If you run a small state association trade show, or if you’re a for-profit player nurturing a show launch along to what you hope will be the size at which you can sell it to a bigger player, what does the impending $5.5 billion sale of UBM to Informa mean to you?
Were you listening when Informa Group Chief Executive Stephen Carter said of the then-potential Informa-UBM hookup, “It is clear the b-to-b market is moving to operating scale and industry specialization”?
Are you concerned that Walmart is pushing its suppliers for deeper discounts because of competitive pressure from Amazon?
Does it matter to you that last year the price of Kimberly-Clark’s paper towels dropped 2.7 percent? Or that its disposable diapers became 0.8 percent cheaper?
The commoditization of almost everything consumer related seems to be leading to a point where two companies, Walmart and Amazon, sell everything to everyone – and compete with each other for the lowest price.
That couldn’t happen to the events industry, right? That’s what you’re saying to yourself, isn’t it? Face-to-face is different!…Right?
Or is it?
Keep in mind that this is only the latest mega-acquisition involving these two companies over the last eight years: UBM acquired Canon Communications in 2010 and then Advanstar Communications in 2014. Informa bought Hanley Wood Exhibitions in 2014 and Penton in 2016.
Is this just interesting but ultimately irrelevant news for the small event organizer? Or should we take Stephen Carter’s predication that “the b-to-b market is moving to operation scale and industry specialization” as a threat that smaller players could be steamrolled out of business?
Will the ability of larger event companies to take advantage of economies of scale dictate a decline in the value of smaller events? Will the larger event companies’ ability to implement industry specialization, as Carter suggests, dictate the demise of niche organizers who launch one-of-a-kind conferences and trade shows and nurture them until they can hand them off to larger players?
Maybe not. Take a look at another example from the world of consumer products.
While Kimberly-Clark is trying to find the bottom of the market for things like paper towels and disposable razors, competitor Proctor & Gamble is seeing growth in its higher-priced niche organic beauty and health care products categories – 9-percent growth for organic beauty products in the last quarter alone, 4 percent for organic health care.
P&G made the decision to go upscale, to personalize and to pay attention to a market – in this case, the one for higher-priced organic products – that repels commodification.
There is hardly an event entrepreneur who does not want to build their young show just to the point where they can sell it for the highest price possible.
But first you have to build it. And, in this new commodity economy, you’ve got to do so in a way that returns to the true meaning of face-to-face: One attendee and one exhibitor at a time.
Michael Hart is an event consultant and conference content professional. He can be reached at firstname.lastname@example.org, @michaelgenehart or 323-441-9654.No Fields Found.