Asia Business Media: November 2014

Friday, November 28, 2014

Alibaba to focus on e-commerce in rural China

News this week: The Alibaba Group announced this week that it has signed agreements with provincial governments in China’s western region, Xinjiang and Gansu, to promote the use of e-commerce amongst small- and medium-sized businesses.

Alibaba will work with local authorities to assist with the digitisation of government and public service sectors there. The group will also set-up verticals on some of its key platforms, 1688.com and Taobao.com, to promote products from the two countries.

In the company press release, Jack Ma was quoted, “We hope to use the Internet to spread knowledge to people in the countryside, and to make available the special products from these regions to consumers all over China.”

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

Messe Frankfurt forms new JV in Guangzhou

News this week: Messe Frankfurt (HK) Limited and the Guangdong Toy Association (GDTA) have announced that they have established a new joint venture named the Guangzhou Li Tong Messe Frankfurt Company.

The new company with organise two exhibitions beginning in 2015. Toy & Hobby China and Baby & Stroller China are concurrent events which will be held in April next year at the Poly World Trade Center in Guangzhou. Previous editions of these two events featured approximately 930 exhibitors and more than 38,000 visitors.

Wendy Wen, senior general manager of Messe Frankfurt Hong Kong commented, “We are happy to form this strong collaboration with GDTA. We believe, by merging our more than 25 years’ experience hosting international trade events in greater China and the local influence GDTA has in the toy industry in the country, these two fairs will expand steadily in the near future.”

CCID revenues and profits down

News this week: Hong Kong-listed consulting and media group, CCID Consulting, posted its results for the nine months ending 30 September 2014. In that period, revenues slipped 5% to US$15.1 million.

In the same period, CCID’s net profit fell by 12% to US$1.16 million. Earnings per share in the nine months were RMB 1.02 cents. CCID’s “Management and Consulting Services” generate the majority of its revenues - US$8.85 million (or 59% of revenues). Marketing Consulting Services accounted for 10% of revenues in the period and “Information Engineering Supervision Services” 31%.

In the past nine months, CCID organised a series of conferences and events including the 2014 China IT Market Annual Conference, the 2014 China Semiconductor Market Annual Conference and the Big Data World Forum. These events were held in a variety of cities including Beijing, Wuxi and Guiyang.

Cybermedia posts profit in Q2

News this week: Indian media group, Cybermedia, posted a net profit for the quarter ended 30^th September. Net profit in the second quarter of their financial year was a modest US$37,000. This is a considerable improvement over the loss of US$180,000 recorded in the same quarter in 2013.

Overall revenues were US$2.64 million – up 14% over the same quarter in 2013. Cybermedia’s Media Services Business grew by 38% and accounted for nearly 67% of total revenues. Cybermedia’s key businesses in this segment include: Cybermedia Research (IT & telecom research), TDA Group (content marketing agency) and Content Matrix (custom media solutions).

Cybermedia’s traditional media businesses recorded a 29% drop in revenues in the quarter compared with the same quarter last year. The group maintains 12 print properties and 30 online properties. Key properties include: PCQuest, DQIndia, DQChannels, CIOL, GlobalServices and CyberAstro.

Reed Exhibitions agree to cooperate with C-TOUCH

News this week: Earlier this week, Reed Exhibitions Greater China announced that it has signed an agreement to cooperate with Shanghai Kuozhan Exhibitions, the organiser of C-TOUCH.

Beginning in 2015, the China International Touchscreen Exhibition (C-TOUCH) will be jointly organised by Reed and Shanghai Kuozhan. C-TOUCH is held twice each year – in Shenzhen in November and in Shanghai in May. Launched in 2008, C-TOUCH features a wide range of components and materials that serve the touchscreen industry.

Nat Wong, Reed Exhibitions Greater China President, commented, “We’re delighted to collaborate with C-TOUCH. It is another leading electronics manufacturing industry show for Reed in Shanghai and Shenzhen, where we already host the highly influential NEPCON series of events.”

Cosmoprof Asia attracts 60,000 visitors

News this week: UBM Asia’s Cosmoprof Asia event was held in Hong Kong last week and it attracted more than 60,000 visitors – including 64% international visitors. The more than 38,000 visitors came from more than 100 countries. The top five visitor markets were China, Korea, Taiwan, Thailand and Japan.

