International trade shows or trade fairs are an absolute must for companies wishing to move ahead in the fiercely competitive global market environment. In this article I will discuss the importance of trade shows or trade fairs for companies large and small who seek to compete effectively in the current market environment.

Introduction

In the dynamic Chinese city of Shanghai, creating news was near revolutionary during the period November 1st to the 5th in 2006. During this time period four major trade shows had been staged simultaneously. Approximately 704 companies from 26 countries flocked in to partake in this revolution. The event was held at the Shanghai New International Expo Center whereby as many as 39,875 visitors from 68 countries passed through the turnstile to participate in this event.

The four events included: ENERGY ASIA, Factory Automation ASIA, INTERKAMA ASIA and Metal Working. These four shows were accompanied by an extensive supporting program featuring multiple forums, lectures and seminars including the Seminar of the Shanghai Association of Automation, the Forum on Power Distribution Intelligence Technology, the China Metal Working Summit, among many others.

The massive turnout of market leaders to meet clients face to face at these events attests to the fact that international trade shows are alive and well and their importance has not diminished even as technology-based means of communication have become more sophisticated and accessible. The success of this event also demonstrates that trade shows or trade fairs are an absolute must for companies wishing to move ahead in the fiercely competitive global market environment.

Strategic Importance of Trade Shows and Trade Fairs

A typical trade show is an event at which manufacturers, distributors and other vendors display their products or describe their services to current and prospective customers, suppliers, other business associates and the press. Often a trade fair is the first communication step in the process of export development for the small and medium-sized company. Because of the strategic audience and the publicity provided by the major trade fairs, firms use them to show off their latest products and services. Many industries, firms and investors are routinely showcasing their products at international trade shows.

Trade shows and exhibitions provide a neutral location for doing business. They bring together managers from different departments in buyer organizations, which increases the probability of meeting the decision makers and those influencing the purchase decision. Participation in these shows especially helps businesses seeking to explore marketing opportunities in another country, to make contact with paramount distributors, to build formidable relationship as well as determine the best way to market products in another country.

Trade fairs can be valuable not only for well established firms for purposes of prestige, public image and introduction of new products, but also for new firms that might not have other readily available ways to expose their products to the right audience. For new product announcements and demonstrations, the trade fair is an ideal forum for display.

International trade fairs offer many advantages and international marketers are well advised to consider them when planning promotional programs. A firm can test sales and determine potential distributor reaction in the market before committing itself. Potential distributors and licensees favor trade fairs for the same reason. They can see a firm’s products and observe the market reaction. In effect trade fairs are used to buy and sell products, to develop and sign contracts, to arrange for international distributorships and agent relationships.

Trade fairs are also used for CI (competitive intelligence); to check on one another’s most recent developments. In most surveys done at exhibitions, 30% to 40% of the respondents cited market research—also known as CI or checking out competitive products—as central to participation and marketing. Attending a trade show enables company representatives to learn a great deal about competitors’ technologies, pricing and the depth of market penetration.

Several thousand international trade fairs occur annually in more than 70 nations. Specialized fairs in individual sectors such as computers, the automotive industry, fashion and home furnishing regularly take place. Several hundred fairs are held in Eastern Europe annually. Some examples of successful International trade shows are provided below:

HANNOVER MESSE

In 2006 HANNOVER MESSE was the umbrella event for 10 international flagship trade fairs including INTERKAMA+, Factory Automation, Energy, Digital Factory, Subcontracting, MicroTechnology, and Research & Technology. New additions include Industrial Building Automation, Pipeline Technology, and Industrial Facility Management & Services.

Out of a total of 5,175 exhibitors, 2,322 foreign companies came from 66 different nations to exhibit in Hannover, Germany in 2006, a turnout which is about five percent greater than in 2004. By attracting around 30 percent of its visitors from abroad, HANNOVER MESSE 2006 reached new heights of international popularity, further extending its unrivaled international appeal.

CeBIT

CeBIT is the Olympics Game Industrial exposition. With more than 4,000,000 square feet of indoor exhibition space and over 6,000 exhibitors, this Hanover-based event is 10 times as large as most trade shows anywhere in the world. It is superbly organized, has its own train station, post office, over 30 restaurants, and 600 permanent staff. The range of exhibitors covers everything available in information technology and communications. In year 2005, more than 474,000 visitors attended the show, including 128,000 from abroad. More than 11,000 journalists from 70 countries cover the event annually.

DRUPA and INTERKAMA

DRUPA is an annual trade exhibition for the graphic arts industry, and Inerkama is an international trade fair for industrial communication, automation, measurement and analytics. Messe Dusseldorf, in Dusseldorf, Germany, specializes in international trade shows for machinery as well as for medical, fashion and service industries.

