Asia Business Media: March 2013

Friday, March 22, 2013

Alibaba reports jump in mobile transactions

News this week: According to the latest statistics published by the Alibaba Group, online purchases made on the company’s consumer-focused e-commerce platforms, Taobao Marketplace and Tmall.com, jumped 600% in 2012.

The number of visits to the platforms via mobile devices reached 300 million last year. Of this total, 19% or 57 million users reached the checkout to finalise their purchase. Overall purchases through mobile phones made up close to 7% of all transactions on Taobao and Tmall.com in 2012, compared with just 1.8% in 2011.

Earlier this year, third-party vendors began offering custom mobile app services to build storefronts for private merchants on Taobao. This is similar to services which are currently available on U.S.-based Amazon.com where mobile sales are estimated to be approximately 5% to 8% of total sales in 2012.

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UBM launches Myanmar machinery show

News this week: UBM Asia (Thailand) announced a new industrial manufacturing trade show, INTERMACH Myanmar, which will be launched in Yangon this year. The show will take place from 24^th to 26^th October 2013 at Tatmadaw Exhibition Hall in Yangon.

The inaugural INTERMACH Myanmar will showcase industrial machinery from around the world and will be co-located with SUBCON Myanmar 2013 – an industrial subcontracting event also organised by UBM Asia.

M. Gandhi, managing director of UBM Asia, said, “With unprecedented growth and development now underway in Myanmar and set to grow even further with the new ASEAN Economic Community – the timing for INTERMACH Myanmar couldn’t be better.”

Reed launches Shanghai property show, develops Hong Kong show

News this week: Reed Exhibitions’ subsidiary and organiser of the property-focused shows, MIPIM and MIPIM Asia, Reed MIDEM, has announced the launch of MIPIM China and to further develop MIPIM Asia in Hong Kong.

The new show, MIPIM China, will be launched in Shanghai in the second half of 2014 with sister company Reed Exhibitions China. According to Reed, MIPIM China will be a dedicated exhibition, conference and networking event serving real estate professionals in the Chinese market.

The coming edition of MIPIM Asia will be held from 5^th to 6^th November 2013 at Grand Hyatt in Hong Kong. The show includes high-level conferences, premium networking and the MIPIM Asia Awards.

UBM launches Indian B2C Jewellery event

News this week: UBM India has announced the launch of a B2C jewellery exhibition in the southern India city of Chennai. The inaugural event will be held in October 2013 and it will target jewellers in Chennai. The event will be named, “I Love Jewellery.”

The launch was announced during the Gem & Jewellery India International Exhibition (GJIIE), jointly organised by UBM India and Madras Jewellers and Diamond Merchant's Association (MJDMA). The I Love Jewellery exhibition will be held immediately before the important Indian holiday, Diwali, and it will focus on high-end products.

MJDMA President Jayantilal J Challani was quoted, “The idea behind B2C is to benefit the end users by making available all varieties and latest design under one roof at an affordable price.”

Taiwan to launch Eco-products show in 2014

News this week: Taiwan will see the launch of a new green trade show during next year’s event calendar. The Eco-Products International Fair will be jointly organised by the Taiwan External Trade Development Council (TAITRA) and the Asian Productivity Organization (APO). The annual event is scheduled to run from 13^th to 15^th March 2014.

The three-day show will showcase the latest eco-technologies and products, along with industry seminars and workshops. According to government statistics, Taiwan’s green trade exports were valued at US$42.8 billion in 2011, accounting for 14% of Taiwan’s total exports.

HC International’s profit jumps 58%

News this week: Earlier this week, Hong Kong-listed HC International released its results for the year ended 31^st December 2012. Revenues in the year were US$88 million, up 25% from the 2011 figure. Net income for the year was US$11 million – a jump of 58% over the previous year. Dilute earnings per share in 2012 were RMB 0.1133 (US$0.018).

Online services continue to be the largest business segment of the Beijing-based company, generating 75% of total revenues – or approximately US$66 million. This represents a 42% year-on-year growth. Seminars & other services segment surpassed the trade catalogues & yellow page directories to become HC’s second largest business segment with revenues of US$13 million, or 15% of total, and recorded an increase of 24%. The remaining revenues were generated from the trade catalogues & yellow page directories. Revenues from that segment were down 33% in 2012 compared with the year before.

