Cover Trade shows: to restart despite the pandemic.

Trade shows:

TO RESTRART, despite the pandemic

An integral part of the Private Label ecosystem, events and exhibitions are useful for the state of the art of the sector and for discovering strategies for future development by establishing a dialog among the different players of the supply chain. The COVID-19 pandemic represented a setback for trade shows, but here’s how they plan to relaunch in 2022.

No longer considered as a temporary trend, Private Labels (PLs) are now pillars of the Big Organized distribution (Bod) and retail at a global level, with positive rates everywhere. As Romolo de Camillis, NielsenIQ analyst, states “Observing PLs is key to understanding a brand positioning, its health and its trend in the coming years. At this stage, PLs are a strategic asset for distribution.' According to the data by Nielsen presented at the Edizioni DM webinar called ‘The PL sector and the role played by trade shows’, during the year June 2020-June 2021 PLs grew by 2.8% (slightly lower than that of the packaged consumer products). In particular, in Western Europe it was equal to 2.3%. Excluding the fresh products and the goods at a variable price of PLs, the contribution of PLs when it comes to sales throughout Europe is clear, however different depending on the geographical areas: from Spain with almost 40% to Italy and its 28% (the lowest in the EU). The share in value of PLs is 32%, and may even reach 40% in volume when considering both goods produced and sold. In the last 6 years, the weight of the so-called ‘Low Price’ and ‘Golden’ customers increased, stepping from 12% to 21% and from 14.9% to 18.2%; 'Silver' customers remained almost the same (only 0.2%), while the weight of the ‘Mainstream’ and ‘Traditional’ customers decreased respectively from 27% to 24.5% and from 21.4% to 11%. Consumption, therefore, is being radicalized between ‘best price’ and ‘premium’. As shown by the snapshot of August 2020 – August 2021, the greatest growth of the top 3 Italian consumer groups comes from the controlled supply chain (82.4%), ‘organic/ eco-friendly’ (72.9%), and ‘kids’ (79%) products. Sustainable agriculture or breeding (for 32.9%), the protection of ‘Made in Italy’ (at 22.7%) and healthy lifestyle (17%) are actually the most successful PL categories among consumers; categories that are estimated to grow even more. This phenomenon is a result of the pandemic, but just partially: it has more ancient roots. A sign of recent times, instead, is the need to rethink dates and methods of conducting themed trade shows, in an attempt to prevent and not chase the continuous Covid-19 changes and the rules through which governments try to stem it.

Purchasing styles to read the transformations of Large-scale consumption

IN FRANCE THE ‘SIRHA-MADE’ STICKS TO THE DATES, BUT GOES FOR PHYGITAL

The ‘Made’ trade show in Paris, established in 2012 under the name of ‘Mdd Expo', then renamed ‘Sirha-Made’ in 2021 as a part of the big GL events group, is the main PL trade show in France and one of the most important in Europe for producers, co-packers and catering services.

The event has two keywords: ‘continuous innovation’. 'This year our trade show, taking place on March 15-16, will be called ‘Futuristic Feed’. More than one third of exhibitors will present their innovations, and this arouses a lot of curiosity, especially if we consider that 50% of what will be consumed tomorrow hasn’t been invented yet” - says the Trend and Innovation Expert Sophie de Reynal about the event. The trade show will host 400 exhibitors, c.33% of which, first time exhibitors. “We're really confident about 2022 – adds Mrs. de Reynal – we need to face up this ‘new normality’, so we’ve thought of a new way to get visitors through hybrid events, half physical and half virtual.” With more than 4000 project holders, decision makers from national and regional purchasing centers for the catering, the large-scale distribution (both online and instore), this trade show focuses on the French internal market but, being open to the world, it’s, most of all, an opportunity for foreigners who are willing to export to France. Indeed, c.35% of exhibitors come from abroad. “Meeting in person is just as important for manufacturers as it is for retailers and catering services. In 2020, we were lucky because our last show, which took place in September, was the only food event of that year; it was an unexpected success as we were in the middle of the pandemic.'' On the contrary, we had to cancel the 2021 edition, so as not to compete with other trade shows by the same organizers that take place in France between September and December. Today, consumers have turned their attention to national food, of course, but in particular to the matter of ‘origin’. Italy and Spain have a lot to show in this regard, because they are famous for their culture and tradition in gastronomy, with pasta, oil, cheese... so our trade show represents a great opportunity for growth for Italian exhibitors in France.

