Interior Designers of Canada Export Marketing Strategy 2011 to 2014

Transcription

1 Interior Designers of Canada Export Marketing Strategy 2011 to 2014 Note: Export Marketing Strategy completed in fall, First update December, 2011 as noted in blue. Second update, February 2013, as noted in red. Executive Summary IDC is the professional association for Interior Designers in Canada. IDC s mandate is to advance the profession of interior design across Canada as well as internationally. It does so through advocacy with government and the public, and by providing continuing education opportunities and business practice support services to members. As the national advocacy association representing interior designers, we include as our mandate the promotion of Canadian interior designers in the global marketplace. In an industry populated mostly by small to mid-sized firms, it is extremely challenging for business owners to know how and when to begin exporting their services. It is also challenging for them to develop new relationships in foreign markets. The Association has been supporting our member s interest in export marketing through education and through trade missions. This service is valued by members who have as their strategy an interest in expanding beyond Canada. IDC is also the owner of IIDEX/NeoCon Canada, the largest trade show for the built environment in Canada. This trade show, in its 27 th year, is one of the most significant programs for the Association. As owners of the show, we have a huge opportunity to not only promote Canadian interior design professionals, but also Canadian manufacturers and suppliers who provide products for the built environment. In January, 2012, we will announce a new partnership with RAIC that will significantly expand the architectural section of IIDEX requiring a more focused attempt to reach architectural exhibitors and attendees. First year of partnership was very successful, RAIC is looking to expand presence in IIDEX and continue with joint programming on other initiatives. Interior Designers specify products in nearly nine out of ten projects with floor coverings, furniture, wall & ceiling treatments and lighting fixtures being the top five products specified. As owners of IIDEX/NeoCon Canada, we are able to bring the latest and most innovative and sustainable products to our attendees. As our industry grows and changes to meet the demands of the marketplace, our show changes with it. Some market segments are added and others are removed or expanded. In 2007, we added sustainable design, 2008 lighting, 2011 hospitality and now in 2012 architectural focus will see the International Union of Architects hold the World Congress on Healthcare at IIDEX in Toronto. This is a one time opportunity that will see healthcare practitioners from around the world attend IIDEX. It s presence in Canada, will draw healthcare practitioners from Canada and the USA to the show. Our ultimate marketing goals to meet the mandate of the Association and the needs of our membership are to promote Canadian Interior Design, to promote Canadian manufactures and suppliers who provide products for interior design professionals and to attract international speakers, exhibitors and delegates to our trade show to ensure that our members have access to the best products and expertise that ultimately will help them be successful in their business. Export Marketing Strategy Page 1

2 Sector Analysis The Association represents approximately 3,500 members who work in the areas of corporate/commercial, retail, healthcare, hospitality, and residential design. It is estimated that approximately 70% of member firms are SMEs with between one to five employees. 20% of firms are mid-sized firms (5-20 employees) and 10% are firms that are multi-disciplinary including interior design, architecture, landscape architecture and urban planning. Interior Designers typically also act as project managers on their projects from contract award to move-in. Over the past ten or so years, several of our member firms have expanded their work to include US and International projects. USA is the most frequent market, followed by Asia, Europe and South America. We are proud to have several multi-award winning international interior designers within our membership. Canadian interior design professionals are sought after around the world for their talent, skill level and commitment to project budgets, timelines and deadlines. The Canadian work ethic in the interior design profession is strongly respected in foreign markets. A 2004 study conducted by the Design Industry Advisory Committee (DIAC) reported that Ontario s design workforce has higher levels of formal (university or college) education than the overall workforce; 34% of designers have a university degree as compared to only 22% of the overall workforce. This statistic could easily be applied to all of Canada and it is one of the reasons that interior designers are able to secure work internationally. They are highly skilled and this is a critically important factor in our sector. As mentioned in the Executive Summary, the Association is the owner of IIDEX/NeoCon Canada, the largest trade show for the built environment in Canada. Held in Toronto in September each year, the trade show includes both an educational and exhibit program. The show features over 350 exhibitors and attracts approximately 15,000 delegates including interior designers, architects, and facility and property managers. Delegates attending the show can see the latest product offerings from manufacturers and suppliers, hear international keynote speakers and attend a variety of educational programs. Owning IIDEX/NeoCon Canada has afforded the Association the opportunity to promote both Canadian manufacturers and suppliers and Canadian Interior Designers globally. Using international magazine advertising, relationships with international associations and by attending trade shows around the world and through international trade missions, we have grown the show over the past twenty six years to include both US and international exhibitors and attendees. As a result of our promotion, we have also indirectly helped strengthen the profile of the Canadian design sector in the global marketplace. IDC (and formerly ARIDO), have utilized the GOA program for the past several years to increase our capability to promote export marketing to our members, to promote our Canadian show IIDEX/NeoCon Canada, and most importantly, to increase the profile of the Canadian design profession internationally. Each year, we have expanded our participation in the GOA program with the most recent significant expansion to include international trade missions for our members. We have conducted a mission to China (Shanghai and Beijing) in 2009, a mission to the UAE (Abu Dhabi and Dubai) in February, 2011, and a mission to India (Mumbai and Delhi) in 2012 and a mission Export Marketing Strategy Page 2

