Interior Designers of Canada International Business Development Strategy 2016-2018 Note: Original Export Marketing Strategy was completed in fall, 2010. It was updated in December, 2011 and February 2013. In 2014, a new document was created retaining a lot of the content from the original strategy. That document was then updated in 2015, 2016 and again in 2017. It was renamed International Business Development Strategy in 2017 to match the GOA application wording. Executive Summary IDC is the professional association for Interior Designers in Canada. IDC s mandate is to advance the profession of interior design across Canada as well as internationally. It does so through advocacy with government and the public, and by providing continuing education opportunities and business practice support services to members. IDC has as members, three groups: 1) Nine provincial associations whose mandate it is to admit interior design practitioners to membership and regulate those members to ensure compliance with ongoing requirements and standards of practice; 2) Individual practitioners, educators and students who have met qualification standards in their province (approx. 5,500 individuals); 3) Manufacturers and suppliers who sell products and services to interior designers for use in their projects (approx. 300 companies) As the national advocacy association representing interior designers and Canadian manufacturers/suppliers, we include as part of our mandate the promotion of Canadian interior designers and manufacturers in the global marketplace. In an industry populated mostly by small to mid-sized firms, it is extremely challenging for business owners to know how and when to begin exporting their services. It is also challenging for them to develop new relationships in foreign markets. The Association has been supporting our member s interests in international business development through education, articles and trade missions. This service is valued by members who have as their strategy an interest in expanding their company beyond Canada. Up until May, 2013 IDC was the owner of IIDEX Canada, the largest trade show for the built environment in Canada. In May, 2013, IDC sold the show to Informa Canada the company who had been managing the show on behalf of the Association for the past 13 years. At the time of the sale, IDC entered into a new four-year agreement with Informa Canada to continue to present the show and maintain all of our significant programming at the show. We continue to present the show in partnership with the Royal Architectural Institute of Canada/Architecture Canada. In essence, this was a financial transaction and our relationship with the show in terms of branding and programming remains essentially the same. This trade show, which -celebrated its 30 th year in 2014, is a critical program for the Association. At the show, we have a huge opportunity to not only promote Canadian interior design professionals, but also Canadian manufacturers and suppliers who provide products for the built environment. International Business Development Strategy Page 1
Interior Designers specify products in all provinces with floor coverings, furniture, wall & ceiling treatments and lighting fixtures being the top five products specified. Interior Designers, Architects, Facility Managers, Building Owners and the media have an opportunity to see the latest and most innovative and sustainable products at the show each year. As our industry grows and changes to meet the demands of the marketplace, IIDEX Canada changes with it. Some market segments are added and others are removed or expanded. In 2007, we added sustainable design, 2008 lighting, 2011 hospitality, 2012 architectural products, in 2014 educational products and in 2015, health & wellness. In 2013, the show hosted the International Union of Architects World Congress on Healthcare at IIDEX in Toronto. This was a one-time opportunity that brought healthcare practitioners from around the world to IIDEX. In 2012, we launched a new international pavilion at the show which has grown in size year over year since its launch. In 2014, the pavilion featured 14 companies and in 2015, 22 companies. In 2015, the show held a health & wellness and accessibility summit as part of its programming. Our ultimate marketing goals to meet the mandate of the Association and the needs of our membership are to promote Canadian Interior Design, to promote Canadian manufactures and suppliers who provide products for interior design professionals and to attract international speakers, exhibitors and delegates to the trade show to ensure that our members have access to the best products and expertise that ultimately will help them be successful in their business. Sector Analysis The Association represents approximately 3,500 practicing members who work in the areas of corporate/commercial, retail, healthcare, hospitality, and residential design.30% of our members focus on corporate/commercial, 30% focus on residential/residential development and the remaining 40% are all the sectors. It is estimated that approximately 70% of member firms are SMEs with between one to five employees. 