Happy Campers: Big Tent Gets Bigger

By Margo McCall -- Tradeshow Week, 1/17/2005

In the past four decades, the ever-expanding Intl. CES has experienced only two breakaway shows.

And undoubtedly, Intl. CES producer, the Consumer Electronics Assn., would like to keep it that way. The trade association, embracing makers of everything from televisions and stereos to home theaters and digital cameras, gets that message across on its 2005 show Web site by describing the event as "the one show to grow your business" and telling exhibitors and attendees that "you've got to be here."

Even though CEA represents 34 diverse market sectors, since 1967 it has managed to keep all its exhibitor groups together — with the exception of the adult entertainment and video game industries.

Tired of being relegated to a corner of the outdoor parking lot, as the story goes, a renegade group of video game exhibitors turned their backs on Intl. CES a decade ago and established their own show.

The more than 50,000 net square foot E³/Electronic Entertainment Expo, owned by the Entertainment Software Assn. and managed by VNU Expositions, now attracts about 400 exhibitors and more than 60,000 attendees to the Los Angeles Convention Center each year.

During last year's 10th anniversary celebration of E³, association President Doug Lowenstein acknowledged being initially uncertain if the breakaway show would succeed. "A lot of people thought we were nuts. CES thought we would be crawling back to them in short order."

Adult entertainment industry exhibitors started their own show, the AVN Adult Entertainment Expo, seven years ago. Held at Las Vegas' Sands Expo & Convention Center during the same week as Intl. CES, the show draws about 24,000 attendees and 50 exhibitors.

Now, rather than losing groups of exhibitors, Intl. CES, held Jan. 6–9 at the Las Vegas Convention Center, keeps on gaining them. In 2004, the show spanned 1,390,618 net sq. ft., about 140,000 net sq. ft. above 2003. It drew 129,000 attendees and 2,491 exhibitors, up from about 117,000 attendees and 2,300 exhibitors in 2003. Square footage at the 2005 show exceeded 1.5 million net sq. ft.

CEA President and CEO Gary Shapiro has frequently pointed out that he takes a "big tent" approach by embracing every aspect of the consumer electronics industry. But how does the association make sure they all remain happy campers?

Dan Cole, CEA vice president of sales and business development, said the secret is: "We never rest on our laurels. We're only as good as our last event."

One of the best ways to keep exhibitors happy is to keep attendees happy. CEA staff continually works to reinvent the show by adding new conference programs and TechZones on the exhibit floor.

"We are fortunate that we have a very dynamic, strong, goodwill-based association and active, energetic members that stay committed to the show," Cole added. "We know we have to deliver year after year. If you stand still, you move backwards."

Some foresee Intl. CES picking up even more activity due to the postponement of MediaLive Intl.'s COMDEX, the once-large information technology show normally held at the LVCC in the second week of November.

"With the demise of COMDEX, CES is taking on a much bigger role in terms of digital entertainment and digital products," said Michael Gartenberg, vice president and research director at Jupitermedia.

Besides the presence of more IT exhibitors, the appearance of high-tech heavyweights such as Hewlett-Packard CEO Carly Fiorina and Microsoft Chairman Bill Gates as keynotes underscores the show's increasing embrace of the computer industry.

For BenQ, a Taiwan-based global manufacturer of computers and other consumer electronics products, Intl. CES is a must-attend event. "It definitely is one of the largest shows we're participating in, especially with COMDEX going away, said Joey Lee, BenQ public relations manager. "CES gives us the opportunity to show off our entire product line to an international audience. It's the show for the consumer electronics industry."

Besides personal computers, BenQ produces cell phones, networking gear, peripherals, and digital cameras, displays and audio and video equipment. Lee said exhibiting is important because competition in the consumer electronics markets is stiff. "There are new brands popping up every year. We're fighting for shelf space and market share for the consumer audience."

Lee said the 3-year-old BenQ, formed from Acer Communications, has excellent relations with show organizers. "CEA and the staff have been definitely helpful to us, and very open to hearing us out and finding solutions," she said.

Gartenberg, for one, wonders whether that industry will break out of the show, just as the video and adult entertainment sectors did. "It will be interesting to see over time whether digital technologies merit a show exclusively for those wares without having to compete with toaster ovens," he said.

The audio category draws the most exhibitors, followed by home theater, computers, mobile/vehicle electronics, video and wireless. The fastest-growing sectors at this year's show, in terms of net square footage, are embedded technologies, wireless products and solutions and the digital imaging category, said Intl. CES spokeswoman Tara Dunion.

The show is helped by a growing demand for gadgets. CEA expects manufacturer-to-dealer sales of consumer electronics to reach $125.7 billion this year, up 11 percent from the $113.5 billion sold in 2004. Digital television accounted for $10.7 billion of 2004 sales, up 78 percent from the previous year. MP3 players also showed strong growth, with 2004 dollar sales nearly tripling to $1.2 billion.