International Exhibitions – Catalysts for Economic Development

Maka Ghaniashvili

International and local fairs and exhibitions gain more and more importance in modern economic life.

A business can not succeed without new partners and relations, potential customers, rising company’s image and brand’s popularity. Therefore, exhibition industry and growing significance of business is not a surprising matter. Due to company’s strategic development plans, major goal and expectation of participation in the exhibition may vary. Namely:
Promoting sales:
· Direct sales;
· Enriching customers information data;
Customer relationship:
· Contacting potential customers;
· Developing contacts with existing customer;
Market research and study:
· Studding customers requirements and researching their expectations;
· Studying competitive environment;
· Showing new/actual directions of market;
· Getting acquainted with the latest technologies and innovations;
· Enriching information data;
Advertising:
· Activating company’s publicity and image campaign;
· Presenting new products and services;
Relationships with partners or agents:
· Seeking for new agents and distribution channels;
· Developing existing contacts and making them more active;
Relationship with media:
· Increasing media interest towards a company;
· Public Relationships;
History of exhibition development
Trade relationships date back to ancient era of Egypt and Greece civilizations and Rome Empire, when traveling merchants met local entrepreneurs at markets and fair territories. Romans began arranging fairs at various places that in a way supported the development of fair industry. The first commercial fair – Foirede St. Denis – was arranged in 629 in Paris by the year of 1127 fairs of various types were held in Holland and it soon gained regular character. As for the first fair that with its content is near to today’s fair, was held in 1165, Leipzig, Germany. During industrialization that began in XVIII century, opening new channels of sales and distribution made trade fairs and exhibitions more effective. By XVIII – XX centuries variety of presented samples at exhibition increased. In XIX- XX centuries exhibitions turned into more specific events with different statuses, such as: agricultural, medicine, souvenirs or other specific exhibitions. International and local exhibitions greatly contributed to various countries economic development processes during the World War II. Exhibitions have gained the most dynamic and effective function of sales within modern globalization. The world’ total exhibition space increased with 40% during the period of 2000-2005. Almost about 2/3 of the above mentioned space is located in Europe. Its worth noting that Germany is a leading country in international exhibition industry. The following countries are at Top five of leading countries according to exhibition space area: Germany (2.9 million sq. meters), China (2.3 million sq. meters), Italy (1.4 million sq. meters) Spain (1.3 million sq. meters) and France (1.2 million sq. meters). Growing number and space of exhibition centers in Germany is caused by the importance of exhibition activities. According to statistical data, as a result of exhibition space intensive growth in Germany by the year of 2009 exhibition area indicator will increase with 86 000. According to the latest statistics, the following takes place in Germany annually:
· 154 international exhibitions;
· About 166,991 companies and organizations participate in it;
· Number of foreign participants reached 88.123;
· Exhibition venue equaled to 6 617 716 sq. meters;
Modern exhibition types:
Exhibition may be classified according to different types:
Exhibition types that have different geographical signs:
· International Exhibitions;
· National Exhibitions;
· Regional Exhibitions;
International Association of the Exhibition Industry has determined international exhibition standards that should meet the following requirements:
· 20% of exhibition participants should be foreign companies;
· Foreign visitors make 4% of total visitors;
· 20% of total exhibition space should be occupied by foreign participants’ exhibition area.
In all other cases an exhibition gains national or regional status. Exhibition status research is implemented by group of audits issued by some international marketing research organization.
The following are the types of industrial exhibitions:
· General Trade Show;
· Specialized Exhibitions (mono –industrial);
· Multi industrial exhibitions;
· Corporate exhibitions;
Types of exhibitions according to exhibited products and services:
· Trade Shows for Capital Goods (B2B/Business to Business);
· Exhibition of Household Appliances (B2C/Business to customer);
· Various, combined exhibitions;
Types of exhibitions according to business contacts and sales specifics:
· Import oriented exhibitions;
· Export oriented exhibitions;
The growth of exhibition centers and organizations, their activities and diversity of arranged events caused the creation of various international exhibition associations. The International Association of Exhibition and Events – IAEE and UFI, Union des Foires Internationales, also known as the Global Association of the Exhibition Industry are the larges and the most important among them. UFI was founded in 1925, in Milan, Italy, by 20 European international trade fairs. By 2006 about 325 organizations were united under it. The only Georgian exhibition center ExpoGeorgia became the member of the above mentioned organization in 2005.
As we have mentioned, exhibition business carries a great importance. Poland’s case may serve as a good example here. As a result of implemented economic reforms during recent 3 – 4 years the country became the biggest exporter of agricultural and industrial goods to Europe. One of the bases of such a dynamic growth is the development support system of export production in Poland. Assisting and supporting different companies while participating in international exhibitions is a noteworthy fact. State issued Zloty 52 million to Ministry of economics in 2007 that finances export business and participation in international exhibitions through Investment Agency.
Let’s take a look at situation in Georgia. At what stage of development is the Georgian exhibition business and what effect does it make on Georgian economy? Ongoing processes and active participation of Georgia in international trade network caused the necessity of different business meetings and seminars.
We have discussed the above mentioned issues with Teona Tavadze, Public Relations Manager of exhibition center ExpoGeorgia.