20% of firms are mid-sized firms (5-20 employees) and 10% are firms that are multidisciplinary including interior design, architecture, landscape architecture and urban planning. Interior Designers typically also act as project managers on their projects from contract award to move-in. Over the past ten plus years, several of our member firms have expanded their work to include US and International projects. Often, it is the case, that the expansion comes from a Canadian client opening a location in a new market outside Canada and wanting to use their Canadian interior designer for the project. USA is the most frequent market, followed by Asia, Europe, UAE and South America. We are proud to have several multi-award winning international interior designers within our membership. Canadian interior design professionals are sought after around the world for their talent, skill level and commitment to project budgets, timelines and deadlines. The Canadian work ethic in the interior design profession is strongly respected in foreign markets. A 2004 study conducted by the Design Industry Advisory Committee (DIAC) reported that Ontario s design workforce has higher levels of formal (university or college) education than the overall workforce; 34% of designers have a university degree as compared to only 22% of the overall workforce. This statistic could easily be applied to all of Canada and it is one of the reasons that interior designers are able to secure work internationally. They are highly skilled and this is a critically important factor in our sector. International Business Development Strategy Page 2
As mentioned in the Executive Summary, the Association is the co-presenter of IIDEX Canada, the largest trade show for the built environment in Canada. Held in Toronto in December this year, the trade show includes both an educational and exhibit program. Beginning in 2014, IIDEXCanada is now held concurrently with Construct Canada, the Toronto Real Estate Forum, PM Expo, HomeBuilder & Renovator Expo, Construct International and Concrete Canada. Influential buyers and decision-makers from the interior design, architecture, building and construction industries for all types of projects attend the Show to experience more than 1,600 exhibitors, 350 seminars, keynotes, tours, special features and demonstrations. Combined, these seven shows create The Buildings Show Owning IIDEX Canada for the past 28 years has afforded the Association the opportunity to promote both Canadian manufacturers and suppliers and Canadian Interior Designers globally. Using international magazine advertising, relationships with international associations and by attending trade shows around the world and through international trade missions, we have grown the show to include both US and international exhibitors and attendees. As a result of our promotion, the profile of the Canadian design sector in the global marketplace has been significantly strengthened. IDC (and formerly ARIDO), have utilized the GOA program for the past several years to increase our capability to promote international business development to our members, to promote IIDEX Canada, and most importantly, to increase the profile of the Canadian design profession internationally. Each year, we have expanded our participation in the GOA program, adding international trade missions for our members in 2009. With the assistance of GOA funding, we have conducted a mission to China (Shanghai and Beijing) in 2009, a mission to the UAE (Abu Dhabi and Dubai) in February, 2011, a mission to India (Mumbai and Delhi) in 2012, and a mission to South America (Chile and Brazil) in 2013. Exploratory missions to Turkey (2014) and Indonesia (2015) have been held. The added bonus of the mission to Turkey was that the individuals participated in a DFADT mission put together for the infrastructure sector with an emphasis on P3 projects (public/private partnerships). Sectors chosen as target markets for our profession and association are based on several factors: 1) Priority markets for Government 2) Evidence within CTC Market Reports that there is a need for infrastructure and/or construction activity in that priority market 3) Knowledge of members working in international markets; typically, these are larger firms who work in foreign markets more regularly and in some cases, even have offices in those markets. If there are large firms working in a market, there is potential for SMEs to also work in that market 4) Market intelligence gained from speaking to the thousands of exhibitors and interior designers we speak with at the many trade shows we attend on an annual basis 5) Review of N11, BRIC country lists or any other relevant credible source 6) Recommendations from international developers and real estate companies we meet during an international trade mission 7) Recommendations from manufacturers and suppliers based on where they are securing orders 8) Recommendations from our sister associations (IIDA (USA) ASID (USA) and SBID (UK)) about the locations where their members are securing work 9) Conversations held by the Board of Directors as part of our annual strategic planning session based on information they have reviewed as part of their normal business activities International Business Development Strategy Page 3
