The MICE (meetings, incentives, conferences and exhibitions) economy is showing a strong recovery in China this year.
From Shanghai to Shenzhen, and even in second-tier cities such as Dalian, Ningbo, Haining and Zhuzhou, fashion exhibitions are spreading across China. Participants include international luxury brands; a series of supply chain companies for clothing, shoes and accessories; and numerous industrial clusters. The exhibitions cover jewelry, watches, trendy fabrics, fur fashion and new wool products in various niches and specialist fields.
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Data from the National Bureau of Statistics of China showed that in July, the growth of social financing slowed, the decline in M1 money supply increased to 6.6 percent, total retail sales of consumer goods grew 2.7 percent year-on-year, with the growth rate rising 0.7 percentage points from the previous month, and the added value of industry above a certain size rose 5.1 percent, with the growth rate falling 0.2 percentage points from the previous month.
The latest data clearly show that the overall growth of China’s economy has “slowed down and improved in quality”, which is in line with the assessment of the situation at the July 30 meeting of the Political Bureau: “Domestic effective demand is insufficient, economic operation is diversified, hidden risks in key areas are still relatively high, and there are temporary difficulties in the transformation from old growth engines to new ones.”
From the public’s perspective, a series of record-breaking “new lows” continue to emerge in areas such as consumption, employment, and credit. At the macro level, however, financial policies that “squeeze the water out” are indeed beneficial to the “real economy.”
In the next phase, when huge amounts of credit flow into the manufacturing sector, the market will undoubtedly face the problem of capacity digestion: how to achieve a balance between supply and demand through various strategies and measures. In short, the current fundamentals of the Chinese market remain unchanged: a weak real estate sector, more goods produced than consumed, and external demand stronger than internal demand.
Against this backdrop, and in stark contrast to the gloomy figures, a series of fashion shows held across China in August are contributing to some growth in the fashion industry in the second half of the year.
“Hardship” and “intense competition” have become synonymous throughout the industry. At present, with the undeniable trend of declining consumption and a slowing economy, local governments and clothing associations are working together to prepare the stage for various fashion shows, which have popped up in various places in August.
In Zhejiang, following the China (Yuyao) International Fur Fashion Exhibition, which highlighted the industrial chain of fur products from raw materials to finished products and started in Ningbo on August 8, the Haining China-International Home Textiles (Autumn) Expo 2024 was held in Haining three days later.
In Shenzhen, the Link Fashion clothing exhibition from August 12 to 15 attracted visitors from all over the world. Dalang, which aims to become the world capital of wool fashion, presented a global picture of an industrial base transformed by foreign trade.
From August 27 to 29, the Intertextile Shanghai Apparel Fabrics-China International Trade Fair for Apparel Fabrics and Accessories, CHIC-China International Fashion Fair (Autumn), Yarnexpo and PH Value International Knitting (Autumn/Winter) Expo were held in Shanghai at the National Exhibition and Convention Center (Shanghai).
Taking the Intertextile International Pavilion as an example, more than 800 companies from 26 countries and regions participated in the exhibition, including Italy’s Milano Unica Pavilion, as well as companies from France, Japan and Korea, plus many other countries and regions that brought the latest R&D results. The joint pavilions of Lenzing, Lycra, Hyosung and Sorona brought cutting-edge technologies and the latest concepts in the industry. Zones for digital solutions, functional fabrics, fine wool fabrics and eight other product categories displayed innovations aimed at meeting the current needs of the industry
Hunan also officially opened the Fashion Expo in late August. It will be held in Zhuzhou, Hunan from September 24 to October 15. The 22-day professional expo will cover 11 themes and focus on the central region of China, with the main goal of promoting trade both within and outside the province.
But since textiles and clothing are already established industries, what kind of signal do all those trade shows held this month and planned for the coming months send?
According to industry experts, the strong participation of companies in recent clothing and textile fairs reflects the fierce competition in China. Exhibitors use the trade fairs to tap into new markets, especially international ones.
In 2024, with the market at an unprecedented level of complexity, innovative supply chain technology companies could have the opportunity to achieve a “bumper harvest” through the exhibitions, as demand for products that help companies reduce costs and increase efficiency is high.
During the two sessions of the National People’s Congress earlier this year, “MICE economy” was a common expression in the work reports of local governments. And on July 28, Premier Li Qiang of the State Council and Premier Giorgia Meloni of Italy signed the “Action Plan for Strengthening Comprehensive Strategic Partnership (2024-2027)” at a meeting in Beijing. Both sides attach great importance to international exhibitions held in the two countries and will continue to encourage enterprises from both countries to participate.
In China, government reports from developed regions such as Beijing and Shanghai have suggested promoting the MICE economy to stimulate consumer consumption. Guangdong Province, with major exhibitions such as Canton Fair, High-tech Fair, CPTPF and Expo Central China, as well as the “Cantonese Business Go Global” exhibition series, regularly attracts visitors from established markets in Europe, America, Japan and South Korea, and actively explores emerging regions such as ASEAN, the Middle East, Africa, Russia, Latin America and the South Pacific island states.
In addition to the first-tier cities Beijing, Shanghai, Guangzhou and Shenzhen, Tianjin has proposed to build itself into the northern capital of exhibitions, while Dalian is striving to become a famous international convention and exhibition city in Northeast Asia, and Jiangxi Province has set the goal of “one representative exhibition for one city and one representative fair for one industry”, developing new forms and models of consumption such as instant retail and social e-commerce.
The MICE economy can indeed stimulate the development of industries such as tourism, accommodation, catering, logistics, infrastructure, transportation, construction, trade and human resources, and play a role in the economic development of cities. However, the greatest impact of professional exhibitions is still within the industry itself.
Take the Haute Horlogerie exhibition “Watches & Wonders” for example. After its successful conclusion in Geneva, the exhibition was held again in Shanghai, where it presented a new edition of the Haute Horlogerie event at the Shanghai West Bund Art Center for five days starting from August 28. Watch enthusiasts, vintage watch collectors and high-net-worth individuals can wander around the world of watches, while industry experts, a series of activities such as product launches, panel discussions, seminars, basic training, product introductions, industrial showcases and photo exhibitions help visitors explore the future development of high-end watchmaking. In addition, the Shanghai edition recently set up a LAB Innovation Technology Space, showcasing forward-looking inventions and innovations.
This is the fourth time that Shanghai has hosted the China stop of “Watches & Wonders”, joining more than 50 exhibitions in the city this month, with an average of more than 10 per day. Also this month, Shanghai released the report “Several Measures on Enhancing the Driving Effect of the MICE Economy in Shanghai”, which encourages the introduction of even more exhibitions to build a “City of International Exhibitions” and increase the impact of the MICE economy.
The fashion industry is particularly looking forward to the third World Design Cities Conference (WDCC) to be held in late September, which will also see the return of the annual Shanghai Gala, hosted by WWD China. This year’s conference, themed “Together, We Keep Moving Forward,” will invite young Chinese fashion designers, global industry partners and academic experts. Through a series of activities including exhibitions, fashion shows and forums, the conference will focus on sustainable fashion concepts in contemporary design and explore how the creativity of Chinese fashion will fuel future trends.
The MICE economy plays a leading role in supporting both China’s overall macro-economy and regional economies, and acts as a driving force for global development. Professional exhibitions in the fashion industry are especially important engines for promoting market internationalization and boosting global trade.
Editor’s Note: China Insight is a monthly column from WWD China, WWD’s sister publication, discussing developments in this important market.
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