Middle East Exclusive aims for broader appeal

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The third Middle East Exclusive exhibition, held in Dubai last December, was the biggest yet according to organiser Channels Exhibitions. The company's managing director Justin Boutros tells RavenFox.com it is broadening the event's scope this year to take in more of the industry's fastest-growing markets

RavenFox.com: How do you assess the impact of Middle East Exclusive 2005? What was the response from buyers and exhibitors?
Channels Exhibitions managing director Justin Boutros: In 2004 we reached a point where we had established ourselves on the duty-free calendar. Despite apprehension from some areas, we had continually been given the support of the Middle East Duty Free Association [MEDFA] and Dubai Duty Free to take the show forward as a regional event, reflecting the requirements of this special market. We are now being congratulated for bringing a new show with a new dimension into a market that enjoys higher growth than anywhere else in the world today.
For 2005 we concentrated on building the stature of the show, making it reflect the luxury industry while including traditional and non-traditional brands and searching further afield to find more key buyers from the exciting sub-continental market. Our visitor breakdown and research shows that many people from the luxury goods industries are also participating and using MEE as an area to source goods.

The response from exhibitors and buyers was that the event is now an established luxury products, travel-retail and duty-free event. We were thrilled with the quality of visitor in 2005 and received positive feedback about business success stories and a general feeling that the show was standing alone and reflecting the market In terms of quality of event and brands.

Many people mentioned the high-quality stands and genuine buyers and trade delegates at the show. Over three days we had 2,144 visitors, 6.5% up on 2004 with few non-trade delegates. We will continue to work with the sub-continental buyers as growth in passenger traffic there is predicted to be 25% per year until 2010, meaning more exciting opportunities.

What will you seek to change and improve at next year's show?
Of course we will be looking to grow the event. We have had specific demands to include more people from the sub-continent, which is very much part of our region. The possibility of a free workshop on-site is being considered owing to demand. There is also demand for luxury brands from the CIS region, so there is plenty of scope for growth. We are looking to have more exhibitor groups to add to Italy and Germany. A UK and possibly Irish pavilion is on the cards. The Danes also had great success and may come as a pavilion too.

With regard to exhibiting companies, how will you seek to bring back previous supporters such as Pernod Ricard among others?
As we see from shows all over the world, certain companies have varying agendas and marketing campaigns from year to year as well as unavoidable internal issues, which makes it possible or impossible to participate. We will of course welcome all companies to MEE 2006 but it is not for us to strategise for them and tell them how to spend their budgets and allocate their personnel.

What's your response to those suppliers who argue that they already see their clients in the Middle East on a regular basis, and don't need a show such as MEE?
Quite simply, the exhibition is about networking and doing business in a conducive environment. The established brands in the Middle East are very forthright about why they participate—the right contacts are at the show for them to meet and they are also meeting interesting new people from new markets that they are not yet exposed in. The show also gives them time to sit with their customers and show them all of their brands within a luxury environment, which they cannot do by just travelling around the regional operators' offices and sometimes working out of a suitcase. They feel that exhibiting at the show allows their customers to feel and experience the brands correctly. This helps them to work better with suppliers and subsequently forge better bonds and improve their business opportunities.

The big beauty and fashion houses remain largely absent from MEE. How are you seeking to change this? Are any becoming keener?
The big beauty and fashion houses remain absent from nearly all shows globally with the exception of Cannes, and even then some do not always participate. We were never in any doubt that it may take five years for the show to flourish correctly. When it reaches a critical mass we are sure we will see them, and they know where to find us. In the meantime, we are welcoming newer and more regional brands to the show and they are doing great business, even taking market share away from the big houses as retailers around the region look for more regional and local varieties, as well as cost-effective alternatives which offer more choice to the varying tastes here.

Some argue that there are too few duty-free operators in the Middle East to make the exhibition a lasting success. What's your response to that?
Again, we have mentioned earlier why brands exhibit and we have the fantastic support from the MEDFA members and Dubai Duty Free. We are offering an excellent platform for companies to meet with buyers from the region who may not be able to visit other events some distance from home. With the growth of India and the sub-continental markets, plus Africa and the CIS, we believe there will be plenty of new operators across the duty-free region. If you look at the changing industry, you will see that inflight sales are also growing thanks to the phenomenal number of new aircraft on order.

Let us also not forget that MEE is not only a duty-free show, but also a travel-retail and luxury goods exhibition. These markets are experiencing the kind of rapid growth that is not being replicated anywhere else in the world. Business opportunities are excellent in the Gulf for all of these industries and we will grow and develop, as have the innovative retailers here.

Some luxury houses believe that the show itself doesn't lend itself to their brand image. What would you say to them?
It is a choice to participate or not. It's a competitive marketplace and if your competitors are there then there is a good chance that they may be establishing relationships with your clients. We have certainly seen some wonderful brands in 2005: Apple, Lacoste, Police. Anthon Berg, Pilgrim, Nike, Iceberg, Givenchy, Toscow, Kenneth Cole, DAMAS, Nestle, Lindt, and Laurent Perrier to name a few. We are reflecting a local market and we feel we show the changing face of duty-free by bringing in non-traditional names. Many duty-free operators are reaping huge benefits from these new sectors. Some of the lesser-known names have been very successful with local and destination goods, Pashma, Nutty Nuts, Senses, Art boxes and others.

How long are you committed to holding the show in Dubai? Would you consider moving it, or holding it in a different city each year?
For the moment we are committed to holding the event in Dubai. We re-evaluate each year and work with both Dubai Duty Free and MEDFA to co-ordinate our efforts as we provide a week's business with the Dubai Duty Free Golf World Cup, the MEDFA conference and then the exhibition. If the conditions were right then we may move the show, but so far have received no request from anyone to do so.

What plans do you have to develop the social side of the event?
In 2005 we added the Blues Night to our calendar and we feel that this offers another evening of enjoyment and networking. Other plans are to offer a sports morning unique to any duty-free event anywhere in the world. This would be to offer the delegates the chance to come to Dubai, don winter jackets, thermals and gloves and match their skills on the world's most advanced indoor ski slope, SkiDubai—the size of four football pitches and kept at –3°C even when its 45°C outside. Going on a trip to the desert and actually skiing on real snow is something refreshingly different. Hopefully MEE will be thought of as refreshingly different too.

What's your target for visitor and exhibitor numbers next year?
We are looking forward to growing on last year's figures and push MEE 2006 as it offers opportunities not just for duty-free but also other areas of travel-retail and the luxury goods sector. Again we will be looking to the sub-continent to invite new operators and buyers who have never been to a show such as ours before but are looking for new brands and products for their outlets. With many thousands of square metres coming online over the next 18 months throughout the greater Middle East, it is a great time and place to strengthen brands and to ensure your business is there to take advantage.