April 1997

Producing U.S. Pavilions Overseas

Set up your best shot at going international

By tapping into existingshows in other countries and launching a U.S. pavilion, show organizerscan line up the best shot for exhibitors eager to expand their markets,maximize their growth, and distribute products and services in a burgeoningglobal arena. Often, organizers produce pavilions as an adjunct to a successfulU.S. event, drawing on the established exhibitor base for participants.It's a low-risk way to test a new market, for both the organizer and exhibitors.

Associations see pavilions as a member service. "We're a not-for-profit,"says Helen Chantos, who, as Director of International Services for the NationalHousewares Manufacturers Association in Rosemont, IL, has launched pavilionsin more than seven countries. "Our goals are to facilitate Americanhousewares exports while creating an awareness of our own show in the UnitedStates. Individual members get a chance to test the international responseto their products without having to bear all the costs of exhibiting ontheir own."

Whether they're for profit or not, pavilions serve as an incubator fornew-to-market products or services, and for more established companies seekingto broaden their horizons internationally. The environment provides greatervisibility, an identity with a larger group and a sense of community, allowingexhibitors to get their feet wet, learn about the market, experiment andconcentrate on selling.

"Additionally," says Ron Fippinger, CAE, Vice President ofMarketing and Operations for Show Management and Services Inc., Oak Brook,IL, "as an independent show management company, you can cement andexpand business relationships between one of your major clients and yourselfby providing a service to them."

Protocol and planning

An overseas pavilion can be launched with as few as 10 or as many as200 exhibitors, but not before you've done your homework. As the producer,you will be required to formulate a budget, negotiate floor space, hirecontractors, freight forwarders and customs brokers, determine booth optionsfor the exhibitors, provide access to air travel and hotel accommodations,and generally quarter-back all phases of the event.

While not unlike producing a show domestically, trade fair protocol inother countries can require an organizer to jump through numerous logisticalhoops. A carefully constructed business plan and a 12 to 18 month lead timewill go a long way to building a successful pavilion package. "Do yourresearch and start with the basics," Fippinger advises, "so youcan determine how much space you need and begin creating a budget."

Budgeting for an overseas event can be complex, so leave no stone unturnedwhen gathering all known costs. Pour over the official show kit to validateall prices and procedures. Establish strong relationships with the showmanager and outside service providers to ensure an active and open lineof communication when questions or problems arise.

Acquiring sufficient floor space may be the first hurdle you encounter.Opinions differ on resolving this issue. Fippinger suggests, "Ask formore (space) than you need, because you know they're going to cut you backin most of the more popular shows." Conversely, Chantos and Carol Fojtik,CEM, Senior Vice President at Hall-Erickson Inc., Clarendon Hills, IL, advocaterenting the minimum.

"Be conservative in reserving your exhibit space," Fojtik advises."Try to get an option for more, but proceed with caution until exhibitorsput their money where their mouth is. Economic conditions, political situationsand currency fluctuations can impact the overall success."

Design and pricing

However you determine your space requirements, include space for an exhibitorlounge within the pavilion. "Shows in Europe are massive and quiteelaborate," says Noel Hoekstra, Director of Marketing for Chicago-basedDusseldorf Trade Shows Inc., U.S. subsidiary of the Dusseldorf Trade FairCo. in Germany. "The booths are enormous and grandiose and all haverunning water. Some Americans don't understand why we need this lounge/meetingarea. We tell them you really need it because it's expected. All the Europeansbuild a lounge into their space. It's used to entertain their customers,and sometimes they're almost like a restaurant."

How to negotiate your space requirements and costs differs from venueto venue. Understanding the variations can be critical to the budgetingprocess. "Germany is so unique compared to our shows," Chantossays. "It's one price if you have one side open. If you have two sidesopen, it's higher. Three or four sides, and the price goes up. I have topay for those four open sides, even though when I subdivide somebody mightjust have one side open -- I still have to pay that higher price."

Stands, as they are called outside of the United States, are offeredin a variety of packages: raw space, turnkey, basic shell scheme units,a la carte or custom. Although pavilions differ from location to location,most show managers agree a turnkey stand with interior options is the mostpractical. Hoekstra observes: "Most of the U.S. pavilions are turnkey,because most of the companies are going there for the first or second time.They don't want to ship a booth or any sort of heavy equipment, and theyprefer to have the turnkey package so all they have to ship is their product."

Contractors and contacts

Choosing a contractor and freight forwarder/customs broker presents yetanother decision. "There are lots of choices," says Fojtik. "Youcan work directly with the official stand builder of the fairgrounds itself,or you can work through a stand builder that's been referred to you by anotherU.S. show organizer.

"There are also a few firms in the United States who already haveestablished relationships overseas and are servicing U.S. show managers,"she adds. "So you could even work with an all-U.S. contact for everything.It's definitely the easiest way, especially when the U.S. contact has experiencein working in other countries or the specific location you are attending.Also, they know the system that would be used to build the stand, so theywould be able to provide you with sketches, drawings and sample boards."

In many cases, using the show-approved contractor has definite advantages."Usually it's cheaper," says Chantos. "A lot depends on thecost per square meter and what's included. Often, shows offer the spacewith walls and there's no difference if you just take the raw space."But reliability and quality of work remain foremost concerns, so checkingwith other U.S. producers who have experience with the facility and contractorcan prove enormously beneficial.

