- Service:Market entry strategy
- Sector:Events and exhibitions
Issue
We have acquired a sector-leading trade show in Brazil which is performing very well. How attractive is the overall market and what are the main opportunities and challenges for acquisition-based entry?
Approach
AMR used published statistics to assess market size and growth, its resilience to the economic recession, and to develop a mid-term forecast. We spoke to the local trade associations to map local market participants and to identify potential acquisition targets. We also interviewed several leading international trade show organisers operating in Brazil about their experience in the country and came across several success stories as well as failed attempts to operate in Brazil. This allowed us to identify the critical success factors and to prioritise the attractiveness of different market entry routes.
Recommendations
We concluded that the Brazilian trade show market will remain highly attractive in the mid-term due to a considerable deficit of venue space and “must-have” character of existing shows. However, lacking venue space also constrains market growth, and a large share of the market is highly fragmented with many industry-leading shows run by associations. A large-scale acquisition would potentially be very attractive, but with highly acquisitive major international organisers already on the ground, finding such an acquisition is likely to be difficult. Acquiring an international organiser already operating in Brazil or partnering with industry associations to develop their shows should also be considered.
Result
The client has agreed that the market is attractive and is now looking for an appropriate entry partner.
Insight from AMR’s research
A relatively small number of secondary sources married to a focused primary research programme and AMR’s extensive experience can provide valuable insight into a complex market.