Events industry to cross Rs 10,000 crore by FY21: Report
Featured in Economic Times - By Gaurav Laghate | Updated Sep 11, 2017
MUMBAI: The events and activations industry in India is expected to cross Rs 10,000 crore mark by 2020-21, as per an EY-EEMA (Event and Entertainment Management Association) report. The industry, which was at Rs 5,631 crore in 2016-17 overall, has been growing at a 16% CAGR, even overtaking the Indian media and entertainment (M&E) industry, which is growing at 11-13% CAGR, the report called ‘#Experience_Next’ said.
Key growth drivers for growth are digital activation, sports leagues, rural expansion and government initiatives followed by IPs, personal events, product launches, expansion of minimetros and below the line spends, the report, based on a survey of 64 event management companies and 31 marketers, said.
“Events & activation industry is... expected to grow exponentially due to its ability to adapt and grow with innovative technology,” said Ashish Pherwani, media & entertainment advisory leader, EY India. “With focus on newer avenues such as sports leagues, rural expansion, digital activations, increased government marketing initiatives, etc, we see industry surpassing overall growth rate of the M&E industry,” he said.
The largest segment is still managed events with around 90 per cent of respondents providing them, whereas average IPs and activations per respondent have doubled since 2013-14, the report said. Interestingly, digital is driving the growth and average digital events per respondent have grown 9x since 2013-14.
The respondents also feel that marketers’ spends on digital events will grow at 20 per cent over two years. The report points out that the value represents the revenue of 'organised’ events and activation agencies only, which is around 50 per cent of the entire events and activation industry.
The report does not include the multitude of ‘unorganised’ event companies spread across the country and the size estimate also does not include the value of telecast rights of events (unless owned by an events and activation management company), the value of meetings, incentives, conferencing and exhibitions (MICE) conducted by pure travel companies, of IP not owned by event companies and properties managed by inhouse activation teams of advertisers, and the unorganised events segment. The organised sector is expected to touch 60 per cent in value in two to three years, the report said.
“Event management has now transformed into experience creation with amalgamation of technology, innovative ideas and creative content,” Sabbas Joseph, president, Event and Entertainment Management Association, said. “The Indian economy has undergone a lot of changes in the recent past and the events and activation industry has come out unscathed. This demonstrates the industry’s strength and ability to get things done under any circumstances.”
Sports — which is expected to grow at 18 per cent over the next five years (currently, India is just 1 per cent of the global sports market), and rising number of personal events (wedding, parties, etc) will also help the industry grow.