The exhibition also featured 22 major pavilions from a variety of markets worldwide. Cosmoprof Asia posted a new record in terms of exhibitors with a total of 2,362 exhibitors. That is a 9% increase compared with 2013. In terms of space sold, Cosmoprof Asia covered over 81,500 m² – a 7% increase compared with the 2013 edition of the event. The event also included an educational seminar featuring a series of 13 presentations over three days. The seminar attracted approximately 775 delegates.

Cosmoprof Asia, which is organised by a joint venture owned by UBM Asia and BolognaFiere Group, will next take place in Hong Kong on 11^th to 13^th November, 2015.

Friday, November 21, 2014

Global Sources’ Johannesburg show features 600 booths

News this week: Last week, NASDAQ-listed B2B media group, Global Sources, held the fifth edition of its China Sourcing Fairs in Johannesburg at the Johannesburg Expo Centre. The event took place from 13^th to 15^th November and hosted 600booths.

This edition of the featured a wide range of product categories including: Electronics, Fashion Accessories, Garments and Textiles, Gifts and Premiums, Hardware and Building Materials and Home Products. According to Global Sources, buyers attending the three-day trade show last year reached 8,500 and pre-registered buyers are up 22% during this year’s build-up.

Tommy Wong, president of Global Sources Exhibitions, said, “With the surge we have experienced in pre-registrations for the show, we are optimistic for a record turnout of buyers this year. China has been Africa’s largest trading partner for five consecutive years, with business growing to US$210 billion in 2013, up from US$166 billion in 2011. The success of our show reflects that trend.”

Online B2B apparel marketplace ordre.com launched

News this week: A new international B2B e-commerce platform, Ordre.com, was recently launched by Hong Kong-based The Lock Group featuring ready-to-wear apparel collections. Participation as a retail buyer on Ordre.com is by invitation only. The platform does not publically list its buyer network.

The Lock Group was founded in Australia in 1989. The company’s business portfolio includes organising annual apparel industry events in Australia and around the Asia-Pacific region. The sourcing platform currently features apparel from more than 20 fashion designers, including Chalayan, Emilia Wickstead, House and Holland and Jason Wu. The platform expects to feature apparel from around 60 designers in the near-term future.

Ordre.com is reportedly backed financially by a team of early-stage investors led by Michael Alexander, CEO of investment firm Jefferies Hong Kong Ltd. The investors are expected to contribute a total of US$10 million in this round of funding.

BOL’s revenues and profits up

News this week: Last week, Bangkok-based business information provider, Business Online (BOL), announced its financial results for the quarter ended 30^th September 2014. Revenues for the quarter were US$3.8 million, a jump of 42% over the same quarter last year. Net income in the quarter was up 21%, amounting to US$662,000.

BOL also released results for the nine months ended 30^th September. Revenues during this period were US$10.1 million, a 17% increase from the same period in 2013. Net income was up 18% year-on-year to US$1.8 million. Diluted earnings per share for the nine-month period were Baht 0.08 (US$0.0025).

TTG’s revenues up 28% in Q3, profits fall

News this week: Last week, Hong Kong-listed Sino Splendid (formerly China.com) reported its results for the quarter ended 30^th September 2014. TTG Media, a subsidiary focused on the travel media segment, recorded revenues of US$3.1 million – an increase of 28% compared to the same period in 2013. Net income in the quarter was down 48% to US$378,000.

Sino Splendid also released results for the nine months ended 30th September. Revenues during this period were US$7 million, a 17% decrease from the same period in 2013. The company recorded a net loss of US$464,000 during the nine-month period.

Reed’s in-cosmetics Asia draws 400 exhibitors

News this week: Reed Exhibitions’ in-cosmetics Asia recently concluded at the Bangkok International Trade and Exhibition Centre (BITEC). The three-day show ran from 4^th to 6^th November 2014, and featured more than 400 exhibitors from 28 countries and regions.

Reed reported a 10% growth in visitor attendance this year, which included close to 6,600 international visitors and brand representatives from the likes of Johnson & Johnson, Unilever, Beiersdorf and L’Oréal. An increase in visitor numbers from India and Australia were highlighted this year, as well as a 30% increase of Japanese visitors. Reed hosted two conference sessions on topics covering regulations in the West and in Asia.

Sarah Gibson, exhibition director of in-cosmetics Asia, commented, “Thailand boasts 2,000 cosmetics manufacturers and they import 90% of their ingredients. 2015 is a particularly important year with the new ASEAN economic community set to open up new opportunities for the personal care industry in the region, so it’s no surprise that this year we hosted more ingredient suppliers than ever-before and the best educational programme thus far. I am very proud and excited to report that initial feedback is that this year’s exhibition was the best ever.”

