From the China-Africa Economic and Trade Expo, we can see how Changsha can prosper with the meeting!

Coffee beans from Ethiopia, red wine from South Africa, cocoa from Côte d'Ivoire, and dried peppers from Rwanda...A wide range of African specialties gathered in Changsha during this "special period", and "hot Hunan African style" has quietly become a seven The most unique scenery in Changsha at the beginning of the month.

On July 2, the 4-day third China-Africa Economic and Trade Expo came to an end. Compared with the previous ones, this year's expo has set several records:

The number of visitors exceeded 100,000, and the number of buyers and professional visitors reached 9,000, including 1,500 exhibitors. This figure has increased by 70% compared with the previous period. In the end, 120 projects were successfully signed, and the amount of trade cooperation reached 10.3 billion US dollars. The overall scale can be called the largest in history.

After years of precipitation, Changsha has become an important distribution and trading center for African products in the Chinese market. Behind the dazzling achievements is the reflection of Changsha's efforts in China-Africa exchanges and trade over the past few years.

 

From the author's observation, in recent years, Changsha has taken advantage of the development of the free trade zone, and has cultivated a large number of outstanding talents through the China-Africa Economic and Trade Expo as the starting point and the China-Africa Economic and Trade Cooperation Promotion Innovation Demonstration Park as a long-term platform. China-Africa economic and trade market players make the China-Africa Economic and Trade Expo a long-term and strong force to promote the development of China-Africa economic and trade. Today, many local African specialties have formed a complete industrial chain in Changsha, and a large number of Hunan brands that have integrated upstream and downstream resources and successfully emerged in the market have emerged.

So, why can Changsha take advantage of the opportunity of the China-Africa Economic and Trade Expo to achieve such results? Because Changsha is not only a city of Internet celebrities, but also an innovative city with great industrial thinking.

How does the African brand Changsha Exhibition promote the development of the industry?

In recent years, Changsha's convention and exhibition industry has developed vigorously with the momentum of "prospering the city with meetings", attracting many well-known convention and exhibition projects from all over the world . , forming a set of exhibition service system with both Changsha characteristics and international standards, which can be seen through the China-Africa Economic and Trade Expo.

In 2019, Changsha became the host of the first China-Africa Economic and Trade Expo, which also opened a new important window for local economic and trade cooperation with Africa.

After participating in the three expositions this year, in addition to the rising trade volume and the continuous expansion of the width of communication from information to economy to culture, the author also personally felt the huge innovations and changes.

 

in particular:

First, the China-Africa Economic and Trade Expo has formed a set of scientific methods to improve the industrial chain through trade, promote the brand with the industrial chain, and feed back the trade with the brand.

Take coffee, a characteristic industry of China-Africa economic and trade cooperation, as an example. In the tea, beverage and food industry, whoever has the advantage in the supply chain will have enough market confidence. But to establish a supply chain is by no means a matter of time, human, material and financial resources are indispensable. Therefore, most start-ups face the first profit problem of "stuck neck" at the "source".

But fortunately, with the strong support of the government, relying on the two major platforms of the China-Africa Economic and Trade Expo and the Hunan Pilot Free Trade Zone, the Gaoqiao Market in Yuhua District has realized the integration of direct procurement from Africa, domestic processing, brand incubation and product sales. Through the connection, the overall cost of coffee is 30% lower than that of similar products on the market, and it has also successfully enabled Hunan local coffee brands such as "Little Coffee Master" to break out of the ground, realizing direct dialogue with African coffee estates, bypassing continents, The long and complicated link between the place of origin and the market has an absolute cost advantage on the raw material side.

At present, the average price of China’s coffee industry is between 20 yuan and 30 yuan. The “9.9 yuan war” between Cudi Coffee and Ruixing Coffee has stimulated the price war on the entire coffee track. With the advantage of direct procurement from Africa, small coffee owners can naturally maintain a unit price of 12 to 13 yuan without internal involvement. The standard price of products such as American coffee is 8 yuan.

Under the trend of "coffee equal rights", the small coffee owner's advantage in pricing makes the capital full of optimism about its future development. Only two years after its establishment, the small coffee owner has completed the A round of financing with a scale of 100 million yuan. The investment was led by Starmi Capital, followed by the horse racing series AD-VC funds. Its founder Jing Jianhua said that "authentic African coffee flavor" and "extreme cost performance" are the two best sharp edges for the main brand of small coffee to break through the market. With the gradual opening up of China-Africa trade, the cost of the intermediate link will be further reduced.