The same choices apply to the international freight forwarder/customsbroker. Again, knowing a venues' protocol influences the decision. "Alot of times I try to go with the show-approved freight forwarder,"Chantos says, "because then you make sure you get your deliveries ontime. I didn't do that in Hong Kong, and management started letting theapproved forwarder put their stuff in, and the others came later."

Fojtik recommends: "Establish a relationship with an overseas partner,whether it be your display builder, interpreter or overseas agent. Theycan provide invaluable help to you, especially on site."

Language and culture

In most cases, you will need to hire interpreters either through showmanagement or your overseas partners. In European venues one or two maybe shared by the entire pavilion. In other locations, each exhibitor mayrequire its own interpreter. In her pavilion in Japan, for instance, Chantosassigns one to each exhibitor, whether they request one or not.

Differences in business practices, local customs and cultural taboosabound when exhibiting outside the U.S. Not only do you, as show manager,need to study and understand them, you need to communicate that informationto your exhibitors. Show organizers should provide exhibitors with literatureand information regarding a particular venue and encourage further educationthrough alternate resources.

According to Jason Chudnofsky, President and CEO, Needham, MA-based SOFTBANKCOMDEX Inc. and Paul Mackler, Senior Vice President, Norwalk, CT-based ReedExhibition Cos., co-authors of the special report, "Expanding Globally,"prepared for the Society of Independent Show Organizers, "Good luck/badluck colors, number omens, geometric shapes, rules of punctuality, personalcommunication, openness and objectivity, personnel gender, 'first name'salutations, gift giving, business card exchanges, business attire and muchmore" will influence the success or failure within overseas markets.

Promotions and departures

Just as with a domestic show, international pavilions require promotion.Your own promotional staff can be pressed into action, as well as thoseof the show organizers. "They may agree to send out press releasesand mailings on your behalf," says Fojtik. "They may also includemention in their own press releases. So it's important to work with theirpress department as well as your own." Sister organizations of theindustry you're representing based in that country may also be willing topublicize your pavilion to their membership.

As the event winds to a close, feedback from your exhibitors will determinehow worthwhile the venture was. Did they find the type of interactions theywere looking for, such as meeting agents and distributors or making directsales? Did they discover new avenues previously unknown to them? Was theirproduct widely accepted? What comments did they receive? They may even discovertheir product needs modification or different packaging for the internationalmarket.

"Anybody who takes part in a pavilion is successful," Chantoscontends. "Some of them find out it isn't their market, and they don'tcome back. And that's still a success."


Steps to produce a pavilion

The following check-list was derived from the International Association for Exposition Management's Career Enhancement Module (CEM), "Producing Pavilions & Trade Fairs Outside the United States." While each event will have specific requirements, this time line can be used as a framework for producing a successful U.S. pavilion overseas. For more information about IAEM's CEM modules, contact Marcia Wisocki, IAEM Education Manager, (972) 458-8002, ext. 109.

12 months
  • Contact show management regarding available pavilion space
  • Inspect site
  • Develop comprehensive plan and budget
  • Fill out space application
  • Review currency risks and available options for mitigation
  • Identify city/country support options as well as local advertising/promotional opportunities
  • Prepare exhibitor prospectus
  • Begin space sales
10 months
  • Confirm exhibit space
  • RFPs to vendors, booth contractors
  • Select contractors
  • Begin initial pavilion theme, booth design and construction plans
  • Select travel agency
9 months
  • Recruit past exhibitors
  • Establish travel plans
  • Formulate space and booth costs
  • Launch publicity campaign
  • Contact U.S. Foreign Commercial Service and U.S. Department of Commerce for additional support
  • Reserve meeting and reception space
  • Review service guide from organizers/facility
  • Prepare and mail U.S. exhibitor service kits
7 months
  • Secure new exhibitors if space allows
6 months
  • Layout pavilion and assign space
  • Design and prepare any special graphics for pavilion identification
  • Forward space deposits
  • Mail acknowledgments and information to exhibitors
  • Apply for directory listing(s) in official show guide
  • Develop U.S. directory and arrange for translation of all U.S. materials
  • Prepare multi-lingual reception invitations
  • Inform exhibitors of advertising opportunities
  • Order any promotional aids offered by organizers, e.g., stickers, visitor passes, etc.
  • Generate follow-up publicity campaigns
  • Hire interpreters
3 months
  • Identify on-site U.S. staff
  • Secure and confirm travel/housing reservations
  • Obtain all necessary immunizations
  • Continue publicity campaigns
  • Arrange for hospitality, reception and catering
  • Mail reception invitations
  • Translate and assemble press kits
  • Translate show kit
  • Finalize stand construction details
  • Send all forms including directory listings and press releases to show management
  • Prepare and mail final exhibitor communications
  • Prepare and ship literature, graphics and other pertinent management materials
6 weeks
  • Ship any additional materials
  • Purchase any necessary gifts
  • Send show schedule and badge passes to exhibitors
  • Transmit any additional payments
2 weeks
  • Review and execute final details


 

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