Exhibiting in Pudong
With the advent of the new NECC venue in the Hongqiao district in2014, Shanghai will have 800,000 sqm of exhibition space in Pudong and Puxi, far ahead of the city with the second largest amount of exhibition space – Hannover in Germany with 500,000sqm. China has become the second largest exhibition country in the world, and soon it will be the strongest, and Shanghai will become the world capital for exhibitions. Furniture shows worldwide are the largest in the exhibition world. Whether it is in Milan, Cologne, Paris, or in Las Vegas, they tend to be far larger than other tradeshows. It is the same in China – the furniture shows in Guangzhou, Dongguan and Shanghai are all larger than 300,000 sqm. The autumn edition of the show in Guangzhou, CIFF, will move to Shanghai to the NECC in 2015, and will inevitably compete with UBM Sinoexpo’sFurniture China (FC), which is held at theSNIEC in Pudong, and which celebrated its 20th anniversary this year. 2014 is a record year for SNIEC in terms of occupancy rate, with up to 6m sqm rented. We understand that this will drop slightly in 2015, but from the reservations to date, the occupancy rate at SNIEC will stop its decline and return to growth in 2016. What are the advantages that SNIEC has over the competition that make organisers, exhibtors and visitors continue to support exhibitions at the SNIEC? Following are the 8 big advantages of Pudong that could explain the weightage that Pudong carries in the development of China’s exhibition industry:
1. Pudong Airport - Pudong is the core area for the development of Shanghai’s international financial and aviation centre. The international airport, the Waigaoqiao free trade zone, and the Yangshandeepwater port are all clustered here. Every year the Pudong International Airport is responsible for more than 60% of the total flights in Shanghai, and over 90% of the international flights. International airfreight volume reaches almost 3milliontonnes at the Pudong Airport, ranking third worldwide. At the same time, the Waigaoqiao free trade zone and the Yangshan port in Pudong are the first in the world to have a throughput volume of 20million standard containers. Pudong has literally become Shanghai’s window and bridgehead to the world. The 2010 World Expo further pushed Pudong’s exhibition hardware and software and integrated services towards international standards. For instance the expeditious transportation structure connecting Pudong International Airport and SNIEC – the world’s first Maglev train takes 15 minutes to reach SNIEC; a taxi journey is 30 minutes; Subway Line 2 conveniently connects to SNIEC; and the huge Longyang Road Station next to the venue is also the first stop for airport buses coming into Shanghai city.
2. Visa-on-Arrival - Exhibitions and conferences is a major emphasis in the Pudong government’s 12th Five-YearPlan. The government has introduced a large number of initiatives to facilitate and expedite the participation of foreign exhibitors and visitors in shows in Pudong. A major improvement applauded by international participants was the recent implementation of the visa-on-arrival arrangement which is unique only to arrivals at the Pudong airport. Foreign exhibitors and visitors only need to submit their application/registration to the organizer three days prior to obtain a 30-day visa at the Immigration upon arrival. This has greatly shortened the time and simplified the procedure needed to obtain a business visa, and has obvious impetus for the internationalization of Pudong’s exhibition and conference industry.
3. Hotels - After 30 years of development, reform and economic opening, there are about 70 starred hotels in Pudong. Hotels range from 4/5-star international chains to budget lodgings. Around SNIEC there are over 20 starred hotels of different grades, with the Kerry Hotel and Jumeirah Himalayas within walking distance.
4. Transportation Convenience - For large exhibitions that draw 80,000 to 100,000 visits each day. a convenient transportation network is of utmost importance. SNIEC is very well connected. Subway Line 2 and Line 7 take participants directly to the venue. The inner, middle and outer ring roads, the eight cross-river tunnels and the four large vehicular bridges all serve to make SNIEC’s transportation convenience superior to that of the finest exhibition venues in the world.
5. Habit -SNIEC has been in operation for more than 10 years. Exhibitors and visitors come at the same time every year to the same venue to attend FC, booking the same flights, the same hotel, the same restaurant, such that for the participants, it now feels like they are returning home. Participants havetruely become accustomed to FC in Pudong.
6. F&B -The organisers and the venue have to resolve the lunch requirements of tens of thousands of people within 1-2 hours on a show day, and to meet the demands for high-end hosting by exhibitors. In SNIEC, there are also 15 F&B outlets and 34 food provision points, capable of providing 48,000 meals a day, and as much as 85,000 meals for large exhibitions. There are also five convenient stores and five sales points capable of delivering 5,800 lunch boxes daily.In the vicinity of SNIEC some 200 bars, restaurants, including fastfood and coffee outlets in the venue itself, the food street in Kerry Centre, the Chinese seafood restaurant at Yongda Square, the restaurants in five-star Kerry Hotel and Jumeirah Himalayas hotel, all within ten minutes away by foot, have been established over a ten-year period, offering exhibitors and visitors a wide range of F&B choices. F&B convenience ensures the success of exhibitions.
7. Venue Design -The exhibition halls at SNIEC were designed by a professional design team from the leadingexhibition nation Germany, incorporating usage practicality and efficiency for international exhibitions. The design team had abandoned the idea of double-storey exhibition halls, and more than ten years of actual operations has proven the wisdom of the appropriately-sized, all ground-level 12,000-sqm exhibition halls at SNIEC, each with 10 five-metre wide freight entrances. Under normal circumstances, the move-out of 200,000 sqm large international exhibitions can be accomplished within just 10 hours.
8. Cost Advantage - High space utility rate is another of SNIEC’s advantage. On average the utility rate can reach 60% at SNIEC, and 50% at SWEECC, about 40% at the old SEC. Apart from these, after over ten years’ operation, SNIEC’s Asset Liability Ratio is very low. Its cost advantage is key for both venue and organizers. With ten exhibition centresin Pudong and Puxi, ranging from a few thousand sqm to 400,000 sqm, and in total offering 800,000 sqm in exhibition space, the hardware in place.
The competition in future will be on supporting facilities and services. Pudong has the first-mover advantage, but to keep its lead it must further improve and upgrade its supporting facilities and services.Puxi playing catch-up will have hardware advantage, but the competition rests on the upgrade on facilities, services, management and other software. Exhibitors and visitors from around the world, the government, investors and organisersare all eagerly looking forward to both Pudong and Puxi taking flight.
Source: UBM Sinoexpo, Sept 16th, 2014