TRADE EXHIBITIONS: ‘Regional’ Trend Sets In

Trade events are making a gradual shift from a national scale to regional

level. Greater PC penetration and user tech-savviness has propelled buying in

towns and cities and buyers here want to get a first-hand feel of products.

The Manufacturers Association of Information Technology (MAIT) used to

organize an annual event in collaboration with Confederation of Indian

Industries (CII) and National Association of Software and Services Companies (NASSCOM),

till 2000. Now, the association is taking all its events to smaller cities,

where it has its offices, simply because the response from these places is

significant.

Vinnie Mehta, Executive Director, MAIT, feels that the shift of various expos

from national to local scale is a sign that the domestic market is maturing.

"With the increased growth IT sales in B- and C-class cities, all

peripheral activities are gaining ground and an entire new eco-system is

flourishing," says he.

At the same time, one can’t write off national events as history because

Bangalore IT.Com was a major success in recent times. At the same time, one does

not hear any more of these grand NASSCOM and MAIT events.

The trend definitely is getting ‘Regional’. Some 10 cities in the Western

region of the country are planning to have trade shows beginning from December

up to February. Computer Association of Nashik used to hold its annual

exhibition once every two years, but now holds it yearly. It is expecting to

house over 100 stalls at an expenditure of Rs 5 to 7 lakh and hopes to make a

profit of 20 to 25%.

Pankaj Nath, Associate VP, CyberMedia Events, points out, "Most national

events are B2B and are aimed at showcasing products and dissemination of

technical information. Local events, on the other hand, are more B2C based,

where sales is the prerogative."

LOCAL EVENTS WHERE THE ACTION IS



There is a growing demand from end-users to have local expositions because

these expose them to latest products in the market. Footfalls recorded in such

localized events are estimated to be around 5,000 visitors per day. And this

number is increasing steadily.

Dhyanesh Thakkar of Mumbai-based Brainwave Systems agrees with this and adds

that the vendor participation and visitor walk-ins for national expositions have

reduced drastically. As a participant himself, he would rather put his money in

a local event, since he operates within a particular city or to its outskirts.

Dhyanesh prefers dealing with visitors belonging to the



region where he is operating, rather than targeting users all over the country,
through a national event.

This is a common feeling among most resellers, who do not have the money

power to spend on big expos. Given that most partners operate within a city or a

state, showcasing their products in an event that draws local crowd becomes

economical.

Vendors too are in favor of regionalized events, either through their own

branch offices or distributors. They find this strategy very useful to establish

their brand in small cities.

Says P G Kamath, General Manager, Lexmark India, "My money’s on the

localized, or what I would rather call as B2C events. These could even be

consumer fairs where IT products are exhibited. This is because the RoI is much

higher here, as one interacts directly with the end-user."

WHY ‘REGIONAL’ SHOWS MAKE SENSE



Regional events make good business sense for local players like SIs,

resellers and dealers as investment in such events has steadily spiraled down.

Participants can get stall space for as low as Rs 10,000.

The biggest advantage of a local event is that resellers have direct access

to the end-user. Sales conversion is higher, especially if the participant

offers good discounts and schemes. At the same time, one gets a good database of

prospective buyers. Also, there is standardized pricing in a local event, as

various local taxes are taken into consideration.

Vendors can view local expos as a second launch of their products, which

might be well-established in other markets. They can come up with schemes and

incentives best suited for the region, to give it a local flavor. Though some

may view this as a stock-clearing option, no one seems to be complaining.

Resellers/systems integrators (SIs) feel that national events do not help

them boost their business. "This is all the more so because vendors and

distributors can offer corporate buyers better bargains than a small

reseller," says Dhyanesh.

PG Kamath seconds this line of thought, having participated in national and

regional expos. He feels that national events are a good place to network and

impart knowledge, but at local events, one can convert walk-ins into sales,

especially fast-moving products like printers.