HKTDC’s autumn fairs host 8,800+ exhibitors

News this week: The Hong Kong Trade Development Council (HKTDC) has organised seven trade shows in Hong Kong during the months of October and November 2014, hosting more than 8,800 exhibitors including overseas exhibitors originating from 54 countries and regions – an increase of 2% against the same period last year.

According to the HKTDC, more than 186,000 local and overseas buyers from 174 countries and regions attended the shows, down 6% year-on-year. Five out of the seven fairs were held at the Hong Kong Convention and Exhibition Centre (HKCEC), including the Hong Kong Electronics Fair (Autumn Edition), electronicAsia, Hong Kong International Lighting Fair (Autumn Edition), Hong Kong Optical Fair, and Hong Kong International Wine & Spirits Fair. Eco Expo Asia and the Hong Kong International Building and Hardware Fair were both held at AsiaWorld-Expo (AWE).

Benjamin Chau, deputy executive director of HKTDC, remarked, “According to the Hong Kong Tourism Board, per capita spending of business overnight visitors was over HK$10,000 (US$1,290) during their stay. Based on this figure, the total amount spent by overseas buyers and exhibitors during the fairs would amount to more than HK$1.2 billion (US$155 million) to Hong Kong, not including earnings from trade orders and related business services. These findings prove once again the enormous economic contributions exhibitions and conventions make to the Hong Kong economy.”

Friday, November 14, 2014

Gurgaon plans US$5 bil venue through Indo-Sino partnership

News this week: According to Indian media reports, Gurgaon-based Indian real estate development company, M3M Group, and Guangzhou real estate firm, Xinji Group, have signed an MoU to build a US$5 billion convention and exhibition centre in New Delhi.

A signing ceremony took place in Guangzhou detailing plans which included land resources provided by M3M and its Chinese counterpart to provide the expertise to develop the venue. A tentative timeframe for the project is expected at round five years which will include other commercial real estate and hotels.

Pankaj Bansal, director of M3M Group, was quoted saying, “We plan to build a large scale exposition centre of the kind that India does not yet have. In Delhi, all we have now is Pragati Maidan for exhibitions, and there is a real void when you talk about world class, modern exhibition centres as you have in China like the world renowned Canton Fair in Guangzhou. We hope Gurgaon will have that.”

Diversified’s Seafood Expo Asia grows 10%

News this week: Space sold at Diversified Communications’ 5^th edition of Seafood Expo Asia grew by more than 10% this year with over 200 exhibitors showcasing their products and services from the fish and aquaculture industry. The three-day show ran from 2^nd to 4^th September 2014 at the Hong Kong Convention and Exhibition Centre (HKCEC) and the event attracted more than 8,600 visitors from 66 countries and regions.

According to Diversified, 18 group pavilions were hosted including those from Argentina, Australia, Greece, Italy, France, Britain, the Maldives, China, Taiwan, Malaysia, Singapore, Canada and the U.S. Product highlights included Scottish salmon, abalone from Australia and razor clams from Ireland, while key industry trends focused on sustainability and ocean-friendly initiatives.

Ms Terri Tsang, show director at Diversified Communications, said, “In Asia, green shoppers are still on a learning curve although sustainability considerations are definitely starting to impact and influence purchasing decisions. Consumers are continuing to show an increasing appetite for premium products from quality suppliers and Seafood Expo Asia is reacting to that demand.”

Tarsus’ interim results on track

News this week: Earlier this week, London-listed media group, Tarsus Group, released its interim results for the period 1^st July to 10^th November 2014. Tarsus’ management reported that third quarter results and outlook for the 2014 full year remains in line with the company’s expectations, with current like-for-like bookings adjusted for biennial cycling coming in 8% ahead of 2013.

Tarsus announced its annual Guangzhou auto-aftermarket exhibition, AAITF, will be relocated to Shenzhen beginning in 2015. The company’s management also highlighted its future strategy to focus on six key geographical areas which include the U.S., China, Southeast Asia, Dubai, Turkey and Mexico.

Douglas Emslie, managing director of Tarsus Group, commented, “We have had a very good third quarter with strong performances across the major brands: Zuchex, Sign, Labelexpo and Offprice. We expect solid performances from our remaining shows in 2014 and the Group remains confident of delivering a good performance for the full year. We continue to drive our “Quickening the Pace” strategy through organic growth, brand replications and small acquisitions that accelerate our strategic goals.”

