New opportunities for gift and home companies: Reed Huabo

Reed Huabo Exhibitions' Gifts and Home Fair. CHINA DAILY

The Reed Huabo Exhibitions' Gifts and Home China Fair is an ideal communication and learning platform for gift companies amid the Chinese industry's slowdown, according to the organizers.

The fair held twice a year in Shenzhen can attract more than 100,000 buyers and more than 3,500 suppliers each session. The second fair in 2014 will be held in Shenzhen from Oct 20 to 23.

The exhibition was first launched in 1993 with little more than 100 suppliers. The event has grown into the largest of its kind in China in terms of revenue and exhibition area, which reached 115,000 square meters last session.

The show maintained revenue growth of about 20 percent in the past two decades and has hosted nearly 6,000 booths.

"The growth rate was lesser in 2013 because the exhibition hall in Shenzhen was fully occupied and we could not add more companies to the exhibition," said Mike Jiang, general manager of Reed Huabo Exhibitions.

By participating in the fairs, people can talk to industry giants, promote their latest products, increase brand awareness and look for distribution agencies.

Conferences and seminars held during the exhibition will also provide companies with up-to-date information so they can react quickly and transform efficiently as the market changes.

"We not only offer people a place to showcase their products and also are trying to inspire companies by providing them with latest research results and industry insights," said Jiang.

Market in China

After the central government vowed to crackdown on lavish gift-giving in its efforts to root out extravagance in 2012, the industry's growth has slowed.

In previous years, the demand from the government and conferences supported the growth of the gift industry in China. Figures from the China Gift Industry Research Institute showed that China's annual demand for gifts reached 768 billion yuan ($125 billion) in 2011. "Some companies have seen a decline in sales and might quit the market," said Jiang, who is also the standing deputy chairman of the China Gift Chamber of Commerce. "However, we believe more than 25 percent of companies will grow."

Gary Liu, vice-president of Reed Exhibitions Greater China, said "customized gifts for personal use and corporate gifts that can reflect company values and culture might bring new opportunities for gift companies". Reed Huabo is a joint venture between Reed Exhibitions Greater China and Shenzhen Sinoexpo Exhibition Co., Ltd. Reed Huabo's gift portfolio is one of the Reed's biggest event portfolios among 11 specialized sectors that Reed focuses across Greater China.

Most people in China link gifts with expensive and high-end products, however, Liu said the concept of a gift in this country should be changed. "We would like to educate the market to realize that gifts might not mean expensive products. They can be a symbol of a company or individual and can be worth less than 100 yuan," said Jiang.

"Many companies, including foreign companies, give free gifts to clients in China, but their design is poor and does not relate to the company's scope and culture," added Liu. "We believe there will be tremendous business opportunities in the customized gift trading segments," said Liu. "Branded products will receive better recognition."

After closely monitoring the Chinese gift market for more than two decades, Reed Huabo's exhibition is like a barometer for the changes in the industry.

The organizers said no efforts would be spared to ensure exhibition participants obtain useful information at the events and develop their businesses.

Reed Huabo predicts big developments in China's customized gift sector and has committed to educate companies to pay more attention to the emerging business sector.

"Every year, we will host competitions and research conferences to inspire companies and designers," said Jiang.

Since 2008 Reed Huabo has hosted the gift industry's Top 100 Competition, a contest aimed to evaluate company performance and offer industry peers the chance to communicate with each other. In 2013, more than 500 companies participated in the contest.

Online exploration

Reed Huabo introduced an online platform to match buyers and suppliers in 2013.

"We have a database with more than 500,000 buyers but only one fifth will come to our exhibition, so this B2B (business to business) platform will connect the two parties even after the exhibitions," said Jiang.

According to Jiang, suppliers at the exhibitions are divided into 21 categories so they can be found easily. Users can make appointments online with buyers or suppliers.

Currently, Reed Huabo is trying to divide the buyers into different categories to create better matches between the two parties. The boom in online business caused some people to question if traditional exhibitions might disappear.

"Look, listen, talk, touch and smell are key factors in good trading. It is impossible to be replaced," said Liu.