PARIS AIR SHOW and FOTOKINO

Two of the more famous specialized fairs are the Paris Air Show and the Fotokino or photo products fair in Cologne. The Fotokina is the major international showplace and battleground of German, Japanese, U.S. and other producers of photo products. The Paris Air Show is a giant biennial event running more than a week. About 150 U.S. firms are represented in the USA National Pavilion. This includes small firms as well as aerospace giants. Thousands of visitors from around the world generate thousands of leads as well as off-the-floor sales Columbia has its biannual Bogota International Trade Fair that draws participation from more than 25 nations including countries in western hemisphere, Europe and Asia.

Government Support in Trade Fair Participation

Countries and governments are often involved in ensuring that national and local companies are represented at important fairs. The great appeal of these trade fairs is also embodied in the presence of international pavilions organized by industry associations and trade agencies from Germany, Switzerland, Korea, the Czech Republic, Spain, America, Japan, China, Taiwan and Spain. These international pavilions provide a unique opportunity for visitors to see and compare innovative products and services without having to travel the world.

Usually, the U.S. government shares in the cost of the exhibits by sponsoring a national pavilion at the different fairs. As a part of its international promotion activities, the U.S. Department of Commerce sponsors trade fairs in many cities around the world. The publication of the Department of Commerce, Business America, has a periodic listing of international trade fairs. Additionally there are trade shows sponsored by local governments, in most countries. African countries, for example, host more than 70 industry specific trade shows.

Recommendations

When participating in such a fair, advance preparation is crucial including contact initiation and translation of material into the language of the host country. Planning must begin 12 to 18 months in advance. If the decision is made to attend trade fairs, the first step is to identify those relevant to their products and services.

Select Wisely

Make sure the trade fair you attend is targeting visitors who are likely prospects and potential customers. The firm should include its subsidiaries, distributors and licensees so that maximum value can be obtained by all of the firm’s operations. To take full advantage of your participation in the trade fair, it is important to not just attend the show as an exhibitor but to plan additional events that coincide with exhibiting at the trade show – e.g. a technical seminar or a cocktail party held at the hotel recommended for accommodation of exhibitors by the trade show exhibitors. It is typical to use local distributors, consultants and sales representatives to help with the logistics of bridging local culture.

Make it Easy for Them to Find You

As an exhibitor you have to remember that “time” is very precious, and you have to find ways to expose your offerings to the potential buyers or distributors within a short period. If you use a country-centric pavilion to exhibit your products, it would be a lot easier for buyers to develop relationships between the offerings from a specific country without roaming about in the wilderness. In other words, if the exhibitors from a country are clubbed together, it is a lot easier for visitors to locate any country specific product under one pavilion.

Calculate the Full Cost of Participation

Costs include renting space, dressing the exhibit, putting up customs bond, renting furniture and equipment for the exhibit, hiring of local people to assist and interpret, sending executives to staff the booth, prepare supplemental promotional material, and activities in conjunction with participation to attract visitors to stop at the firm’s exhibits. These include direct mail, advertising, PR activities and contingency plans.

Follow-Up

What happens after the trade show is just as important as what happens at the trade show. Research indicates that more than 80% of leads gathered at trade shows are never followed up. One of the reasons for such a large number of leads falling on the way side is lack of enough information. Many of the leads have no substance. They are either just cold business cards or name of the person written on a yellow pad.

To truly benefit from all the hard work that went into planning the show, exhibitors must prepare a checklist of information that must be collected about the visitors. It is important to maintain detailed record of visitors, such as their business cards, list of products that interest them, and whether or not you promised to call them or send them additional information or samples of products.

Final Words

Trade shows are the most important vehicle for selling products, reaching prospective customers, contacting and evaluating potential agents and distributors, and marketing in most countries. They have resided at the very center of commerce in Europe for centuries. European trade shows attract high-level decision makers who are not attending just to get their latest products out but are in attendance to buy. In difficult economic times and or political circumstances, online trade shows become a useful but obviously less than adequate substitute. An example is the world’s premier mobile telephony event, 3GSM World Congress, which has nearly 1,000 marketers showcasing their latest mobile products, services and solutions.

Finally, while in the U.S. trade shows are manned by the sales representatives and middle managers, at global trade shows customers expect to meet the chief executive officer (CEO) and other senior management. It is vitally important that the CEO and the senior executives are visible at the international trade shows and to gauge the market opportunities and to establish relationships with other vendors, potential customers, alliance partners and distributors.