China International Vending Show 2008
– Sharing Exhibit Fruits with International Vending Players

I. Background Introduction :
China is a country with 1.3 billion people, the largest population in the world. But its economic condition lagged behind during the Cultural Revolution from 1966 to 1976. Since Comrade Den Xiao-ping launched a significant economic reform and opening policy in 1978, China's economy began to have a great change with its active introduction of foreign advanced equipment, technology and investment and its solid execution of market-oriented economic strategy. Second-hand vending machines were first introduced into China from Japan and South Korea since 1992 and the vending industry has formed up gradually with China's fast economic development.

According to the National Bureau of Statistics (NBS) of China, China's gross domestic product (GDP) grew 11.4 percent year-on-year to US$3.43 trillion in 2007. 2007 was the fifth year in a row in which GDP had expanded by more than 10 percent. Analysts said the 2007 figure was also the highest of the past 13 years. That marked the world's fourth largest economy after the US, Japan and Germany.

Backed by such rapid and robust economic growth, there is no doubt that the vending industry will be spurred year on year. In 2004, China has approximately 20,000 sets of vending machines located on the market, but in 2007, the total number of vending machines in operation has surpassed 50,000 sets. Experts anticipate that the Chinese vending market will increase more than 10,000 vending machines every year and this number is still on fast increase. Up to now vending machines have been located not only in airports, railway stations and subway stations, but also in 3-star class hotels and motels, office buildings, big factories and universities. Obviously, the scope of vending machine locations is expanding throughout the major cities, such as Beijing, Shanghai, Guangzhou and other adjacent cities.

2. Vending in China :
The Chinese vending market is expected to boom with the opening of 2008 Beijing Olympic Games on August 8-24, 2008 and the World Expo Shanghai 2010 from May 1 to October 31, 2010. Experts said that this industry will enter into the development phase since 2008, when vending machines will stand to trigger the third retailing revolution in China. Beijing, the capital city of China and Shanghai, the largest commercial and trade center of China will lead the vending market because of hosting the two international events.

In-city metro and rail transport systems have been constructed and developed over the past few years. Take Shanghai as an example. From 1990 to 2000, only 3 rail transport lines were built up with a total length of 65km. From 2001 to 2010, Shanghai is expected to have 9 rail transport lines with a total length of 500km, just the same size as the world's largest subway city, London. More and more vending machines are placed in the metro/subway and light-rail stations, which have proved to be the best locations for the vending operators to gain profits.

As we know, a lot of vending machines are located in hotels in the U.S. and European developed countries. But now vending machines make their appearance in 3-star class hotels and motels in China. The 3-star class and economic hotels began to bring vending machines for retailing drinks, snacks, and daily-use consumer products which are not easily bought nearby. This is an encouraging phenomenon for vending operators. If more and more 3-star class hotels install vending machines in place of convenience retail outlets, hotels will become another profitable place for vending business. Tourists can notice all the Motel 168 chain hotels have been installed with vending machines in major cities of China.

With the growing market demand for vending machines, the number of vending machine manufacturers has increased from 10 to 40 from 2000 to 2008 in China. Tianjin GUARD, Qingdao AUCMA, Hunan KIMMA and Jiangsu BAIXUE are all the state-owned big vending manufacturers. Sino-foreign joint ventures and foreign-invested manufacturers are FUJI BINSHAN, BIANCHI and S.M COIN, etc. They export thousands of vending machines annually in the form of OEM to the U.S., Canada, U.K., Australia, Japan, South Korea and Russia, etc.

Compared with the vending manufacturers, most vending operators are small- and middle-sized private enterprises. There is a big market potential for the vending operators in China. This market is also in great demand for the introduction of foreign investment and advanced technology and management solutions. As this industry is still in its infancy, many problems need to be solved with advanced technical and operational solutions. For example, vending machines sometimes eat coins, accept counterfeit coins; products supply and categories by vending machines are very limited; vending machines are not clean and in good maintenance, and so on. But advertising on vending machines see a good business prospect in the near future.

3. China Vending Show :
China Vending Show is fully named as "China International Vending Systems & Commercial Self-Service Products Exhibition". It was founded in 2004 with the growth of the Chinese vending industry. It was sponsored by All-China Federation of Industry & Commerce, China Tongyuan Corp. and administrated by Shanghai Tiansheng Exhibition Service Co., Ltd. and Shanghai Highlights Business Management Consulting Co., Ltd. After two sessions, this show arose the attention of worldwide major vending associations and obtained the official supports of National Automatic Merchandising Association (NAMA), Worldwide Vending Association (WVA), European Vending Association (EVA) and Japan Vending Machine Manufacturers Association (JVMA). In July 2006, Mr. Richard Geerdes, President and CEO of National Automatic Merchandising Association and Mr. Dan Mathews, Executive Vice President and COO of National Automatic Merchandising Association, Ms. Catherine Piana, CEO of Worldwide Vending Association and Secretary General of the European Vending Association, and Mr. Takashi Kurosaki, Director General of Japan Vending Machine Manufacturers Association visited the 3rd China Vending Show 2006 and delivered keynote speeches at the China Vending Summit 2006. With the great supports of top leaders of worldwide vending associations, the 4th China Vending Show 2007 won a historical success. The number of exhibitors increased from 27 up to 48, and the number of visitors increased up to 5021, among which overseas visitors were 1080 from 48 countries around the world. A basic statistics for China Vending Show is presented as follows:

The main exhibitors at China Vending Show include: FUJI BINGSHAN, BIANCHI, N&W, NECTA, DIXIE NARCO, SANDEN VENDO, MEI & CONLUX, COINCO, JCM, CASH CODE, ICT, VTI, ASTROSYS, PANASONIC, VESIEL, GUARD, AUCMA, KIMMA, BAIXUE, S.M COIN, LOTTE, COFFEE QUEEN, ICS, SAECO, GIERRE, etc. 98% of the exhibitors were satisfied with the exhibit results and 89.8% of the exhibitors confirmed that they would continue exhibiting at China Vending Show 2008.

"The 5th China International Vending Systems & Commercial Self-Service Products Exhibition 2008" (China Vending Show 2008) will be held on June 26-28, 2008 at East Hall of Shanghai Everbright Convention & Exhibition Center in Shanghai, P. R. China. It is your best choice for exhibit and a never-to-be missed opportunity for visit. Let’s share exhibit fruits with Chinese and international vending players at this great gala event !

For any further information about China Vending Show 2008, please contact :

Mr. Alex Chen
International Liaison Office of China Vending Show 2008
Address: Rm. 702, No.18, Lane 888, Wencheng Road, Shanghai, 201600, P. R. China
Mobile: +86-13818028583
Tel: +86-21-37793743
Fax: +86-21-37793843
E-mail: vendingshow@vip.citiz.net
Website: www.vendingshow.com
                  www.chinavendingshow.cn