and Frankfurt to be rather
aggressive in the Indian market, to
compensate for missing M&A in other
regions of the world.
South East Asia has been a tad
disappointing in my view. Singapore
exhibitions are not in great shape,
and many family-owned exhibition
companies in Malaysia, Thailand,
Vietnam and Indonesia are on the
market looking for buyers. This
speaks a story that things are not
easy for the local families. However,
with the appetite from Blackstone,
Reed, Informa, Comexposium, Tarsus,
Deutsche Messe and Hanover, I also
do expect several deals to surface in
the coming months and to strengthen
this region again. Some government
led shows in the region might also be
on the shopping list.
Björn Kempe,
CEO ExposAsia
Overall, all markets are still sellers’
markets with many targets for sale.
So, falling leaves? I expect some
falling leaves in these countries, as a
possible icy winter will hit Europe, UK
and Americas markets with almost
no recovery in Russia and Turkey.
I believe the East, with China, India
and South East Asia, will see a strong
increase in M&A and consolidation in
the coming months and that market
expansion in the East will help many
international organisers to overcome
their possibly declining results in
other regions.
My wishes for Christmas and
the New Year are simple: the
international exhibition industry has
to continue to go back to the basics
and focus on visitor communities and
their interest.
I keep hearing everywhere in
Asia the problem being raised of
fewer visitors – but are we doing the
right things to attract them? Do we
really know what they want? Are
we prepared for business people
travelling more selectively?
Balanced geographies and market
coverage will play an important
role for our industry. I also wish to
see the continuation of our industry
consolidation because the big
organisers will be able to adapt locally
and grow our industry.
Of course, it is sad to see our
family exhibition organisers slowly
disappearing, but at least they passed
a legacy to us to take care of their
business and bring it to the next level.
Finally, I wish to see more bravery
from all of us and to launch new
shows and new topics in our markets;
without new launches and without
smaller shows our exhibition industry
is only half interesting – meetings,
incentives, conferences and confex
are equally
important for our
industry.
I wish all of you
a great start to
2020, wherever
your business
lies.
Issue 6 2019
41