Caspian Energy: Mr. Mammadov, the Iteca Caspian Company was one of the originators of the exhibition industry in independent Azerbaijan. How would you evaluate the activity of the company in the market of exhibition business?
Farid Mammadov, Director, Iteca Caspian LLC: We indeed started our business in the distant 1996. As you know, the Iteca Company is operating within a group of companies ITE, the biggest organizer of exhibitions and conferences around the world. The exhibitions that the Iteca Caspian Company conducts have already become recognizable brands in the world. Our clients know them perfectly well and confide in us. We are proud that we managed to establish broad exhibition business over the period of operation in Azerbaijan. After all, we started this business from a single universal exhibition. There was neither an exhibition area nor infrastructure then. There were not even companies for putting up exhibition facilities. Everything used to be delivered from abroad. The logistics of the exhibition business was not developed as well. After all, we found ourselves in the situation when we had a lot of participants and confined space for them. However, the times change. We currently have an improved infrastructure as exhibitors have an advanced area at their disposal for conduction of exhibitions. It is the Baku Expo Center designed and built in accordance with high international standards.
Exhibitions we hold in Azerbaijan have been very successful. Such projects as the Caspian Oil&Gas, construction exhibition Bakubuild, transport exhibition TransCaspian and others have a solid history and bring together companies, leading in their own sector, in every exhibition. Our social project, the Azerbaijan international exhibition “Education and Career”, is becoming wider as well and makes us feel pleased. This year is very significant for the company since such big non-oil industry related exhibitions as WorldFood, BIHE, Bakubuild, BakuTel are celebrating their 20th anniversary. We are pleased that we noticed the potential of the non-oil industry related exhibitions at an early stage of our business. We actively developed them and are witnessing the result now: these are successful exhibitions and some of them are even bigger than the Caspian Oil&Gas exhibition. Thus, exhibitions have become a visiting card of the region. We managed to form our regional exhibition product which is well known far beyond the region and turned Baku into the exhibition center of the region.
Visitors and participants of exhibitions have become more particular about the level of their conduction. They expect to see a wide range of products and innovations at the events, plan to set efficient professional contacts and learn the international experience of large companies. The ability to meet the requirements of its clients, correct positioning of business-events as well as support lent to exhibitions by government agencies and branch associations provide Iteca Caspian leading positions in Azerbaijan.
CE: How effective are the exhibitions in terms of attracting investments into the economy of Azerbaijan?
Farid Mammadov: Exhibitions and fairs are more than simply a market tool and are considered to be a place for signing international trade deals.
One of the main advantages of the international exhibitions and fairs is they display samples of many products being produced in different countries as well as involve companies of any country. New goods and enterprises are seen quite often at exhibitions. All of it certainly promotes the flow of new investments into the economy of the country. Besides, exhibitions are becoming a ground for Azerbaijani companies to enter the foreign markets as well. Every exhibition held in Azerbaijan results in signing of different agreements, opening of a new enterprise, introduction of innovations in certain branches of the industry. However, their significance is not associated with the promotion of certain types of products. A relatively small amount of funds invested in exhibitions can broadly influence the market. An entrepreneurial activity in a certain branch, the demand for certain types of services and goods may change following the results of one or two branch exhibitions held in a sufficiently competent manner.
I must note that an active development of the exhibition business is a part of the strategy on development of the national economy of the whole range of countries. It is pleasant that the government of the Republic also attaches due regard to the exhibitions. Enhanced role of Azerbaijan in the world indicates the growth of the international reputation of the state, regional prestige, significance for global economy and financial institutions. Conduction of the exhibitions, fairs and congresses enables to considerably increase the range of participants of programs and projects of the interstate cooperation.
Annual conduction of exhibitions in Azerbaijan also plays a certain role in terms of investments flow since exhibitions held on regular basis contribute to intensive development of trade-economic relations and raise efficiency of economic cooperation. The global experience shows that exhibitions function like the sluice system through which national goods and services are brought into the world market and foreign resources may flow into the national economy. Therefore, it is hard to overestimate the effectiveness and significance of exhibitions as a tool for attraction of investments.
CE: Which trends are observed in the modern industry of Azerbaijan?
Farid Mammadov: The exhibition activities in Azerbaijan are becoming a component part of the economic life of the country while exhibitions turn into the main ground for arranging meetings of industry leaders. Today exhibitions can be called a privileged forum which provides an opportunity not only for meeting with customers and potential clients but also with officials of firms who are in charge of making decisions, i.e. to acquire personal contacts. In my opinion, personal relations are becoming as good as gold in our world full of proposals which we simply face in our daily life. It is the live communication that helps to set valuable long-term and trusting relations which can very rarely be obtained by means of commercial correspondence. You certainly are able to arrange a meeting with a person you need at the office. Here noteworthy is another important factor, exhibition is a neutral area and most of visitors attend it due to their interest toward goods of the certain industry. They are ready for information perception that facilitates the process of communication any way. No other market instrument can provide this opportunity.
Apart from this, today exhibitions acquire quite a special status given the present economic situation. They serve as a characteristic feature for the industry providing clear vision of companies which remained in the market or abandoned it including clear view of free market niches as well as the way for setting own tactics and strategy within new realities.
CE: Which areas will be the most important for you in 2014?
Farid Mammadov: Iteca Caspian scheduled to hold 25 exhibitions in 2014. We keep developing our traditional exhibitions while new projects also emerge in our portfolio. It is the first Caspian International Exhibition “Motor boats and Yachts” which is to be held from May 15 to 17 in the Baku Expo Center. The Exhibition will present motor-boating facilities and associated goods designed for active rest. This year we have also performed re-branding of the Azerbaijani automobile exhibition which is to be held as the 8th Baku International Motor Show (BIMS) in May of this year.
The first Azerbaijani International Exhibition “Defense Industry” ADEX 2014 will, for the first time, be held in Azerbaijan and in the region from September 17 to 19. The newest world achievements in the field of armament production will be demonstrated within the framework of the exhibition. ADEX will become an important place for meeting of the world industry and a ground for demonstration of the military potential of the participant-countries, exchange of knowledge, discussion of security issues as well as attract producers and customers of armament and defense technology for further cooperation in this area. The exhibition will be held under the auspices and support of the Ministry of Defense of the Republic of Azerbaijan and the Ministry of Defense Industry of the Republic of Azerbaijan.
We are currently working for enhancing the service provided to visitors. Every visitor is really important for us. Therefore, we try to make sure that they spend their time maximum rationally and do not waste it in the queue for registration. We are preparing special plastic cards for our permanent visitors enabling them to visit exhibitions without any preliminary registration. I would also advise to actively use the electronic service which envisages online registration on the websites of exhibitions. It will be possible to also use this service in busses heading to the Baku Expo Center by downloading the mobile application by phone. Advance registration enables to receive a list of participants, exhibition-related information and schedule of the associated business activities.
Comfortable busses, to carry exhibition visitors from Nariman Narimanov metro station to the Baku Expo Center and back for free, are still offered to all who wish to attend exhibitions. A free business and press center meant for participants as well as a café and restaurants are operating in the Baku Expo Center.
Using the opportunity I would like to extend my gratitude to the government agencies, our partners and all participants of our exhibitions. I would like to wish Caspian Energy Journal prosperity, topical articles, new ideas, big readership, and would like to thank you for the interest to our activity.
