The four-day electronics show at AsiaWorld-Expo concluded yesterday. Show traffic and exhibitor business were moderate, but some computer peripheral exhibitors had good results. One Hong Kong computer peripheral supplier said they met many quality buyers with high sourcing interest from emerging markets. It's believed that the market is picking up soon.

Marketing Manager of Amazing Products, a manufacturer of computer accessory gifts, Mr. Lo, said traffic at the show was moderate, but they met many quality buyers. Buyers from Southeast Asia, the Middle East had higher sourcing interest, making product inquiries in detail. Buyer response was much better than the show held last fall, when the global financial tsunami first emerged.

Gifts orders expected to rise 20% in second half of the year

He added that one Japanese buyer had told him they were running out of stock so they were desperately looking to refill inventory. One China importer also revealed that retail sales in the Mainland are recovering and as demand for electronic gifts remains strong, he expects sales of these products to increase by 20% in the second half of the year.

Director of a computer accessory supplier, Mr. Kong, said this was the fourth year they had participated in the show. The number of visitors had dropped by about 10% compared to last year's spring show. But they met many potential buyers from emerging markets including the Middle East and South Africa.

He also pointed out that because of the economic slowdown and strong competition from mainland China suppliers, their new product, a stylish media player, only received HK$30,000-40,000 worth of orders - half of what they had expected. To attract more customers, the company plans to develop more computer peripherals. They will also set up a company on the Mainland to explore business in the wholesaling sector.

Mr. Lun, Business Director of first-time exhibitor Eastpoint Technology Ltd, which focuses on memory card manufacturing, said buyers from emerging markets responded positively to their products. He added: "Buyers from Spain, Brazil and Egypt have strong buying power. I've met a dozen buyers and half of them are potential buyers who made serious inquiries and showed strong buying interest."

Middle East and Australian buyers actively sourcing

One computer peripheral supplier said they had met and negotiated with buyers from the Middle East and Australia. These buyers were serious about making purchases. He said that computer peripherals attract greater demand than shoes or fashion because computer products change rapidly. As consumers often switch and update their products, demand remains high.

Other electronic products did not enjoy the same prospects as computer peripherals. An LED manufacturer said buyer sourcing interest was weak and they bargained fiercely. Some even demanded cutting prices of 10-20%.

Mr. Lee, representative of hi-fi supplier Onstage Studio, said overseas buyers were not as interested in their products and made fewer inquiries this year. He's not optimistic about the sales for this exhibition.

Traffic down 30%; keen competition from Mainland exhibitors

Marketing Manager of Growtech International Ltd, Mr. Fung, said the number of visitors declined 30% compared to last year's spring show and there were obviously fewer potential buyers. The majority of exhibitors at the show were from mainland China and the competition for buyers with them was intense.

Organizer Global Sources revealed that the number of buyers from emerging markets including India, Brazil and Russia had increased by 10% from the last spring show.

Suppliers hope to get booths after HKCEC expansion

The HKCEC atrium extension has entered the final stage of construction. Hong Kong suppliers exhibiting at the AsiaWorld-Expo said traffic at the HKCEC is better, so they would try to switch to the expanded HKCEC in efforts to meet more buyers and raise their profile.

HKTDC and Global Sources were both holding electronics shows in the HKCEC and AsiaWorld-Expo, respectively. An exhibitor in the AsiaWorld-Expo revealed that they had fought for booths at HKCEC before but failed because of intense competition. He said: "There will be more booths in the HKCEC after the expansion and it will increase our chances to exhibit there." He added that, while the rates for participating in the HKCEC show are higher, they're worth paying because there are more visitors and thus will generate better returns.

Free videoconferencing service to attract exhibitors

Mr. Lo, Marketing Manager of a new company, Amazing Products, thinks differently. He said the show in HKCEC mainly targets large manufacturers. Smaller companies like his are usually assigned to booths at unfavorable locations. The show at AsiaWorld-Expo, on the hand, is held in two major exhibition halls so he can get the attention of buyers. In addition, booth prices are $1,000 cheaper at AsiaWorld-Expo. So he's not considering moving to HKCEC.

This year, organizer Global Sources launched even more services in a bid to retain exhibitors. At the six spring trade shows starting this week, for instance, Global Sources will provide exhibitors with free videoconferencing meetings with buyers. There are also on-site Russian interpreters to help Russian buyers negotiate with suitable suppliers.

One mainland China exhibitor had been offered the videoconferencing service to meet with a Russian buyer. Their Overseas Market Development Manager, Miss Xu said: "With the help of a Russian interpreter, our negotiation was made easier."