This might turn out to be a positive thing. While 30 percent less attendees would be bad for the presenters, it would be great for those of us that go to the event. Last year, there were too many people. The food service in the area was overwhelmed and we couldn't get a table anywhere.
While 30 percent less attendees would be bad for the presenters, it would be great for those of us that go to the event.
That's a good point though it depends on who does not attend. If it's mostly attendees who do not attend, that will be great for the attendees who do come (though still a big issue for exhibitors who pay a premium for ISC West).
What would be worse for attendees is if certain exhibitors do not show or key people from those companies do not show, reducing value for attendees.
Hard to tell how it will play. And to be clear, maybe 30% down is too pessimistic, hard to know how applicable the results for ISE will be for ISC West.
I have often wondered how much value the truck companies get out of the show. Relative to their overall marketing budget, this is probably not a big spend. While it is nice for integrators to be able to see multiple vehicles at once, I would think part of a buying decision for them would also be based on local dealer presence. If the local Nissan dealer, for example, is too far away, that might affect buying decisions if it would not be easy to have warranty and service work done.
I promise you that no refund will be given...I recall when Sandy hit NYC about a week or so before the ISC East Show...We were notified that we had 3 days to arrange for our booth and equipment that was at the Javits Center to be collected. This of course was on our dime..They then rescheduled the event and with the city still a mess we decided to cut our losses and not attend...Several of our partners did go and reported to my that not coming was the best decision. Fact of the matter is, if the contract does not cover a refund even if there is a "Declared State of Emergency" then this virus will not result in you a refund...
Generally speaking, I am curious about the applicability here of force majeure ("chance occurrence, unavoidable accident" is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties ... prevents one or both parties from fulfilling their obligations under the contract.). For example, numerous Chinese companies are invoking force majeure, reports Xinhua.
Whether or not they can for ISC West, I am not clear but hopefully, Reed can comment on that aspect.
Interesting about Hurrican Sandy and ISC East, Rick!
The show says that they are offering credits to future shows to China manufacturers that cannot attend:
For any sums already paid, ISC is offering a credit (for ISC West 2021, or ISC East 2020 or 2021) to customers who are unable to travel from mainland China due to the travel restrictions.
I think that's the right thing to do and probably better for business long-term. As a practical matter, very few of these China companies exhibit at ISC East so this effectively means rolling over / crediting towards ISC West 2021.
It's up to each business to plan for their financial risks with suitable insurance. It's not the show sponsor's mandate.
The performing arts and professional sports industries all purchase hazard insurance to cover loss of revenue in scenarios such as this. There are many types of specialized Property & Casualty insurance to cover almost any risk.
Loss of revenue due to unforeseen reasons is a standard risk.
If I were Verkada I would pull out of the show for marketing purposes. They have so many people calling end users that a boxy little booth is unlikely to help them much. Then when the corona virus infects the remainder of the industry they can proclaim:
you need to remember that ISC also have expenses, the Venetian will not refund them for the space not used, so their ability to refund is also limited.
If I were Verkada I would just put two inside sales people in the booth, doing their usual day job, along with the sales leaderboard. Eg: have them calling on customers, closing deals, etc. Let everyone watch the numbers tick up. In between calls they could sign people up. It would be a spectacle, in the best way for them.
Notwithstanding the potential health and marketing benefits of mask giveaways, I think most Americans are going to be unpleasantly surprised about how uncomfortable and annoying wearing masks are, especially when trying to have a business conversation.
To be clear, not arguing against wearing them, just pointing out that they could help address one problem but increase another one.
I never saw much activity in the Chinese section when walking through, them being gone will not detract from my show experience. I hadn't even slightly considered the health implications of the show, I have so many meetings on the schedule too, this made me think about it.