3 to South America (Chile and Brazil) in An exploratory mission to Russia was applied for in 2012/2013, but it was not approved. Sectors chosen as target markets for our profession and association are based on several factors: 1) Priority sector for Government 2) Evidence within CTC Market Reports that there is a need for infrastructure and/or construction activity in that priority market 3) Knowledge of members working in international markets; typically these are larger firms who work in foreign markets more regularly and in some cases, even have offices in those markets. If there are large firms working in a market, there is potential for SMEs to also work in that market 4) Market intelligence gained from speaking to the thousands of exhibitors and interior designers we speak with at the many trade shows we attend on an annual basis 5) In conversation with our sister associations (IIDA (USA) and SBID (UK)) about the location their members are securing work 6) Conversations held by the Board of Directors as part of our annual strategic planning session based on information they have reviewed as part of their normal business activities 7) Project profiles from industry magazines Canadian Interiors, Azure, Interior Design magazine and Contract magazine. Our Association s offerings of trade missions will also include independent missions to Denmark and Las Vegas through relationships with other organizations. We find that trade missions are an excellent opportunity to educate members about export marketing and to promote Canadian interior design. Economic Forecast & Sector Focus Economic forecasters are predicting a slow recovery from the economic downturn. For the Canadian interior design profession, recovery on the design side has already begun. Members who had experienced a significant decline in project awards and project starts are indicating that work is already starting to see a return to pre-recession levels. This is particularly true in the residential and corporate sectors. Hospitality and retail work is experiencing a slower recovery. Healthcare work has never really slowed down. This is simply a factor of the volume of healthcare projects that are underway in Canada. In order to meet the needs for Canada s aging population, healthcare projects are at an all time high. This includes new or upgraded hospitals, new long term care facilities and retirement homes. Healthcare is also a priority in several international markets. For 2013, our priority sectors in addition to corporate/commercial, will be hospitality, healthcare, landscape architecture, and architecture as a result of our new partnership with RAIC. As just noted, healthcare design is at an all time high so we need to support this market to ensure our members have access to appropriate knowledge, education and expertise. We see healthcare design being a priority sector for the next five to ten years as the demand/need for healthcare facilities continues. We will look to Europe for market intelligence in the healthcare sector in 2012 and 2013 as the statistics say that their population will age sooner than the Canadian population. Hospitality design is our most important expansion area for 2011/2012 as we see this as the area that will experience the most significant growth and opportunity over the next three to five years. New demands on proprietors of hospitality facilities (hotels, motels, restaurants, bars, spas) have forced Export Marketing Strategy Page 3

