Despite their enormous potential, several MSMEs encounter a variety of challenges which hinder their progress. These include securing funding due to stringent lending requirements, intense competition arising from dominant companies in the market, and limited chances for growth given the insufficient nature of funds.

To bridge this gap, trade shows act as a crucial component, enhancing visibility and stimulating business opportunities and greater collaboration. How do trade shows and the larger event market act as catalysts to unlock the potential of MSMEs?

Trade shows help MSMEs reach a base of target audiences to display their products and services. This exposure often leads to increased brand recognition and consumer interest.

Events like these enable MSMEs to reach potential buyers, suppliers, and industry professionals, nurturing valuable relationships that can lead collaborations to and conversions.

By participating in trade shows, MSMEs receive an opportunity to gauge market trends and competitor strategies. This allows them to adapt and restructure their offerings accordingly.

Many trade shows conduct workshops, seminars, and presentations that provide MSMEs with indispensable knowledge and skills to enhance their operations in the business.

The growing potential of trade shows

According to a report by Statista, in 2020, the annual revenue of the events and exhibition market in India was about USD 3.3 billion. It is expected to reach over USD 6.7 billion in 2026. The industry is anticipated to surge at a CAGR of 12.91% from 2021 to 2026. These figures showcase the rising importance of trade shows nationwide as a common platform for companies to connect, showcase and expand. It further reflects the promise of the events industry for economic development and entrepreneurship in the nation.

Recognising the prominence of trade shows, the government of India has implemented several initiatives to support them. A key measure is the Marketing Assistance Scheme, which provides a range of benefits for MSMEs in India, significantly enhancing their marketing capabilities and competitive edge. By providing extensive financial support for participation in both domestic and international trade fairs, the scheme allows MSMEs to showcase products and services to a broader audience, increasing visibility and potential business partnerships. Especially, the assistance for logistics, including space rental, freight, and airfare, reduces the financial burden on these enterprises, making it possible for them to explore new markets and establish connections with larger institutional buyers.

Furthermore, the scheme assists in knowledge exchange, equipping MSMEs with key insights into current market trends and customer preferences. By endorsing collaboration through consortia formation, the initiative strengthens the collective marketing efforts of MSMEs, encouraging innovation and joint ventures. Such a comprehensive support framework empowers MSMEs to enhance their market presence as well as thrive in an increasingly competitive environment.

The Indian government is also supporting the growth of trade shows through infrastructural development. Major investments in exhibition centers are ongoing in cities such as Delhi, Mumbai, and Bengaluru to enhance their capabilities to conduct events. With the help of these initiatives, notable trade shows such as AMTEX (Asian Machine Tool Exhibition), a platform showcasing machine tools and manufacturing technology; and the India Warehousing Show, a platform showcasing warehousing and logistics industry innovations were held this year.

Looking ahead – 2025

In 2025, trade shows will gain eminence due to the expansion of various sectors, advancements in technology, government initiatives, and changing consumer preferences.

As key sectors like electric vehicles, smart home technologies, and warehousing innovations are expected to flourish, trade shows dedicated to these will expedite knowledge exchange and partnership. Specialised trade shows can also become relevant, converging on niche markets which will create significant opportunities.

Additionally, developments in virtual reality and augmented reality, artificial intelligence, and data analytics will play a crucial role in elevating the experience of trade shows for both audiences and participants. Soon, a shift towards hybrid trade shows that pair physical and virtual elements are also anticipated. This will expand reach and accessibility, allowing businesses to engage with audiences worldwide while providing an immersive experience of their products and services for on-site attendees. To top it off, technology will enable better engagement via interactive booths, live demos, and networking platforms that enable real-time communication between exhibitors and visitors.

The potential of trade shows and events presents a welcome opportunity for MSMEs to innovate and rethink existing business and marketing strategies. With collaborative efforts from industry players and the Indian government, an empowered future for MSMEs is on the horizon.

Ultimately, these initiatives will drive the industry’s growth and create opportunities for economic development in India.