MMI acquires ceramics show in India

News this week: Trade show organiser, Messe München International (MMI) announced the acquisition of an event for the ceramics industry in India, Indian Ceramics. Financial details of the transaction were not disclosed.

Indian Ceramics was launched in 2005 by British trade fair organiser and specialty publisher, Bowhead Media. The transaction will be completed during the 2013 edition of Indian Ceramics and MMI will take-over organising the show beginning with the 2014 edition.

The annual Indian Ceramics showcases products and services from classic ceramics and raw materials to technical ceramics. The 2013 edition will feature more than 150 exhibitors and is expected to attract more than 5,000 visitors. The event will be held from 19^th to 21^st March at the University Exhibition Centre in Ahmedabad.

Friday, March 15, 2013

TCEB increases MICE targets in 2013

News this week: The Thailand Convention and Exhibition Bureau (TCEB) has announced revised targets for 2013 after exceeding its targets in 2012. The bureau is now targeting a 10% growth in MICE visitors resulting in 940,000 and revenues of US$2.93 billion.

According to TCEB, the meetings industry is expected to attract 231,000 visitors or 25% of the total in 2013. Incentive travel will account for 229,800 visitors, or 24% of international MICE visitors. International conventions will account for 306,000 MICE travellers or 33% of the total, while international exhibitions will account for 172,600 visitors or 18% of the total MICE visitors in 2013.

TCEB aims to achieve this goal using a three-stage strategy: 1) target new markets, 2) build strategic alliances, and 3) position the industry to compete effectively in the ASEAN Economic Community (AEC) – a single market which takes effect in 2015.

Taiwan unveils 4-year MICE promotion plan

News this week: Taiwan has launched a new four-year promotional programme to expand its MICE industry. This follows the conclusion last year of the “Taiwan MICE Advancement Program.”

The new “Taiwan MICE Pilot Programme” aims to increase the overall number of MICE events in Taiwan. The programme, led by the Taiwan External Trade Development Council (TAITRA), will include a cloud-based database for event organisers as well as a MICE e-institute to provide online industry education and employment matching services.

Walter Yeh, managing director of Pilot Programme and TAITRA’s vice president, stated, “Corporate meetings (including incentive tourism), international conferences, and exhibitions will be our main focus. We will be employing strategic marketing to attract buyers to organise their meetings in Taipei, Hualien, Kaohsiung, Kenting and other parts of Taiwan… Providing subsidies for the showcasing of new exhibitions in Taiwan will also be included in the Pilot Programme.”

Pico Thailand posts quarterly net loss

News this week: Pico Thailand, the Thai-listed subsidiary of Pico Far East Holdings, released its results for the quarter ended 31^st January 2013. Revenues in the quarter were US$8.5 million, a decrease of 36% compared with the same quarter last year. The company recorded a net loss of US$96,000 in the quarter, compared with a net profit of US$992,000 in the same period in 2012.

Pico Thailand’s management attributed the decrease in revenues to lower income from its exhibition and knowledge communication businesses. According to the company, the exhibition business revenue is lower than last year and a major contract related to its knowledge communication business ended in the middle of 2012.

HKCEC adds 5 new exhibitions and 29 major conferences in 2013

News this week: The Hong Kong Convention and Exhibition Centre (HKCEC) announced the addition of five new exhibitions and 29 major conferences to its 2013 calendar. The new events will join a portfolio of more than 100 annually-held exhibitions, including 11 shows which are the largest of their kind either in Asia or in some cases, globally.

The exhibitions are hosted by five different organisers - including two from overseas. The new exhibitions cover a variety of sectors: affordable art, luxury watches, Indian property investment and management, home interiors and social services. The five new shows are: CBRE Indian Property Show 2013, Caring Company Partnership Expo 2013, In-Home Expo 2013, Affordable Art Fair Hong Kong 2013 and Watches & Wonders – Asia Haute Horlogerie.

Monica Lee-Müller, managing director of HML, HKCEC’s management company, said, “At HML, we offer powerful incentives to attract new events and encourage continued growth of recurrent exhibitions. In the light of the construction or redevelopment of numerous facilities in other Asian cities, we firmly believe that it is just as important to ensure exceptional high quality service by a team of professionals as it is to continue investing in facilities to enhance our competitiveness.”