4 them to improve or expand their facilities to meet regulatory requirements and remain competitive. The best way to recover from a recession is to return your tourism levels to their pre-recession levels. Recent expansion in the hospitality world in Canada (including over 10 new major hotels) has put Canadian designers on the international radar. It has brought international opportunities as Canada showcases its hospitality design talent to the world. Target Markets We have recently partnered with the Society of British Interior Design Association (SBID) and the International Interior Design Association (IIDA) to work on a program to cross promote hospitality design in Europe, the USA and Canada. Working with trade show partners, Hospitality Design and Nielsen, USA, RiminiFiera in Italy and Maison Objet in Paris, our goal is to use IIDEX/NeoCon Canada to develop a program that will cross promote interior design and product design throughout these three markets with an ultimate goal of creating new opportunities for Canadians. This program would focus on hospitality design and would involve a presence at shows in the USA, Italy and England and/or France. In addition to the expansion of our hospitality marketing, we will continue to pursue the UAE, the GCC and India as the most relevant expansion markets for our members. We participated in an exploratory mission to Dubai and Abu Dhabi in By meeting with both national and provincial trade officers there, and by meeting with representatives from local firms and local manufacturers, we have satisfied ourselves that there are opportunities for Canadian professionals who are export ready. In fact, since our return from that mission we know two firms who have started to work on projects in the UAE. Our exploratory mission to India provided a similar reaction however, we had a caveat on this mission that members attending must have ideally already worked in international markets. We think it would be more challenging for a firm who has never exported their services would be able to start their first export venture in India as it is a more complicated market to enter. Our mission to India in 2012 confirmed the fact that there are multiple opportunities in India but that working in the region would take significant time and investment. One local source suggested a budget of $25,000 should be established to get set up to do business in India. Having said that, some mission attendees are already pursuing opportunities. The reason we have chosen Chile and Brazil as the next market for our members is due to the increased need for residential development and healthcare facilities in these countries. It is implied then, that the extension of these requirements is a need for retail and hospitality facilities as well. On a recent mission to Brazil hosted by the Canadian Government, we noted that two large interior design firms (B+H and IBI) participated. This is a strong indication of potential work in the region. The next South American region to target therefore is Chile. According to the CTC market sector reported (March/2011), Chile s economy is one of the most open in the world which will be very important to SMEs. According to that same report, Infrastructure investment is a priority for the Chilean Government. Most of that investment is currently in highways, public transportation and airports, which implies that building infrastructure will follow. The reason we have chosen Russia as the next target market from our list is that the prediction is that between 2011 and 2014 Russian GDP is forecasted to grow an average rate of at least 4%. By 2020 Russia could become one of the world s five biggest economies. In a March, 2011 CTC Sector Report, Export Marketing Strategy Page 4

5 housing construction was identified as a major focus of the Russian Government s social and economic policy. This is of significant importance to our members. Both CMHC and Export Development Canada have been working with the Russian Government. Most importantly, is the work done by CMHC through an MOU with the Russian Federal Ministry of Regional Development. In 2006, the MOU was extended for five years, focusing on urban planning, high rise and low rise residential construction, and bilateral trade promotions and technology advances. We have a relationship with CMHC so will work with them on our movement into this region. Additional markets that we will focus on in the next three years include Peru, Jordan, Europe and Asia, Turkey, Qatar, Japan and Hong Kong, South Africa and Mexico. Target Customers In everything we do, we have two main targets for our program: 1) Interior Design Projects To access project opportunities, the best target audiences are: - Real Estate Developers - Facility and Property Managers - Architectural and Interior Design Firms (partnering opportunities) - Major Corporations (with offices in multiple locations) The best way to access the above client groups is through direct contact (typically with the assistance of foreign trade offices and/or relationships) or through attendance at trade shows and events in the local country/city. 2) Manufacturer/Supplier Relationships As owners of a major Canadian trade show, we are always interested in attracting: - International buyers to the show (to learn about Canadian manufacturers and suppliers) - International companies to the show (to inspire our members with new trends and innovative design solutions) - International speakers (to educate our members on innovative design solutions, new and innovative technology, product design) As owners of a major Canadian trade show, we are always interested in promoting Canadian design by: -attending international trade shows to promote Canadian interior designers and manufacturers. -advertising in as many international magazines as budget permits Strategic Objectives and Desired Outcomes Our long term objective with respect to export marketing is to ensure that Canadian Interior Designers are always top of mind for international projects and more specifically, that members Export Marketing Strategy Page 5

