The meetings, incentives, conferences and exhibitions economy (MICE) is experiencing a strong recovery in China this year.
From Shanghai to Shenzhen and even second-tier cities like Dalian, Ningbo, Haining and Zhuzhou, fashion exhibitions are popping up all over China. Participants include international luxury brands, a number of supply chain companies for clothing, shoes and accessories, and numerous industrial clusters. The exhibitions cover a variety of niches and specialties, including jewelry, watches, fashion fabrics, fur fashion and new wool products.
More from WWD
According to the data of the National Bureau of Statistics of China, the growth rate of social finance slowed down in July, the decrease in M1 money supply increased to 6.6 percent, total retail sales of consumer goods increased by 2.7 percent year-on-year, while the growth rate increased by 0.7 points compared to the previous month, and the added value of industry above a certain size increased by 5.1 percent, while the growth rate decreased by 0.2 points compared to the previous month.
The latest data clearly show that the overall growth of the Chinese economy is “slowing down and its quality is improving.” This is consistent with the situation assessment at the Political Bureau meeting on July 30: “Domestic effective demand is insufficient, the economic functioning is different, the hidden risks in key areas are still relatively high, and there are temporary difficulties in transforming from old growth drivers 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 lending. However, at the macro level, “squeezing the juice” financial policies are actually significantly supporting the “real economy.”
In the next stage, with a large amount of credit flowing into the manufacturing sector, the market will face the problem of capacity absorption: 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 domestic demand.
In this context, and in stark contrast to the dismal data, a series of fashion shows held across China in August are to some extent spearheading the fashion industry’s second-half growth.
“Difficulty” and “intense competition” have become bywords throughout the industry. Currently, with an undeniable trend of decreasing consumption and slowing down the economy, local governments and clothing associations are working together to prepare the stage for various fashion shows that will appear in various places in August.
Following the China (Yuyao) International Fur Fashion Fair in Zhejiang, which showcased the industrial chain of fur products from raw materials to finished products and opened in Ningbo on August 8, the 2024 Haining China-International Home Textiles (Autumn) Fair was held in Haining three days later.
The Link Fashion clothing fair, held in Shenzhen from August 12-15, welcomed visitors from around the world. Dalang, which aims to become the world capital of woolen fashion, presented an overall image of an industrial base transformed by foreign trade.
From August 27 to 29 in Shanghai, the National Exhibition and Convention Center (Shanghai) hosted the Intertextile Shanghai apparel fabrics-China International Apparel Fabrics & Accessories Trade Fair, CHIC-China International Fashion Fair (Autumn), Yarnexpo and PH Value International Knitting (Autumn/Winter) Fair.
Taking the Intertextile International Pavilion as an example, more than 800 companies from 26 countries and regions participated in the fair, as well as the Italian Milano Unica Pavilion, as well as France, Japan, and Korea, and many other countries and regions bringing the latest R&D results. The joint pavilions of Lenzing, Lycra, Hyosung, and Sorona brought the latest technologies and concepts in the industry. Zones for digital solutions, functional fabrics, fine woolens, and eight other product categories featured innovations aimed at meeting the current needs of the industry
The Hunan Fashion Fair also officially opened in late August and is scheduled to be held in Zhuzhou, Hunan, from September 24 to October 15. The 22-day professional fair will cover 11 themes and target central China, with the main goal of promoting trade both within and outside the province.
Well, since the textile and ready-to-wear sector is a deep-rooted sector, what kind of message do all the fairs organized this month and those planned to be organized in the coming months give?
Industry experts believe that the intense participation of companies in recent ready-to-wear and textile fairs is a reflection of the intense competition in China, and that exhibitors use the fairs to expand into new markets, especially international ones.
In 2024, with the unprecedented complexity of the market, innovators in supply chain technology may have the opportunity to achieve a “full harvest” through exhibitions. This is because the demand for products that help companies reduce costs and increase efficiency is high.
At the two sessions of the National People’s Congress earlier this year, “MICE economy” was a phrase frequently used in local government work reports. And on July 28, Premier Li Qiang of the State Council and Italian Prime Minister Giorgia Meloni signed the “Action Plan for Strengthening Comprehensive Strategic Partnership (2024-2027)” during a meeting in Beijing. Both sides attach great importance to international exhibitions held in the two countries and will continue to encourage companies from both countries to participate.
In China, government work reports from developed regions such as Beijing and Shanghai have suggested promoting the MICE economy to stimulate consumer consumption. With major exhibitions such as the Canton Fair, Hi-Tech Fair, CPTPF, and Expo Central China, as well as the “Canton Enterprises Go Global” exhibition series, Guangdong Province regularly attracts visitors from well-established markets in Europe, America, Japan, and South Korea, and is actively exploring developing regions such as ASEAN, the Middle East, Africa, Russia, Latin America, and the South Pacific island countries.
Along with first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, Tianjin proposes to make itself the exhibition capital of the north, Dalian aims to become a famous international convention and exhibition city in Northeast Asia, and Jiangxi Province aims to “represent one exhibition for one city and one exhibition for one industry” and develops new consumption forms and models such as instant retail and social e-commerce.
The MICE economy can drive 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 greater impact of professional exhibitions still occurs in the industry itself.
Take the “Watches & Wonders” Haute Horlogerie exhibition as an example. After its successful closing in Geneva, the exhibition was held again in Shanghai and presented a new edition of the Haute Horlogerie event at the Shanghai West Bund Art Center for five days starting on August 28. Watch enthusiasts, vintage watch collectors and high-net-worth individuals will be immersed in the world of watches, while industry experts will be helping visitors explore the future development of high-end watchmaking through a series of events including product launches, panel discussions, seminars, basic training courses, product introductions, industry exhibitions and photo exhibitions. Furthermore, the Shanghai edition will feature the newly established LAB Innovation Technology Area, presenting future-oriented inventions and innovations.
This is the fourth time Shanghai has been the location of the China stop of “Watches & Wonders”, and the city has seen more than 50 exhibitions this month, an average of more than 10 per day. Also this month, Shanghai released the report “Various Measures to Enhance the Driving Effect of MICE Economy in Shanghai” and encouraged the opening of more exhibitions to build an “International Exhibition City” and enhance the effect of the MICE economy.
Particularly anticipated for the fashion industry is the third World Design Cities Conference (WDCC) to be held at the end of September, and the re-run of the annual Shanghai Gala organized by WWD China during the conference. This year, under the theme of “Together, We Keep Moving Forward,” the conference will invite young Chinese fashion designers, global industry partners, and academic experts. Through a series of events such as 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 drive future trends.
The MICE economy plays a leading role in supporting both China’s overall macro economy and regional economies, and serves as a driving force for global development. Professional exhibitions in the fashion industry are particularly important engines for promoting market internationalization and driving global trade.
Editor’s Note: China Insight is a monthly column from WWD China, WWD’s sister publication, examining developments in this important market.
The best of WWD
Sign up for WWD’s Newsletter. Follow us on Facebook, Twitter and Instagram for the latest news.