Emerging Markets: Interest in East Europe Builds

By Heidi Genoist -- Tradeshow Week, 10/10/2005

Among other things, attendees at the UFI Congress next week in Moscow will have the chance to participate in a roundtable discussion on markets in Eastern Europe and the Commonwealth of Independent States, an alliance of 11 former Soviet republics.

Although the panel includes some members from outside the region under discussion, none of them is from the United States. That isn't surprising: For the most part, U.S. organizers haven't — at least not yet — tapped into the potential of the burgeoning Eastern European and Russian economies.

At least two show producers are forging the way, however. The first is Bethesda, Md.-based E.J. Krause & Associates. Two of the independent show organizer's 16 global offices are located in Russia — in Moscow and St. Petersburg. E.J. Krause also produces two well-established exhibitions in the country.

PAP-FOR Russia is a 9-year-old conference and exhibition for the paper, pulp and forestry industries. Jointly sponsored by nine trade groups and publications, the biennial show is expected to span more than 43,000 net square feet at $39 per sq. ft. when it is held Nov. 21–24, 2006, at Len Expo Fairgrounds in St. Petersburg.

E.J. Krause also produces an extension of its EXPO COMM brand in Russia. The 18-year-old telecommunications and information technology show, SVIAZ/EXPO COMM Moscow, is next set for May 10–13, 2006, at the Krasnaya Presnya Fairgrounds. It is expected to draw 75,000 attendees to a near-270,000 sq. ft. exhibition.

Associations aren't far behind independent show organizers in exploring Russia, either. The Assn. of Equipment Manufacturers, owner and organizer of mega-construction exhibition CONEXPO-CON/AGG, has started the ball rolling to take its members to Russia.

Petra Kaiser, AEM's assistant director of international marketing and international pavilion manager, said members have indicated that Russia and India are the foreign markets that U.S. construction equipment makers would most like to explore.

In response, AEM has sent Kaiser and her team to scout the market over the last couple of years, and she has identified a potential partner: Media Globe Intl.'s annual CTT Moscow. The 6-year-old construction equipment and technology show, scheduled May 23–27 at Crocus Expo, last year drew 14,000 visitors to see 434 exhibitors spanning nearly 323,000 net sq. ft., according to Media Globe.

"CTT has support from the industry, but is not sponsored by a major Russian association," Kaiser said. For now, her plan is to work with trade publications and government agencies.

"It's likely that we will establish a pavilion at that show," said Kaiser.

AEM, which also owns and organizes the Intl. Construction & Utility Equipment Exposition and World of Asphalt, has more overseas experience than most U.S. associations. Cooperating with its French and German counterparts, AEM rotates CONEXPO-CON/AGG triennially with intermat and bauma, respectively, where it takes pavilions of members to exhibit.

AEM also is launching the triennial CONEXPO Asia in Beijing next May. The association's first China show will collocate with Dallas-based Hanley Wood's World of Concrete Asia.

Interest in Russia is likely to keep growing. According to the Business Information Service for Newly Independent States, the country has seen five straight years of growth, averaging more than 6 percent annually. Last year, exports grew to $162 billion and imports to $92 billion.

Still, other associations are taking a wait-and-see attitude.

Jason McGraw, senior vice president of expositions for the Intl. Communications Industries Assn. (owner and organizer of InfoComm), said his organization has or is launching events in China, India and Singapore, but "for our industry, based on market size and potential, we don't see Eastern Europe and Russia being there yet."