Raj Manek
Executive Director and Board Member Messe Frankfurt Asia Holdings Ltd.
Hybrid online-physical platforms the way ahead
Messe Frankfurt calls itself the marketing and service partner for trade fairs, congresses and other events and its website quoting preliminary data says that in spite of the pandemic it conducted no less than 150 fairs in the year that was. Raj Manek, Executive Director and board member of Messe Frankfurt Asia Holdings Ltd, discusses with Paulami Chatterjee how supply chains are set to change, what SMEs need to do to adapt to the new business landscape and the way tradeshows are going to be organised in the future.
Where is the Indian textile industry lagging as on date? Which are the areas where reforms are needed?
From being the largest producer of cotton and jute to becoming the manufacturing king of PPE kits, the textile industry has time and again proved to be a powerhouse for the Indian economy - but still, it has a long way to go in terms of achieving the market hold enjoyed by other textile capitals of the world.
The recent introduction of Production-Linked Incentive (PLI) scheme for MMF and technical textiles by the government will encourage new product developments and competitive opportunities for domestic as well as international trade. But the sector needs many other reforms such as export scheme initiatives and incentives, better duty drawback rates, wage support, incentives and special funds for growth and development of other areas in the industry, reduced GST for the initial stages of revival, and boosting trade exhibitions by the government will act as a catalyst to recuperate the overall textile industry.
How are textile companies faring with respect to the 'Make in India' concept?
The introduction of 'Make in India' opened investment opportunities for the entire value chain. Before COVID-19, the scheme proved to be a boon to the entire sector as it encouraged domestic manufacturers to produce goods in larger quantities making the overall textile industry flourish. Many international players also invested in India creating employment opportunities.
As India now gets out of the lockdowns, textile industries will witness a sizable shift in terms of sourcing which will become more localised, creating the need to build more domestic and inward focused production capacities. In this regard, India is very well positioned to take advantage of this potential trend and at Messe Frankfurt India, we have already positioned ourselves over the last 10 years to enhance regional business opportunities through our trade shows.
With most trade fairs going the digital way this year, what is your take on the digital intervention of shows? Are future tradeshows going to be more virtual? What are the pros and cons?
Messe Frankfurt India has been hosting B2B exhibitions and conferences since last 20 years. The touch and feel aspect is the biggest USP for physical exhibitions which is also a crucial factor leading to business decisions. On the other hand, virtual events give a better insight into the performance metrics in terms of tracking every move of the attendees. In 2020, we hosted both digital and physical exhibitions and I can say with confidence that it is very difficult for virtual shows to replace physical trade fairs.
In the coming period we are looking at merging aspects of online with physical platforms as a unified "hybrid" business model. While digital intervention enables wider reach and connectivity, face-to-face meetings at exhibitions will continue to provide the value of human contact that gives way to strong and long-lasting business relationships. Trade fairs like Techtextil India, Gartex Texprocess India and Screen Print India under the textile sector are all set to be hybrid this year. This will enable us to augment the impact of physical exhibitions through the online channel and reach out to industry players on a global level.
The economy is in recession the world over and the worst hit are the SMEs. Any thoughts on how to help these small yet critical players to tide over the tough times?
Being one of the largest players in the global textile market, the Indian textile industry is highly resilient. E-commerce models have helped SMEs reach their customers and sustain their business during the hard months of lockdown. Therefore, small businesses must focus on long term survival and adapting to the new business landscape by continuing to grow their roots in e-commerce. This year also witnessed the buying patterns of common man shifting from casual buying to necessity buying with the technical textile being more relevant than ever. Textile producers must exploit this demand for sectors like Medtech (Medical Textiles) and focus on the production of cotton and silk that is used in manufacturing masks and PPE kits. Overall, this is the right time to diversify their target audience, go local and find domestic vendors and distributors to regain their economic strength and stay afloat in the market.
How are the supply chains expected to change in the current scenario?
