At the beginning of 2009, hundreds of conferences and exhibitions were cancelled in Las Vegas alone as a direct consequence of the economic meltdown. This once again highlights the need for a radical shake-up of the global MICE (meetings, incentives, conferences and exhibitions) industry if it is to see any growth in the coming 36 months.

I have been watching the trend of pop-up stores in the UK with some interest. It is definitely proving to bean innovative way of countering long leases and managing overheads. Big brands are adopting this method and — if it proves successful — will change retail as we know it and deeply impact supply chain management.

 

Losing their appeal

For many years, I have challenged the cost of exhibiting at premier local and international exhibitions.

In discussions with colleagues from different industries, it has become evident that exhibitions have lost their appeal and are moving down in marketing budget rankings.

This is based on the fact that exhibitions in particular don't provide the brand with a return on investment… at least in the current environment. It is important to note that I am not only referring to the real estate space.

The hype set around exhibitions and the sales pitch from the respective representatives is now turning out to be a bore. The MICE industry is in dire need of innovation and a new business model.

The pressure days of a brand ‘having to be seen' at an exhibition are no longer with us. The time has come for exhibition organisers to listen irrespective of their scale of operations and to understand their needs, as opposed to bowing to the whims of a few anchors.

The cost of exhibition space has been a bone of contention for quite some time. Add to that the fact that the conference venue dictates that all catering requirements are booked through them, most of which, to stretch the truth are mediocre. Why then is a client shelling out ridiculous sums of money and being dictated to as well?

Let's take the situation with real estate as an example. With a lending drought on, there is absolutely no point in investing vast amounts in an attempt to attract a very limited clientele who have a proliferation of choice when it comes to property investments.

Yet, it is still necessary to showcase brands in a clever way, and the emphasis is on being smart.

As marketing budgets come under closer scrutiny, value, value-add and return on investment will be used by clients and purchasers as yardsticks for measuring the success of conferences and exhibitions.

Hence my next question: why would you possibly have a mega real estate exhibition without the participation of lending institutions and investment firms? Such events work only if deemed attractive to a wider audience, and I have no doubt that these will grow over the course of the coming 18 months, especially in the categories of lifestyle and technology.

However, I don't foresee real estate fitting in here. We need to put quality and trust back into our business and take out the bigger is best attitude. Real estate clients and developers want a new business experience and they do after all understand their market requirements a lot better than exhibition organisers.

 

Innovative factors

Where is the innovation that will drive companies back to the exhibition halls? By that I mean cost, content and presentation innovation.

I have been negotiating on behalf of a client to gain entry to participate at a mega event which will take place just before the 2010 Football World Cup. This is a prestigious showcase for countries and their products which has grown in stature over the past ten years.

Considering that this event will happen in May 2010 and there has been sufficient time to appraise the effects of the economic tsunami, I was appalled by the arrogance of the pricing and the dictatorial attitude that surrounds the organising of this event.

After much deliberation we created a new way of showcasing the brand on behalf of the client at half the cost of the exhibition participation and in a more suitable environment.

As for not having the huge footfall that so many exhibitions promote to us, quite frankly I would rather hand out brochures and interact with serious visitors and potential clients than be lining up bags with brochures for an indifferent sales team to hand out to anyone who has a spare arm!

Exhibition organisers need to engage more with their clients in a way that is meaningful and beneficial to all concerned if this industry is going to grow. This is more so in the real estate sector.

 

The writer is managing partner at FHS Global, a Dubai-based firm. She can be reached on judy@fhsglobal.com.