NATIONAL EXPOS ON THE WANE



NASSCOM, which used to hold one of the most prominent national events, an
exhibition combined with a convention, dropped the exhibition in 2003 and held

only the latter. And while it saw the participation of over 143 companies in

2001, only 73 participated in the exhibition in 2002.

Kiran Karnik, President, Nasscom had some time ago stated, "Currently

what we are witnessing in the context of the IT exhibitions scenario is the

dwindling of enthusiasm among Indian IT companies... companies are evaluating

the cost and benefits accrued by participating in exhibitions and then making

informed decisions."

Vinnie admits that vendor presence in national events is declining but

reiterates that a vendor will participate in either a regional or national

event, as long as it is in line with what the company wants to convey to the

visitor.

Bangalore IT.com is the only national event, which is

currently taking place successfully. The number of participants in BIT.com 2003

increased from 260 last year to 285, out of which 70 are overseas participants.

And one reason for its success is the strong backing of the state government.

For visitors, events like BIT.com is an ideal place to strike

a bargain, as products can be booked and bought at dollar prices from

international participants. Such deals are usually for high value products and

the unit sales might not be high, but the value of the transactions are usually

impressive with each deal running into lakhs of rupees.

National events also attract many serious buyers, who are

interested in learning more about a particular technology. This is the reason

why technical seminars and symposiums form an integral part of such events.

COST CONSIDERATIONS



National events are a playground for the big and bountiful. This is where

MNCs flex their muscles to attract more visitors with showy stalls and fancier

products on display. Participation in these events can cost anywhere from Rs

70,000 to Rs 1 lakh. And this just includes the cost of a basic stall, according

to Cyber Expo India Ltd, which organizes some of the leading trade events like

BIT.com and Kerala IT.

If a participant wants to stand apart in a place crowded with look-alike

stalls, then it will have to get a event co-ordination company for ad banners,

create a display shelf, get a few hostesses to man the counter. And all this

will cost an additional Rs 50,000 informs Mani Krishnan of Consumer Links, an

event managment company. "It also depends on the nature of designs the

participant wants," he adds.

Most big-time vendors budget their expenses for marketing and promotion. But

for regional partners, who operate on very thin margins, this is an unthinkable

and avoidable expense. Especially, when they can get a stall in an event

organized by a local association or event manager for around Rs 10,000.

Of course, one thing that a regional participant should do to get his money’s

worth is is to locally advertise on his own. This is in addition to the

promotion the event organizers undertake.

And the reason for this is that a local event will get all kinds of people

walking in, most of whom might not be the partner’s target audience. It is

best to invite a few existing clients, as well as prospective buyers, by sending

them e-mail invitations or calling them up personally. This will ensure good

sales, as these select buyers will be able to view the entire portfolio of

products and services at one go. Says Dhyanesh, "Local publicity makes all

the difference. If I don’t have my set of customers, whom I have invited

walking into the event, then the sales conversion ratio will be much

lower."

TRADE BODIES IN THE GAME



Local trade bodies are going to have busy quarter ahead as several events

are scheduled to be held during JFM 2004. Event organizer Mani points out that

local associations have the advantage of knowing the local flavor.

Baroda Information Technology Association’s IT Expo held early this year

attracted nearly one lakh visitors with over 100 stalls displaying their wares.

Paritosh Mehta, President BITA says, "Traditionally, SOHO buyers in the

past postponed their purchases until the IT Expo in order to get their hands on

latest products at attractive prices," underlining the popularity of local

events.

Another success event was Bangalore-based Association of IT’s PC Expo in

July 2003. The 30-stall exhibition attracted 50,000 visitors from home, SME and

corporate segment.

Earlier, some local expos focused more on the exhibition part of the event,

missing out on technical discourses, which is the USP of national events. But

now, these events are becoming more well-rounded with technical seminars and

discussions on emerging business opportunities.

VINITA BHATIA