New venue for UBM’s Aquarama and Pet Asia 2013

News this week: In Singapore, UBM Asia announced plans to relocate its Aquarama 2013 and Pet Asia 2013 exhibitions to Sands Expo and Convention Centre at the Marina Bay Sands due to unexpected delays related to a renovation project at its original venue, the Suntec Singapore International Convention and Exhibition Centre.

Aquarama is positioned as Asia’s largest international ornamental fish, invertebrates, plants and accessories exhibition. Pet Asia is an international pet and accessories trade show targeting South-East Asia. The co-located events will be held on the original dates, 30^th May to 2^nd June, and are expected to cover some 8,310 m² (gross space) at Halls B and C at the venue. The exhibitions will feature more than 200 vendors.

Global Sources 2012 revenues up 3%, net profits up 9.3%

News this week: Earlier this week, NASDAQ-listed Global Sources released its year-end 2012 results. Revenues in the year were US$232 million, up 3.0% over the previous year. Net profits in 2012 were US$32 million, a year-on-year increase of 9.3%. Diluted earnings per share in 2012 were US$0.90.

More than half of Global Sources’ revenues were generated from its online services (US$119 million) – roughly flat compared with 2011. Exhibitions revenues in the year were up 14% reaching US$89 million. That figure represents 38% of total revenues. Print services (US$17 million) continue to shrink accounting for just 7.4% of total revenues – a 27% year-on-year decrease.

Global Sources also provided guidance for the first half of 2013. The company’s management is forecasting a weaker first half with revenues of between US$87 million and US$89 million. This represents a decrease of 16%-18% compared to the first half of 2012.

Alibaba names Jack Ma’s successor

News this week: China’s largest e-commerce company, the Alibaba Group, has named current executive vice president, Jonathan Lu Zhaoxi, as its new CEO. Lu will officially replace company founder, Jack Ma, on 10^th May this year, a date that coincides with Taobao’s 10^th anniversary. Jack Ma will reportedly continue to guide the company’s business strategies and management development in his role as executive chairman of the Alibaba Group.

Jonathan Lu joined Alibaba in 2000 and helped form parts of the sales team at the company’s B2B trading platform Alibaba.com. In 2004, Lu led the launch of Alipay, the company’s online payments division, where he later served as president. In early 2008, Lu was charged to lead Alibaba’s consumer-focused division, Taobao and he was also named CEO of Alibaba.com in early 2011.

Alibaba’s recent company reorganisation means Lu’s new position will oversee 25 business units led by nine divisional presidents.

Friday, March 08, 2013

Alibaba looking to US$8 billion loan deal

News this week: According to Reuters, Chinese e-commerce giant Alibaba Group is looking to borrow up to US$8 billion to refinance the company’s existing debts. Part of the funds will be used towards the US$7.1 billion share buyback deal agreed with majority shareholder Yahoo in May 2012. Alibaba borrowed US$4 billion in loan last year to fund the privatisation of B2B subsidiary Alibaba.com and to finance the Yahoo share buyback.

In other news, various media outlets suggest Alibaba is preparing for a possible initial public offering (IPO) in 2013. Estimations value the company between US$55 billion and US$80 billion. Financial market commentators see the stepping down of company chief executive Jack Ma in May 2013 as a possible indicator of an IPO this year, with Hong Kong and New York suggested as possible listing destinations.

Alibaba recently underwent company restructuring in July 2012 and January this year.

Netsun launches B2B agrochemical platform

News this week: Last week, Zhejiang Netsun announced the launch of a B2B agrochemical platform, www.agrochemnet.cn, to target industry professionals.

The new agrochemical platform allows users to promote their companies through Netsun’s network. Users can search for products by categories, suppliers, latest products, business opportunities, as well as industry news and information.

According to Netsun, China’s agrochemical industry market is about RMB 30 billion (US$4.8 billion), mostly consisting of small-scaled companies. The agrochemical industry, and the pesticide sector in particular, has been at a low for three years, but is expected to return to a positive trend with recent prices seeing a steady increase.

Record exhibitor number at HKTDC’s jewellery fair

News this week: The 30^th HKTDC Hong Kong International Jewellery Show opened with a new exhibitor number record of more than 3,300 from 40 countries and regions. This year’s show runs from 5^th to 9^th March at the Hong Kong Convention and Exhibition Centre (HKCEC).