10) Project profiles from industry magazines Canadian Interiors, Azure, Interior Design, Metropolis and Contract magazines. 11) Infrastructure as a priority sector when a country is investing in infrastructure roads/transit buildings follow that work which is a good indicator. 12) Healthcare as a priority sector is a good indicator given the number of Canadians working internationally in this sector. Beyond DFADT programs, our Association s offerings of trade missions also include missions to Denmark and Italy internationally and Las Vegas in USA through relationships with other organizations. We find that trade missions are an excellent opportunity to educate members about international business development and to promote Canadian interior design. Economic Forecast & Sector Focus The economic downturn has ended in many areas within the USA and the larger markets are seeing a recovery in many sectors. For the Canadian interior design profession, the slow recovery continues. Members who had experienced a significant decline in project awards and project starts are indicating that work is already starting to see a return to pre-recession levels. This is particularly true in the residential development, hospitality and corporate sectors. Healthcare work has never really slowed down. This is simply a factor of the volume of healthcare projects that are underway in Canada. In order to meet the needs for Canada s aging population, healthcare projects are at an all time high. This includes new or upgraded hospitals, new long term care facilities and retirement homes. Healthcare is also a priority in several international markets. For 2016-2018, our priority sectors in addition to corporate/commercial will be hospitality, healthcare, landscape architecture, architecture as a result of our new partnership with RAIC and educational. We see healthcare design being a priority sector for the next five to ten years as the demand/need for healthcare facilities continues and an aging in place focus becomes more prevalent. We will look to the USA and Europe for market intelligence in the healthcare sector as the statistics say that their population will age sooner than the Canadian population. Hospitality design has been a strong focus over the past three or four years given the significant growth in new project starts. Toronto, Vancouver and Montreal alone have all seen four to five new 4/5 star hotels in the past three years. In addition, new demands on proprietors of hospitality facilities (hotels, motels, restaurants, bars, spas) have forced them to improve or expand their facilities to meet regulatory requirements and remain competitive. The best way to recover from a recession is to return your tourism levels to their pre-recession levels. This recent expansion in the hospitality world in Canada has put Canadian designers on the international radar. It has brought international opportunities as Canada showcases its hospitality design talent to the world. In 2011, IDC, RAIC and IIDEX Canada entered into a partnership with EnRoute magazine, Air Canada s in-flight magazine on a bi-annual hotel design awards competition. This competition is open only to Canadian interior designers and architects working on hotel projects around the world. In the first year of the competition (2011), of the eight project winners seven of them were hotel projects outside of North America demonstrating the significant amount of work being done by Canadians in the hospitality sector globally. In 2013, most of the awards were given to Canadian projects which was due in large part to all the new hotel starts across the major city centres. The next competition will be in International Business Development Strategy Page 4
2017. We are investigating the option of linking the 2017 competition to the World Design Summit being held in Montreal in the fall of 2017. Target Markets We participated in a number of missions over the last seven years, where we met with both national and regional and local representatives, as well as with local firms and local manufacturers, which have helped satisfy ourselves that there are opportunities for Canadian professionals who are export ready throughout the many countries we have visited. That doesn t mean there are no challenges to taking on this work, but the opportunities do exist for those wishing to work abroad. One of the valuable lessons we have learned from doing these missions is that it is best to undertake two major locations in a one week visit so that the members can gain as much exposure to international markets as possible in one week. Additional markets that we will focus on in the next three years include the USA, Europe and Asia. Target Customers In everything we do, we have two main targets for our program: 1) Interior Design Projects To access project opportunities, the best target audiences are: - Real Estate Developers - Facility and Property Managers - Architectural and Interior Design Firms (partnering opportunities) - Major Corporations (with offices in multiple locations) - Local manufacturers and suppliers major companies such as furniture or carpet The best way to access the above client groups is through direct contact (typically with the assistance of foreign trade offices and/or relationships) or through attendance at trade shows and events in the local country/city. 2) Manufacturer/Supplier Relationships For IIDEX Canada, we are always interested in attracting: - International buyers to the show (to learn about Canadian manufacturers and suppliers) - International companies to the show (to inspire our members with new trends and innovative design solutions) - International speakers (to educate our members on innovative design solutions, new and innovative technology, product design) Strategic Objectives and Desired Outcomes Our long-term objective with respect to international business development is to ensure that Canadian Interior Designers are always top of mind for international projects and more International Business Development Strategy Page 5
