What defines a "Luxury Light" Exhibition? According to Mr. Chen Jianxin, Honorary Chairman of UFI and Director of the National Exhibition Standardization Technology Committee, during the "2018 Sanya International Forum" organized by *Caixin* Magazine, *Caixin.com*, and the *Caixin* Think Tank, he defines a "Luxury Light" Exhibition as: First, an exhibition centered around luxury light products, where the content is the primary focus. Second, a lifestyle and cultural concept-driven exhibition, such as our tourism exhibitions, which reflect the tastes of the new generation. This can be viewed from the perspective of products or lifestyle.
Chen Jianxin: I am very pleased and grateful for the invitation from "Financial Magazine," as well as the invitation from the Sanya Municipal Government. It is a great opportunity to participate in this forum in the beautiful city of Sanya, which focuses on the international cooperation of luxury exhibitions. When the organizing committee presented this topic, I was initially surprised. I found the term "luxury exhibition" to be quite innovative.
"Having spent a significant period working in the exhibition and convention industry, I recognize that our organization has not yet formally defined or adopted the concept of 'luxury-lite' exhibitions, even when considering international or domestic standards. Therefore, my attendance at this forum is primarily for self-education and professional development, to gain a deeper understanding of this emerging trend."
"Previously, our understanding of 'light luxury' may not have been entirely accurate. We initially interpreted it as 'light-degree luxury,' which aligns with the English translation. If we understand 'light luxury' in this way, we can categorize light luxury exhibitions based on the industry standards. For example, an exhibition featuring light luxury products can be defined as a 'light luxury exhibition.'"
For example, products such as apparel, jewelry, watches, furniture, packaging, and footwear fall under this category. Exhibitions featuring products of this nature are referred to as "Luxury Lifestyle" trade shows.
Second, this represents a lifestyle and a cultural philosophy centered around premium exhibitions, such as our tourism exhibition, leisure exhibition, and retirement exhibition. These exhibitions reflect the tastes and preferences of our exhibitors and visitors, focusing on product quality and lifestyle/consumption trends. We can refer to these exhibitions as "light luxury" events.
Luxury-focused events are abundant, but based on my own assessment, these can be broadly categorized as follows. We invite members to discuss these categories further. One category focuses on historical and cultural themes. I can share examples from Shanghai.
For example, we have organized exhibitions such as the British Museum's cultural exhibition in Shanghai this year, the jewelry exhibition in Athens, the exhibition of masterpieces from the Renaissance era, and the Dunhuang cultural relics exhibition, as well as exhibitions featuring artifacts from the Forbidden City. This represents a significant category.
The second largest category is related to art and design. Events such as the "Van Gogh Exhibition" and "Contemporary Chinese Art Exhibition" have been held in Shanghai, as well as the "Three Island Exhibition" (presumably referring to the Three Islands Exhibition in Sanya). This category encompasses events related to art and design.
The third largest category is related to animation and cartoons. Shanghai has hosted events featuring Transformers, Spider-Man, and Minions, as well as well-known national anime conventions.
Fourth category: Related to film and television, including the "Film Design Exhibition" and a section featuring Hollywood.
Fifth category: Related to Fashion.
Sixth category: Music-related. This includes events held in Shanghai related to music, as well as notable figures in music history.
Seventh Category: Exhibitions Featuring Original IP Created by Our Organization.
These events, which we categorize as "light luxury" trade shows, have experienced rapid growth in recent years, particularly over the past two to three years. Shanghai designated 2014 as the starting year for this type of event, and we now see approximately one event per day. A key characteristic of these events is their focus on specific products, specific exhibitors, and a targeted audience.
"A well-known channel on a prominent American geography magazine features an individual who secured a contract to exhibit the magazine's historical photographs, dating back to the 1920s, to the public. When I inquired about audience attendance, he indicated that it was necessary to assess the level of interest. Upon visiting the exhibition, I was surprised to find a significant audience, comprised largely of younger attendees."
These photographs are reproductions, not original prints. They are typically priced between $100 and $1,000. These reproductions are particularly appealing to younger audiences (born in the 1980s, 1990s, and 2000s) who have a strong interest in photography, especially vintage photographs.
Later, I asked you why you purchased this photograph, and you explained that it was not for investment, but rather to satisfy your personal consumption needs and reflect your personal values. Therefore, while I am unfamiliar with the specific characteristics of exhibitions like this one in Sanya, I can share that similar events are experiencing rapid growth in major cities such as Shanghai and Beijing.
Several factors contribute to this trend: Firstly, the standard of living for the general population is continuously improving, with basic needs already met. Secondly, the demand for "light luxury" products stems from a higher level of needs beyond mere sustenance, making them relevant to a population with an improved standard of living.
Secondly, the cultural value is diverse. Attendees have varying preferences, unlike the past where everyone had to share a common interest. This has led to the emergence of a wide range of luxury-focused events.
Third, our increasingly open national environment, coupled with the growing openness of our country, will lead to an even greater level of openness. This, along with increased international exchange, particularly in areas such as culture and creativity, has facilitated the rapid growth of "luxury-lite" exhibitions in Shanghai and other major cities, much like the proliferation of new businesses after a spring rain.
"Regarding Sanya, I would say that the mayor has demonstrated excellent foresight by promoting the concept of 'luxury-lite' conventions. I believe that Sanya's focus on developing this approach as a key strategic direction is entirely appropriate."
