Section 3 – How the industry works
Business models
There are numerous business models in events, any of which can be successful:
 Industry “horizontal” trade shows, e.g., Magic
An event which covers a range of related industry segments, typically with
coherence around the attendee base – for example, in the case of Magic,
around buyers of women’s fashion.
These events can develop powerful brands and considerable momentum. In
their prime they are very hard to challenge as their success creates a
competitive vacuum in their sector. There have also been some significant
failures, however, in cases where the show stagnates in a rapidly changing
industry and fails to keep up with the needs of participants. The most notable
example is the IT show Comdex.
Major events can also spawn a range of satellite events, or parasites. Las
Vegas can see as many as 20 or 30 fringe events in minor venues around a
major show as other organizers seek to exploit the opportunity to reach the
attendee base that is in town for the main event. There are similar
phenomena elsewhere, including Cannes. The organizer of the main event
has three choices: Kill, Co-habit or Acquire. In many cases organizers can
cohabit with these fringe events.
 Industry “vertical” trade shows, e.g., National Restaurant Show; All Things
Organic
These events are focused on the buyers and sellers in a specific industry
segment. They have the specific advantage of a clear focus. Some
conference or other content can be added to the events, though it may not
always be substantial or compelling.
These events can be national, regional or local, and some organizers have
been successful in rolling out brands through a series of regional events.
Another development approach is to co-locate events that serve a similar
attendee base. For example, Interop is effectively a set of four co-located
events.
 Congresses, e.g., ICSC Convention Leasing Mall & Trade Expo
Congresses (sometimes referred to as confex) are events that combine an
industry conference and a trade show. Attendees are drawn to the
compelling content of the conference and some will also be interested in the
trade show element. Other attendees will be interested in the trade show
element alone and will not participate in the conference program.
Many congresses are association-owned events, run for the benefit of
members, but often managed by a professional organizer. They are often
peripatetic, rotating through cities domestically or internationally, though some
remain rooted in a particular location, such as Medica in Düsseldorf.
 Conferences, e.g., Association of Corporate Growth (ACG)
These events typically focus on an industry sector or sub-sector and are
designed to bring together industry participants both for information-gathering
and networking.
In those that have established a strong brand and are networking-led, the
delegate mix is key, and the organizer has to refresh the content each year.
14
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26