 

The vigorous development of local brands like Xiaokazhu has in turn boosted the China-Africa coffee bean trade to record highs. In 2022, the Gaoqiao Big Market will sell 2,000 tons of coffee beans, of which African coffee beans will account for about 40%.

The rapid rise of small coffee owners reflects the importance of integrating upstream and downstream resources, as well as the huge business opportunities brought about by brand empowerment and business model transformation.

Taking advantage of the advantages brought about by the continuous warming of China-Africa trade, not only in the coffee industry, but also in nuts, peppers and other industries, they have also achieved batch success.

In the past China-Africa trade, many companies only imported goods from Africa to China, and then wholesaled or resold them. Under this model, the profit margins of enterprises are very limited, mainly relying on the low price difference of goods. In addition, due to the lack of brand building and value-added promotion, there is no brand premium, and it is often difficult for companies to establish long-term competitive advantages in the market.

However, through the innovative empowerment of the China-Africa Trade Fair, this situation has been changed. This change not only enables enterprises to have stronger competitiveness in the market, but also provides new ideas and opportunities for China-Africa economic and trade cooperation.

Second, breaking through the traditional exhibition mode, the China-Africa Economic and Trade Expo will "never end". Traditional exhibitions are often one-off events. After the exhibition ends, it is often difficult for exhibitors and visitors to maintain effective long-term contact and cooperation. Outside the main exhibition hall of the China-Africa Economic and Trade Expo, the third floor of the first phase of the China-Africa Economic and Trade Cooperation Promotion Innovation Demonstration Park in the Yuhua Block of the Hunan Pilot Free Trade Zone is the "never-ending" China-Africa Economic and Trade Expo.

With a total area of ​​10,000 square meters, it includes two theme exhibition halls, three comprehensive pavilions and 34 independent country pavilions, achieving full coverage of exhibitions and sales in 53 African countries. With the joint support of the government and Gaoqiao Market, the "never-ending" China-Africa Economic and Trade Expo has become a check-in point for Internet celebrities, attracting many buyers and tourists.

This continuous arrangement has the characteristics of an "infrastructure maniac", but it also demonstrates the government's firm confidence in promoting the economic development of China and Africa and its comprehensive support for related industries.

And this special model breakthrough makes the exhibition no longer a one-time event, but a platform for long-term promotion of China-Africa economic and trade development. Let Gaoqiao Market become an important place to showcase the achievements of China-Africa economic and trade cooperation and promote exchanges. Even after the China-Africa Economic and Trade Expo ends, it will continue to attract the attention of many exhibitors and international buyers. Let the China-Africa Expo have the power to continue to promote industrial development.

Third, outline the key points and focus on top-level design. Of course, the essence of the foothold of all innovations in the exhibition is that Changsha presents the advantage of "knowing trade and understanding Africa better" in terms of trade policy. Xu Xiangping is an expert leader with rich experience in trade with Africa, and has attracted many experts to work in the China-Africa Economic and Trade Cooperation Promotion Innovation Demonstration Park for a long time. With the long-term support of top expert think tanks, the top-level design of the China-Africa Economic and Trade Expo is becoming more and more perfect. Changsha’s economic and trade system with Africa has continuously achieved innovative breakthroughs, such as launching barter trade pilots, market procurement trade risk compensation mechanisms, and exploring the construction of China-Africa cross-border Renminbi Center, building a professional research institution for China-Africa economics and trade, etc.

Therefore, in terms of design, the China-Africa Economic and Trade Expo has many innovations that are different from traditional exhibitions and stores. From the beginning, Changsha intends to support the development and evolution of exhibition trade, is committed to improving the exhibition industry chain, and further explores more possibilities such as brand incubation.

For example, at the China-Africa Economic and Trade Expo, there are three "outside the exhibition" measures.

One is to build an online exhibition scene. Since the first economic and trade expo, an online expo and an African commodity exhibition hall have been built to realize real-time communication on "information".

The second is in terms of time, except for the exhibition period, there is a permanent exhibition hall. The China-Africa Economic and Trade Expo has built a permanent exhibition hall to display African culture and products, which prolongs the duration of the exhibition effect and achieves a long-term endorsement for the branding of African products. It can not only promote brand building, but also accumulate potential energy and promote exhibition activities Prosperous year is better than year.

The third is regionally, there are permanent service organizations other than exhibition halls. For example, the previous method of encouraging enterprises to make African products into Hunan brands cannot be separated from the long-term services of government agencies such as the Yuhua Free Trade Block Management Committee. With the help of the free trade policy and the multi-level linkage of the Yuhua District Free Trade Block Management Committee, the prosperity of the exhibition economy will not only appear in the exhibition, but the impact of the exhibition will also break through the physical barriers of the region and continue to promote Industrial development in the two places.

