Industry Hotspot
Date: 2016-10-24
How Does Guangzhou Lead in the New Exhibition Economy Era?

Guangzhou will continue to build high-end exhibition centers and lead the exhibition economy.

Before National Day, Guangzhou Yuexiu Group and GL Events  (the world's largest exhibition hall management and exhibition conference hosting company) held the joint venture contract signing ceremony in Guangzhou International Financial Center. Yuexiu Group and GL Events exhibition will establish a joint venture company to develop and operate Guangzhou Yuexiu International Congress Center (the location of the old Jinhan pavilion), with a venue area of about 50,000 m2 and a total investment of nearly 2 billion yuan.

The cooperation between Yuexiu Group and GL Events is not only a continuation of the Guangzhou Annual Investment Conference at the beginning of the year, but also an important beginning of the re-layout of the exhibition industry in Guangzhou.

Looking around, on the west bank of the Pearl River Delta, Tanzhou (Foshan) International Convention and Exhibition Center has been built rapidly and The Internet+ EXPO was run by Deutsche Messe in this center. On the east coast, a new convention and exhibition center has broke ground in September in Shenzhen, the largest one in the world with 500,000 m2 of exhibition space. The rise of the two exhibition centers is changing the economic pattern of exhibition in the Pearl River Delta.

In the new era of exhibition economy, how can Guangzhou, which has introduced many high-end conferences, win in the exhibition chess game?

"Fortune" effect drives international well-known exhibitions to take root

In mid-September, 29 drones took off from the Haixinsha ferry terminal, flashing "FGF"(short for Fortune Global Forum) in the air, and the Caton Tower, lies in the central axis of Guangzhou CBD, the words--- "Fortune Global Forum" appeared on its body.

The drone show announced that Fortune was officially "hand in hand" with Guangzhou. The connection among Millennium commercial city, Fortune Global 500 and other famous multinational enterprise resources had been highly concerned by the global political and business circles.

In the eyes of people who work in exhibition industry, Guangzhou is an international trade and investment cooperation center, with over 220 countries and regions around the world to maintain trade contacts, 288 of the world top 500 enterprises to invest. The arrival of Fortune will further upgrade the level and structure of Guangzhou exhibition.

Ma yue(General Manager of Guangzhou Poly International Trade Investment) has been meeting with foreign guests frequently recently, seeking opportunities for cooperation in international exhibitions. Poly International Trade is divided into two parts: Poly Exhibition Hall and Jinhan Exhibition Center. The exhibition hall has the ability to host large-scale conferences and exhibitions, among which it has held conferences covering an area of 4,000 m2 with thousands of people entering the hall."The number of exhibitions is larger and more mature than the number of conferences."Ma said.

According to the data, the total number of exhibitions in Poly Exhibition Hall was 74 last year, which is down from 90 in 2014, but the total exhibition area increased from 9.2 million m2 in 2014 to 10.5 million m2 in 2015. Ma yue revealed, besides a few old brand exhibitions this year, like "China Automobile Parts Fair", " Personal Care and Homecare Ingredients Fair", "China Marriage Fair", there were a few well-known exhibition enterprises join in newly, such as "Guangzhou Hotel Equipment and Supply Exhibition", "Guangzhou Game Show", "China International Exposition on TCM Health ",etc.

Currently, Poly International Trade Investment has joined The Global Association of the Exhibition Industry and this year also joined The Union of international Fairs in the United States."Through the matchmaking of international trade organizations, we will increase the opportunities to contact with foreign well-known exhibition companies and exhibitors, and bring in the resources that meet the development needs of the exhibition industry in Guangzhou."Jump said.

In the past September, the exhibition held in Guangzhou covered a wide range of industries, including food, health care products, cosmetics, aquatic animals, etc., attracting a large number of traders. It is worth mentioning that The International Exhibition for Aquarium Supplies & Ornamental Fish has been held in Singapore since 1989. From this year, the exhibition will be moved to Guangzhou, and the world ornamental fish center platform will be officially transplanted to China. Responsible person from the exhibition operator VNU Exhibitions Asia said, all merchants draw together like clouds in Guangzhou, so they had already set up a branch in Guangzhou long before. This time, The International Exhibition for Aquarium Supplies & Ornamental Fish will be located in Guangzhou, which will further expand the advantage of south China as the world aqua concentration industrial base, and is expected to build Guangzhou into the strategic hub of the world aqua industry "One Belt One Road".

Introducing high-end conferences and positioning Guangzhou as International Communication Center.

The cooperation between Yuexiu Group and GL Events originates from Guangzhou Annual Investment Conference.

The connection between Guangzhou and GL Events emerged two years ago. At the 2016 Guangzhou Annual Investment Conference, Olivier Ferraton (Head of GL Events), volunteered to be a salesman of Guangzhou. In the subsequent meeting with the main leaders in Guangzhou, Oliver Ginon (Chairman of the board and founder of GL Events) expressed his confidence in the development of Guangzhou high-end exhibition industry, accelerated the cooperation projects, laid out the core business, and settled the company's Chinese headquarters in Guangzhou.