6 are provided an opportunity to bid on international projects when they have the qualifications and experience for the job. In addition, it is always our objective to support Canadian manufacturers and suppliers for international projects. In the short term ( ), our primary goals are to: 1) Develop a tri-party program with SBID and IIDA, using international trade shows, to promote Canadian hospitality design with an exhibit at the HD Show in Las Vegas, May 18-20, 2011, the HD Miami Show Sept 13-14, the SIA Guest Show Nov 26-29, ) To create a strong hospitality design show, within IIDEX/NeoCon Canada to support and build upon the talent that exists within this sector and to grow this sector s capabilities internationally. Hospitality Design Show launched at 2011 show, to be expanded in ) As part of new Hospitality Show at IIDEX, new partnerships formed with Enroute magazine (international hotel awards program) and NEWH (Network of Executive Women in Hospitality) who are working to help us promote the show to exhibitors and attendees. NEWH brand internationally is rated extremely high so this will help attract international attendees. 4) To continue our trade mission program for members with a full mission to China (2010), Dubai (2011), to India (2011) to South America (2012), Turkey, South America and Mexico (2013) and to explore and run missions in Italy, Peru, Jordan, Turkey, Qatar, Japan and Hong Kong, and South Africa 5) To continue our incoming buyers program to IIDEX with a specific focus on hospitality, education for 2011 and 2012 and with an added focus on healthcare in ) To refocus our incoming buyers program in 2012 to focus on the architectural, urban planning and sustainable communities to align with our new partnership with RAIC to build the architectural component of the show. GOA application to be a joint application with RAIC for this program. 7) To expand the international reach of our incoming buyers program to include Peru, Chile, Russia, Columbia, Panama, Jordan, India, Germany, England, Italy, Turkey, Qatar, Japan and Hong Kong, South Africa in addition to the countries already targeted (USA, Argentina, Caribbean, Bermuda, China) 8) To build our relationship with the Danish consulate to encourage future missions for our membership. Mission held in 2011, April, 2012 and May, ) To build our relationship with the Las Vegas market to encourage future missions for our membership. Mission held in 2011, 2012 and 2013 with an added educational component as of 2012 whereby we will present a panel of Canadian design to the international attendees at the market. 10) To explore a program to develop missions to High Point market in North Carolina Export Marketing Strategy Page 6

7 11) To explore relationships with the Italian Consulate to build upon our relationship with the RiminiFiera Group as well as Saloni Internationale del Mobile. Early planning stages of a 2012 mission to Italy for Saloni Internationale del Mobile in April, plan to partner with Italian Chamber of Commerce and Italian manufacturers for this mission. We will also attend the Macef show in Milan in September as co-presenters of design awards with SBID. 12) To work with Questex Media to promote and support the Healthcare Design Exchange in the USA to ensure that both Canadian manufacturers and suppliers are represented at the Exchange. IDC sponsored the educational program and event in Will continue to do so again in 2012 based on positive response from attendees. 13) To work with the Healthcare Design Conference to promote and support Canadian Design. Attended the Conference in Nov Plan to attend in Nov 2012 and annually thereafter given significant size of healthcare sector. 14) To build our business support section of the website to ensure that appropriate resources and links are available for members interested in learning more about exporting interior design services. New section of website launched in December, Article in our Dimensions magazine about mission opportunities and new section of website to be released in January, Future expansion of website section includes post mission reports and any demographic data available on various international sectors. 15) To hold webinars with Government representatives to educate members about exporting interior design services 16) Secure articles in international magazines on the benefits of hiring and working with a Canadian interior designer 17) Using the winners of awards competitions, find opportunities to showcase visuals and descriptions of the winning projects to international audiences. Ad in Enroute magazine promoting winners as part of our new partnership agreement. Anticipate this will repeat again in 2012 and be biannual after that date. 18) Keep members informed of upcoming export, networking and international bidding opportunities as they become known to us. From our past missions, we are hearing about two or three opportunities per annum. We will always share these opportunities with our members. The more missions we do, the more opportunities that will be presented to us. 19) Continue annual membership in the International Federation of Interior Designers and Architects. David Hanson, Past President of IDC elected to IFI board in 2011 at General Assembly. Board fully supports IFI membership and participation in IFI events/activities. 20) Continue to support and attend all NeoCon events in the USA. Key staff attend NeoCon and NeoCon East annually to promote Canadian design. Cross border networking event held at IIDA headquarters and supported by Cdn Consulate in Chicago. 21) Continue to support Montreal s bid to host the International Design Congress in Past President, Executive Director and Director of Business Development attended the IDA Congress in Taipei, Taiwan as part of a delegation from Montreal supporting the bid for Deputy Mayor of Montreal was part of the delegation. Executive Director presented Export Marketing Strategy Page 7

