8th Edition of "Trade Fairs in Asia" Report available now

We published the 8th edition of our annual "Trade Fairs in Asia" report this week. You can buy it on the BSG website. Here is the full press release along with some of the highlights from the report.

July 2, 2012 – Paris/Hong Kong: Growth of the trade fair industry in Asia was boosted in 2011 by strong increases in south-east Asia according to the eighth edition of UFI’s annual report on the trade fair market in Asia.

Overall, exhibition space sales grew by 2.6% last year. Net area sold by organisers in Asia reached a total of 15.9 million m².  Of that total, almost 55% was sold in China and 12% was sold in Japan. The research was once again undertaken for UFI, the global association of the exhibition industry, by Business Strategies Group (BSG) in Hong Kong.

Growth was clearly highest in south-east Asia in 2011. Singapore and Malaysia were the fastest growing markets in 2011 - up 15% and 14% respectively. The exhibition market in the Philippines grew by 8.8%. Vietnam was the only exception to this south-east Asian trend, posting growth of just 1.2%.

The larger exhibition markets grew notably more slowly in 2011. Asia’s largest market, China, grew by 2.5%, while India posted an increase of 3.3%. Two other large markets, Korea and Hong Kong grew by 2.2% and 1.1% respectively.

Three exhibition markets contracted in 2011. Australia slipped by 1% and the small exhibition market in Macau dropped by almost 11%. Japan, the second largest exhibition market in Asia, contracted by nearly 3% following the March 2011 earthquake, tsunami and nuclear accident.

In terms of capacity, by the end of 2012 there will be almost 6,490,000 m² available at venues in Asia. That is up from 3 million m² recorded in the first edition of this report in 2005.

This year, the total number of venues in Asia will be 187. Of that figure, there will be 97 venues in China. India will have 13 venues and Japan and Korea will each be operating 12 venues. Nearly 68% of all venue capacity in Asia is now in China – more than 12 times the next largest market, Japan (4.42 million m² vs. 350,606 m²).

Paul Woodward, UFI Managing Director, commented, “The exhibition industry in Asia continues to be a remarkably dynamic and fast-growing market. As the exhibition markets in the traditional, more mature economies have been faced with challenging economic conditions, the industry in Asia has continually managed to grow year after year."

"As a result, a rising number of international exhibition organisers are looking to participate in the growth in Asia. We are also pleased to see UFI's membership in Asia continue to grow along with the industry there. UFI now has 193 members in Asia - including 73 in mainland China and we anticipate that interest in the region will remain high."

This annual report has again been edited by UFI Asia/Pacific Regional Manager and BSG Managing Director, Mark Cochrane.  He commented, “Growth of the exhibition industry in south-east Asia outpaced the rest of the region in 2011 and we expect to see an extension of that exciting trend continue throughout 2012.”

“We are forecasting exhibition space sales at trade fairs in Asia to reach 16.3 million m² sold in 2012. Although the south-east Asian markets are expected to be strong performers again in 2012, the key question will be how well the largest exhibition markets such as China and India will hold up in face of weak economic conditions in key export markets in Europe and the U.S. We anticipate that the growth of intra-Asian trade will largely offset the economic softness in Europe and the U.S.”

This report provides detailed information on the development of trade fairs and supporting facilities in 15 markets: China, Hong Kong, Macau, Australia, India, Indonesia, Japan, South Korea, Malaysia, Pakistan, Philippines, Singapore, Taiwan, Thailand and Vietnam. The report also includes analysis on actual market performance in 2011 as well as forecasts and commentary on key trends in each market.

As an added-value service, each UFI member will be entitled to receive a four page executive summary of the research and to purchase the full report at a substantial discount.

BSG issues report on crisis and B2B in Asia

PRESS RELEASE

Impact of global economic crisis on Asia’s B2B media industry: Online revenues holding up well, exhibitions and publishing weakening

Hong Kong, 30th March: Business Strategies Group (BSG), the only consultancy in Asia specialising in B2B media and events, has released a new report analysing the impact of the global economic crisis on the Asian B2B media industry.

