MICE Industry in China Market Intelligence

Industry Outlook & Drivers

Regional Market Outlook on MICE Industry

In 2016, despite slow recovery of the world economy, there are still many unfavorable factors that make the global economy uncertain. Against this background, China has maintained its steady social and economic development. The growth in the Chinese MICE market is sustained by economic growth in the region. The Chinese MICE market is expected to reach 800 Million by 2020.

Market Overview

• Corporate Spending: Top MICE spend in China is dominated by Manufacturing followed by Utilities, and Agriculture and Forestry
• Growth: The China MICE market is expected to grow at 10-15 percent in 2017
• Forecast: China's MICE market is expected to reach USD 800M by 2020

Growth Drivers

• Investment: The Chinese government has devised policies to develop infrastructure to support MICE industry
• Initiative: The government vigorously promoted business development overseas, with favorable policies
• Technology: The use of technology in every phase of an event production

Constraints

• Corruption: China is high in corruption and fraudulent activities
• Regulatory landscape: Industries are highly regulated and scrutinized, like pharmaceutical and financial companies

MICE Technology Trends

AI Automation

AI automation in meetings and events has gained significant importance in China despite a huge human workforce. AI automation when combined with other technologies such as AR, VR and event networking can enhance attendee engagement to a great extent.

Big Data on the Rise

Event planners have started doing crowd shaping in their events using data analysis and interpretations. The usage of big data in terms of understanding attendee demographics is increasing in the country.

Increase in use of Mobile Apps

Mobile Apps are being used beyond paper replacement and logistics planning. The array of sensors in recent smart phones when combined with apps can provide information on attendees such as likes, dislikes, average time spent.

Face recognition and Chatbots

Event planners have started using face recognition tools and chatbots for easy check in and assistance of attendees. Attendees can also schedule meetings, attend polls through chatbots. This will further enhance the attendee engagement in an event.

Porter's Five Force on Chinese MICE market

As M&E is a fragmented market with a large number of suppliers providing similar services, rivalry among suppliers is intense and entry into the market is relatively easy. The bargaining power of suppliers is moderate, as differentiation in services is less, whereas that of buyers is high, as supplier switching cost is low.

Supplier Power

• The bargaining power of the supplier ranges from low to medium, due to the vast number of suppliers in the market
• The differentiation of services between suppliers is very difficult to measure, as it is qualitative; hence, the suppliers' bargaining power is less

Barriers to New Entrants

• M&E management requires a basic understanding of event planning and a network of suppliers
• It has low start-up costs; hence, it is very easy to enter the market
• However, sub-categories like event production and exhibit management require creative skills, and hence, the barriers to entry can be higher

Intensity of Rivalry

• The M&E market is highly fragmented, with plenty of downstream suppliers
• Each sub-category has many suppliers, mainly local players
• The top 10–12 players are roughly of the same size
• Due to the presence of so many suppliers, this industry is highly competitive
• This competitiveness enables low supplier switching costs.

Threat of Substitutes

• The growth of virtual meetings pose a threat to physical meetings and events. It is gaining popularity because it is cost effective and saves travel time

Buyer Power

• Due to intense competition between the suppliers, the supplier switching costs are low. Hence, the bargaining power of the buyer is high
• Data/ technology migration from one supplier to another may be a cause for concern, but the buyer can make the migration formalities part of the contract to ensure a smooth transition