MOSCOW IPLS WILL BE HELD LIVE IN APRIL

Far to the east of the Seine, in Moscow, Ipls 2022 will open the doors of its 9th edition during the first week of April, returning to its original location after September 2020 and June 2021. This trade show is one of the 'Reed exhibitions' in Russia and it’s been active since 2014. It’s a B2B event espressely for PL in every field, such as, food, non-food, design and packaging, healthy and organic products (which is the last category we introduced, as it is very popular in Russia), “Here Private Labels interpret rational choices, healthy lifestyles, active online sales” as the Ipls Key Account Manager Alexander Kalyagin explains. The event also deals with PLs that are facing the 'tried and tested' phase and its keywords are: 'support' and ‘diversification’. “Ipls is mainly addressed to foreign companies who intend to enter the domestic market. In this regard, the latest news on rules and certifications are shared during several seminars, to help companies understand what the easiest, fastest and legal way to bring their products to Russia is. – explains Mr. Kalyagin - During the trade show, we also provide a gallery of the best PL products present and the summit opens for retailers to connect. This is why we'll be running the show in-person, although with all the anti-Covid precautions, and implementing a ‘fully online’ format isn't that appealing.” Visitors’ company profile includes: retail chains (online and in-store), wholesalers, distributors, Ho.Re. Ca, manufacturers, services. Although it could be defined as a 'regional event', as it involves the major local and global supply chain names active in the Russian market and former USSR countries, these chains gather a customer base of as many as 5 million people: ‘Auchan’, which sells out one fifth of its product under a PL; 'Pyaterochka', whose PL in 2020 grew from 13.9 percent to 17.4 percent and is expected to reach 20.4 percent in 2021; ‘Magnit’, which has a PL share of 10% in 2021 and is expected to reach 25% in 2025; and finally ‘Verniy’, which from 7% is expected to to end 2021 with 9.8%. The Russian PL market is young and small yet the share of PL products in overall retail sales has leapt from 1.7% in 2011 to 5.3% in 2021 and is increasing year by year, no longer just because of Covid, with more than half of retailers now planning to increase their shelf availability. After all, during the pandemic, the range of PL products has expanded a lot; they started with low prices, then stood out for their quality and now they are also present in the premium segment.

The growth of Golden and Low Price, drivers for polarization

Weight in % on the total large-scale consumption value

CLICK & WATCH

FOR MARCA THE KEY WORDS ARE COOPERATION AND GROWTH

Domenico Lunghi, by Marca in Bologna, hopes for “a ‘single direction’ to help companies from and in different markets orient.” In January 2020, the last edition before the pandemic, the trade show hosted 892 exhibitors in a 22.604 m2 area. After last year’s setback, the 2022 edition, driven by everyone's strong desire to get back to face-to-face exchanges, seems to be born under a lucky star, even though it has been postponed to April 12-13. This date was chosen by the exhibitors themselves, who fully shared the organizers' cautious line (given the rise of infections in Italy), so in a short time the number of confirmations exceeded 900. “Although with all the mandatory anti-Covid measures, we’ll be working live because in a trade show where usually 80% of exhibitors come from the food sector, smelling, tasting and touching is essential – as the Director of PL, food and pet industry of BolognaFiere says – However, there will also be an online ‘pre-show’ with meetings between exhibitors and buyers.' This event is young compared to other foreign trade shows. It has been organized for 18 years, while Amsterdam's main European trade show is in its 36 year, yet over the last five years, Marca has increased its visitor numbers to 12,000. According to Lunghi, there are two reasons for its success: the choice of the right time of the year, when the brands start up again and want to do some research before confirming partnership contracts with their co-packers; the strong collaboration with Adm, the Italian Association of Modern Distribution. Moreover, for three years now, Fiera has had an agreement with a number of agents operating in various European countries, South Korea, Latin America and Israel, contacting and inviting to Bologna the main brands of those markets, when not partners of Italian retailers. This year Marca is once again working with the Ice agency, thanks to which, around 15 important buyers are expected to arrive at the trade show from the USA alone. The aim now is to become even more international: despite Marca's fame and the fact that its visitors come from all over the world, the majority of exhibitors are still Italian. “In September 2021- recalls Lunghi - the 1st ‘Marca China’ was held in Shenzhen, where our partner was the Shenzhen Retail Business Association, with 6 thousand visitors and 300 exhibitors, including 16 Italians. It went well and we are going to organize it again, because this helps us to accompany Marca’s companies to China and to remind ourselves that, despite the pandemics, organizing largescale events safely is still possible."

u Dual role for PLMA of Amsterdam and Chicago While Covid-19 intensity doesn't seem to abate, the two major events dedicated to PL build a network. This is how the new online trade show, Plma Global was born. From May 28-31, 2022 it will gather all the exhibitors and buyers of the two main events of the industry, Amsterdam and Chicago. Today, these two trade shows remain scheduled in person, the first from May 31 to June 1 and the second from November 13-15, but the new Plma Global will combine them providing a digital platform for distributors all over the world (supermarkets, hypermarkets, discounters, drugstores and other formats) and current or potential suppliers of PL. This, according to the organizers, will help the parties redefine their partnership and develop together better solutions to ensure a timely and widest possible distribution of goods. And this last aspect is still one of the major issues from the beginning of the Covid-19 pandemic. Plma Global will support real-time discussions and meetings, product shows and the scheduling of appointments, also taking into account the different time zones. Furthermore, the ‘search’ function of Plma Global will allow participants to find suppliers, not only through already known criteria such as (company name, category, description, continent), but also through visual research for the products in the photo gallery.

THE SECTOR OF TRADE SHOWS NEEDS CONTINUOUS SERVICES

“Private label is becoming a well-rounded brand with its own credibility and, according to many entrepreneurs, it’s key to new market entries.” These are the words of Paolo Palomba, partner of the consulting company Iplc, the international organization of experts in the world of retail and production, speaking of PLs. According to the Iplc consultant, there is great demand for preparatory services to trade shows by exhibitors, especially to put exhibitors into contact, so that the benefits of the events do not end in 3-4 days, as well as for follow up services until the next edition. "The world of PL and their internationalization," concludes Palomba, "cannot do without events that, along with business matching, create and develop content for summits and conferences.”l

Maria Teresa Giannini, Professional Journalist specialized in Large-scale Distribution.