German trade fairs in transition - Strong Brands are leaving
von Inga Zahn, Beraterin bei der Safari GmbH
This article aims to reflect and discuss the current changes in the German trade fair industry. Overall, the saturated German trade fair market is confronted with extensive internal and external competition. Nearly every time an international trade fair is taking place in Germany, the media reports about decreasing numbers of exhibitors. Predominantly, disregarding any specific industry, a growing number of powerful brands do not attend important international trade fairs in Germany anymore.
According to the AUMA (Ausstellungs- und Messeausschuss der Deutschen Wirtschaft e.V.), Germany is considered as being the market leader regarding international trade fairs. Three out of the four largest fair grounds are located in Germany. Furthermore, five of the ten trade fair companies with the highest sales volume, have a German headquarter.
First of all, the question arising is why companies no longer attend German trade shows? Secondly, and more importantly, which communication and distribution channels are used instead? Finally, which aspects need to be changed by existing trade fair companies in order to operate more successful in the future?
The first question is easy to answer. A growing number of companies quit participating, because the advantages and benefits of trade fair participation are questioned. Additionally, the cost-benefit-ration of trade fairs is experienced as being unfavorable. Each year, the Handelsblatt reported that the “Cebit” in Hanover for example is facing decreasing exhibitor and visitor numbers. In order to cope with the changes, the “Cebit” announced to reduce the duration of the trade fair event next year in order to be less costly for the exhibitors.
The answers for the second question result from question one. Especially strong brands are leaving trade fairs because they have the money and, more important, the customer awareness to do it. Besides the growing development of new, state-of-the-art trade fair sites all over the world, major challenges for trade fairs are the introduction and growing importance of alternative distribution and communication channels, depending on the related industry. Besides the IT industry, traditional trade fairs operating in the fashion industry are facing the highest challenges. Due to the emotional products and growing numbers of collections per year, trade fairs take place at least twice a year. In the fashion industry, order center are the main challenge for the trade fair industry. Furthermore, new specialized, innovative and focused trade fairs, such as the “Outdoor” in Friedrichshafen, result in decreasing exhibitor numbers of competitive trade fairs, such as the “Ispo” in Munich.
For answering the third question, it is important to mention that future success of new trade fair concepts will be based on the ability to present the products in a new and qualitative way. The following four aspects will be essential for a successful positioning in the future trade fair industry:
- Personification of the exhibiting company
- Image presentation of the exhibiting company
- Communication of competence and future security
- Creation of experiences
Internet and virtual trade fairs will dramatically grow in the future, especially in industries where products do not necessarily be touched. Trade fair companies have to redefine the benefits of trade fair participation and transform into powerful marketing organizations and integrated communication providers. Additional to the increasing range of tasks and the growing necessity to focus on all communication needs of exhibitors and visitors, future trade fair companies have to offer key benefits, such as serving as the all-year-round hubs for their markets, information brokers in their industry, spokesperson of their markets, provider for highly attractive international marketing packages, and a strong performer even in times of information overload. All these added benefits have to be offered quickly at low costs with a focus on communication.
The conclusion can be drawn that exhibitor and visitor numbers can only be maintained or raised through the offering of new trade fair concepts and additional services. Trade fair concepts have to be constantly adapted to the changes in market structures to meet the changing needs of the exhibitors.
