Source: Sina Blog
Guiding the Development of Urban Convention and Exhibition Industries with Strategic Thinking
Ji Lude
December 9, 2018
After the China International Import Expo, the convention and exhibition industry drew more attention. Society is watching to see how much magic this industry really has, while practitioners are also thinking about how to move to the next level. As the year comes to an end, convention and exhibition forums are being held across the country. Leading figures travel from place to place to discuss development prospects, while officials review achievements both inside and outside the venues.
For the development of the industry, it is indeed necessary for us to sit down amid our busy schedules, sort out the many issues before us, collect information from all sides, listen to different views, organize existing materials and conduct systematic thinking. Such work is valuable for practical workers in the convention and exhibition industry and may even bring sudden insight. Recently, I read The Six Future Directions of Hangzhou's Convention and Exhibition Industry written by Zhang Xiaoming of Zhejiang University City College, and it inspired me greatly.
Zhang began with Hangzhou's positioning among China's convention and exhibition cities and analyzed two major changes brought to Hangzhou's industry by the G20 Summit. He then discussed Hangzhou municipal government's action plan for promoting the industry, forecast the future of Hangzhou's convention and exhibition sector, and proposed six directions for its development. In fact, these are six countermeasures for Hangzhou's industry.
I believe several points in Zhang's article deserve praise.
First, the city is taken as the subject of countermeasures.
The development of the convention and exhibition industry involves many actors. When analyzing problems and proposing solutions, one must identify the root cause and determine which actor should be responsible. It is like seeing a doctor: an external injury requires surgery, while an internal organ problem requires the relevant specialist; otherwise one goes to the wrong doctor. But there is another kind of error: treating only the head when the head hurts and only the foot when the foot hurts. It may look like targeted treatment, but the root cause has not been found.
For example, the current disorder in exhibition awards may seem to be caused by a few profit-driven enterprises, but it actually reflects insufficient integrity-building across the whole industry and a lack of market-based tools to regulate bad actors. We must both cool the boiling water and remove the firewood from under the pot. Many problems in the exhibition industry can be solved by different actors. Intellectual property can involve the intellectual property office; talent training can involve schools; overseas exhibitions by enterprises can involve the enterprises themselves. But in the end, based on China's national conditions, although the government's management role is changing, it still has great power to guide market regulation and build a rule-of-law environment, and it therefore bears corresponding responsibility. Giving advice to city administrators and letting government grasp the key point to drive the market forward is the essential path for the development of China's convention and exhibition industry.
Second, Hangzhou's industry level is viewed objectively.
When scholars comment on reality, they sometimes have concerns: should they say a few pleasant things against their own judgment? Especially when advising their local government leaders, they often feel that loyal words should not sound harsh, and direct words must be expressed indirectly. I admire Zhang's evaluation of Hangzhou's convention and exhibition status. Since Hangzhou hosted the G20 Summit, it would not be surprising to use the summit to promote the city's status. But Zhang stated frankly that Hangzhou remains in the second tier. Although Hangzhou has expanded from a relatively active and effective conference industry to a broader convention and exhibition industry, especially with more expansion into exhibitions, careful consideration shows that this goal is not easy to achieve and is actually very difficult.
This judgment is calm, reflective and necessary. Only with such judgment can we set aside illusions and plan for the future. If one assumes that once G20 has been held good fortune will naturally follow, that would be harmful to Hangzhou's future development. I believe the Hangzhou municipal government can agree with Zhang's judgment.
Third, the article raises practical problems to be solved.
If we agree that government plays an irreplaceable role in the development of the convention and exhibition industry, and if we agree with the judgment of Hangzhou's current industry level, the next question is what to do in the future. Zhang proposed six future directions, which are in fact six areas of countermeasures: focusing on brands during enterprise mergers and acquisitions; emphasizing professional services in venue construction; emphasizing market-oriented operation for sports events; emphasizing an international perspective in personnel development; emphasizing ecological concepts in overall industry development; and anticipating future smart development trends by putting information infrastructure on the agenda as soon as possible. Planning from enterprise brands, hardware, market rules, talent, ecology and technology is generally very practical. If all these issues can be solved, Hangzhou's comprehensive competitiveness in the convention and exhibition industry will truly improve.
Although the article addresses Hangzhou's industry development, if we abstract and extend it, it can inspire thinking about the development of convention and exhibition industries in cities across China. In other words, Hangzhou's development thinking should be replicable and referential.
Cities are the main places for people's economic and social activities, and therefore the main places for the convention and exhibition industry. Developing the convention and exhibition industry can be understood as developing the industry city by city. According to the 2018 statistical report of the China Convention and Exhibition Society, 175 exhibition cities were included in its 2017 statistics, covering 33 provinces, municipalities and autonomous regions in mainland China. Among them were 36 municipalities, provincial capitals and cities with independent planning status, 112 prefecture-level cities and 27 county-level cities. If these 175 cities each do their work well, and if every city's convention and exhibition industry develops normally and advances step by step, China will move from a major exhibition country to a strong exhibition country in the foreseeable future.