– Our exhibition centre was constructed and founded in 1959. By that time there was one exhibition centre in each post soviet country, although international exhibitions were not arranged. Only national exhibitions took place. Since 1991 ExpoGeorgia has become a Joint Stock Company, became a private structure and we have started organizing international exhibitions and fairs. Our center unites 11 exhibition pavilions, an administrative building and an open area of about 150 000 sq. meters that covers park with greenhouse and ethnographic corner. These eleven pavilions vary with their space and configuration. Certain pavilion is selected according to the space required by the specific exhibition. As the world’s experience shows, generally there are several types of industrial exhibitions: International that implies the participation of local entrepreneurs as well as foreign companies; Regional – arranged within certain regions, it carries national character. International exhibitions are always thematic, covers one field or different segments of related fields. We have chosen the fields that are of vital importance for Georgian market and certainly it is quite natural. As we have already mentioned, local entrepreneurs should also participate at international exhibitions. The issue considers not only production, but service as well. For example, International Tourism Fair that will be celebrating its tenth edition, wide range of services will be presented to visitors by organizations of different types, tourist agencies, air companies, hotels, health centers etc. besides, one of the directions that our exhibition centre has taken, is arranging events like international conferences, forums or presentations and corporate events. These are the leading events to some of exhibitions.
– What is the exhibition business development dynamics in Georgia since 1991?
– Different fields of economy were affected in virtuous ways. Development of specific field covers growing demand and certain types of investment. Exhibition in Georgia, as well as in the world, has one major function – to support the presentation of local products, to deliver detailed information to customers and to attract foreign companies. From the beginning we had several themes that were active by that time, such as construction, tourism etc. some other themes were added to them during following years. Due to growing scales of an exhibition, sometimes certain directions may be distinguished: for example construction theme united segments of construction materials, interior and furniture. The theme has become so wide that furniture became a separated segment this year. Sometimes it happens just opposite. Development dynamics of certain filed is so low that it’s better to join it with some other exhibition theme. Last year we added wine fair as well, that was covered by food industry theme. Nowadays we have international exhibitions of 11-12 different fields. National fairs are added to it as well. Namely, national fairs of Iran, China, Italy and other countries.
– How big are these exhibitions?
– Exhibition thematic, as well as its scale has increased. While 2000 sq. meters pavilion was enough for arranging fairs, food and construction fairs require 3 – 4 pavilions simultaneously during recent several years. We began a new project on widening our scales last year. It implies the addition of about 1000 sq meters for exhibition and 500 sq meters for integrated conference and seminar halls. As a result it aims to develop exhibition centre infrastructure.
– How can a company participate in fairs?
– Preparations for a new exhibition project begin about year and a half in advance. Preparation process implies detailed study of the given field – it’s ongoing processes, local production scales, foreign investment share, growth of demand on local market on corresponding products and services etc. We create an information data of thousands of local and foreign companies. Then we deliver information to the companies on micro and micro data, ongoing events and certain overview of investment environment. We also inform them about exhibition participation conditions, such as price, types of stands, exhibition season, date etc. in case of their interest we go through certain financial and legal processes.
– When do you have the final list of participants?
– Regularly arranged expiations have their stable participants. They annually take part in the event. Although there are some new companies that decide to participate in exhibitions one or two months in advance. We generally indicate final application deadline in registration forms. Organizers need the rest period of time to settle technical and organizational issues.
– What is the state’s role and support in developing exhibition industry?
– Exhibition aims to encourage a certain field and support stable economic and international relations. Therefore governmental bodies should be actively involved in it. We cooperate with them.
– What is this cooperation like?
– Nearly all out international exhibitions are arranged with the organizational support of corresponding Ministries and Departments. Our company’s active cooperation with Tbilisi Mayor’s Office is worth noting.
– Export promotion state program is Poland finances Polish companies participation in international exhibitions. Are the same programs implemented in Georgia?
– The same programs are implemented not only in Poland, but in other countries as well. In Turkey, for example, export promotion and support program provides organizational as well as financial assistance to the companies that participate in exhibitions. As we are aware, there are no projects of the same type in Georgia. Probably some small programs are implemented, but you will get detailed information on it in the ministry of Economic development. ExpoGeorgia is not directed to Georgian companies’ participation in exhibitions abroad. We work in Georgia and arrange international fairs here.
Finally, you can find ExpoGeorgia Exhibition Calendar 2008 below:
· April 10 – 12 , CTF-2008-Caucasus Tourism Fair, 10th International Tourism Fair;
· May 21 – 24 , Caucasus Build, 13th International Fair for the Building and Interiors;
· May 21 – 24 , Geo Realty 2008, First Fair for Real Estate;
· June 5 – 7 , WinExpoGeorgia ’08, 2nd International Fair for Wines and Spirits;
· June 19 – 22 , Caucasus Healthcare, 8th International specialized Fair for Medical Technology, Laboratory Equipment, Dentistry, Pharmaceuticals, Optics and Hospital Equipment;
· June 19 – 22 , Tbilisi Beauty, 3d International Exhibition for Cosmetics and Aesthetics Medicine;
· October 17 – 19 , Tbilisi International Auto Show, 5th International Specialized Fair of Automobiles, Auto Business and Spare parts;
· November 12 – 15 , Agro+Food+ Drink+Tech Expo Georgia, 9th International Exhibition of Agro, Food and Drink Products and Food Processing Equipment;
· December 4 – 7 , International Furniture Salon, 1st International Exhibition of Interior Design, Furniture and Accessories;
· December – Christmas Fair.