| Trade shows and fairs represent a unique and important segment of the service sector. They account for 0.2% of GDP in developed countries and bring the second highest amount of sales value to those economies.Traditional trade shows play an important role in facilitating the mobilization of merchandise and people across borders, improving economic and social welfare, developing trade show centers, trade show economies and associated industries, and integrating the global economy.Traditional trade shows largely rely on physical assets such as exhibition venues, participating exhibitors and walk-in visitors. They usually characterize extensive pre-show market research and preparation, relatively short exhibition timeframe, and post-show customer relationship maintenance and follow-up analysis.The advancement of information technology and the advent of internet era have brought challenges and opportunities alike to the trade show sector.Information technology and the concept of E-commerce changed the way traditional trade shows are managed permanently:5. Enterprise resource optimization. Tailor-made management and financial software helps trade show sponsors manage their physical assets (e.g., exhibition centers), financial, and personnel resources more efficiently. 6. Customer relationship management. Information technology has also made storing and utilizing customer information easier, lowered overall customer attainment and maintenance costs, expanded customer base, and improved customer service.7. Web site construction. The establishment of web sites and posted information are useful extensions of the physical trade shows. It allowed trade show sponsors to increase their appeal exponentially, speed up communication with and between customers, provide trade show and product-related information sharing, and facilitate trading activities.8. Business development. Powerful information management systems have allowed trade show sponsors to provide more comprehensive services with better quality. Some sponsors are able to extend their business overseas.Information technology and the concept of E-commerce also bred a direct competitor to traditional trade shows - virtual trade show.Virtual trade shows are web sites that only provide online industry, market and product information and facilitate online transactions. They are uniquely positioned against traditional trade shows in that they incur far lower costs, are easily manageable, provide flexible "show time" and fast transactions. However, the lack of physical presence of location, merchandise, face-to-face trade talks, and customer sources made them less desirable to some businesses. China's trade show sector is experiencing fast growth with the development of the national economy and the deregulation of the sector. A number of sophisticated exhibition facilities has been or is being built; the competitiveness and the level of customer service have improved dramatically. The trade show sector is expected to continue growing at 30% per annum. Challenges and difficulties faced by China's trade show sector:6. Similar types of exhibitions competing with each other;7. Several entities sponsor and compete in the same trade show;8. Most trade shows are relatively small in size;9. Insufficient market order and coordination;10. Slow start in the application of E-commerce and virtual trade shows as compared to developed countries.Strategic implications and recommendations to China's trade show sector:7. Improve competitiveness and mitigate risks. Firms need to understand the fundamental drivers of their business. They should assess economic, financial, business and operational risks associated with the industry and learn to minimize their exposure to risks and maximize profit. One way is to appropriately employ information technology to manage their business.8. Strategic positioning and market segmentation. Firms need to assess market dynamics, demographic trends, economic development, and align them with the... |
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