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ispo Looks To Asia For Possible Shows
FEBRUARY 06, 2006 --
At a press conference, MMG CEO Manfred Wutzlhofer said the ispo trade show organizer had no plans for any shows in the Western hemisphere. He said the US market, now without The Super Show, was well served by a variety of specialty shows.
As for Latin America, he said MMG research indicated it would be a difficult region to serve with a single trade show as there are three distinct markets: Lower South America, Upper South America and Central America/Mexico. These markets have their own distinct characteristics.
The CEO said ispo would go where there are niches it can fill for the world’s brands. These would be underdeveloped markets. He cited India and the Gulf as two such markets. Wutzlhofer said any expansion will be the result of extensive research and would be done prudently
The MMG has cancelled a planned exhibit of outdoor products in China in August in Hangzhou. Instead, it will have a two-show strategy for the industry segments. ispo china winter 06 will be second such event. Exhibit space has increased about 50% to 233,000 square feet. ispo is expecting approximately 300 brands to attend. Last year, about 13,500 visitors attended the initial event. Approximately two-thirds came from China. The new ispo china summer will open in Shanghai on August 21-24.
ispo russia 05 opened in Moscow last September. Some 300 hundred brands exhibited in 48,000 square feet. It attracted 7.800 visitors from all regions of Russia, Eastern Europe and Central Asia. The first ispo russia winter 06 will take place from February 20 to 23.
One of the ways the MMG promotes its trade shows in Russia and China is to work with local partners to publish trade magazines that deliver news and features, develop the sports community.
Here are some samples from Sports in Russia and Sports News Asia Pacific:
* Alexey Pshenichny is general director of Top Liga, a sports chain. He was asked what the major problems being met by Russian retailers: “I can’t but emphasize such problems as low adaptively to market conditions, low level of personnel training, bad product range, and unavailability of retail outlets. But there is no problem that needs to be called a major one.” He noted that almost every country has a national brand, while none exist in Russia.
* The Russian sporting goods market is growing at 20%-25% per annum. This is interesting light of the increased competition that is keeping a lid on prices. Imports account for about 90% of the total market in Moscow and 75%-80% of the market in other regions.
* The Russian government has reduced import duties on a variety of sporting goods, but customs clearance and taxation methods “are still outlandish.”
Here are some sample items from SNAP:
* Analysts expect the total capacity of the Chinese ski industry to reach 13 million skiers in 10 years, up from the current three million. The use of artificial snow has contributed to the growth of resorts. With quick growth came some problems. Ten resorts have gone bankrupt. Tian Younian, secretary general of the Chinese Ski Association, attributed the failure rate to former athletes running the resorts. Many lack knowledge of marketing and operations, he said. “Consumer expectation is getting higher and higher. Consequently, the ski resorts cannot survive if operated in early modes,” he said.
* The first Chinese ski resort opened in ‘96 in Harbin in anticipation of the Third Asian Winter Games. The total number of ski resorts in ‘05 was 205. Total visitors in ‘96 were 10,000. By ‘04, the number reached 3,000,000.
* A bill is in the Korean National Assembly which would enable the government to provide necessary support to sportswear companies and facilitate the introduction of a product certification system to provide new standards for sporting goods.
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Manfred Wutzlhofer
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