"Organizing a large-scale machinery and equipment exhibition in Sanya presents significant challenges. The venue, transportation infrastructure, and local market capacity are not conducive to such an event. However, a smaller, luxury-focused convention would be a viable option. This approach offers improved feasibility and broader impact, extending beyond Sanya and Hainan Province to encompass a wider region of Southern China. This direction represents a highly strategic and effective choice."
Therefore, we can proactively pursue opportunities in this area in Sanya moving forward.
Three key recommendations: First, we should engage international and domestic curators. While we have some expertise in this area within the Sanya, Hainan region, the number of internationally-minded curators is limited. We aim to collaborate with them, leveraging the established and commercially successful international IP exhibition model. We believe that strengthening our efforts in this area will be crucial.
"Furthermore, could we organize a conference for curators, bringing them together in Sanya to discuss the development of luxury-focused exhibitions and conventions in the area?"
Secondly, providing government support and policy backing for this type of niche, luxury exhibition, fostering international collaboration. These exhibitions have a well-established commercial model, primarily through ticket sales. Our research in Shanghai indicates that tickets for these exhibitions typically range from 100 to 200 RMB. Interestingly, our research with visitors from Jiangsu found that younger attendees were willing to pay a higher price compared to their counterparts in Shanghai, likely due to factors such as transportation costs. This suggests that the consumer spending level in Jiangsu Province is relatively high.
"This year, we have specifically produced a related annual report. We conducted a survey of attendee spending habits. This report demonstrates the government's support for the industry, including the provision of policy and financial assistance. This is particularly relevant to luxury-focused events and cultural and creative industries, which are key areas for development. Supporting the development of cultural and creative industries is a key priority for the government."
Additionally, curating events should actively encourage greater participation from younger audiences. We have identified several key characteristics of "light luxury" events, including: a younger, more socially active audience; a focus on entertainment; and the ability to create novel and engaging experiences, such as a "lost love" exhibition, which was successfully organized by two young people in Shanghai.
"I believe this concept is entirely original. Furthermore, there is a demand for content related to expressing emotions after a breakup, such as letters and poems. Therefore, the potential is significant. A key element is the effective use of relevant themes. This brings me to the second point: government support is crucial."
Third, ensure proper protection of intellectual property rights, particularly in international collaborations. We have secured international licensing for our IP, which includes paying the necessary copyright fees. We must pay particular attention to intellectual property rights. For example, in our experience in Shanghai, the first collaboration between a Shanghai-based exhibition company and a UK company failed, resulting in a loss for both parties. Subsequently, the Shanghai company decided not to pursue the collaboration.
"This UK-based company, known as "Design Shanghai," successfully held its own event in the second year. The event was a major success in the third year, attracting significant international interest and long queues for tickets (approximately £300 each). The event showcased a wide range of industrial, graphic, and lifestyle design, attracting major international brands."
"A foreign-owned company successfully operated for several years, generating significant profits. However, the Shanghai-based company became dissatisfied and filed a lawsuit, alleging trademark infringement. The company claimed that the foreign company's designs were based on their own, and that the trademark represented the company's quality of service and reputation. They demanded monetary compensation and a public apology from the foreign company in Shanghai media. The foreign company responded to the lawsuit."
Due to the relatively lengthy court proceedings in domestic courts, particularly for international cases, which can take up to eight months, our client ultimately lost the case. The court determined that the company failed to provide sufficient evidence demonstrating that the brand represented the company's reputation and service level. Specifically, the court required the company to prove the extent of its promotional efforts for the brand and its recognition within the industry. However, the company was unable to provide this evidence, leading the court to rule against them. Notably, the company did not pursue further appeals.
This section highlights the importance of intellectual property protection. When collaborating with international luxury brands for exhibitions, we must ensure that all relevant intellectual property rights are properly secured and protected. Thank you.
Host: What upgrades can be implemented for our "luxury-lite" exhibitions, such as Las Vegas, a well-known technology-focused luxury exhibition? Could we potentially replicate this model in a location like Sanya, creating a "luxury-lite" convention center for China's southern region? We would like to invite several experts to speak.
Chen Jianxin: Following the discussion on "affordable luxury," our moderator has compiled statistics on the events in Sanya. This is quite interesting, and I believe that these Sanya events can be categorized within the broader "affordable luxury" exhibition and convention sector. Of course, this concept is relatively new, and we encourage further discussion and exploration of its definition, scope, and characteristics as practitioners gain experience.
However, from our perspective, Sanya has introduced a novel concept. Sanya's development objectives are clearly defined: to establish a unique and distinctive identity, such as a high-quality, luxury-focused approach, and to differentiate itself from other cities, particularly first-tier cities, in terms of development strategies. We find this guiding principle to be very clear, and Sanya indeed possesses the necessary conditions to successfully implement this approach.
Previously, we categorized trade shows based on product type or target audience, depending on whether the event was B2B, B2C, or B2B2C. For example, the luxury segment often focuses on a specific theme, content, and audience, highlighting a unique aspect.
Therefore, when considering both B2B and B2C models, we believe a greater focus should be placed on B2C or B2B2C strategies. We are also interested in collaborating with our colleagues in Sanya to further explore the characteristics and content of trade shows, and to identify new and innovative approaches for the exhibition and convention industry. Thank you.