Key players including Alibaba.com, Global Sources and CMP Asia have all weathered the economic crisis quite well so far. Alibaba.com’s 2008 revenues increased 39% year-on-year. Global Sources’ revenues came within guidance increasing by 14% and CMP Asia’s revenues jumped by 19% in 2008.

The leading companies have reacted to the economic crisis with a variety of initiatives and strategies, but there are some common themes.

There is an emphasis on new markets to generate alternative sources of growth. Both Global Sources and Alibaba.com allocated additional resources to India in 2008. Alibaba.com is also making a concerted effort to diversify its paid supplier base outside of China – including more markets in Europe.

Both Alibaba.com and Global Sources have restructured their core online offerings to create lower cost products. Global Sources has discontinued a non-core business and has focused more resources on big buyers services (i.e. Private Sourcing Events).

In a show of confidence, both Global Sources and Alibaba.com have repurchased shares. Alibaba.com has board approval to repurchase up to US$258 million worth of shares on the open market. Global Sources bought back US$50 million worth of shares through a tender offer.

Business events, primarily sourcing exhibitions, have held up well until now, but most organisers are expecting 2009 to result in a significant drop in business. Consequently, governments around the region have launched a number of initiatives and schemes to boost the sector.

The Hong Kong government earmarked HK$150 million (US$19.4 million) to promote Hong Kong’s conventions and exhibitions business overseas and is also considering significantly expanding the Hong Kong Convention and Exhibition Centre in Wan Chai. The Hong Kong Tourism Board set up a new team, “Meetings & Exhibitions Hong Kong” (MEHK), to support the industry.

Singapore has established a US$60 million fund to boost tourism including the MICE and business travel sectors. The Singapore Expo venue is undergoing a facility upgrade. The Media Development Authority in Singapore has committed US$60 million to support its media sector.

Taiwan, Korea, Thailand and Malaysia have launched comparable efforts to support their MICE industry through subsidies, promotional activities and venues expansion projects.

BSG Principal, Paul Woodward, commented, “We are anticipating a challenging, but eventful year in Asia’s B2B media industry. 2009 will undoubtedly be a down year for the exhibition business, but the impact on the B2B online sector is still an unknown. Global Sources’ 2008 online revenues increased by 24% and Alibaba.com’s by 39%, but the key question is: how will their revamped online products will hold up this year.”

This BSG report was distributed on 26th March to BSG subscribers of its Asian Business Media Tracker service. The report features over 30 pages of information and analysis covering the impact of the economic crisis on key B2B media companies including Global Sources, CMP Asia (now UBM Asia), Alibaba.com and the HKTDC as well as a detailed review of the activities of governments across Asia. The report is also available for purchase on a stand-alone basis.

For information, please contact:

Paul Woodward, Principal, Business Strategies Group Ltd.
Tel: +852 2525 6163
e-mail: paul at bsgasia.com

Distributed through Edelman on behalf of Business Strategies Group Ltd.

Marsha Ho
Edelman
Telephone: 852 2837 4705
Fax: 852 2804 1303
Email: marsha.ho at edelman.com

UFI/BSG report records 18% growth in Asian exhibitions

PRESS RELEASE

Trade fair market in Asia grows by 18% in 2007 according to UFI market report


Paris/Hong Kong, June 24, 2008: The trade fair industry in Asia expanded strongly again in 2007.Net area sold by organisers in Asia grew by nearly 18% reaching a total of 13.2 million m2 according to the fourth edition of UFI’s annual report on the trade fair market in Asia. The research and analysis was once again undertaken for UFI, the global association of the exhibition industry, by Business Strategies Group (BSG) in Hong Kong.