8 bid opportunity to IFI GA. Board has committed to continue to support the 2017 bid as host of IDA Congress. 22) Apply for funding to support 50% of these activities through the Global Opportunities for Associations through the Department of Foreign Affairs and International Trade Canada. GOA application to be submitted annually when it can support our Export Marketing Strategy. 23) Helsinki, Finland has been identified as host of World Design Day for We will promote Helsinki s design program to our members as an opportunity to meet members of the international design community. 24) Istanbul, Turkey will host the IDA International Congress in We will support IFI s participation in this event and promote it to our members. Leadership team from IDC will attend. 25) We will begin to analyze healthcare design trade shows, congresses and events that we should market, 26) in particular in the European markets, to gain market intelligence on the ever expanding healthcare sector. 27) We will consider new national awards programs in partnership with corporations and international associations in an effort to promote Canadian interior designers and Canadian manufacturers/suppliers. 28) We will look for opportunities to use and/or promote our new demographic study data to evidence the strength and size of the interior design profession in Canada. 29) We will begin to develop a relationship with Healthcare Design magazine and the International Academy for Design and Health to generate market intelligence on this sector. 30) We will work with the Italian Terrazo and Tile Association to deliver educational content to our members. Suggested Tactical Actions One of the critical pieces of information that our Association needs is solid, factual data about the interior design profession in Canada. In 2011, we undertook a comprehensive survey of our membership to obtain this data. This factual information will be instrumental in educating others about the size of the marketplace and the capabilities of our sector. Survey Results will be published in first quarter of In addition, whenever we undertake a program (whether it is inbound or outbound) we will ensure that there are opportunities built into the program for business-to-business meetings or educational tours or seminars. For our incoming buyers we will conduct guided tours of Canadian manufacturers on the show floor, factory tours, site tours with Canadian interior design firms to facilitate joint venturing, produce a guide to Canadian products, host networking events and invite attendees to our Export Marketing Strategy Page 8

9 various events and awards programs to build opportunities for joint venturing. We will also host a workshop for the delegates to educate them about Canadian design. Measuring Results: It is difficult to measure results in a service based industry however, over the years we have learned to rely on a number of indicators to measure success: 1) Detailed surveys from all participants who attend an inbound or outbound trade mission 2) Feedback from interior designers and/or manufacturers and suppliers who secure work as a result of one of our activities. While this rarely happens immediately, if it is an international market outside the USA, it is easier to trace the origin of the new relationship 3) Referrals to our incoming buyers program for past attendees 4) Invitations from international trade shows for us to participate. This is happening more since we started to participate in outbound missions 5) Requests from international trade offices for referrals or information on our sector. The more we promote our membership through the trade offices the more they are aware of our organization as a reliable source of information for referrals for upcoming local projects. Conclusion: IDC has an enormous opportunity to promote great Canadian talent globally. Canadian interior designers and the manufacturers and suppliers who support them are on the cusp of international recognition. Our export marketing strategy has grown exponentially over the past several years and we must continue to manage and expand a sophisticated program in support of our membership if we want to strengthen the international presence of interior designers. This three year strategy is the basis for this expansion. The strategy should be reviewed annually by the Board of Directors and modified as required to respond to programs that worked, programs that didn t and emerging markets that may need to be added to the program. Interior Design sectors that need promotion and growth should also be analyzed each year and added as and when appropriate. Approved by the Board of Management January 5, 2011 Approved by the Board of Management January 12, 2012 Approved by the Board of Management February 16, 2013 Export Marketing Strategy Page 9