What does normal development and step-by-step progress mean? How can cities replicate and learn from Hangzhou's model? In my view, on the basis of Zhang's analysis, namely taking the city as the subject of countermeasures, objectively positioning the city's industry development and adopting practical measures, strategic thinking should be emphasized. Specifically, there should be a clear judgment of the situation, clear goals, tasks and measures, and a sound institutional framework.
First, clear judgment of the situation.
After the China International Import Expo, many city administrators surely hope that their local convention and exhibition industries can develop greatly and that more international projects will come in. But obviously, not all cities can have the same opportunities. At this point, judgment of the situation becomes the key premise. Many wrong decisions do not come from wrong wishes, but from failure to see the constraints of the larger environment. To use an imperfect example, the ancient ruler of Yelang asked an envoy of the Han dynasty which was larger, Han or Yelang, because he knew nothing about the broader situation and left a thousand-year joke. Zhuge Liang, though living in a thatched cottage, had the world in mind and proposed the Longzhong strategy: although Liu Bei was an imperial uncle, he was weak at the time and should ally with Eastern Wu against Wei, then divide the realm into three parts after gaining strength. After the Autumn Harvest Uprising, when the revolution was at a low point, Mao Zedong saw gaps among the warlords, found a foothold in Jinggangshan, and gradually turned a single spark into a prairie fire. Therefore, correctly judging the situation and finding the development coordinates of a city's convention and exhibition industry is the first priority.
Second, a clear development roadmap.
With judgment of the situation, a city can see its strengths and weaknesses and can objectively and calmly formulate a roadmap for its industry. The roadmap has three parts. First are phased goals: what should be achieved in one year, in three to five years, and in ten years or longer. These are short-, medium- and long-term goals. For example, within one year a city may form a citywide consensus on developing the industry; within three to five years it may form the basic workforce for the industry; and within ten years it may develop branded projects known provincially, nationally or even internationally. Second are tasks: what must be done each year to achieve these phased goals, such as talent training and introduction, industry-standard development, improvement of venues and supporting facilities, and public service systems. Third are safeguards: what policy support is needed, how much funding is required at the government level, how domestic and international exchanges should be carried out, what suggestions should be sought from think tanks, and what technologies should be emphasized.
In this way, from situation to goals, tasks and measures, plus contingency plans for uncertainty, a clear roadmap can be formed. This roadmap includes descriptions of key links such as enterprise brands, hardware, market rules, talent, ecology and technology, but these countermeasures are not scattered; they are integrated into a unified path.
Of course, this is only an abstract description. In reality, every city faces different circumstances and has different history, culture, economic strength and natural endowment, so its goals, tasks and measures will differ.
Third, a sound institutional framework should be gradually established.
After determining what should be done, it is necessary to solve how to do it and who will do it. As mentioned above, many actors in a city are involved in the development of the convention and exhibition industry, so their division of work and cooperation is critical. The first level is the relationship among government, social intermediaries such as associations, and enterprises. Government plays a leading role and must do two major tasks well: the rule-of-law environment and public services. But facing a large number of enterprises, government alone is clearly insufficient. It must rely on social intermediary organizations and give play to the role of industry associations and chambers of commerce. Some work is better done by associations.
The second level is the internal relationship within government and within enterprises. For government, State Council Document No. 15 has clearly required the establishment of a joint conference led by the commerce department. But within government, departmental barriers are often serious, vertical communication is smooth while horizontal communication is difficult. How the commerce department can play a leading role requires strong communication skill and persistence. Within enterprises, the question is how to build enterprise chains, including upstream and downstream links within exhibition enterprises and cross-industry alliances led by specific exhibition projects.
At this point I recall a recent news item: the Zhejiang Chamber of Commerce Convention and Exhibition Committee was established, and Jack Ma personally presented the plaque. The news also said that Zhejiang Governor Yuan Jiajun attended and witnessed the event. But the headline did not mention the governor; it only emphasized that Jack Ma personally presented the plaque. This was surely a successful move. In industry development, well-known figures can indeed serve as spokespersons, as many advertising cases have shown.
I read the news carefully to see what advice Jack Ma gave to the Zhejiang convention and exhibition committee, but he apparently did not speak. In fact, this is understandable. We need Jack Ma to present plaques to the committee, and even more we need him in the future to present medals to successful enterprises. This requires a clear strategy plus practical effort, because we do not have the ability to fly freely through the sky or rise to success without solid work.
The development of China's convention and exhibition industry requires everyone to think together and solve problems one by one. I hope all cities can formulate industry development strategies that match their own conditions and build the development of China's convention and exhibition industry on a foundation of reason, foresight and pragmatism.