V.
Trade Fair Participation
F. Risk Management
Trade shows combine opportunities and risks. The
opportunities are meeting new clients, developing a better company image
and placing orders. However, there exist normal economic risks such as less contacts and contracts; low turnover and a low contribution margin.
These risks can be minimized if the planning and preparation for the
participation is done correctly.55)
Other external factors might influence the trade fair participation as
well:
- Political Risk
- Revolutions and
- Hostile interventions by the government;
- Unforeseen loss of a licence;
- War risk.
For example:
After September 11th, 2001 the visitor rate at the COMDEX, Las Vegas dropped from 250.000 people in 2000 to 150.000 in 2001
- Medical Risk
- For example infection risk by SARS
For example:
- Hong Kong Trade Development Council and China External Trade Development Council were forced to cancel four important industrial mega-shows in Hong Kong and Taiwan
- Fair organizers worldwide prepared special services for exhibitors and visitors from effected regions
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