The 10-day “cloud-based” Canton Fair successfully closed, and was the first online show in its history. It is said that the 127th Canton Fair attracted hundreds of thousands of buyers from 217 countries and regions to register, a record high for buyer sources, further optimizing the global market mix. It featured 50 exhibition areas, 25,000 exhibitors, 1.8 million export commodities, 24-hour uninterrupted online display and live broadcast of goods, injecting new driving force of innovative development into Canton Fair. The total transaction amount was still not disclosed after the closing, which made people doubt whether the online fair was effective. However, according to a recently released report, the total transaction value of enterprises based-on Jiaxin was over $135 million and Wenzhou reached some $79 million (Jiaxin and Wenzhou are cities in Zhejiang province). It can be inferred from the data that the total transaction of the virtual exhibition should be very impressive.
This year's Canton Fair featured cloud alignment, cloud negotiations, cloud live streaming, and visiting the exhibition in the cloud. Different from the live commerce directly facing consumers with the product starting from 10 yuan ($1.42), Canton Fair is a world-renowned B2B exhibition, where exhibitors are facing professional buyers and purchasers with the order amount starting from 100,000 yuan ($14,240). In reality, there are many fans with high impulsiveness, but few impulsive professional buyers. In the 10×24 hours live online showroom for exhibitors, what efforts and costs should exhibitors pay to compete for the business opportunities of "cloud communication"?
The biggest advantage of the online exhibition is that it saves booth fees, construction fees, and shipping costs, which can be said to be a "small cost, big return". Exhibitors could upload pictures and videos of their products, or they could choose display models suitable for them, upload VR booths and build their own exhibition centers. Purchasers could inquire about products or enterprises and visit their virtual booths. The disadvantage was that from "face-to-face" to "screen-to-screen", buyers could not experience the sense of touch, smell and hands-on operation. Buyers tended to be more hesitant and considerate, and give thorough consideration before firming orders or signing contracts.
Some purchasers complained that it was difficult to find the new products they want at online exhibitions, and buyers in different countries have different focuses on the same product. There were certain deviations between the live explanation and buyer’s focuses, which might easily lead to incomplete understanding. Since overseas buyers were from 217 countries and regions, exhibitors had to arrange staff to be online for 24 hrs to answer buyers’ questions, inquiries and drafting contract details in time when facing the fierce competition from other exhibitors and about 1.8 million exhibits. Online exhibitions save material resources, but exhibitors have to make more effort to win orders than before. In the past, due to the added value accumulated in affinity, trust, and enterprise strength, offline exhibitions may return to the same starting line with other exhibitors when they are held online, so that their advantages are limited. Some exhibitors indicated that the purchase amount of old customers increased, but the new customers decreased. Although exhibitors concluded some transactions, they were not concluded online, but through traditional email and telephone calls.
In the face of irreplaceable experience and business opportunities in the cloud, it is obvious that professional buyers prefer offline viewing and purchasing, and exhibitors are expecting and anxious about surviving in the digital world. A large number of buyers at online exhibitions and orders at offline exhibitions are resources that exhibitors cannot give up. How to weigh their priorities tests numerous enterprises. The 12th GTI Asia China Expo 2020 will take place at Area A, China Import and Export Fair Pazhou Complex, Guangzhou from September 9 to 11, 2020, which will integrate online and offline activities and bring the most splendid annual event to global merchants.
※The article is published in the GTI Magazine Issue No. 188 in July 2020