Innovation and quality of service drive Chinese exhibition industry growth

How do you describe the features of Reed Exhibitions （RX） business in the China market？

In China， Reed is a leading organizer of trade events across 12 industries. We produce these events through nine outstanding member companies and JVs. In the last five years， we’ve doubled our show revenues and sustained a number of growing major exhibitions through new launches， joint ventures and organic growth.

Partnership is key to Reed’s growth if we aim to retain the lead in major industries like healthcare， medical and pharmaceuticals. This specific cluster is part of more than 20 exhibitions annually across China.

Away from health， Reed also leads the market in gift and home ware expos. We have ten events across the North， East， West， South and the middle of China in 2014. And when you talk about the expansiveness of the coverage of these events you can also see how Reed matches that with the scale and scope of mega-shows like SinoCorrugated， the largest corrugated expo in the world.

New launches are very characteristic of the Reed brand in China. We launch at least three new shows each year， to meet new demand and capitalize on opportunities for growth across new geographic regions.

This year， we added a new strand to our exhibition bow with our first ever foray into the fitness and wellness industry through FIBO China （Shanghai）. We also introduced Reed’s capability and professionalism in exhibition management to the departmental store industry through our Wuhan event Wuhan China DailyUse Article Trade Fair.

One of the more remarkable things about how Reed works in China is how we drive innovation by introducing the very latest tech advances to our exhibitions. We are also not afraid to implement new business processes and stay on the cusp of the digital wave， to adapt to fluid social media patterns and connect with our audiences in more efficient and cost effective ways.

How do you leverage major shows like those in the gift and medical industries to gain a sharper competitive edge in China？

It is through the success of these shows that we continue to grow in size and revenue. We also continue to focus on fast growing market such as the rapidly expanding lifestyle segment whose growth is being spurred by the rise of the Chinese middle class and growing levels of disposable income.

What do you believe to be the outlook for the exhibition industry in China for the next five years？ Please answer in terms of specific challenges you expect to encounter and how you shall overcome them？

The lifestyle， industrial and technology sectors are among the fastest growing in China right now. Expectations are that growth in these sectors will sustain， thanks to a number of facilitating factors.

For example， as their incomes increase， so too will the ability of the Chinese to afford the best possible lifestyle products， which points to the lifestyle and healthcare industries experiencing fast growth in the short and medium term， at the very least. During this same five-year period， some manufacturing industries are expected to mature， thanks to the staunch support of government policies.

In all， the prospects for next 5 years look very bright. We at Reed plan to match this expansion are scale and scope of our events with moves to bigger venues.

As before mentioned， The Health Industry Summit （tHIS） – organized by Reed Sinopharm Exhibitions will be held in 2015 at the world’s largest venue - National Exhibition and Conference Center （Shanghai Da Hong Qiao）.

Reed entered China over 20 years ago. What have been the main changes in the Chinese expo industry since then？ Have these generated business opportunities for Reed？

One of the most remarkable changes has been the proliferation in number of exhibition facilities in China. Not only have they multiplied in number， they are also international in standard too. In fact， today we now have some of the biggest facilities in Shanghai. And as the halls expand in size， so grows our ability to scale the size of our shows upwards， into mega expos.

In Shanghai， for example， we will host the biggest one stop medical and healthcare solution exhibitions and conference in the world - The Health Industry Summit （tHIS） - next year in May.

There is no doubt that the Chinese exhibition market will evolve even faster and continue on its stellar growth path. We will be seeing more and more mega shows utilizing gross spaces in excess of 200，000 sqm each edition. This development bodes well for the Chinese exhibition industry and Reed Exhibitions Greater China is firmly engaged here with key industry partners.

In terms of the factors generating opportunities for Reed， the economic changes are key. Changes in consumption， which are being driven by rising disposable income among the middle class； the “Go West”policies which came into effect at the turn of the millennium to boost the poorer western parts of China； going mobile and digitizing communication channels - these are all elements that are spelling out an ever greater number of exciting opportunities for Reed to sharpen its competitive edge.

At the same time the shows are growing， so customers are getting more sophisticated in the expectations. Meaning that we need to continue to innovate through the use of sophisticated mobile applications to reflect the growing importance of digital platforms as powerful channels for conducting global business.

Please share Reed’s development plan with us. What are the main drivers for future growth？

As an organization， we are always on the lookout for high caliber partnerships， through mergers or acquisitions that can drive us towards our mission of creating industrydefining events to serve burgeoning markets. We are keen to explore opportunities with event organizers who share our high standards of professionalism when it comes to creating such events. There are 12 key markets that we are already well positioned to explore through new show launches and acquisitions of existing events.

Since Reed first announced itself to the China market， we have used the same three-pronged approach to drive growth： acquiring and upgrading existing events， launching new shows in strong/emerging markets and developing the talent to successfully drive us towards our growth objectives. We plan to stay true to this course of action.

Also， we know that Tier 2 and 3 cities are rich source of untapped potential as they continue to develop at a rapid pace， so we will keep focus on new launches and acquisitions in these regions.

Some say there is a big gap between the local and international expo industries. Do you agree？ How can China’s expo industry grow better？

It is true that the local Chinese industry is different， in some areas， behind its Western counterparts. But it is important to give that truth context， in the sense that the gap is today significantly smaller than it was when China first entered the period of economic reform and opening up. In fact， today， China is now the host to more international trade events than at any other time in its history.

Innovation and quality of service are the two factors that will continue to drive this growth. Exhibition companies like Reed， who combine international scope and expertise with local talent and knowledge， are helping the country to catch up， thanks to technology that has made geographical borders largely irrelevant.