In Europe and the US trade shows for independent retailers are concentrated into large, sprawling events, in a central location, once or twice a year. In Australia, where we think distance is a challenge, suppliers fund five, six or more gift / homewares trade shows.
Every trade show significantly adds to supplier costs, which is ultimately reflected in purchase price.
While geographically there is a challenge in Australia, the cost of getting to a centrally located bigger and better run fair would be close to what a UK gift shop pays to get to the centrally located Spring Fair in Birmingham that I have attended this week.
Spring Fair is massive. I’d say it is around six to ten times bigger than the biggest gift fair in Australia. It is this size because it is the fair, the one everyone attends – 60,000+ this year including a reasonable continent of Aussies. Suppliers have less cost. This is an efficient fair for them.
In 2017 there will be five or six gift fairs in Australia. This could be cut to two. Suppliers I speak with say they’d like that. For a small wholesaler, each fair would cost between $10,000 and $15,000 for the stand, travel and labour. That money has to come from somewhere.
As suppliers look at operating costs, I suspect the high cost of trade fairs in Australia will come under scrutiny. As they have found in the US and Europe, one much bigger fair if more efficient for suppliers and more valuable for retailers than the multiple fairs we have right now.
Suppliers are already cutting labour costs by reducing or eliminating on the road reps. Smart technology provides a better solution that can see suppliers absorb operating cost increases. I think trade shows fall into the same category as reps – they are a cost to be carefully assessed as it is the retailer and consumer who ultimately have to carry the cost of the activity.
At Spring Fair there is everything in gift, homewares, jewellery and more. In the first day I did more that 15km walking the halls and that was not all of it.
The photo is from a plush supplier. It sure has an impact.
some really good gift suppliers don’t even have stands at the gift fairs instead they have exhibition and sales twice a year at their own showroom/
warehouse. i prefer going to their showrooms
Been to Brum. Light years beyond Australia Gift Fairs and so so so much more choice
What is efficient for suppliers is not necessarily in the interest of buyers.
We need fairs that that offer choice, not fairs that offer monopolies financial return.
Quite frankly, as a rural store, getting in to and out of a major city, paying parking and staying over one night, AND paying staff to replace ourselves while doing so, is pretty much a loss. The deals are not good enough, the quantites are appalling (how can I sell 48 of the same item into a town of 5000 people who all know or are related to each other!). We cannot ever pretend to be ShoppingTown anywhere, yet, I make a living, employ seven people, and still spread a bit of joy every day.
So yes, Trade Shows in Australia are way in excess of this minority business.
H, in retail today you have to look at what you can sell way outside your area. Thinking about your business only seeing a local community is a retail concept of the past.
In understanding this Mark, I’m hardly likely to purchase for resale gift items that have just been exhibited to thousands of other resellers at a Trade Fair am I? Looking for exclusivity is the key in my book, and sometimes even local is best for that.
h Without really knowing all the details of your town and business but being in a town of 5000 and being busy enough to employ 7 staff would be encouraging to try expand your range.Plenty of suppliers with excellent stock sell in quantities a lot less than 48. We live in a smaller town but do get busy for a few months of the year as we are on the beach. but sell a good range of gifts, toys and books all year round. the hardest thing to change is the mindset we cant sell this, ( we had the same mindset). We were happy to see $20 sales, now sales of $80 – $150 are quite common. One local spent over $700 in one transaction before xmas for her family. Going to at least one Toy and one one gift fair each year is very important for our business. Re your last comment the main reason alot of that stock is in other resellers is that its selling, if no one in your town is selling it its worth a try.