With 200 votes, our poll indicates that only a minority, but significant minority, have concerns about coronavirus:
Interestingly, when looking at the breakdown of integrator vs manufacturer segments votes, integrators have significantly more of a concern than manufacturers. That is consistent with people that I have spoken with anecdotally. My hypothesis about that is that manufacturers have more invested in the show (literally in paying for the show as well as opportunity to get deals). Integrators, on average, likely do not have as much to lose from not attending. Thoughts?
I'm also going to posit that small to medium integrators have much more to lose if a few of their most important people get sick. I know if my company lost our top two guys (who usually attend) for a week or two, there would be absolute mayhem. They do most of the project management, scheduling, estimating, problem-solving, meeting with prospective clients, etc. It would be bad.
IMO, Reed needs to move the remaining booths in that little ballroom area, or give those people a refund. It's 3 dozen no-name companies (several with "Shenzen" in the name, so they are going to be no-shows) that nobody has heard of. It's going to have all the vibe and energy of a funeral home in there.
That's an interesting idea. Once the various China companies on the main show floor officially cancel / are removed from the floor, they likely will have room. It could solve two problems - holes on the main show floor and the handful of companies in the ballroom area.
The ban is not expected to affect the overall attendance of the ISC West show, which is typically around 30,000 attendees. As Wise states, “It’s really been more of the exhibiting companies that were coming from China, not the attendees.”
ISC West typically has, as they call it, "over 30,000 security professionals", not 30,000 attendees. The 30,000 number they report consists of ~20,000 attendees and ~10,000 exhibitor staff. The exhibitor staff number is going to be down because there are easily hundreds from China that normally come.
And our poll indicates that there are going to be some drop in attendees as well. What percentage remains to be seen and how the coronavirus risk reduces or increases in the next month.
I don't know what Reed / ISC West approach to this is but my thought is that if you start offering discounts now, what happens to your existing customers who paid full price a year ago? Is it fair to them? Will they complain?
I said it long ago, why would anyone voluntarily attend ISC West or go to any crowded places for the time being. China and the surrounding countries (who do a ton of business with China) will be at the show. Its good that the pavillion is closed (which I also said it should be done) but there are big booths that have asian ties on the main floor.
Is it a PRC requirement or just some mark of regional pride (like Texans)?
Our understanding is that there is alegal requirement from the PRC State Administration for Industry and Commerce. Article 9 specified a company's name shall start with an administrative area with a few exceptions. Article 13 says you can choose not to have an area name if you fulfill one of the 4 conditions:
Authorized by the State Council
Registered at the central bureau of the State Administration for Industry and Commerce
More than 50m yuan in incorporation capital
Under other regulations of the State Administration for Industry and Commerce
That said, ISC West does not require companies to use that format and China manufacturers with more International experience will drop the formal name (e.g., Hikvision is technically the Hangzhou Hikvision Digital Technology Co. Ltd.).
Axis issued a press release on coronavirus, saying that while they have "no manufacturing in China. However, some of our sub-suppliers are located in China", which will cause delays in shipping / extended lead times for certain products.
If you are a manufacturer there is a good chance that you are somewhat effected by this virus. We have been recently as we are facing a global shortage of components. When the Chinese factories are closed the factories in other countries become overwhelmed with the demand for goods. These factories in the chip market can only produce at a certain pace and are limited in the output they can provide.
I’m actually quite thrilled that I will not be going this year. One less cluster of potentially infected people I have to worry about. With cases around the world growing and immunologists saying we are on the verge of a pandemic, I can sleep easier tonight knowing I won’t be there.
My projection is that the show will be a complete bust for the manufacturers that might as well attend since they have already paid for it. As an Integrator, I see no value in sending our people or suggesting that our customers travel to see new technology that will most likely be back ordered because of component delays. For once, it may be prudent to go to ISC East.
I guess I will take the blame for all of this. Over the years I have whined and cried to my superiors to attend ISC West but never allowed to go. I have been to ASIS/GSX many times but there aren't near as many vendors. Eventually I gave up on my quest to attend ISC West and then this year I was asked to go.
Sure, why not I said this should be good. Now that I am going this will probably be one of the weakest shows in ISC history.