The report shows that China remains the largest trade fair market by a substantial margin. Year-onyear, net square metres sold in China grew by 21% outperforming the regional average of 14%. India was, however, Asia’s fastest –growing market in 2007, up 50% followed by South Korea which grew by 32%. Over 6.7 million m2 were sold in China in 2007 – accounting for 51% of the total across Asia. The second largest market, Japan, grew by just 1% last year with sales of 2.2 million m2. Revenues from trade fairs in Asia increased from US$2.57 billion in 2006 to US$3.25 billion in 2007 – an increase of 26.5%. China continued to extend its lead over other markets in 2007. Last year, trade fair revenues in China were nearly US$1.12 billion. This is a massive increase of 47% over the US$760 million recorded in 2006.

This annual industry report provides detailed information on the development of trade fairs and supporting facilities in 15 markets: China, Hong Kong, Macau, Australia, India, Indonesia, Japan, South Korea, Malaysia, Pakistan, Philippines, Singapore, Taiwan, Thailand and Vietnam. The report also includes analysis on actual market performance in 2007 as well as forecasts and commentary on key trends in each market.

Vincent Gérard, UFI Managing Director, commented, “The publication of the fourth edition of this report is an important contribution to UFI’s global research efforts. It shows that Asia remains one of the most dynamic areas for growth in our industry. It is exciting to see the predicted takeoff in India becoming a reality along with the many other exciting markets in the region”. As an added-value service, each UFI member will be entitled to receive a six page executive summary of the research and to purchase the full report at a substantial discount.

The report has again been edited by UFI Asia/Pacific Regional Manager and BSG Principal, Paul Woodward. He commented, “In the last five years, we have seen the trade fair industry undergo a remarkable transformation. In 2003, the region recorded space sales of 5.7 million m2 at 101 venues. Last year, the number of venues had surged by more than 50% to 156 venues and sales had more than doubled to 13.2 million m2.”

BSG releases report on Global Sources

PRESS RELEASE

Global Sources moves to consolidate position with large retail buyers

Hong Kong, 13th March: Business Strategies Group (BSG), the only consultancy in Asia specialising in B2B media and events, has released a new report profiling Global Sources. 2007 was a good year for Global Sources. Revenues grew by 16% reaching US$182 million. GAAP net income was US$24 million – down 15% from the 2006 figure primarily due to the write down of an acquisition and increasing non-cash compensation expenses.

The report also notes some key developments in Global Sources’ strategy in 2007.

• The company continues to refine its strategic focus on large buyers by holding over 80 private sourcing events and strengthening the supplier verification services that they provide. BSG concludes that the successful execution of this strategy will be a key component of creating differentiation between Global Sources and the more SMEfocused Alibaba.com.
• In November, Global Sources entered China’s online domestic sourcing market with the launch of www.globalsources.com.cn. BSG comments that this will put the company in head-to-head competition with Alibaba.com’s Chinese language sourcing site. Alibaba.com has a formidable head start and it will be interesting to see how much traction Global Sources can gain in 2008.
• The report notes that Global Sources is committed to growing its presence in India in 2008. It has said that it will add sales staff, launch new exhibitions there and host private sourcing events which target large retail buyers.

BSG Principal, Paul Woodward, commented “we are expecting another eventful year for Global Sources – one of the most important companies we cover - as they focus resources on building up their presence in India as well as their domestic B2B sourcing service in mainland China. It will also be important to keep a close watch on their efforts to offer deeper supplier verification services which is a key component in their strategy to serve the larger buyer segment and differentiate their company from Alibaba.com.”

This BSG report was distributed on 12th March to BSG subscribers of its Asian Business Media Tracker service. The report features over 20 pages of information and analysis covering Global Sources key products, competitors, financial data and a review of the company’s overall corporate strategy. It is also available for purchase on a stand-alone basis.

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Press release on new BSG report

PRESS RELEASE

M&A activity in Asian B2B media sector increases by 75% in 2007

Hong Kong, 31st January: Business Strategies Group (BSG), the only consultancy in Asia specialising in B2B media and events, has released a new report tracking mergers and acquisitions (M&A) in Asia’s B2B media sector.