HC International’s revenue and profit both rise

News this week: Earlier this week, Hong Kong-listed HC International reported its results for the nine months ended 30^th September 2014. Revenues in the period were US$118 million, a year-on-year growth of 21%. Profit attributable to equity holders in the nine-month period was US$26 million, a jump of 63% over the first nine months of 2013. The management attributed the growth in profit to the improvement in online revenues and better control of the company’s costs and expenses. Diluted earnings per share in the first nine months were RMB 0.2329 (US$0.0379).

The company’s largest business segment, online services, generated 85% of total revenues (US$100 million) – up 24% over the first nine months in 2013. The seminars & other services segment generated revenues of US$14 million or about 12% of the company’s overall – up 9% year-on-year. The remaining 3% of revenues were generated from the trade catalogues & yellow page directories business segment, and were down 15% compared with last year.

HC International also released its results for the quarter ended 30^th September. Revenues in the quarter were US$42 million, up 6% over the same quarter of 2013. The company posted a jump of 92% in profit attributable to equity holders during the quarter, which amounted to US$15 million.

Global Sources’ revenue and income down in Q3

News this week: This week, NASDAQ-listed Global Sources released its financial results for the third quarter ended 30^th September 2014. The company reported revenues of US$43 million, down 5% compared with the same quarter in 2013. Net income in the quarter was US$1.9 million, a drop of 65% from the third quarter last year.

Close to half of Global Sources’ revenues were generated from online services, amounting to US$20 million or an 8% decrease year-on-year. Exhibition revenues remained flat at US$18 million and accounted for 41% of the company’s total. Declining print revenues dropped 18% to US$2.8 million in the quarter and accounted for 6.6% of total revenues.

Global Sources also announced results for the nine months ended 30^th September. The company’s revenues were US$135 million, down 1.6% year-on-year. Net income in the nine-month period dropped 68% to US$9 million. Diluted net income per share was US$0.26.

HKTDC’s new director unveils new strategies

News this week: Newly appointed executive director of the Hong Kong Trade Development Council (HKTDC), Margret Fong, has highlighted the council’s commitment to creating business opportunities for local companies while also focusing on attracting mainland Chinese and international enterprises to expand their business through Hong Kong.

Fong outlined three strategic directions the HKTDC will take to assist local small and medium-sized enterprises (SMEs) to seize global opportunities including: the “Hub Concept”, Hong Kong as Asia’s Business Centre, and Hong Kong’s IT edge.

The “Hub Concept” will see the HKTDC promote trade in products and services, while supporting Hong Kong companies looking to access new markets. Secondly, the council is to establish and promote the city as Asia’s business capital. Finally, the HKTDC will utilise developments in IT to improve and add value to its services for SMEs through its trade fairs, exhibitions and online channels.

Friday, November 07, 2014

UBM unveils “Events First” strategy

News this week: Earlier this week, U.K.-based media group, UBM plc, announced an “Events First” strategy to focus the company’s resources on its largest and most profitable shows for the next three to five years. The company targets to grow events-related revenues ahead of global GDP to provide for expansions over the medium term.

According to UBM, the company’s top 100 shows by revenue generated more than 96% of earnings before interest, taxes and amortisation (EBITA) for its events business in 2013. The company plans to invest US$40 million to US$80 million annually to acquire events businesses.

Tim Cobbold, chief executive of UBM, commented, “Events First recognises that the Events industry is a highly attractive, growing, global industry in which UBM is already a leading player… We will focus on our clear priorities: applying our resources to grow our largest and most profitable shows; effecting a step change in the efficiency and effectiveness of our operational performance; and investing in customer insight to enhance their event experience.”

HKTDC’s wine & spirits fair attracts 1,000 exhibitors

News this week: This week, the Hong Kong Trade Development Council (HKTDC) opened the 7^th edition of the Hong Kong International Wine & Spirits Fair at the Hong Kong Convention and Exhibition Centre (HKCEC). The fair, running from 6^th to 8^th November, opened with more than 1,000 exhibitors from 38 countries and regions.

This year’s wine & spirits fair is themed “Leisure in Chateau”, and will be attended by more than 70 buying missions consisting of 2,000 international companies organised by the HKTDC. First-time exhibitors this year include those from Belarus, Colombia and Macedonia. A new addition this year is the “Whisky and Spirits Zone” where more than 90 exhibitors will represent the spirits sector.

