Reed Launches New China Joint Venture, Strengthens Lead in Auto Aftermarket Sector

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• Publié par: reed-exhibitions-china-co-ltd-prn-asia
• Nombre de lectures: 5
• Langue: English

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Reed Launches New China Joint Venture,

Strengthens Lead in Auto Aftermarket Sector

PR Newswire

ZHENGZHOU, China, June 8, 2012

ZHENGZHOU, China

,

June 8, 2012

/PRNewswire/ -- Reed Exhibitions China, part

of Reed Exhibitions, the world's leading organizer of trade events, recently

announced the formation of a new joint venture (JV) in

China

: Reed Hongda

Exhibitions. The new company will extend Reed's lead in the Chinese exhibition

market and allow Reed to add

China

's largest auto aftermarket exhibition to its

portfolio of 55 major events. By hosting the China International Automotive

Aftermarket Expo & China Auto Accessories Trade Fair (CIAAF), based in

Zhengzhou

, Reed aims to enhance the event's effectiveness by boosting its

content and overall presentation. In the long term, Reed hopes to develop

CIAAF into the landmark annual event in

Asia

's auto aftermarket sector.

In recent years,

China

has seen its automotive industry rapidly expand and

become the largest manufacturer and consumer of automobiles. Nonetheless,

the soaring volume of automobile inventories and intensifying competition in

the auto sector has shrunk profits. Paradoxically, the automotive aftermarket is

growing. Statistics show that

China

's automotive aftermarket was valued at

RMB430 billion

(

USD67.5 billion

) in 2011 and is expected to exceed

RMB550

billion

(

USD 86.4 billion

) in 2012, as the auto aftermarket enters something of a

golden age.

While the automotive aftermarket in developed cities like

Beijing

,

Shanghai

and

Guangzhou

is poised for steady development, second and third tier cities of

Central and

Western China

have emerged as areas of future growth. Reed's

latest venture is strategically critical as it connects the western and eastern

Chinese markets in anticipation of imminent industry transformation.

Preecha S. Chen, President of Reed Exhibitions Greater China, commented

during the signing ceremony, "This new commitment in

Zhengzhou

is a

statement of our intent to ensure the success of this new venture by dedicating

Reed's global resources to the efforts here. Reed's international offices and

extensive sales networks across

Asia

,

Europe

, the

Middle East

and the US will all

be leveraged for success in this city. We will also apply our extensive Sales and

Marketing excellence to shape the CIAAF into a world-leading event in terms of

size and quality. We plan to effect a significant increase in the number of

international exhibitors and buyers, while delivering a world class service."

The CIAAF's ninth edition will take place at Zhengzhou International Convention

and Exhibition Center this

June 26

. The exhibition will span 200,000 sqm and is

expected to attract 2,400 local and international exhibitors, making it the

largest automotive aftermarket trade event in the country.

Xue Yunwei, Deputy Mayor of

Zhengzhou

, is confident in the newly sealed

cooperation: "Both sides should focus equally on upgrading the professional

and international standards of the automobile accessories exhibition and on

cultivating excellent talents in the exhibition field. In this way, they can usher

the

Zhengzhou

exhibition industry into a new stage of development by

leveraging their world-class management expertise and international sales

resources."

"In mature markets such as

Europe

and the US, only 20% of profits in the

automotive industry come from the sales of new cars. Sixty percent is

generated from the automotive aftermarket, and the remainder from value-

added services such as insurance, finance and second-hand car trading", said

Guo Ping, Secretary General of the China Auto Fitting Industry Federation, one

of the CIAAF's supporting organizations. Mr. Guo is convinced that there is a

clear opportunity for automotive accessories, components, maintenance and

repair services within

China

to generate significant returns.

With the economic restructuring through the 12th Five-Year Plan, central and

western

China

are set for a period of explosive growth during which the center

of the automotive industry chain will gradually shift to cities like

Zhengzhou

.

This critical move by Xinda Industry and Reed Exhibitions marks a great leap

forward by

China

's automotive aftermarket and the exhibition industry in

middle and western

China

. The introduction of new global resources,

managerial expertise, ideas and values will act as a catalyst for the

transformation of the Chinese automotive industry set for significant growth.

About China International Automotive Aftermarket Expo and China

Auto Accessories (

Zhengzhou

) Trade Fair

First launched in

June 2005

, the exhibition was organized by Zhengzhou Xinda

Industry Co., Ltd. under the support of the

Zhengzhou

municipal government,

China Auto Fitting Industry Federation, and China Automotive Maintenance and

Repair Trade Association, it has become the largest automotive aftermarket

event in

China

. Boasting an exhibition area of 200,000 m2, the 9th edition of

the event will be held at Zhengzhou International Convention and Exhibition

Center on

June 26, 2012

, and is expected to attract 2,400 exhibitors from home

and abroad.

About Zhengzhou Xinda Industry Co., Ltd.

Zhengzhou Xinda Industry Co., Ltd. is a conglomerate integrating automotive

accessories market, commercial real estate, exhibitions, and industrial park

operation and development. With its headquarters in the core area of BAIC CBD

in

Zhengzhou

, the company has five branded projects, including Hongda

International Auto Square, Hongda Exhibitions, Shengshihongda China

International Automotive Aftermarket Industrial Park, Cheyoumei Car

Decoration Chain, and an industrial e-commerce platform "China First

Automotive Accessories Network".

About Reed Exhibitions China

Reed Exhibitions Greater China is associated with the world's largest events

organizer: Reed Exhibitions. Thanks to more than two decades of rapid growth,

it is now

China

's premier organizer of definitive trade events, through seven

outstanding member companies: Reed Exhibitions China, Reed Sinopharm,

Reed Huabo, Reed Huaqun, Reed Exhibitions (

Shanghai

), Reed Guanghe and

Reed Huabai.

Today, Reed Exhibitions Greater China serves eight of

China

's fastest growing

specialized sectors. They are: aerospace & aviation; electronics manufacturing

& assembly; machine tools, metalworking & industrial materials; converting;

pharmaceuticals, medicine & health care; gifts & homeware; lifestyle; travel,

gaming & property. The company will organize 54 prime trade events in 2012.

In 2011, events organized by Reed Exhibitions Greater China brought together

over 27,000 suppliers, more than 650,000 visitors and approximately 25,000

conference delegates.