The exhibition industry has grown over the years in terms of revenue.
How good is to have all retailers in one place showcasing their best products under one roof and requesting you to choose one? Well, this is how many people in the City buy either jewellery or even their dream house. Exhibitions provide you with an array of products all at different prices. Although, the industry is at a nascent stage it’s growing significantly, either in terms of shows or in revenues.
The exhibition industry is a global one worth around $20-25 billion. However, in India, it has a market size of $225 million and is not even contributing 0.5 per cent of the GDP. ”It is one of the most cost effective mediums to reach target audience either for business to customers (B2C) or businesses to businesses (B2B). For instance, if a business has to run an advertisement in any of the traditional media, it is expensive and there is no guaranteed return of investment with minimal lifespan. In terms of exhibitions, there are assured target customers walking to the stall, enabling leads or sales, said Sumesh Wadhera, MD, AOJ Media.
The costs to put up a stall may range from `40,000-1 lakh depending on the show. “It stands out from other mediums because of face to face interaction with the potential and target customers, leading to sales, branding and feedback for the business,” adds Sumesh.
Most of the organisers generate revenues from renting space and not from the ticket sales. “We get almost 90 per cent of the revenues from the stalls itself. Most of the tickets are sent out as complimentary to club members and why we put a price for a ticket is to filter non serious customers,” he explains.
Nagendra Prasad, COO, HITEX, said, “Often, it is difficult for B2Bs to reach their potential clients because they do not work in a retail format, wherein there is footfall or a platform for their products. Mostly, we host shows on the themes where the state has got strength and potential. This will create a platform for the industry to grow and eventually help in the growth of the economy.”
“The recession in the country or the declining phase of various sectors may not affect the exhibition industry. For instance, real estate in the City was hit due to various reasons. But the numbers of shows have gone up over the last few years,” he added.
Putting up a show
- Growth rate: 15 per cent
- Size: $225 million
- Number of shows every year : 650
- Number of shows at HITEX: 40
- Major cities: Delhi, Mumbai