Research and Markets: There Were 85 Major B2B Exhibitions Held In Hong Kong In 2008 Representing 822,500 M2 Of Sold Space And Over US$330 Million In Revenues

Overview of exhibitions market in South China

This is an updated edition of this annual report which was published in August 2008.

For the purposes of this report, the author has defined South China as the area of Guangdong province within a 100 km radius of Hong Kong. Also known as the Pearl River Delta (PRD), this includes the major exhibition centres in Shenzhen, Dongguan, Guangzhou and Shunde as well as Hong Kong and Macau.

In 2008, according to the author's estimates, 222 major business-to-business trade fairs were held in South China. That is a decrease from the 250 the author recorded in 2007, but the drop is primarily related to improvements in the accuracy of our database as opposed to a distinct market change. The 2008 figure is still considerably higher than the 198 trade fairs held in 2006. The figure in 2005 was just 166. The events which comprise this list vary year to year as new shows are launched and others are rotated out of South China to other parts of China, while others still are terminated.

Last year, the author estimates that 4,160,250 m2 of space was sold at trade fairs in South China, compared with 4,150,000 m2 in 2007 - as the industry remained essentially flat year-on-year. The top three trade fair categories by net size in South China's exhibitions market are:

• General merchandise
• Furniture & interior design
• Premium, household, gifts, toys

With the obvious exception of the Canton Fair and the market in Hong Kong, trade fairs in South China are generally focused on components, industrial equipment and inputs for consumer goods such as textiles. This focus on inputs and components, as opposed to finished goods, is driven by the high concentration of factories nearby that require these inputs and materials. As a result, the visitor profile at trade fairs in South China tends to be dominated by factory managers and engineers as compared to the sourcing and merchandising managers who frequent the exhibitions in Hong Kong.

There are a number of important trade fairs in South China that are focused on finished goods, but they tend to attract a largely domestic buyer audience. Examples include the China Hi-Tech Fair in Shenzhen, the Guangzhou International Beauty and Cosmetics Exhibition and several of the very large furniture-focused trade fairs. The exception to this rule is South China's largest event - the Canton Fair which is profiled in detail in this report.

Although the market in Hong Kong is focused largely on finished goods, it plays an influential role in the South China market. The Hong Kong Exhibition & Convention Industries Association (HKECIA) released the results of its annual survey in August. Based on a total of 96 completed questionnaires, HKECIA reported in 2008 that trade visitors fell by 9.4% to 551,000. Trade visitors from mainland China dipped by just 3% down to 170,000. Regional visitors fell 13% to 174,000 and other international visitors were down 11% at 207,000. HKECIA also reports that net square metres occupied by exhibitors recorded a slight decline of 2.4% compared to 2007.

According to the author's proprietary databases, there were 85 major B2B exhibitions held in Hong Kong in 2008 representing 822,500 m2 of sold space and over US$330 million in revenues. That converts into an average of US$3.9 million per fair which is the highest average in Asia. Measured by space sales, the market in Hong Kong grew by 2.3% in 2008. Although this is a modest gain and below the regional average of 8.7%, it is still impressive after taking into account the weak economic conditions in the past year as well as the fact that this growth comes on top of the surge in growth following the opening of AsiaWorld-Expo (AWE) in 2006 and the emergence of Global Sources as a key player in the market in Hong Kong. Between 2004 and 2008, the market in Hong Kong grew by 64% rising from 501,000 m2 sold to 822,500 m2 last year.

According to the author's estimates, based on exhibition revenues, the top five organisers in Hong Kong remain unchanged. The HKTDC is the largest exhibition organiser in Hong Kong with a 41% market share. UBM Asia (formerly CMP Asia) is second with 16% and Global Sources is a close third with a 15% market share. Kenfair holds 5% of the Hong Kong market, Messe Frankfurt 2% and the remaining 21% is divided amongst various smaller competitors operating in Hong Kong. Depending on economic conditions, space sales and revenue sales in Hong Kong could post some growth in 2008 and 2009 benefiting in part from the recent expansion of the HKCEC venue in Wanchai.

Key Topics Covered:

• OVERVIEW OF EXHIBITIONS MARKET IN SOUTH CHINA
• CANTON FAIR: A BRIEF HISTORY
• SOUTH CHINA: RECENT DEVELOPMENTS
• GUANGZHOU
• DONGGUAN
• SHENZHEN
• MACAU
• HONG KONG
• COMPETITIVENESS - SOUTH CHINA VS. HONG KONG
• KEY EXHIBITION ORGANISERS IN SOUTH CHINA
• KEY EXHIBITION VENUES IN SOUTH CHINA
• LIST OF KEY TRADE FAIRS IN SOUTH CHINA

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