Trade shows have become a marketing strategy in business, providing opportunities for business expansion. While it provides a platform for retailers to get new products into the market, it is also an avenue for prospective buyers to get value for the goods purchased at discounted rate, JANE CHIJIOKE writes.
A Lagos resident, Shade Adeola could not hide her detestation for the rising cost of food commodities in the country. The harsh economy has made her more frugal in her expenses. With a family of six, feeding the home has been quite challenging. But the recent Food and Beverage West African exhibition, which held in Lagos, appeared to be an opportunity for her to get the best deals on food items. She has priced some food stuffs at the open market, which her N60,000 budget could not address. But at the exhibition, she bought more items than she could at the open market.
Among the items bought were three bags of 10kg Semovita at N2,700 each as against N3,000 in the open market; a 5kg Ofada rice bought at N4,800 against its open market price of between N5,000 and N6,000. She also bought a food blender at N13,000, a difference of N2,000 and N3,000 at open market price, among others. She was also introduced to new products, which she bought to have a trial at home.
“Coming here for me was to have good discounts on items. Attending fairs has helped me to safe cost. Though not much difference in the prices when compared with open market prices, but such discounts have value. At times with the varieties of products been displayed, you might be tempted to buy even more than what you bargained for,” she said.
Likewise, Victor Effiong and his wife, who both attended the just concluded Nigerian Baby Fair at Muri Onukola Park, Victoria Island. They had shopped for baby items at discounted prices, but one thing they valued most was the master classes on issues around pregnancy, child health, risks involve in having untrained nannies at home and a host of other information offered by exhibitors.
These are some of the strategies business owners employ to lure shoppers to patronise their products or services at trade shows. They get to pitch their services or products to a large crowd.
Exhibitions or trade shows have become key strategy in business promotion. Many business professionals have integrated them into their multi-channel communication strategy to widen their reach to new, old and prospective audience.
Used to influence sales, fairs provide unique networking platform for both local and foreign participants. They boost foreign investments, promote locally made goods and afford shoppers the opportunity to shop variety of products at one venue and as well as have a face-to-face meeting with the manufacturers of such products.
International trade shows started in 1977 with the inauguration of Lagos International Trade Fair being organised by the Federal Trade Promotion Board before the Lagos State Chambers of Commerce and Industry (LCCI) took over in 1986. Since then, other states have incorporated it to boost their commerce activities beyond the country.
It has also continued to attract more businesses to the fair. The large visitors that attend the events can be said to be driving businesses to break even and make more sales, hence the increasing number of exhibitors at trade fairs. At the last Lagos trade fair, over 2,000 exhibitors, inclusive of the 200 foreign exhibitors that attended the fair. It had about 500,000 visitors.
At the conclusion of the fair, ex governor Akinwunmi Ambode explained that the variety of products displayed, showed that the country has a lot to offer to the global market, stating that the fair has built new networks, partnerships, investments, employment creation and increased contribution to the nation Gross Domestic Product (GDP).
This year, the fair scheduled to hold from November 1-10th, would play host to 3, 500 local and foreign exhibitors with 500,000 visitors being expected.
Meanwhile, at 2018 Abuja International Trade Fair, about 1,500 exhibitors and 1million visitors participated. According to Abuja Chambers of Commerce and Industry (ACCI) Director-General, Tonia Shoyele, the trade fair has recorded not less than 3,000 exhibitors and 20million visitors in the last 12 years. A continuous increase in participation by business owners is applicable to all other international trade fairs, organised by different states in the country.
Unlike in the past where trade shows were more or less a function of state governments, which periodically organise them, it has gained momentum that hardly a month passes by without exhibition being conducted around the country. Individuals, banks, hotels, more exhibition companies, international and local private sectors, among others, now hold fairs, making it almost a frequent business activity in the country.
It is believed that its value goes beyond the industry sector of the event as it plays a vital role in expanding the economic gains of the foreign participants and boost the visitor’s economy through local and international visitations to the fair. For instance, transportation, hotels, retail and restaurants are direct beneficiaries of trade fairs.
