Posted by The Indian events and activation industry has great growth prospects. There are four key services in the portfolio of Indian companies. These services are Intellectual Properties (IP), Managed Events, Activations/Promotional Campaigns and Digital Events. Rural, Sports, Digital Integration and Government Events are emerging trends in the Event Industry. According to the Ernst & Young, and the Event and Entertainment Management Association [EEMA]. The expected growth rate of the industry will take the size of over INR 10,000 Cr by 2021, and more in the coming years. This value represents only the revenue of ‘Organized‘ events and activation agencies, and not the unorganized event companies.
The marketers have shown an increasing confidence in events and activation, for their business growth. This has resulted in a consistent growth pattern in events and activation. However, there was a decrease in the revenue generated by activations from 31 Percent in 2015 to 22 Percent in 2017, showing that there is a move towards digital activations.
Event management service providers face no practical entry barriers to start operations. Unorganized players play a major role in the events and activation business. These service providers are either individuals, or small organizations who do not have defined business processes and policies.
Most of the event and activation companies have their operations mainly centered in India, with an average of 2-5 offices located mostly in the metro cities within India, to facilitate their operations. Few event companies such as Wizcraft, Percept, etc. have offices abroad. The focus of most event companies continues to be India as many feel that there are sizable business opportunities to be exploited. But the number of services being provided internationally is increasing.
Managed events and activation services are provided the most in India. The largest share of revenues come from these services. While managed events form the core of the event industry, and growth is seen in this area the most, IP events and digital events are also increasing and gaining in importance. Event management companies are starting to pay increasing importance to building and investing in IPs while simultaneously, increased below the line [BTL] marketing spends by advertisers is driving growth on managed events and activation. Because of the youth factor, there is an increased interest in delivering high quality events with a ‘wow factor‘ and increased creativity.
The event and activation industry is seeing a large number of young workforce becoming a part of it and being gainfully employed. A large number of young aspirants are keen to join the industry. On the job training and development of Event Management courses can enable development of talents and professionalize the field. Till recently Event management required no formal training or education. Formal education involved the studying of advertising and public relations with a specialization in event management. The growth of the event industry has popularized studies of event management.
Event management is not a new industry and has long existed as part of the tourism and hospitality industries. In recent years, the event industry has seen a lot of changes. Events today are not positioned as a subsidiary effort towards advertising, but an independent marketing communication tool. Each category of event has its own demands that need to be addressed. This industry has generated employment of a very creative and innovative kind. It is also an outlet for people who have innovative ideas and would like to put them to practice. For example, an event management company [EMC] that works on brand building and management has to first research about the brand and its image, and the requirements of the hosts of the event. Keeping this in mind, the event is conceptualized using creative ideas and methods. Within the framework of the event, an interesting and possibly interactive medium is thought of.
The industry has grown due to the middle income group increasingly willing to spend more on personal events such as weddings, concerts and celebrations. The event and activation activities have also received a boost from the corporate sector who see event management as an effective marketing tool. Companies like Wizcraft, Fountainhead, and Showtime have moved ahead from not just being pure event management companies, but to becoming marketing partners for their clients. The scope of the event industry is such that players are offering a complete 360 degree marketing solution to their clients right from ideation, conceptualization, promotion, marketing, arranging sponsorships and on-ground execution.
The event industry is greatly driven by – growth in disposable income and consumer spending, an increase in personal events like weddings, corporate events, activation events, and an increasing need for organized events. Consumer spending helps the event industry grow. The consumer base or the clients of the event industry are corporates [both domestic and international], government and public sector, people who are increasingly spending on personal events, etc. Technology, FMCG [Fast Moving Consumer Goods], auto, media, entertainment and telecom are the largest users of the Events and Activations industry. BTL activities in marketing such as local promotions and public events meant for interaction, are greatly contributing to the event industry. Such innovative activities bring more publicity and visibility for products at the local level.
The growth of corporate sector in the wake of globalization has increased corporate events – a significant driving factor in the events and activation industry. Corporate sector relies heavily on professional event management for this. India is increasingly making MICE tourism a mode for its travel and promotional budgets. The MICE activities are yet to be taken up in totality by the corporates in India, and at present incentives form a major component of MICE. Incentive programs are receiving a boost due to exciting destinations and a combination of tradition with modern cosmopolitan touch in destinations. The demand for meetings has increased with a focus growing on details like accommodation, the traditional ‘boardroom style‘ space being replaced by innovative approaches like outdoor meeting spaces and new-age technology. Airlines and travel/tour companies are targeting MICE. Destinations market MICE products to specialized agencies and the corporate world. The MICE industry can showcase latest products. Countries are promoting themselves as MICE venues to attract event managers. MICE events have become networking tools to promote successful business. The future of this industry sees growth in digital events, sports, personal events and activations as already mentioned. The government’s focus on rural development reveals increased opportunities for rural BTL/activations.
Besides Corporate Events, Sports Events are also becoming Commercial Events that need the help of Event Management Services. Large scale sports events like the IPL World Cup, Commonwealth or the ICC World Cup need an entire set of event services along with their opening and closing services, during the entire course of event and use ATL [Above The Line] media, including digital. People today prefer celebrating events with a lot of extravagance and splendor than they did before. This includes events of a small scale such as birthday parties and anniversaries, to larger family events like weddings. All these opportunities have generated a need to make events more organized with all the logistics in place and the specialty of services that a particular type of event demands, in order to make it successful and unique. All these factors are the growth drivers of the event industry.
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