IBCTF and KBC Thrive on Strong Real Estate Market in China

Show organizer claims visitor numbers

The real estate segment in China has been proliferating in recent years, too much so in the eyes of the government, which has even reduced mortgage financing to temper speculation to minimize the bubble that has priced so many buyers out of the market. However, the overheated real estate market benefits downstream sectors, including suppliers of building materials and furnishings as bathroom and kitchen facilities. Fittingly the International Building & Construction Trade Fair (IBCTF) and Kitchen & Bath China (KBC), held annually in Shanghai, have become must-attend events by global bathroom and kitchen ware companies who aim to tap the seemingly unstoppable growth of the real estate segment in China.

Upbeat IMF Forecast

Exhibitors at the 2010 IBCTF and KBC can also justify their attendance with IMF (International Momentary Fund)'s World Economic Outlook, updated in April, that shows China's GDP growth is expected at 10% this year, leading other emerging economies, despite China's recent attempt to deflate the real estate bubble, and American pressure to allow the RMB to float according to the global market. Meanwhile the Asian Development Bank and World Bank also share the IMF's optimism, releasing their estimates of China's 2010 GPD growth at 9.6% and 9.5%, respectively.

The IBCTF and KBC celebrated their 15th anniversary this year, when the two-in-one event was held May 26-29 across 100,000 square meters at the SNIEC (Shanghai New International Expo Centre). Fortuitous timing also helped the twin shows, with the World Expo 2010, also having begun May 1 in Shanghai, likely giving reason to otherwise hesitant exhibitors as well as visitors of all kinds to come to the mega-city. The show organizer, Worldwide Exhibition Service (WEC), claims visitor numbers are up 20% this year from last year.

Encouraging Turnout

Over 2,000 exhibitors from China and abroad, including Italy, Spain, Sweden, the U.K., France, Germany, the U.S., Japan, Taiwan and Hong Kong, took part in the two shows, with such encouraging number in seeming defiance to the sputtering new housing starts stateside, high unemployment in Spain, Greek debt crisis, and the massive stalls in construction projects in the UAE recently.

Reflecting the global clout of the IBCTF and KBC, the event was flush with the leaders of the sanitation ware sector, including Joyou, Apollo, Swell, Annwa, Arrow and Globe Union of China, and INAX, Kohler, TOTO, American Standard, Grohe, Hansgrohe, Duravit and Roca. Local news agencies say that the foreign brands continue to be optimistic toward China's sanitation equipment market, despite the authorities' attempt to tighten mortgage lending to counter property speculation.

Full Range

The IBCFT displayed virtually everything needed to turn raw masonry into even eco-friendly dwellings, including green building materials of all kinds, wallpaper, natural and artificial stone, ceramic tiles, household lighting, curtain walls, sunshades, roofing and ceiling products, greenhouse products, wooden material and woodworking machinery

As perfect complement, the Kitchen & Bath China offered everything to equip and furnish homes, including electrical appliances, kitchen facilities, cleaning tools, cabinets, utensils, bathroom fittings and ware, boilers, water heating systems, solar energy systems, ventilation and air purification systems, air conditioners, water purification facilities and other kitchen and bathroom products.

Green Trend

The KBC was also eco-friendly in content, offering toilets that save water, as well as IR faucets integrated with water-recycling systems or hydropower generation modules, which caught plenty of attention. Also ubiquitous at the show were eco-friendly bathroom fittings, touting material-efficient merits and low carbon emissions.

While Chinese consumers looked for European-styled bathroom and kitchen ware, foreigner brands as TOTO, Kohler and American Standard, paradoxically, launched products infused with Chinese cultural elements, believing Chinese consumers would be drawn to indigenous aesthetics. For example, China-based HGGLL showcased the “China Chic” theme this year, displaying a series of bathroom ware flavored with classical Chinese styles in the exterior. Other widely shown categories were bathtubs and kitchen ware with individualized, stylish designs.

As Taiwan's largest export media, CENS was on-hand at the twin show to promote its publications such as CENS Hardware, which contains wide ranging suppliers in Taiwan of bathroom and kitchen-related products, as well as industry news.

The next or 16th IBCTF and KBC are scheduled for May 25-28, 2011 at the same venue.