I. Industry Risk Analysis

(1) Policy Risk

The current policy risks in the exhibition layout industry are mainly concentrated in the policy implementation and adjustment periods: The tightening of environmental protection regulations has led to an increase in the cost of using traditional materials. Frequent new fire safety standards have forced repeated modifications to exhibition hall design plans. After the pandemic, the complicated filing and approval process for large-scale events has extended the project cycle. There are regional differences in the control policies of some local governments regarding the construction of temporary buildings. The opaque cultural content review mechanism may lead to compliance risks in exhibition layout plans. The uneven implementation of digital exhibition subsidy policies has caused a mismatch between the investment and returns of traditional enterprises during the transformation process.

(2) Economic Risk

The exhibition layout industry is currently facing significant risks of economic cycle fluctuations. During the period of macro – economic downturn, enterprises’ marketing budgets have shrunk, resulting in weak demand for exhibitions. The order volume shows strong cyclical characteristics with economic fluctuations. Coupled with the rising prices of raw materials, which have pushed up project costs, while customers have reduced prices due to increased cost sensitivity, the industry’s gross profit margin has been squeezed from both sides. Small and medium – sized enterprises are more likely to fall into business difficulties due to their fragile cash flows. The tightening of bank credit has intensified the pressure on the capital chain. At the same time, online marketing formats such as smartphone live – streaming have continuously replaced offline exhibitions, leading to a slowdown in the growth rate of the industry’s market scale and intensified competition for the existing market.

(3) Social Risk

Generational consumption differences have led to a risk of demand断层 in the exhibition layout industry. The younger generation prefers digital, lightweight, and immersive experiences, forcing the transformation of the traditional offline heavy – asset model. However, middle – aged and elderly customers still have a path dependence on traditional exhibition forms. Entrepreneurs need to strike a difficult balance between technology investment and cost control. At the same time, the high environmental protection requirements of Generation Z (such as restrictions on disposable construction materials) have increased compliance costs. Coupled with the shrinking marketing budgets of enterprises during the economic downturn, the industry is caught between “high – experience requirements” and “low – cost demands”. Enterprises that fail to achieve innovative integration of generational demands will be forced out of the market at an accelerated pace.

(4) Legal Risk

The legal risks faced by the exhibition layout industry mainly involve compliance management and safety responsibilities: Entrepreneurs need to ensure that the construction materials meet fire, environmental protection, and safety standards. Otherwise, they may cause safety accidents due to the use of substandard materials and bear compensation responsibilities. If labor laws are violated during the construction process (such as not signing contracts or allowing overtime work), they will face labor disputes and administrative penalties. Infringement in booth design (such as plagiarizing others’ plans) may lead to intellectual property litigation. Unclear terms in the venue lease contract or failure to perform acceptance procedures may easily lead to contract disputes. In addition, failure to keep up with local exhibition policy changes (such as temporary fire approval requirements) may result in non – compliance with qualifications or project interruption, increasing operational risks.

II. Entrepreneurship Guide

(1) Suggestions on Entrepreneurial Opportunities

Entrepreneurs in the exhibition layout industry can focus on digital and environmental protection trends. They can develop intelligent exhibition hall design systems (such as VR immersive preview tools) and reusable modular booths. Provide customized theme scene services for emerging fields such as new energy vehicles and the metaverse. Establish a green supply chain certification system to seize government low – carbon exhibition orders. At the same time, dig deep into the demand for pop – up stores that combine brand building and sales effectiveness among small and medium – sized enterprises, and build a one – stop SaaS platform covering everything from plan design, equipment rental to data monitoring.

(2) Suggestions on Entrepreneurial Resources

Entrepreneurs in the exhibition layout industry need to focus on the integration of core resources. They should first establish a local supplier network (for construction materials, lighting and audio equipment rental, etc.), and obtain stable and low – cost supply chain resources through strategic cooperation. Form a lightweight team (including designers, project managers, and execution staff) and adopt the “core full – time + project outsourcing” model to reduce labor costs. Use shared office spaces and third – party cloud design platforms to reduce fixed – asset investment. Deeply bind with exhibition companies and event organizers to obtain stable customer sources through profit – sharing agreements. Pay attention to government exhibition subsidy policies and industry association resource pools to obtain low – cost start – up funds and industry data support. Establish a modular material library and reusable design plans to increase the resource reuse rate to over 60%.

(3) Suggestions on Entrepreneurial Teams

Entrepreneurs in the exhibition layout industry need to form a team with complementary skills. They should first recruit three types of core members with spatial design, construction management, and supply chain integration capabilities. Designers should have the ability to create 3D models and understand customer needs. Engineering supervisors should be proficient in material technology and on – site crisis handling. Business personnel should be good at negotiating with suppliers and resource replacement. Adopt the “fixed backbone + project – based outsourcing” model to control labor costs. Set up a performance – based commission system for designers and a profit – sharing mechanism for project excess profits. Focus on cultivating the full – process control ability of project managers to avoid over – reliance on the founder for core positions.

(4) Suggestions on Entrepreneurial Risks

Entrepreneurs in the exhibition layout industry should focus on contract risk management. When signing contracts, they should refine payment nodes (such as 30% advance payment + 50% progress payment + 20% acceptance payment) and clarify the additional charging standards after more than three modifications to the plan. Establish a supplier white – list system to lock in the price fluctuations of decoration materials through centralized procurement (such as negotiating prices with more than three suppliers every month). In response to the pressure of project prepayment, they can require customers to provide bank performance guarantees or deposit 15% quality assurance in advance. Purchase professional liability insurance to cover compensation for personal accidents and exhibit damage during the exhibition setup period. Implement the project manager A – B role system, require core positions to sign non – competition agreements, and implement a project profit – sharing incentive mechanism to prevent the loss of customer resources due to talent outflow.