Nr. 21/2010 AUMA – annual autumn press conference German trade fairs in 2010 – recovery process remains slow AUMA expects slight trade fair growth in 2011 Trade fairs continue to compete well with other communication tools Growing interest in trade fair participation abroad 09.12.2010 Following the recession in 2009 the general conditions for the German trade fair industry have greatly improved. Among industry, and in particular the capital goods industry, there is a very optimistic mood. Combined with a substantial growth in orders, particularly from abroad, this has stimulated the trade fair economy. Thus according to AUMA_MesseTrend, a representative survey conducted by TNS Emnid, over the next two years 27 % of German exhibitors intend to increase their trade fair budget, while only 16 % are planning cuts. This was underlined by Hans-Joachim Boekstegers, Chairman of the Association of the German Trade Fair Industry (AUMA), at the association’s annual autumn press conference on 30 November 2010 in Düsseldorf. AUMA_MesseTrend in 2011 also shows that budget increases are mostly confined to larger companies. A third of companies with a turnover in excess of EUR 50 million intend to spend more on trade fairs, whereas only a quarter of smaller companies plan to do so. Furthermore, significantly more companies exhibiting capital goods (32 %) intend to increase their trade fair budget than exhibitors of consumer goods (23 %). At the same time 17 % of smaller companies plan to reduce their trade fair budget by one-tenth. AUMA Chairman Boekstegers: "Companies continue to maintain tight control of trade fair spending. Exhibitors pay close attention to which trade fairs really benefit their aims, and want to be in control of costs when sales recover after the lean period in the last recession." Of the exhibitors aiming to increase their trade fair budget almost 50 % plan larger stands, 42 % want to invest more in stand construction, and 26 % intend to take part in extra trade fairs. Boekstegers: "Additional spending benefits core trade fair business, that is to say trade fair organisers and the stand construction sector." Relatively few exhibitors plan to spend more on hotel and transport expenses. Nearly two-thirds of those exhibitors who are planning to reduce their trade fair budget want to cancel their participation in individual trade fairs. Furthermore, companies which exhibit at numerous trade fairs intend to cut back on stand space. By contrast, they rarely see any need to reduce the quality of construction and staff on the stands. Plans for domestic trade fair participation remain stable Over the next two years 18 % of German exhibitors want to take part in more domestic trade fairs, and the same proportion in less. According to Boekstegers, while this does not signal a boost in growth, the decline in participation by German exhibitors during the recession was relatively minor. It was becoming clear that exhibitors of consumer goods were pursuing a very consistent participation strategy. About three-quarters want to take part in the same number of trade fairs. The figure for trade fairs abroad is even at 83 %. This was probably due to innovation cycles and intervals between trade fairs being relatively short. Of those companies which exhibit capital goods only 60 % intend to take part in the same number of domestic trade fairs, while 70 % plan to maintain their participation abroad. Boekstegers: "Clearly exhibitors are more likely to try out new trade fairs at home. The risks are more manageable.” As regarded participation abroad, companies tended to focus on tried and tested events. In all, three-quarters of German exhibitors intend to maintain the same level of participation in trade fairs abroad. 12 % aim to take part in more trade fairs, and the same percentage in less. Only a year ago the vast majority had planned to cut back their involvement abroad. High growth in the export market is apparently encouraging many companies to concentrate more on foreign trade fairs. Among the various communication tools the role occupied by trade fairs remains constant, and the trend is positive. 84 % of exhibitors declared trade fairs to be an important or very important tool. Last year this figure was 83 %, two years ago it was 81 %. AUMA Chairman Boekstegers: "Clearly, neither the recession nor other communication tools have detracted from the significance of trade fairs." In terms of how communication tools are rated, only internet presence (89 %, and in principle a necessity) ranks ahead of trade fairs. This is followed by sales force, which 79 % of exhibitors consider to be important or very important, and direct mailing at 54 %. Against this backdrop AUMA expects exhibitor and visitor numbers at German trade fairs in 2011 to increase. According to Boekstegers, in the mid-term trade fairs are clearly an accepted communication tool. More than two-thirds of exhibitors see trade fairs being just as important in five years time, 13 % more so and 15 % to a lesser extent. However, views vary significantly according to sector. Exhibitors of capital goods are optimistic about the overall importance of trade fairs. 15 % of companies which exhibit consumer goods think their importance will increase, 25 % think it will decrease. According to Boekstegers, one of the main tasks facing trade fair organisers is to work out new concepts with their customers and to commit exhibitors to making greater use of trade fairs as a communication tool. German trade fairs in 2010 – recovery process remains slow Initial forecasts by AUMA indicate that by the end of 2010 close to 174,000 exhibitors will have taken part in 159 international trade fairs, approximately 1 % more than at corresponding previous events. In 2009 figures were still down by 4 %. On average there was a significant recovery in exhibitor numbers from abroad (+2 % compared with -5 % the year before). At the same time there was yet another slight drop in domestic attendance (-1 % against –3.5 % in 2009). AUMA Chairman Boekstegers: "The path we are on is the right one, but we have not fully recovered in 2010." In 2010 the amount of space rented out reached 6.9 million m², around 3 % less than at corresponding previous events (2009: -6 %). Clearly, the effects of cost-cutting measures agreed in 2009 are still being severely felt. At 10 million, visitor attendance fell marginally yet again (-2 % compared with -8 % in 2009). According to Boekstegers this figure is a substantial improvement, but still falls short of being a good result. Trade fairs for capital goods felt the after-effects of the recession. Their figures were down, particularly during the first six months of the year. AUMA Chairman Boekstegers: "Despite trade fairs recovering only slowly in 2010, exhibitors and visitors were mostly very satisfied." On average the stands were smaller in size, however the prevalent mood was one of optimism. For the trade fair organisers this represented a challenge that should not be underestimated, he added. If revenues from renting out space were stagnating or in decline, then the only way to attract more business was to branch into new sectors. Many organisers were now focusing increasingly on services, consultation, catering and conventions. Number of trade fairs abroad held by German organisers rises again Following the recession German organisers’ involvement in trade fairs abroad has been relatively quick to recover. Between 2008 and 2009 the number of trade fairs held abroad fell by 5 % to 211. By contrast, the number of events held in 2010 was already up again, at 231, with 260 fairs scheduled for 2011, said AUMA's managing director Dr. Peter Neven. He added that more than half of these exhibitions were due to take place in Southern, Eastern and Central Asia. Non-EU countries in Europe, in particular Russia, represented the secondmost important region, followed by the Middle East and South America. At 32, Shanghai topped the rankings for cities hosting trade fairs, followed by Moscow (30 trade fairs). He noted that from a German point of view the World Expo in Shanghai, which took place from May to October 2010, was also a great success. The German Pavilion received numerous awards for its design and was also very popular with visitors to the Expo. Germany ’s participation not only offered proof of the often-cited quality of German organisation, but of the leading role occupied by German designers in the trade fair and events industry. AUMA took the opportunity offered by their participation to highlight the quality of "trade fairs made in Germany” to trade visitors at the German pavilion. Press contact: Harald Koetter, phone: +49/30/24 000-140, fax: +49/30/24 000-340, email: h.koetter@auma.de AUMA_MesseTrend 2011 Development AUMA_MesseTrend 2011 Communication-mix AUMA_MesseTrend 2011 Investments Trade Fairs In Germany 2010 German Trade Fairs Abroad 2011 Veröffentlichung kostenfrei Beleg erbeten / Publication free File copy requested Copyright © 2010 AUMA_Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V. Last update: 12/2010