B2B Media in China –
integration and face-to-face
Paul Woodward
Principal
Business Strategies Group
ad:tech Beijing
16th October 2007

Two topics for today
• Face-to-face marketing – the
exhibitions and events business in
China
• Integrated media companies –
organising around markets
16th October 2007 © Business Strategies Group Ltd. 2007 2

Exhibitions and events in
China
Based on research undertaken
each year by BSG on behalf of
UFI, the Global Association of the
Exhibitions Industry

Chinese trade fairs in an Asia
context
Total Asian market:
US$2.5 billion
Estimated exhibition revenues(US$)
Others
China
21%
30%
Korea
5%
Australia
6%
Japan
Hong Kong
25%
13%
Total China market:
US$759 million
16th October 2007 © Business Strategies Group Ltd. 2007 4

As part of the China B2B mix
$759
$800
2006 market total:
$700
$1.41 billion
$600
$500
$350
$400
US$ mn
$300
$300
$200
$100
$0
Trade fairs Online (est) Magazines (est.)
16th October 2007 © Business Strategies Group Ltd. 2007 5

Industry focused on the key
cities
Space sold sq. metres (2006)
684,466 , 13%
Shanghai
1,412,891 , 29%
279,100 , 5% Guangzhou
Beijing
Shenzhen
627,191 , 12%
Dongguan
The rest
763,874 , 15% 1,320,978 , 26%
16th October 2007 © Business Strategies Group Ltd. 2007 6

Growth is the key
Estimated size 2005 vs 2006 in % change
80%
72%
70%
60%
49% 49% 48%
50%
39%
40%
33%
30%
20%
20%
13%
11%
10%
2% 1% 0%
0%
an
-1%
g
s
a
a
e
n
nd
am
n
a
on
a
ne
iw
a
si
or
si
ta
pa
in
re
di
la
ne
ay
tn
s
Ta
ap
K
pi
-10%
Ch
In
Ko
ki
ai
Ja
e
lip
do
al
ng
ng
Pa
Th
Vi
se
M
i
In
Ho
Ph
Si
ne
hi
C
16th October 2007 © Business Strategies Group Ltd. 2007 7

…again focused on key cities
2006 Exhibition Market Growth
80.0%
72.9%
69.2%
70.0%
60.0%
50.0%
40.0%
33.6%
28.6%
28.0%
30.0%
20.0%
10.0%
0.0%
Shanghai Guangzhou Beijing Shenzhen Dongguan
16th October 2007 © Business Strategies Group Ltd. 2007 8

Key issue for next 12
months: Macau is changing
the face of business events
• But how?
• On a similar scale to Las Vegas
• Conventions or exhibitions business?
• Nobody wants to miss the boat
• Singapore to follow in 2010 with
Marina Bay Sands
16 October 2007 © Business Strategies Group Ltd. 2007 9

The integrated B2B media
company

The issue
• What business are B2B media owners
in?
– Exhibitions
– Publishing
– Online
• Can they be in all of them?
• Should they see themselves as business
facilitators?
– Does the medium really matter?
– It’s more a matter of market.
16th October 2007 © Business Strategies Group Ltd. 2007 11

Vertical focus in an
integrated B2B media
company
16th October 2007 © Business Strategies Group Ltd. 2007 12

Focused or generalists?
16th October 2007 © Business Strategies Group Ltd. 2007 13

So where does the future lie?
Here? Here?
Or
16th October 2007 © Business Strategies Group Ltd. 2007 14

So far, the numbers battle
has been with the generalists
C h in a G e nera l B 2 B S it es C h in a S p ecia list B 2B S ite s
M n . U s ers in M n. U se rs in
Jul - S ep t. Jul - S ept .
1 A lib aba.com 4 ,585,797 1 5 1fas hion .com .c n 1 51,20 1
2 M ade- in-ch ina.c om 948,893 2 c hinab yte.co m 2 56,35 7
3 hc 360 .com 747,914 3 c hem ne t.com .c n 1 03,28 9
4 G lobals our ces .com 333,512 4 e fu.c om .cn 81,51 1
5 T ooto o.co m 293,068 5 p harm ne t.co m .c n 56,62 2
6 bb spa ce.c n 197,245 6 t exne t.com .c n 59,73 4
7 td ctra de.c om 144,356 7 m ac hine 365.c om 51,02 2
8 ne tsun .com 119,467 8 zd net.c om .cn 46,04 5
9 en .chin a.cn 103,289 9 t echta rget.com .c n 40,44 5
10 bu sytrad e.co m 85,867 10 2 456. com 5,35 1
Source: Alexa/BSG analysis
16th October 2007 © Business Strategies Group Ltd. 2007 15

…and the money is certainly
with the generalists
• Global Sources market cap: $1.23bn
• Alibaba.com market cap: US$5.2bn (?)
• Ninetowns market cap: $192.2bn
• Zhejiang Netsun market cap:
Rmb3.97bn ($527 mn)
• HC International: HK$682.9mn (US$88
mn)
16th October 2007 © Business Strategies Group Ltd. 2007 16

Please feel free to contact
us:
paul@bsgasia.com
www.bsgasia.com
bsgasia.blogspot.com