"From the first handshake between the two sides to the successful signing today, the whole cooperation negotiation process took nearly a year.” Zhou Jianliang(CEO of Messe Bridge Capital), a cooperation consultant, said, "In the case of Yuexiu Group and GL Events, Messe Bridge Capital has created many first times: the first time to enter the field of exhibition hall design, operation and professional conference organization (PCO), the first cooperation with two companies listed in Hong Kong and Paris respectively, the target of cooperation was raised to more than 2 billion yuan for the first time and the frst one-day negotiation over 18 hours...In his view, the conference project is of great significance to the development of the exhibition industry in Guangzhou.

High-end conferences bring global capital, information, trade and other resources flow and interflow. At the end of May this year, the 2016 China Innovation and Entrepreneurship Fair was opened in Guangzhou, which means that the fair gathering achievements and resources from both home and abroad, will be permanently located in Guangzhou. During the meeting, Xiong Xiaoge (Partner of IDG Capital), said that international capital favored Guangzhou, "I hope IDG can achieve the next BAT in Guangzhou". IDG Capital will look for hot projects combining virtual reality, medicine, Internet financial services and other projects in Guangzhou.

At press conference of Fortune Global Forum, Cai Chaolin(Deputy Mayor of Guangzhou), explained the positioning of Guangzhou exhibition again, "Guangzhou is building an important international communication center of China, and will continue to make efforts in international business center, international comprehensive transportation hub, international science and technology innovation hub, high-end exhibition destination and other aspects.

In response, in the investment promotion work regular meeting (exhibition topic), Guangzhou departments concerned and explored the guiding opinion on accelerating the development of the exhibition industry in Guangzhou and plans to set up the exhibition bureau international conference and exhibition center city development planning layout. There will be international conference and exhibition venues constructed in Baiyun District, Nansha District, etc.  

Seize the opportunity to cope with the new pattern of exhibition economy 

In recent years, due to the recession of foreign trade and the impact of e-commerce and online shopping channels, the once-popular "Canton fair" is facing new challenges. As the most active and largest exhibition area in China, the Pearl River Delta is also seeking to upgrade and change.

Just the past September, the action of the two sides of the Pearl River cought the attention from the global exhibition industry. On the west coast, Tanzhou (Foshan) International Convention and Exhibition Center was put into use rapidly, cooperated with Deutsche Messe, they held The Internet+ EXPO. On the east coast, the world's largest international convention and exhibition center has officially started construction in Shenzhen. The international convention center and the new science and technology museum will also be constructed simultaneously in this area. After the overall completion of the Shenzhen project, the exhibition hall area will reach 500,000 m2, which surpassed Deutsche Messe in Germany.

Jiang huai, deputy secretary general of China association of exhibition economy and vice President of Guangdong association of exhibition enterprises, is familiar with Guangdong convention and exhibition industry and has visited many exhibition centers in Guangzhou, Shenzhen, Foshan and Dongguan. In his opinion, since this year, the strong rise of Shenzhen and Foshan exhibition industry will change the original pattern of the Pearl River Delta exhibition industry. The new era of exhibition economy is coming.

The driving coefficient of exhibition economy is about 1:6 to 1:9, which means that the investment in exhibition can bring six times the amplification effect. At the same time, every 1,000 m2 of exhibition area can bring 100 job opportunities, for example, because of the exhibition, Deutsche Messe can bring 100,000 jobs every year. Chu xiangyin (Executive Vice President of China Conference And Exhibition Economy Research Association) believes that the exhibition industry is closely related to local economy. Cities in the Pearl River Delta are accelerating the development of the exhibition industry, and the exhibition resources will face a new round of adjustment."Small, medium and micro exhibitions will gradually shift to surrounding cities while high-end international exhibitions will move closer to downtown cities."

Jiang huai analysis that, Guangzhou, Shenzhe and Foshan have large exhibition centers have been built or under construction. Foshan has a clear goal, which is to integrate industrial resources through producing areas and promote the structural adjustment of regional economy. Shenzhen is planning the exhibition center as part of the urban expansion, from which we can see that there are not only exhibitions but also real estate, parks, landscape and other supporting facilities, and the final presentation is the exhibition complex.

Guangzhou conference and exhibition industry has always been ranked in the top three in the country, Guangzhou still leads the Pearl River Delta in the hardware to undertake the exhibition, it has more than 300,000 m2 of exhibition venue area, which is much higher than the surrounding cities. The exhibition is divided into conference and exhibition, in which the exhibition presents the market value while the conference reflects the city brand value.

This year, Guangzhou has taken the lead. City leaders have successively participated in Davos Forum and China Innovation and Entrepreneurship Fair, forming interaction with international high-end conferences and enterprises. It includes the Pan-Pearl River Delta Conference, the 2th Investing in Africa Forum, the Fortune Global Forum and World Route Development Forum, which fully reflects the value of Guangzhou as an important national central city and an international hub.

In the opinion of Jiang Huai, "Stabilizing Exhibition and Expanding Conference" is the starting point for Guangzhou to face the new era of exhibition economy. The foundation of real economy and the positioning endowed by the state are the main driving force for Guangzhou to strive for a new round of competitive advantage in exhibition economy. The goal is to promote industrial upgrading and to transform through exhibition; furthermore, taking international conferences as a platform to introduce Guangzhou to the world, gathering high-end resources in the world is the two "engines" that Guangzhou will continue to lead in the future exhibition industry.