Impact of The Economic Crisis on The B2b Media Industry in Asia

This is a special report designed to provide to subscribers with a summary of the impact of the economic crisis on Asia's B2B media sector to date. The report details both the performance and initiatives of key B2B media companies in Asia - most of which have been in large part a reaction to the ongoing economic crisis. The second section of the report focuses on government initiatives as a consequence of the challenging global economic outlook. Most governments in Asia have concentrated their efforts and resources on the exhibitions and business events market and this summary reflects that focus. The final section provides a brief round-up of the situation for business publishers in Asia.

Before reviewing the specifics of the Asian B2B media sector, it is worth briefly reviewing the economic outlook of the key countries in Asia as well as the impact of the crisis on trade flows as so much of Asian B2B media growth stems from these macro-economic factors.

China is now feeling the impact of the steep fall in global demand for its manufactured products, but there are signs that Beijing's stimulus measures are beginning to stabilise the economy with extra domestic activity. Exports in February fell nearly 26% compared with a year earlier, worse than the January statistics which recorded a 17.5% decline in exports. China's imports fell by 24% in February and a shocking 43% in January.

Beijing's strategy to pump up the economy is founded on a US$585 billion stimulus package that targets spending on infrastructure projects and supporting domestic consumption. Ultimately the central government is hoping to use the crisis to shift the Chinese economy's reliance away from exports and foreign direct investment.

Chinese exporters are hoping that Beijing will move to weaken the renminbi especially after the depreciation of other Asian currencies over the past few months. This is unlikely to happen due to the political sensitivity of the issue in the U.S. and Europe. Beijing did, however, recently commit to cutting export taxes to zero and offer better access to financing for Chinese exporters. The central government may also increase rebates to bolster exports, but this is a politically sensitive issue.