specifically, that members are provided an opportunity to bid on international projects when they have the qualifications and experience for the job. In addition, it is always our objective to support Canadian manufacturers and suppliers for international projects. In the short term (2016-2018), our primary goals are to: 1) Use international trade shows, to promote interior design with awards programs, panel discussion and/or exhibits. 2) To continue to expand the various sectors of design at IIDEX Canada hospitality, healthcare, educational, and retail to support and build upon the talent that exists within these sectors and to grow this sector s capabilities internationally. 3) To continue our partnership with Enroute magazine (hotel awards program) to promote the international work of our members in the hospitality sector. 4) To continue our trade mission program for members with missions to USA, Europe and Asia. 5) To continue to explore relationships with the Italian Consulate and Chamber of Commerce to build upon our relationship with the RiminiFiera Group and Fiero Milano as well as Salone Internationale del Mobile to bring Canadian designers to the Italian trade shows. The best place to expose participants with maximum number of international contacts. To also continue to have a presence at the HOST trade show in Italy and the Marmomocc show in Italy shows that see the highest number of international attendees. 6) To continue our incoming buyers program to IIDEX Canada. 7) To continue our partnership with RAIC/Architecture Canada on co-presenting IIDEX Canada 8) To expand the international reach of our incoming buyers program to include South America, South Africa, UAE, China, Peru, Chile, Russia, Columbia, Panama, Jordan, India, Germany, England, Italy, Turkey, Qatar, Japan and Hong Kong, South Africa, Thailand, Indonesia and Columbia in addition to the countries already targeted (USA, Argentina, Caribbean, Bermuda, China) 9) To expand our relationship with High Point market in North Carolina after running a trade mission with them in fall, 2015. High Point contributed $10,000 to IDC to facilitate costs associated with this mission. 10) To expand our relationship with Corenet Global, to help members exporting design services in the commercial marketplace with an emphasis on companies who do not yet work in the US market, as well as those with a presence within the US market, we need to attend these events. 11) To promote and support the Healthcare Design Exchange in the USA to ensure that both Canadian manufacturers and healthcare designers are represented at the Exchange. IDC sponsored the educational program and event in 2011. In Feb, 2014 and again in 2015, we are an educational partner and will deliver a panel of Canadian healthcare design projects to all attendees. International Business Development Strategy Page 6
12) To build our business support section of the website to ensure that appropriate resources and links are available for members interested in learning more about exporting interior design services. New section of website launched in December, 2011. Article in our Dimensions magazine about mission opportunities and new section of website was released in January, 2012. Future expansion of website section includes post mission reports and any demographic data available on various international sectors. 13) To hold webinars with Government representatives to educate members about exporting interior design services 14) To secure articles in international magazines on the benefits of hiring and working with a Canadian interior designer 15) Using the winners of awards competitions, find opportunities to showcase visuals and descriptions of the winning projects to international audiences. Example - ad in Enroute magazine promoting winners as part of our partnership agreement. 16) Keep industry informed of upcoming export, networking and international bidding opportunities as they become known to us. From our past missions, we are hearing about two or three opportunities per annum. We will always share these opportunities with the industry. The more missions we do, the more opportunities that will be presented to us. 17) Continue annual membership in the International Federation of Interior Designers and Architects. David Hanson, Past President of IDC served on IFI board from 2011-2013. Trevor Kruse, IDC Director was elected to the Board in 2014 and remains on the board as a Director. Board fully supports IFI membership and participation in IFI events/activities including attendance at General Assembly. Most recent assembly was held in Kuala Lumpur, Malaysia in May, 2014 and Kwangju, Korea in 2015. The next assembly is in Nigeria in October, 2017. 