COVID-19 has disrupted the entire ecosystem of businesses, including supply chains. Today, risk management, warehousing and digitalisation have gained prominence. I can't stress enough on the importance of going local and using technology as a power tool to regain their strength. This is the right time for textile and apparel companies to re-structure their supply chain channels and produce goods for the local market. Organisations also must increase their warehousing facilities to help with safe and secured storage of goods. This will especially benefit the supply chains during difficult times like the pandemic.
How many Messe Frankfurt events were either cancelled or held digitally this year? What has been the response from exhibitors and common people?
Last year in Messe Frankfurt and the meetings, incentives, conferences and exhibitions (MICE) industry as a whole had its share of ups and downs. While some of our shows were being rescheduled or postponed, 2020 was largely about keeping the industry connected, ensuring business continuity - and for this, we have been exploring a combination of live virtual events and webinars, creating engaging content and bringing the industry together virtually for solution-oriented panel discussions, sourcing meetings and knowledge forums. Venturing into the digital space, we organised our first event for the Building Technology sector - ISH India powered by IPA Virtual edition in September 2020 and while the virtual trade fair was something very new and exciting for us, we were equally focused on delivering business value to our exhibitors, learning a lot in the process. As mentioned before, virtual events give a better insight into the performance metrics. For instance, our first virtual event for the Building Technology show - ISH India showcased 980 products, 15 product demos and hosted 6 live sessions, generating a total of 4,650 contacts with 215 e-meetings and 175 business calls made in a span of two days. The numbers clearly reflect the ROI in terms of new connections, and visibility.
The textile business thrives on the 'touch-and-feel' aspect of networking which makes the physical trade fair the number one choice for buyers. This year, we are gearing up for our first hybrid event for Gartex Texprocess India and Techtextil India that will offer an intelligent combination of digital and physical interactions for business exchange. Its virtual features powered by AI will be the perfect extension to expand exhibitor visibility and networking opportunities with buyers.
Also going by the results of the recent surveys conducted of the senior most buyers at Messe Frankfurt India, 88 per cent of decision makers affirmed their reliance on exhibitions to make purchase decisions and 92.6 per cent buyers affirmed that touch and feel of products combined with face-to-face interactions majorly influenced buying decisions. These figures certainly point to a strong demand in the market to organise physical exhibitions.
Which are the next Messe Frankfurt show/shows scheduled for India?
With the government giving a green signal to host exhibitions, Messe Frankfurt India's event calendar is packed with 15 leading exhibitions set to be hosted in 2021. Starting from Media Expo Mumbai and the textile fairs - Gartex Texprocess India, Screen Print India, Techtextil India, will be a crucial meeting point for the textile and apparel industry to witness in-demand products, build new business contacts and restore overall business.
We are excited and optimistic about 2021. The teams are working extremely hard to rebuild all the shows with new safety reforms and technological inclusions as companies continue to reset for growth amidst the positive news of the Covid-19 vaccine roll out. (PC)
Sustainability and circularity will be the way forward. What is the focus in trade shows with respect to this?
We at Messe Frankfurt make a conscious effort to promote the latest textile trends and need-of-the-hour products while equally focusing on sustainable technologies. Globally, the Texpertise Network is committed to supporting and endorsing Sustainable Development Goals (SDGs) which is in collaboration with Conscious Fashion Campaign and United Nations Office for Partnerships. With this initiative, our aim is to integrate SDGs into about 60 leading international textile trade fairs and advocate sustainable solutions and innovations for fashion and textile sectors all over the world.
The previous edition of Techtextil India, which was held in 2019 majorly dwelled on recent technical advancements, all-round growth, sustainability, and reusability of materials in technical textiles. The Techtextil Symposium also focussed on valuable discussions that aimed at fostering sustainability through use of renewable natural fibres.
Messe Frankfurt India also hosted a list of insightful webinars during the lockdown for Gartex Texprocess India, which included an exclusive session by a leading circular economy and sustainable fashion expert who shared tips on how companies can benefit by adopting a circular economy.
Further to this, our future shows will continue to lead the industry by advocating sustainable options at our exhibitions and include pressing topics in seminars to help discuss solutions on sustainability and the circularity of business.
Published on: 05/02/2021
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
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