According to the HKTDC, close to 30 group pavilions are hosted at the fair. There are four pavilions making their debuts this year, including the Australia In Vines Association from the Yarra Valley in Australia, Sichuan Provincial Economic and Information Commission from mainland China, Italy’s Rome Chamber of Commerce, and the Ministry of Agriculture, Forestry and Water Economy of the Republic of Macedonia.

SNIEC reiterates stay in Pudong

News this week: The Shanghai New International Expo Centre (SNIEC) has released a statement to reiterate its stay in Shanghai’s Pudong New Area following recent rumours about the possibility of the venue’s removal. Earlier in April this year, the venue quashed rumours that it would be closed and redeveloped in the Lingang port district.

Opened in November 2001, the venue is jointly owned by the German Exposition Corp., a joint subsidiary of Deutsche Messe, Messe Düsseldorf and Messe München, and Shanghai Lujiazui Exhibition Development Co., Ltd. SNIEC has recently signed long-term agreements with more than 70% of its customers including a 10-year agreement with the organiser of Furniture China, UBM Sinoexpo.

SES names new chief executive

News this week: Event organiser Singapore Exhibition Services (SES), a member company of Allworld Exhibitions Alliance, has announced the appointment of Lindy Wee as the company’s new chief executive effective 1^st January 2015.

Ms Wee currently serves as deputy chief executive of SES and will succeed the outgoing chief executive, Stephen Tan, who has served as chief executive since 1989. Tan will assume the role of chairman of SES at the end of his tenure. Ms Wee has more than 30 years of MICE-related experience since joining SES in 1983.

Wee commented on her appointment, “The support and backing I’ve received from Stephen and the staff is heartening. We have come a long way since 1976, and today we are proud owners of Asia’s three largest trade events for the Communications, Hospitality and Oil & Gas sectors. Looking forward, I am thrilled to play a vital role in continuing to grow Singapore Exhibition Services at a time when Asian markets are leading world growth in trade and investment opportunities.”

Reed Exhibitions interim revenue up 8%

News this week: Media group, Reed Elsevier, reported its interim results for the first nine months ended 30^th September 2014. The group’s exhibitions organising arm, Reed Exhibitions, reported underlying revenue growth of 8% year-on-year, or 7% excluding biennial cycling.

Management highlighted the company’s shows in the U.S. and Japan remained strong. In China, strong growth continued in certain industry sectors with more modest growth recorded elsewhere. Reed Exhibitions’ overall revenue growth trends are expected to continue for the full year. Management expects the positive impact of biennial cycling to contribute around 2% to underlying revenue growth in 2014.

Baidu’s Q3 revenue jumps 52%

News this week: NASDAQ-listed Baidu, the leading Chinese language Internet search provider, has announced its results for the third quarter ended 30^th September 2014. Revenues grew to US$2.2 billion, a jump of 52% compared with the same quarter in 2013. Net income attributable to the company was up 27% from last year to US$632 million. Diluted earnings per share were RMB 11.00 (US$1.79).

As of 30^th September, Baidu’s active online marketing customers rose year-on-year by 11% to about 516,000. Revenue per online marketing customer this quarter jumped to US$4,220 – a growth of 36% compared with the third quarter of 2013.

Robin Li, chairman and CEO of Baidu, said, “We had another very strong quarter as we continued to leverage our tremendous assets, especially in mobile. This quarter, mobile traffic surpassed PC traffic and mobile revenue contributed 36% of our total revenue. We are particularly pleased with the progress we have made in connecting people with services through innovative O2O initiatives like Baidu Connect — a better way for businesses to connect with their targeted consumers on mobile devices.”

Alibaba’s B2B revenues reach US$324 million in Q3

News this week: China’s largest e-commerce company, Alibaba Group, released its first quarterly financial results for the three-months ended 30^th September 2014 since completing its public listing on the New York Stock Exchange in September. The company recorded revenues of US$2.74 billion – up 54% over same period in 2013. Net income was US$494 million, down 39% from the US$807 million recorded in Q3 2013.

Revenues from Alibaba’s China B2B business, primarily generated from 1688.com, jumped 40% to US$129 million in Q3 2014. The company’s international B2B business, primarily consisting of Alibaba.com, generated revenues of US$195 million – up 24% compared to Q3 2013. In total, B2B revenues for the quarter amounted to US$324 million or 12% of overall revenues.

Separately, Alibaba’s domestic B2B-focused 1688.com announced its opening to overseas suppliers with the addition of 24 food & beverage related brands from South Korea. Previously in August this year, the platform launched a “Direct From Overseas Markets” programme to accepted its first foreign suppliers originating from Taiwan.

Asia Business Media