At present, China-Africa economic and trade cooperation in Changsha is no longer limited to primary agricultural products and traditional infrastructure cooperation in the past, but is continuously extending to new fields such as green, agriculture, and finance, and even new energy projects have appeared.

The extension of new fields will extend the China-Africa Economic and Trade Expo to the possibility of more value. In fact, as Changsha's current business environment rankings are rising steadily, more and more industries are developing rapidly, and behind this is the boost of national exhibition IP.

The emergence of this batch of exhibition IPs shows that the mode of the exhibition economy to boost the development of Changsha has matured. By grasping the two starting points of industrial chain cultivation and brand building, it has effectively promoted the acceleration of Hunan's trade with Africa and contributed to the local economic development. The empowerment has quietly become a force that cannot be ignored to promote industrial development.

The new potential energy of increasing the economy with Huixing industry

Why do you say that? This "show power" can be well explained by the multiplier effect.

The so-called multiplier effect refers to a series of chain reactions caused by exhibition activities, resulting in greater economic impact.

The first level of economic impact is intuitively reflected in the feedback of the industrial chain. Take Changsha International Construction Machinery Exhibition, another famous exhibition in Changsha, as an example. Since its first session in 2019, it has been held for three consecutive sessions, and has formed a positive network externality effect. Data shows that this exhibition has attracted A total of 1,502 global construction machinery manufacturers and related companies participated in the exhibition, with a total of more than 350,000 visitors, and the cumulative transaction volume of the exhibition reached 53.6 billion yuan.

 

Through the Changsha Construction Machinery Exhibition, an effective docking platform between suppliers and manufacturers has been established to promote supply chain collaboration. Through the exhibition, suppliers can directly communicate with manufacturers on demand and technical requirements, and provide customized solutions. This kind of synergistic cooperation helps to optimize resource allocation, improve the efficiency and flexibility of the supply chain, reduce production costs, and speed up the speed of products to market, thereby further promoting the development of the entire industrial chain.

On the other hand, Changsha Construction Machinery Exhibition provides a platform for enterprises in the industry to share knowledge and experience. Through activities such as technical exchanges, keynote speeches and forums, companies can learn about the latest trends, challenges and opportunities in the industry. This kind of knowledge sharing stimulates cooperation and innovation among enterprises, promotes the ability of enterprises in the industrial chain to face challenges and find solutions together, and further enhances the competitiveness of the entire industrial chain.

In addition to the visible feedback and quality improvement of the industrial chain, the second and more important economic impact is the invisible release of multi-field penetration. Take Changsha International Construction Machinery Exhibition as an example. The exhibition will last for four days. The development of transportation and other related service industries will drive employment and economic growth.

Faced with such a high driving effect, various cities naturally compete for the layout of the exhibition, but holding an exhibition is not a once-and-for-all "means" to promote the economy, and there are not a few exhibitions that no one cares about and are counterproductive.

But in Changsha, whether it is the Internet Yuelu Summit held for ten consecutive years, or the Xiangshan Tourism Summit, etc., there are many world-class exhibition IPs such as the China-Africa Economic and Trade Expo and the Construction Machinery Exhibition. Data show that in 2022, the exhibition activities in Changsha will attract a total of 1.3089 million professional visitors, 20,800 exhibitors, and a turnover of 93.87 billion yuan. According to the Comprehensive Competitiveness Index of Convention and Exhibition Cities published by the China Convention and Exhibition Economy Research Association, Changsha continues to rank first in the central region and ranks eighth in the country.

On the whole, the development of Changsha's convention and exhibition industry has made remarkable achievements, creating a convention and exhibition pattern of "leading by one core, linkage between two districts, and multi-point support" , and continuously promoting the high-quality development of Changsha's open economy.

What did Changsha do right to upgrade the exhibition industry and create a new urban pattern?

Then why can Changsha achieve "the development of an industry by holding an exhibition"? The author thinks there are three reasons.

First, to strike iron requires hard work, and Changsha's comprehensive strength is among the top cities in central China. As the "Capital of Construction Machinery", its industrial scale has ranked first in the country for 13 consecutive years. Changsha's heavy industry strength is unquestionable, and this also provides the underlying construction support for the city's "hardware".

As we all know, large-scale exhibitions have very high requirements on the scale of event venues, venue facilities, venue management and other aspects. The ability to undertake exhibitions is the first invisible threshold for cities to hold exhibitions.