The jewellery show welcomed first time exhibitors from Cyprus, Lebanon and Peru. A total of 17 group pavilions and seven international trade organisation pavilions are present this year. The show also featured 10 product zones with a newly added Small-Order Zone for small quantity purchasing at prices below US$1,000 per piece.

Additionally, Visa and the Hong Kong Trade Development Council (HKTDC) extended their cooperation to provide exhibitors with a new mobile point-of-sale (mPOS) solution. The mPOS solution allows exhibitors to accept credit card payments for sample orders during the show in a secure and convenient manner. The credit card-reader is compatible with iOS and Android smartphones or tablets, which works by converting the mobile device into a secure point-of-sale device.

Reed’s exhibitions revenue up 15% in 2012

News this week: London-listed B2B media company, Reed Elsevier, has released financial results for the year ended 31^st December 2012.

On the company’s exhibition business, Reed reported revenue growth of 15% (7% excluding biennial event cycling) to £854 million (US$1.13 billion) during the year. Profits in same period were £210 million (US$278 million), up 21% over 2011. By geographical markets, Reed reported strong revenue growth in the U.S. and Japan, and double digit growth in emerging markets. The company saw moderate revenue growth in Europe.

According to Reed, 30 new shows were launched in 2012 in addition to forming partnerships and acquisitions in high growth markets. Reed acquired full ownership of Brazilian joint venture Alcantara Machado, as well as forming a new joint venture in Turkey with event organiser Tüyap.

Reed’s forecast for 2013 sees good growth in the U.S. and Japan, limited growth in Europe, and strong growth in other markets. As a biennial cycling out year for 2013, Reed is expecting revenue growth to reduce by 5% - 6%.

Tarsus achieves financial targets ahead of schedule

News this week: Earlier this week, London-listed media group, Tarsus released its financial results for the year ended 31^st December 2012. The group reported group revenues of £51.5 million, a like-for-like growth of 13% after adjusted for biennial events. Excluding acquisitions impacting for the first time in the year, prior year disposals, and non-recurring products and items, revenues were up 18% over 2010’s £43.6 million. Adjusted profit before tax was £14.8 million, compared with £5.3 million recorded in 2010.

Tarsus’ management highlighted the strong performance of its businesses in emerging markets last year. Hope, Tarsus’ Chinese joint venture, posted a revenue growth of 37%. Hope’s South China Label Show in December last year saw a 51% increase in revenue over its previous edition.

Tarsus’ strong performance in emerging markets allowed the company to achieve its “Project 50/13” – an initiative to derive 50% of revenues from emerging markets by 2013 – one year ahead of schedule. The group subsequently launched “Quickening the Pace” early in 2013 to focus on accelerating earnings per share growth.

UBM’s events business up 12%

London, 1^st March: London-listed UBM plc released its full-year results for the year ended 31^st December 2012. UBM’s revenues were £977 million, compared to £972 million in the previous year. Adjusted group operating profits also increased slightly from £202 million to £204 million.

More than 44% of total revenues were generated from events business and accounted for £438 million, up 12% year-on-year from 2011’s £392 million. Adjusted group operating profits increased from £133 million to £142 million, a growth of 6.8%. UBM organised 100 events during the year that generated revenues of more than £1 million – accounting for 85% of annual events revenues.

Annual events revenues were £413 million, up 15% from £358 million in 2011. The company generated 31% of its annual events revenues in China, which grew 15% year-on-year.

UBM Asia to acquire Shanghai urban fashion show

News this week: UBM’s subsidiary, UBM Asia, announced an agreement has been made with NOVO Mania Limited to acquire the Shanghai urban fashion event, NOVOMANIA. The deal will see UBM owning 60% of UBM Novomania, a newly formed joint venture that will organise NOVOMANIA beginning in 2013. Other financial details of the deal were not disclosed.

The general manager of NOVOMANIA, Guilherme Faria, and his team will be incorporated into the UBM China (Shanghai) office, and report to the board of UBM Novomania. The previous edition of NOVOMANIA was held at the Shanghai World Expo Exhibition & Convention Centre in March 2012. The show occupied 25,000 m² of gross exhibition space and welcomed 117 exhibitors from 13 countries and over 13,000 visitors.

Jime Essink, president and CEO of UBM Asia, said, “China is already the second-largest apparel market in the world and is set to surpass the U.S. to become the world’s largest market in a few years. This joint venture continues our strategy of focusing on sectors and markets with the most exciting growth potential.”

Asia Business Media