Facility opened almost a year ago | Lusophone food exhibition center records low direct sales

White label products in the Portuguese showcase

To date, over 9,000 visitors (around 800 per month) and 38 groups have visited the Portuguese-Speaking Countries’ Food Products Exhibition Centre, which opened its doors on March 31, 2016. Although the center’s promoters claim that creating brand awareness is the main target, the center generated low direct sales during its first operational year. According to figures provided to the Times by the Macau Trade and Investment Promotion Institute (IPIM), only “12 companies have joined the promotion with the total revenue generated reaching [MOP]180,000.”

However, almost a year after opening, the center’s promoters made a positive assessment of the facility located at Tap Seac’s Glass House, claiming that it has been displaying products from seven Portuguese-speaking countries and has held several related events.

As stated by an IPIM spokesperson in a written reply to the Times, “one of the aims [that led to the establishment of the center] was to provide a central location for local and [the] world’s visitors to see and touch the products, [in a way] to build direct communication between Portuguese Speaking Countries’ products’ suppliers and buyers worldwide, as well as to open up different marketing and business opportunities.”

“Hence, building up the brand awareness is a main objective [of the] recent years’ strategy, since we believe that building up brand awareness creates word of mouth as a basic starting point to bring business opportunities to Portuguese Speaking Countries’ suppliers,” the statement continued.

In addition to the facility, and targeting mainland China markets, IPIM has also set up Portuguese Speaking Countries’ products display points in different cities and locations, including IPIM’s Liaison or Representative Offices (Chengdu, Shenyang, Fuzhou, Hangzhou, Guangzhou, Wuhan).”

As for the products, it was said that the number of items on display has been growing “from 700 pieces at the opening to over 1,500 pieces [currently].”

As explained, such growth depends on the interest of the product manufacturers or distributors of the seven Portuguese-speaking countries represented and conditions required to be a part of the program. “All kinds of food and beverage products, ranging from agricultural products, raw material to packaged products are welcome to join,” IPIM claims. For the time being, a visit to the center allows the conclusion that there are some countries represented by a wider variety of products while others are underrepresented. The choice of products is also questionable. For example, there are some white label products in the Portuguese showcase.

During a visit to the center, staff told the Times, “for now Portugal and Brazil markets are the most mature ones in terms of export capacity,” noting that “more work is being done for the others.”

Questioned on the business volume generated through the center, IPIM reaffirmed that the center’s main objective is creating brand awareness. Still, the spokesperson said that the center has received some feedback from their exhibitors that the B2B (Business-to-Business) and B2C (Business-to-Consumer) enquiries received have increased since joining the center.

Based on the experience gathered with the operation of the center in Tap Seac Square and also from another similar projects done in coordination with the Cultural Affairs Bureau (a special exhibition for Portuguese Speaking Countries’ food products held in the Creative House of Taipa Houses-Museum since October 2016), IPIM expects to “keep on reviewing other worthwhile locations to set up the exhibition points so as to help Portuguese Speaking Countries’ food products penetrate further and wider,” in 2017. “Also, we will keep inviting different business groups such as buyers and governments, among others, to visit the center as well as those exhibition points,” the department added.

It was also noted that IPIM is happy with the results of the special exhibition in Taipa which “welcomed over 20,000 local and worldwide visitors to date.”

Moreover, the plans for 2017 also include the organization of more promotional events, like wine tasting activities and others, which, according to IPIM, constitute a “direct way for customers, suppliers, wholesalers and potential suppliers to have opportunities to experience the products,” bringing more business matching opportunities to the food suppliers.

As for budgeting, it was said that, “there is no dedicated budget allocated to the Portuguese Speaking Countries’ Products Exhibition Centre because it is an offline version of ‘a food product distribution center for PSCs,’ [included] in the ‘Three Centres.’ Hence we planned the budget and allocated accordingly as a whole project.”