Changsha International Convention and Exhibition Center is a typical example, covering an area of ​​about 800 mu, with a total construction area of ​​about 445,000 square meters. As one of the largest and most advanced exhibition venues in the central region, it has a huge exhibition space and advanced facilities and equipment, which can meet the needs of various large-scale exhibitions. In 2022, an economic spillover of 100 million yuan will be generated in Changsha International Convention and Exhibition Center alone.

 

At present, Changsha also has many large venues such as Hunan International Convention and Exhibition Center, Red Star International Convention and Exhibition Center, and Hunan Provincial Exhibition Hall. According to statistics, the exhibition area of ​​major convention and exhibition venues in Changsha has reached 1.6083 million square meters in 2022.

In 2023, this number will be further increased. The planned exhibition area of ​​the top ten exhibition projects that have been released so far totals 1.07 million square meters, and the audience is expected to exceed 1.2 million.

The convenience of urban transportation is another important condition for holding large-scale exhibitions. Changsha has invested a lot of resources in transportation infrastructure, and has formed a well-developed transportation network from highways to subway points, which provides exhibitors and spectators transportation provides convenience.

Of course, in addition to "hardware", Changsha's "software" strength is also undoubted. It is especially famous for its night economy, which has driven the strong rise of the tourism industry and brought a new wave of fuel to the development of Changsha's business industry. In the previously disclosed 2022 national economic annual report of 24 trillion GDP cities, Changsha ranked first among the 24 cities with an economic growth rate of 4.5%, which shows the strength of the city's comprehensive development.

Second, teaching them how to fish is worse than teaching them how to fish. Changsha attaches great importance to the cultivation and improvement of the exhibition industry chain. From planning and design to exhibition construction, an ecological circle of the exhibition industry has been created, bringing together upstream and downstream enterprises in the exhibition industry chain to jointly promote the innovation and implementation of exhibition IP, laying a very solid foundation for Changsha to hold a good exhibition.

The most intuitive embodiment of this development concept is the construction of Changsha International Convention and Exhibition New City. In the development area of ​​30 square kilometers, the exhibition area of ​​Changsha area accounts for 9.84 square kilometers. It is understood that in 2023, the scope of control planning and revision of the area will be 27.4 square kilometers; the transferable net land for operation is about 11,463 mu, and the overall construction area is 20.64 million square meters; the planned permanent population is about 240,000, and the capacity population is about 263,000; the industry And the exhibition floating population exceeds 5 million people.

The blueprint of "100 billion convention and exhibition industry" is already on paper.

Third, proceed from long-termism, combine regional economic development with the thinking of industrial investment to organize exhibitions. On the one hand, Changsha actively focuses on the city's industrial layout, selects subdivided industries with good industrial foundation and large development space, and focuses on planning and cultivating a group of professional exhibitions with high industry fit and strong identification to promote the development of subdivided industries; Changsha's advantageous industries, emerging industries, characteristic industries, and future industries will leverage the strengths of all parties to bring well-known domestic and foreign exhibitions to Changsha, actively promote exchanges and cooperation between upstream and downstream enterprises in the industrial chain related to the theme of the exhibition, enhance the competitive advantages of the industrial chain, and support The backbone of Changsha's future will develop faster and better.

Summarize

Therefore, through the China-Africa Economic and Trade Expo, the Yuelu Summit and other top exhibition IPs, you will find that Changsha has polished the city card of the "Convention and Exhibition Star City" and successfully realized the goal of driving the development of the industrial chain through exhibitions.

In the author's opinion, every top exhibition will bring a large number of high-quality corporate resources, but whether the resources attracted by the exhibition can be transformed into an important force for urban industrial construction will affect a city's comprehensive hard power, industrial foundation, and urban development. The ability to innovate and open up and industrial thinking are both great tests.

Judging from the impact of IP on Changsha's industrial and economic development at China-Africa Economic and Trade Expo, Yuelu Summit, and International Construction Machinery Exhibition, the Changsha government's open attitude and innovative ability have deeply attracted enterprises from all over the world. More and more Chinese and African economic and trade enterprises , construction machinery enterprises, and intelligent manufacturing enterprises gathered in Changsha.

It is foreseeable that, relying on the characteristic model of "prospering the city with meetings" and the basic supporting facilities of Changsha's convention and exhibition industry, more top industry exhibition IPs will appear in Changsha in the future, and the exhibition will also become a high-quality development center of Changsha. A powerful force.

Source: Songuo Finance

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