HKTB figures show significant rise from 2009. Ann Williams reports.
It was early November at the Hong Kong Convention and Exhibition Centre (HKCEC), and the place was packed. There were winemakers from Australia, manufacturers of MRI diagnostic machines from China, designers of optical frames from Italy and even mayors from several of the world's biggest cities - including New York's Michael Bloomberg and Toronto's David Miller - there to talk about climate change.
The scene was the same in October, just different industries - toymakers from China, semi-conductor manufacturers from South Korea and LED lighting experts from Germany, among them.
The six weeks from October through to the middle of November is trade fair season in Hong Kong, when thousands of suppliers and tens of thousands of buyers from around the world descend on the HKCEC in Wan Chai and AsiaWorld-Expo near the airport on Lantau Island, along with delegates to conferences and meetings.
The Hong Kong Tourism Board (HKTB) estimates that around 150 trade fairs, meeting and conventions were held in October - up from 100 MICE (meetings, incentives, conventions and exhibitions) events in October 2009. The HKCEC hosted five major trade exhibitions during this period, occupying 1,706,817 square meters, and spanning 22 days including move-in and move-out days. AsiaWorld-Expo's occupiers included the eight China Sourcing Fairs: the Electronics & Components and Security Products edition was the largest to date with over 3,280 booths - almost double that of the first edition held in 2006.
It just goes to show that even in this electronically connected world of video-conferencing, Skype, instant messaging and interactive websites, the personal touch still means something. Companies, especially in the US and Europe, may have been cutting back on corporate travel, but it seems that trade fairs are still deemed important.
"I really like the face-to-face contact as it helps to develop our business in a better way," says Tommy Leung, managing director of BJB Hong Kong Ltd, an exhibitor at the Hong Kong Trade Development Council (HKTDC) Hong Kong International Lighting Fair. "Not only do we see customers during the day at the fairground but we organize evening events for them, too. This helps to develop relationships and we can understand our customers' requirements better."
For buyers from Asia Pacific, coming to Hong Kong actually saves on travelling. "I don't often visit the European fairs so this is the best opportunity for me to see new models and new brands," commented Singaporean-based optical retailer Alfred Chan, merchandizing manager of Optique Paris Mikli. Even European exhibitors sometimes find that it is actually easier to meet with fellow European buyers in Hong Kong. "All the big chains send their buyers here and we can catch them, too," says Bernard Pittion, vice president of Grosfilley Lunettes from France.
October, along with April, has long been a traditional sourcing period. "It coincides with the overall business cycle as well as the sourcing pattern for industries such as electronics, gifts and houseware," says Allen Ha, CEO of AsiaWorld-Expo Management Limited. Electronics manufacturers often release new products at this time of year, using the fairs as a launch platform and allowing buyers to plan for the year ahead.
The biannual Canton Fair in Guangzhou, which stages an autumn edition, has traditionally been a major drawcard for overseas buyers, and many take the opportunity to visit both it and events in Hong Kong, as well as fitting in visits to mainland-based factories. "The synergies of these events attract a volume of international buyers traveling east to source in one go at great convenience," says Benjamin Chau, deputy executive director of the HKTDC.
For non-mainland exhibitors, the big attraction these days is to access the Chinese and other Asian markets. "We hope to make Chianti Classico wine better known in Asian markets and this show is the perfect platform to do so," says Christine Lechner, an Italian winemaker at the HKTDC Hong Kong Wines & Spirits Fair.
Global Sources says it has seen a gradual improvement this autumn compared to 2008 and 2009. "Buyers are coming back and exhibitors are eager to promote their products via our fairs to increase market share as markets start to recover to pre-crisis levels," notes Camellia So, Global Sources general manager of corporate affairs, adding that there has been a change in buyers' behavior. "They are tending to place smaller orders, and prefer value-for-money products rather than luxury items."
The organizer did see a 15 percent decrease in visitors from the US and Europe in October, but this was offset by a 30 percent increase in buyers from new markets such as Brazil, India, Russia and the Middle East. "However, traditional market buyers still account for a considerable portion of our visitor counts," says So.
The HKTDC experienced significant growth from the BRIC countries, and also noted a surge in buyers from Malaysia, the Philippines and Thailand. Asia-World Expo also reported increasing numbers of buyers from Russia, India and Vietnam in particular.
Gilly Wong, general manager of Meetings and Exhibitions Hong Kong, a division of HKTB, says: "MICE is very important to the sustainability of Hong Kong's economy, as it brings both tangible and intangible benefits." With per capita spending of MICE arrivals in 2009 at HK$6,932 per person, it is not just the event organizers and venues that benefit. And they are banking on the "personal touch" continuing to bring suppliers, buyers and conference delegates to town for many years to come.