18) To support and participate at the World Design Summit in producing a World Congress for Design in Montreal in the fall of 2017. 19) Continue to support and attend NeoCon events in the USA. Key staff attend NeoCon annually to promote Canadian design. The most significant event in North America (beyond IIDEX Canada) for the corporate/commercial sector. 20) Apply for funding to support 50% of these activities through the Global Opportunities for Associations through the Department of Foreign Affairs and Development Canada. GOA application to be submitted annually when it can support our International Business Development Strategy. 21) We will continue to analyze healthcare design trade shows, congresses and events that we should market, in particular in the European markets, to gain market intelligence on the ever-expanding healthcare sector. 22) We will implement a new national awards programs in partnership with corporations and international associations in an effort to promote Canadian interior designers and Canadian manufacturers/suppliers. 23) We will promote our new demographic study data to evidence the strength and size of the interior design profession in Canada. International Business Development Strategy Page 7
24) We will begin to develop a relationship with Healthcare Design magazine and the International Academy for Design and Health to generate market intelligence on this sector. 25) We will begin to explore topics where Canadian designers and suppliers are leaders in their field including accessibility and health & wellness. 26) We will continue to advance our program through an international business consultant in Europe. 27) We will develop and implement a comprehensive international strategy that markets our CIDA accredited interior design schools and the students that graduate from them. Suggested Tactical Actions One of the critical pieces of information that our Association needs is solid, factual data about the interior design profession in Canada. In 2011, we undertook a comprehensive survey of our membership to obtain this data. This factual information will be instrumental in educating others about the size of the marketplace and the capabilities of our sector. Survey Results were published in 2012. Our goal is to repeat the study in 2017. In addition, whenever we undertake a program (whether it is inbound or outbound) we will ensure that there are opportunities built into the program for business-to-business meetings or educational tours or seminars. For our incoming buyers, we will conduct guided tours of Canadian manufacturers on the show floor, factory tours, site tours with Canadian interior design firms to facilitate joint venturing, produce a guide to Canadian products, host networking events and invite attendees to our various events and awards programs to build opportunities for joint venturing. We will also host a workshop for the delegates to educate them about Canadian design. Measuring Results: It is difficult to measure results in a service based industry, however, over the years we have learned to rely on a number of indicators to measure success: 1) Detailed surveys from all participants who attend an inbound or outbound trade mission 2) Feedback from interior designers and/or manufacturers and suppliers who secure work as a result of one of our activities. While this rarely happens immediately, if it is an international market outside the USA, it is easier to trace the origin of the new relationship 3) Referrals to our incoming buyers program from past attendees 4) Invitations from international trade shows for us to participate. This is happening more since we started to participate in outbound missions 5) Requests from international trade offices for referrals or information on our sector. The more we promote our membership through the trade offices the more they are aware of our organization as a reliable source of information for referrals for upcoming local projects. International Business Development Strategy Page 8
Conclusion: IDC has an enormous opportunity to promote great Canadian talent globally. Canadian interior designers and the manufacturers and suppliers who support them are on the cusp of international recognition. Two of our members George Yabu and Glenn Pushelberg have received the Order of Canada in recognition of their work (Jan, 2014). Our International Business Development strategy has grown exponentially over the past several years and we must continue to manage and expand a sophisticated program in support of our membership if we want to strengthen the international presence of interior designers. This three-year strategy is the basis for this expansion. The strategy should be reviewed annually by the Board of Directors and modified as required to respond to programs that worked, programs that didn t and emerging markets that may need to be added to the program. Interior Design sectors that need promotion and growth should also be analyzed each year and added as and when appropriate. Approved by the Board of Management 1. January 9, 2014 2. January 13, 2015 3. February 24, 2016 4. January 5, 2017 International Business Development Strategy Page 9