In 2007, the total value of M&A activity in this industry hit a new high of US$470 million. That is a 75% increase over the US$269 million recorded in 2006.

In 2007, there were 33 transactions – 50% more than the 22 deals in 2006. The average deal size was US$14.2 million which was an increase of 16% over the previous year. Significant deals in 2007 included:

· India-based Network 18’s purchase of 40% of Infomedia for US$45 million. The stake was acquired from ICICI, an Indian bank.
· Tarsus’ trade show-related acquisitions in India including its purchase of the India Label Show as well as a significant investment in Montgomery India Limited.
· The sale of a significant stake in Thailand’s IMPACT Arena to a foreign investor for an undisclosed sum. The convention and exhibition venue features of 136,000 square metres.
· Xinhua Financial was particularly active in 2007 closing four deals valued over US$90 million.

BSG is forecasting 37 deals worth US$650 million in 2008 – an increase of close to 40% over the 2007 figure. This substantial growth will be driven by deal flow from India and continued purchases by industry majors including Reed\ and CMP. Alibaba.com is also expected to begin to play a significant role in the industry’s M&A activity in 2008. The company has indicated that it plans to use a significant portion of its IPO proceeds to acquire existing businesses.

BSG Principal, Paul Woodward, commented “we are forecasting 2008 to be another year of dramatic M&A growth in Asia’s B2B media industry. Continued economic growth in China and India and a potential slowdown in the U.S. will further heighten interest in the region’s B2B media firms. BSG anticipates that all eyes will be on Alibaba.com and their war chest of US$1.7 billion.”

This BSG report was distributed on 29th January to BSG subscribers of its Asian Business Media Tracker service. It is also available for purchase on a stand-alone basis.

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Important new Tracker report released

PRESS RELEASE

BSG releases ranking of publicly-listed Asian B2B media companies

Hong Kong, 14^th January: Business Strategies Group (BSG), the only consultancy in Asia specialising in B2B media and events, has released a new report covering all publicly-traded Asian B2B media companies. The report ranks 25 companies by revenue, gross profit and market capitalisation. It also provides profiles of all 25 companies featuring key financial metrics, the share price performance over the past 12 months and other data such as key shareholders and core business description.

In terms of revenues, Pico Far East, which provides marketing, logistical and advertising services to exhibition organizers, is the largest with revenues of US$231 million. Alibaba.com is a new-comer to BSG’s ranking. The company debuts in the number two position with revenues of US$176 million in 2006. The Hong Kong Trade Development Council (HKTDC) with revenues of nearly US$173 million for its publishing and exhibitions activities ranks third. Xinhua Finance (US$167 million) and Global Sources (US$156 million) round out the top five.

As of 8 January, the market capitalization of the top 25 companies ranges from Alibaba.com’s US$16.8 billion down to Hong Kong-listed CCID Consulting which has a market capitalization of just US$7.7 million. Three companies have a market cap of over US$1 billion – Alibaba.com, Baidu (US$11.4 billion) and Global Sources (US$1.1 billion). Surprisingly, Shenzhen-listed Zhejiang Netsun with revenues of just US$8 million ranks fourth with a market cap of US$604 million. NASDAQ-listed Xinhua Finance Media completes the top five with a market capitalization of US$383 million.

BSG Principal, Paul Woodward, commented “we expect the top five companies to continue to expand rapidly. Both Alibaba.com and Xinhua Financial recently completed IPOs and BSG anticipates that both companies will pursue acquisitions as a means of growth. Meanwhile, Global Sources is also aggressively expanding its successful series of sourcing trade shows in new locations such as Dubai and India.”

This BSG report was distributed on 10^th January to BSG subscribers of its Asian Business Media Tracker service. It is also available for purchase on a stand-alone basis.

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