The Globalization of Korean Trade Shows
: Challenges from a locally-based exhibition center
Jay Hyo Kim, President & CEO, EXCO
July 10, 2008
Agenda
I.
Status quo of Korean Exhibition Industry
II. Challenges for Globalization
III. Strategies for Globalization
: In a perspective of local exhibition center
Status quo of
Korean Exhibition Industry
Ⅰ. Status quo of Korean Exhibition Industry
◆ Trend of development in Korean Exhibitions
▷ Participation mainly in overseas exhibitions in 70’s ~ 90’s
- Export–oriented economy
- Concentration on established market and economic hubs
(North America, Europe, H.K and Dubai etc.)
▷ Rapid growth in domestic exhibition industry in 2000’s
- Expansion of infrastructure ( 6 New centers ) : two more coming
- Rapid increasing number of exhibitions
(163 exhibitions in 2000 / 354 exhibitions in 2007)
Ⅰ. Status quo of Korean Exhibition Industry
15,423
12,571
10,689
10,175
9,598
8,610
7,722
5,647
7,919
7,966
Visitors
5,337
Source : KNTO ‘Status of Global and Korean International
Conferences 2003, 2005
Association of Korean Exhibition Industries
(2006 statistics only)
The number of exhibition per center (2007)
S ETEC 34
KOTREX 12
A year
a T Center 15
BEXCO 37
CECO 21
KINTEX 39
Kimdaejung
Ce nter 17
ICC JEJU 1
EXCO 40
Review the Previous Show
COEX 137
The number of
exhibition
2000
163
2001
246
2002
299
2003
366
2004
399
2005
377
2006
353
2007
354
Source : Association of Korean Exhibition Industries (2007 statistics only)
Source : KNTO ‘Status of Global and Korean International Conferences 2003, 2005
’
Association of Korean Exhibition Industries (2006 statistics only)
Ⅰ. Status quo of Korean Exhibition Industry
◆ Underachievement of globalization in Exhibition Industry
- Scale of Korea’s indoor exhibition space, 160,000 s/m in total
: 28th in the world
- Korea’s Exhibitions occupy middle levels of the Exhibition Industry in Asia
- Higher utilization of space : H.K, Japan, Korea
Status of World Exhibitions by Country, 2006
Ranking
Country
Status of Asia Exhibitions by Country, 2006
Scale of Center
(1,000S/M)
World
Share (%)
Ranking
Country
Scale of Center
Rented Space
1,000 S/M (Share)
Utility
(times)
1
U.S.A
6,130
22%
1
China
2,423(62%)
5,089(47.1%)
2.1
2
Germany
3,113
11%
2
Japan
405(10%)
2,174(20.1%)
5.4
3
China
2,517
9%
3
India
244(6.3%)
526(4.8%)
2.2
4
Italy
2,105
8%
4
Thailand
199(4.3%)
381(3.5%)
1.9
5
France
2,006
7%
5
Korea
166 (4.3%)
528(4.9%)
3.1
…
…
6
H.K
132(3.4%)
776(7.2%)
5.9
28
Korea
7
Singapore
124(3.2%)
202(1.9%)
1.6
8
Taiwan
96(2.5%)
410(3.8%)
4.3
160
0.6%
Ⅰ. Status quo of Korean Exhibition Industry
◆ Fierce competition in Korea’s exhibition industry
- 9 exhibition centers in Korea
- Number of exhibitions : 354 in 2007
- Overlapping exhibitions, ‘Me-too’ shows
- Difficulties in developing locally-based exhibition
Percentage of Exhibitions held in Convention Centers
(* ) KINTEX started its operation in 2005
Challenges for Globalization
Ⅱ. Challenges for Globalization
◆ Trend of exhibition industry in Asia
- GDP Growth > IMF advanced economy
- Not one single market
- Strong growth in capacity and number of shows
- More capacity additions to come
- Many non-competing regional markets
- New entrants soaring in the market
- New business models
-Attraction from international organizers
(J.Witt, UFI)
Ⅱ. Challenges for Globalization
◆ Tasks of the Korean Exhibition Industry
▷ Holding mainly small & medium sized exhibitions in Korea
- 19 exhibitions among 354 over 20,000sqm in 2007
(cf. 676 among 15,000 in the world)
