IEG’s key to international success

Francesco Santa, CEO of IEG Middle East and IEG Arabia and international business development director IEG Group, tells EW’s Iain Stirling about the company’s global expansion plans.

IEG has noticeably been expanding its international presence. What are the primary drivers?

One of the primary targets of IEG is to make our shows in Italy stronger, especially the international ones where only the strongest exhibitions survive. Our primary target is to make the shows more international with more international exhibitors and buyers attending.We started developing our international brands four or five years ago, not least to let the world know about our shows in Italy.

With SIGEP (the gelato, bakery & coffee expo) in Italy, we want to increase international participation, and having a successful SIGEP in China (a very important market for us) means the word about the edition in Italy spreads too. Our message is: ‘Come and exhibit and visit our major event in Italy that is much bigger and you can find exhibitors from everywhere in the world.’

Different markets present unique opportunities and challenges,but how do you identify new international markets for exhibitions?

There are two main criteria. First, which markets do we want to attract to Italy? If we’re talking about Vicenzaoro, the world’s longest- running gold and jewellery B2B event, for example, where we already have lots of exhibitors, we consider from where we would like to attract more exhibitors. Southeast Asia was one of the markets of interest, so we decided to have an edition of Vicenzaoro in Singapore. Now we are able to attract them also to Vicenzaoro in Italy. There is another driver. Our exhibitors sometimes ask us to go somewhere which is how we came to launch the fitness event in Saudi Arabia. Our exhibitors in Dubai were asking us to go there.

When you expand, how do you balance maintaining the core identity and quality of your established shows while adapting to local market needs?

We don’t use the term ‘geo cloning’. We don’t think, ‘We have a successful show in Italy, let’s just replicate it in another region and we will have the same success’. That is one of the biggest mistakes an exhibition organiser can make. You always need to analyse the market where you wish to go, not only the economic characteristics, but also the cultural characteristics of the place you want to expand. You need to balance your brand identity with being able to adapt.

If you look at SIGEP, the branding is similar whether in Italy or Singapore or China. But what people like in China is completely different from what they like in Italy. You need to adapt the concept and even the timing of the show. Our show in Saudi started at 3pm in the afternoon and goes until 11pm, something you cannot do in Italy or in Singapore.

What about digital transformation? Has this played a role in your global expansion?

I’m not a fan of hybrid events and happy that the exhibition industry, after the pandemic, showed everyone that people need to meet in person. Digital is important, of course, and is supporting our events, but we’re not transforming them into hybrid events. Exhibitions were around 2,000 years ago, and will be here 2,000 years in the future.

What of your approach to building local partnerships in new markets?

Having local support is very important and getting a government institution or local association involved. One of the first things we do when we go abroad is to visit the local association and local authorities and try to secure their support. This can include financial support. In other instances, the help can be promotional or, in the case of Dubai, Emirates airline was able to bring buyers into the country. Such support is essential.

Which sectors do you see as having most potential for international growth?

IEG is in a very lucky position with a portfolio that covers a variety of industries.Most countries are investing in wellness and fitness and this is why we are now looking for new opportunities and expansion in the sector.

Back to SIGEP and Italian gelato is something that everybody likes. I was in Sydney recently, and there you can see Italian ice cream everywhere. There is also hardly a country that is not investing in looking after the environment, investing in renewable energy, and in waste management. Jewellery, too, is popular everywhere and we’ve been asked to bring our jewellery event to many countries.

How does expanding globally help you better serve your existing exhibitors and visitors?

The Italian producers that wanted to go abroad probably already did so 20 years ago but it’s also true that after Covid many companies in Italy felt the need to expand beyond Europe. The Italian market is recovering but very mature and also small.

If we look to Southeast Asia we see a booming middle class, and also in Mexico, where the market has grown significantly. Products in Europe are facing huge competition, so if we can take Italian products abroad, that is always a great opportunity.

How do you measure that success in new international markets?

You can grow exponentially with square metres and exhibitors, but if you don’t attract buyers, the show is going nowhere. All our shows in Italy with an international presence are increasing with double digit growth.

It is also important not to give up after one edition. When you launch an event you need time and you need investment.

What have been some of the key lessons learned from the expansion efforts and what is the next step?

When we go abroad we trust the local people, because they know the market better than us. Here I’d emphasise the importance of identifying a partner or local manager that can drive strategy, and especially be respectful of the habits of that country. It doesn’t make any sense to go there and to try to change everything. We need to go there being humble and learn.India is the next stop for us and we are looking at various projects there.

Looking back at your presence now in Dubai and Saudi Arabia, did it take long to get into those markets, to open an office and launch events?

We had two strategies in Dubai, because it was our first international project. We decided to go for an acquisition and bought an existing show. Now that show is four times bigger. We built a very professional team because you need international expertise to grow a show.

In Saudi we had an opposite strategy and decided to go on our own. We just took our team from Dubai and adapted the show in Saudi. The Saudi show is managed by the team in Dubai and we learned a lot from our first edition in February. We have booked triple the space at the venue for the next edition.

For the full interview with Francesco Santa, watch the webinar below.