Session # T218

The Trade Show Supplier Ecosystem –

Today and Tomorrow

Chris Kappes, SVP, Strategic Alliances

3D Exhibits  

Chris Kappes is a senior-level business builder and difference-maker. Over three decades, he has led national sales/marketing organizations for George P. Johnson, Sparks, Contempo Design and was president of Matrex Exhibits. He is presently SVP at 3D Exhibits where he has a one-word job description: Growth. Chris writes a popular blog (http://exhibitionpro.wordpress.com), is recipient of many industry awards and co-author of a new book: "The Noise of Business. How To Make Trade Shows Work." M121

The Trade Show Supplier Ecosystem – Today and Tomorrow

Table of Contents

• What is an ecosystem……………………………………Page 2• Tradeshow ecosystem …………………………………..Page 4• US Ecosystem vs. Global ecosystems ……………….Page 6• Genesis of the US tradeshow ecosystem……..……...Page 7• US GDP drives exposition growth……………………...Page 13• Ecosystem member roles………….……………………..Page 15• Environment challenges impacting

ecosystem (US. and global) ……………………………..Page 19• Future ecosystem models ……………..………………...Page 21

ELC#1

• What is an ecosystem: The concept first appeared in Harvard Business Review in May/June 1993.

• What is an ecosystem?

• How does it function and

• why does it serve a vital role in the industry?

Defined by HARVARD BUSINESS REVIEW, 1993

A company viewed not as a member of a single industry but aspart of a business ecosystem that crosses a variety ofindustries.

In a business ecosystem, companies co-evolve capabilities arounda new innovation: they work cooperatively and competitively to supportnew products, satisfy customer needs, and eventually incorporate the next round of innovations.

Business Ecosystems

ELC#2

• Tradeshow ecosystem. Learn about the 10 broad service categories that comprise the ecosystem and produce 11,000 tradeshow in the US per year. Who are members and what do they do?

Tradeshow Ecosystem Today

By the Numbers• US hosts most number of tradeshows• 1.8M corporate and business meetings per annum• 11,094 meetings with conventions• 10,000 BTB tradeshows • Largest % hosted by hotels• $263B in spending• 1.7M US jobs• $106B contribution to GDP

Source: The Economic Significance of Meeting to the US Economy

ELC#3

• US Ecosystem vs. Global ecosystems: Learn about the different global models; fractured and varied, consolidation is difficult but underway..

Global Expansion

Ecosystem Challenges in Emerging Countries

• Economic strength• Currency stability• Convention facilities• Available square foot/meter capacity• Infrastructure• Ease of attendee travel• Transportation system• Corruption• Security• Tax rates and regulation• Work ethic

ELC#4

• Genesis of the US tradeshow ecosystem: formalized in the mid-1900’s as local service firms, created graphics, props, floats and decorations for national fairs and expositions. This system has evolved with business needs, wants and expectations.

Four distinct stages:

1.Birth expansion

2.Leadership

3.Self-renewal – or,

4.If not self-renewal, death.

Trade Show Birth

MarketplacesMercersTrade routes western europePayment systemGuildsSteam shipping vessels

First World’s Fair, 1851, Londonmachine assisted production rail transportation

Guilds flourish

1851 Worlds Fair: Paris

First Auto Show: 1900

Trade Show Expansion (1900-1950s)

Interest in sample fairs waneShows reformed to narrow product/visitor baseTradeshow name coined to discern from consumer showsTrade associations form Mass manufacturingUnions formalizeCommercial flights, 1930’sInterstate highway, 1956General contractors proliferate

1st Trade Association, 1883

Trade Show Leadership(1950-1980)

Manufacturing and middle classProduct InnovationLas Vegas launches new rotunda and 90,000 sf. HallMcCormick Place, 1st purpose built, 500,000Tradeshow methodology

TODAY: 1197 exhibition venues globally32.6 million sq. m of indoor exhibition space

Original Las Vegas Convention Center

Original McCormick Place

ELC#5

• US GDP drives exposition growth: shows grow exponentially in the 1940’s due to industrial production expansion, product innovation, new distribution channels, faster and affordable modes of transportation, growth of middle class and consumer affluence and demand.

ELC#6

• Ecosystem member roles: once distinct roles are now blurring. Discover why? Is your tradeshow program aligned with the proper partner?

Big sea, many supplier fish

Our Industry: Past

Big sea, shrinking supplier population, several big fish

Our Industry: Present

Our Industry

Company Landscape

Trends

Exhibitor: Quantifying and reporting value

Ecosystem impact: tools to demonstrate/prove value

Exhibitor: budgets flat at 39% of BTB Marketing Budget

Ecosystem impact: doing more for less

Exhibitor: aligning event portfolio

Ecosystem impact: diversification

Exhibitor: budget shift to rising operational expenses

Ecosystem impact: service bundling a challenge

Exhibit Partner Trade-offsSmall ($25M or less) 34-companies

+ -Big fish in a small pond Single location

AE-centricity Resources

Owner engagement Financial strength

Buying power

Exhibit Partner Trade-offsMedium ($50-100M or less: 9 companies)

+ -Large client pond/diversity AE Exclusivity

Team approach Consumption of resources by large clients

Multiple offices

Scale & Resources

Exhibit Partner Trade-offsGiant ($100M+: 6 )

+ -Resource breadth and depth Overhead burden/expense

Management structure Lots of balls in air

Multi-location Large clients focus

Buying power

ELC #8

• Environment challenges that will impact the ecosystem (US. and global): The list of challenges is long: Technology, Aging Population, Generational expectations, Security, Economic Strength, Security, Ease of attendee travel, Environmental impact, Transportation system, Sufficient housing , Corruption, Tax rates and regulations, Work ethic, Cost vs. value. Learn about how the ecosystem is adapting today and for the future.

Challenges Ahead

Cost vs. value

New buyer predispositions and expectations

Quantifying and reporting value

Buyer base consolidating

Technology

Aging Population

Generational expectations

Environmental impact

Shift of key shows to emerging markets

Shows smaller and more personalized

Where do we go from here?

Proper Alignment

* B2B Expert Series: The Rise of the Digital Native

1980

Digital Immigrants Digital Natives

ELC #9

• The future ecosystem models: a hypothesis of what the future will bring to tradeshow ecosystems.