- 17 UFI-endorsed exhibitions (China 66, Germany 108)
Exhibitions over 20,000 sqm in Korea
6
5.4%
25
4
3
30
25.6%
4.8%
5
Exhibitions over 20,000 sqm. abroad (2004)
20
2.7%
13.6%
15
2
12.4%
10
6.4%
1
5
0
2.7%
0
2004
2006
2007
Germ a ny
HK
Ja pa n
C hina
K orea
Ⅱ. Challenges for Globalization
◆ Tasks of the Korean Exhibition Industry
▷ Concentration of exhibitions in the Capital Area
(Seoul & Gyeonggi Province)
- Many similar shows due to excessive competition
- Difficulties in developing specialized exhibitions locally, linked to local
industries
Seoul 53%
% of Exhibitions held in Seoul & Gyeonggi
%
%
Gyeonggi Prov. 11%
Daejeon 3.4%
Daegu 11%
Busan 10.4%
Gwangju 4.8%
Source : Association of Korean Exhibition Industries ( 2004~2007 statistics only)
Strategies for Globalization
Ⅲ. Strategies for Globalization
◆ Encouraging Regional Trade Show to
National & International Trade Show
- Status quo : ratio of regional show in locally-based exhibition centers
up to 70%
* Should be 50:50
◆ Cohesive cooperation in dynamic Asian exhibition
industry
- Mutual cooperation of Big 5 (China, Japan, India, Hong Kong, and Korea)
- Networking, cross participation and support, co-organization, etc.
* Export of exhibition brand into the other regions
Ⅲ. Strategies for Globalization
◆ Improve the brand power of Korean exhibitions
- Strengthening partnerships
- Increasing the number of exhibitors & buyers
◆ Train exhibition experts
◆ Raise funds from local government
◆ Attract overseas investment : M&A
Success Case :
Daegu Int’l Green Energy Expo
Organized by EXCO
Ⅳ. Success Case
□ Daegu Int’l Green Energy Expo
◆ Fact Sheet
- Participation of top 20 global companies (Sharp, Q-cells, DuPont, SIMENS etc.)
- 190 exhibitors, 478 booths from 15 countries
- 25,219 professional visitors from 31 countries
- 40 sessions of International Conference, Seminar
▪ Review the previous show
▪ Oversea exhibitors
Ⅳ. Success Case
◆ International business networking
- Partnership with Germany's Federal Ministry of Economics and
Technology
- A number of overseas exhibitors & buyers
- Organizing international conferences linked to associations and institutes
- Bartering a booth with international exhibitions
▪ Strategic networking with international organizations
Country
Classification
Organization
Germany
Government
Germany's Federal Ministry of Economics and Technology,
N.R.W (North Rhine-Westphalia)
Institute
ISES (International solar Energy Society)
Agent
REECO
Institute
Shanghai New Energy Industry Association,
Shanghai Lead Exhibition,
Agent
Top Land, BCO
Japan
Institute
NEDO
Thailand
Government
China
National Science and Technology Development Agency
Ⅳ. Success Case
◆ International Marketing
- PR & Advertising on international magazines
: Photon-International, Sun & Wind Energy, Renewable Energy
* Photon-Int’l : Selected Top 24 together with ‘Green Energy Expo’ among 300
similar of its kind exhibitions World wide
- Promotion at international exhibitions
: InterSolar in Germany, GENERA in Spain, PV EXPO in Japan
- On-line marketing by e-newsletter and official website
- Sponsorship by global companies
: SunPower, DuPont,Suntech, Yingli, Q-Cell etc.
Ⅳ. Success Case
◆ Specializing locally-based exhibitions
- Daegu is well-known as the most representative Solar City in Korea
- International Solar Cities Congress 2004 in Daegu
- Largest solar cell manufacturer located in Daegu (e.g. Millinet Solar)
- Numbers of solar projects in Daegu and Gyeongsangbuk-Do
(Solar Canopy Project, East Coast E-cluster project. etc.)
Thank you.