COLOGNE — In his preview of the new annual version of the Global Industry Performance Review, Jochen Witt, President and CEO of jwc GmbH, highlighted the widespread global losses the industry has faced over the past year, as well as the role that China and omnichannel events will play in its recovery.
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The 200+ page research report analyzes financial data from the top 40 exhibition companies, as well as global and regional market trends. New for 2021, report owners can discuss the findings with jwc experts in a series of exclusive digital events starting in June.
Highlights of GIPR results
It took six months of research to compile this year’s version, and Witt shared some of the highlights during a webinar earlier this week. Among them:
- The Chinese market will be the engine of the sector’s growth. Currently, 19 venues are under development. Venue capacity in China has doubled over the past 10 years, as have organizers’ revenues. “The dynamics of the Chinese market have been interrupted by this crisis, but they will come back quite quickly,” Witt said. “It’s the largest consumer market in the world.”
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- Macroeconomic indicators were used to compare how each region of the world performed during the crisis. They show that the United States is experiencing a V-shaped recovery “driven by the amount of money the government is putting into the stimulus,” Witt said. “If you look at spending as a percentage of GDP, the numbers are significant.”
- Salon markets like the US and UK, which are very domestically focused, will be the first to recover, while Africa and parts of Asia and South America, which won’t be fully vaccinated until 2023, will be the last to recover. “That means we’re going to have to continue living with high levels of hygiene at our salons for some time,” Witt said.
- In Europe, the German trade fair sector is most affected, as it is very international and dependent on travel, which will continue to be affected in the next two to three years.
- Revenue losses for businesses have reached record levels across the board and far exceed those recorded during the financial crisis, Witt said. “The losses have been enormous. This is the first time in 50 years that trade show revenue growth has been decoupled from GDP.”
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This year’s report devotes 60 pages to digital events, which Witt sees as a positive for the industry because it allows organizers to expand their events throughout the year, broaden their reach, and strengthen customer relationships and communications. He also sees the digital platform as the best framework for some aspects of live entertainment, such as matchmaking. “Let’s stop looking at immediate monetization of digital events and take a longer-term view,” he said. “We have a huge opportunity to energize our shows through digital.”