To have more market access at trade exhibition fairs, most business owners make quality preparation to ensure that they get the best return on investment. For instance, having more volume of products, creating more publicity of their presence at the fair, opting for space that seems conducive to display their products and having more workforce to attend to customers at the same time.
Also, they treat shoppers to free tasting of products, practical sessions, discount prices, use canvassers to market products and music among others to endear their products to shoppers.
Indeed, trade fairs create opportunities for business growth. Some of the exhibitors spoken to affirmed that fairs have expanded thier market base.
“There is always a good turnover for me at any fair I attend. I do sell at least 60 per cent of my products at most fairs. At one of the trade fairs I attended, I made sales of N450,000 because I had customers, who also bought in bulk from me to resell,” said Adesua Steven, a dealer in makeup accessories.
She noted that though the open competition at fairs make it more challenging to persuade shoppers to buy product, “but still, if you can market well, you will be happy you attended,” she added.
An exhibitor at the just concluded Nigerian Baby Fair, Mrs Chika Nwuje, noted that the benefit of fairs have been tremendous on her business. Her submission is drawn from the several fairs she had participated in the past.
“The business exposure you get is awesome. The after effect of the exhibition is always positive. You get calls, people asking for your service. Some would even traveled down from far distances just to come to you and by extension, your market base gets expanded,” she explained.
For Chioma, who introduced an already made stew in sachet at the Food and Beverage West African exhibition, noted that it was well received by consumers and she made much sales at the fair. She added that the reception she got encouraged her to continue in the business.
Similarly, an international exhibitor at this year’s Food and Beverage West Africa, Serge Kponou, from Benin Republic, explained that doing business with Nigerians has been a long desire for him, owing to the fact that the 200 million population offer a viable business opportunity for him. Having established sales partnership with local distributors, he expressed confidence that his participation at the fair has paved the way for him.
For an exhibition to take place, at least five stakeholders would be present: the event organiser; the industry sector(s) which the exhibition represents; the host; the exhibitors and the visitors. These last two participants comprises of shoppers, distributors, retailers and prospective business men.
“All stakeholders in the exhibition sector have vested interest. They evaluate the fair from different perspectives to ascertain the impact of the fair their business and this revolves around profit, sales, exhibitors and visitors’ satisfaction. I must say, most times it has always yielded a positive result, hence the more businesses participating in exhibition fairs,“ said Jide Martins, a trade fair exhibition organiser.
According to the President of the LCCI, organisers of the annual Lagos International Trade Fair, Mr. Muda Yusuf, exhibitions or trade fairs are important drivers of the country’s economy.
Speaking on the economic value of the Lagos Trade fair, Yusuf said: “trade fair offers opportunities for businesses to showcase what they have to both domestic and international audience. It has helped to project our locally made goods to the outside world as it accounts for percents of products been displayed at the fair. It has also helped to attract foreign investors into the country and has also provided opportunities to develop joint ventures.
He said trade fairs or exhibitions creates an Avenue to build trust. He summited that such marketing channel is the best way to do partnership business as it inspires more confidence. “There is a big difference in seeing the person physically than relying on e-mails or any other social media platforms which is risky. Even with the digital age, face to face marketing still remains relevant.”he said.
For some business owners, trade exhibition is quite an expensive invtestment for the short period which fairs last.
On the part of the organisers, putting up an exhibition is capital intensive. The cost of venue, publicity, security, logistics, sourcing for sponsors and exhibitors are some of the areas requiring huge financial input.
For instance, a Co-organiser of the Agege Mega fair, Mrs Bukola Adedeji, lamented that the N5 million invested in the two-day event could hardly sustain the hosting of the event.
Buttressing her submission, Yusuf revealed that it cost over N200 million for the LCCI to stage the annual Lagos International Trade Fair, a 10-day exhibition. Also, providing adequate security with the unfavorable wellbeing of the economy are parts of the challenges the fair faces.
Similarly, the project director, Nigerian Baby Fair, Tolulope Olorundero, disclosed that her firm invested over N20 million in the just concluded Nigeria baby fair held at Muri Okunola Park, Victoria Island.