Textination Newsline

• 84 exhibitions still planned until the end of the year

After a shutdown of almost six months due to the Corona pandemic, major exhibitions for trade visitors and the general public will be held again in Germany from September onwards, often in modified formats and sometimes with digital supplements.
 
“Many exhibitors and visitors are waiting for trade fairs to restart, because they will once again stimulate demand through the presentation of innovations and personal trust-building communication,” explains Jörn Holtmeier, Managing Director of AUMA – Association of the German Trade Fair Industry, the importance of the restart for the German economy.
 
“Through their participation exhibitors and visitors show that they expect high benefits from trade fairs even under altered conditions. In addition to business success, side-effects for companies such as image building are included, for example through showing innovative force, or being present in trade media or by direct exchange of experience within the industry.”

Caravan Salon is the largest exhibition to kick off
Twelve exhibitions are planned in September alone, including several international events, from the CARAVAN SALON in Dusseldorf as the largest show to restart, the compact version of the IFA Berlin right in the first week of September to the INTERBOOT in Friedrichshafen at the end of the month.

Messe Dusseldorf’s President & CEO Wolfram N. Diener, is looking forward to the restart of trade fair operations in Germany: “We want to signalise: Trade fairs can work in corona times, too. In close cooperation with authorities, partners and customers, we have realised the CARAVAN SALON 2020 under high hygiene and safety standards. The result: Around 350 exhibitors in eleven exhibition halls are presenting the entire spectrum of mobile travel.”

Exhibitions are not major events
The trade fair industry is not affected by the extension of the ban on major events in Germany by the Prime Minister’s Conference on 27 August 2020. Trade fairs have already been considered separately since 6 May 2020. Accordingly, a total of 84 exhibitions listed by AUMA, are currently planned for the months of September to December, 47 of them with international or national relevance and 37 with regional relevance. Dates for trade fairs, taking place in the near future are listed by AUMA at www.auma.de/Exhibition-Data.

Comprehensive concepts for health protection, which are approved by the responsible health authorities, are the basis for the industry meetings. “The trade fair organizers are doing everything possible to create safe and promising conditions for exhibitors and visitors. Size and quality of the exhibition grounds offer very good conditions for implementing hygiene and distance regulations”, says AUMA Managing Director Jörn Holtmeier.

AUMA has listed the key points of the protective measures as well as the safety concepts for all exhibition sites in Germany on its website at https://www.auma.de/en/exhibit/legal-matters/hygiene-and-distance-concepts-at-trade-fairs-in-Germany.

AUMA Chairman Philip Harting: "Those who focus on trade fairs can gain market shares”
"The principle is: Whoever dares wins. Anyone who bets on trade fairs in the coming months will have an earlier chance than others to receive a direct, unfiltered response to innovations, because at trade fairs customers can check and test the product. Once the customer is convinced of the quality, he simply decides faster.

Winning new customers in particular is extremely difficult with the help of digital formats. Many companies have experienced this in recent weeks and months. Along the way an exhibitor also gets valuable advice for the enhancement of his products". And, according to Harting, those who exhibit at trade shows find suitable cooperation partners faster, both professionally and personally, to help them weather the crisis better. Last but not least, he says, one can initiate urgently needed business deals, perhaps not as extensive as usual, but small orders often enough turn into large ones in the medium term.

Trade fairs offer just as great a benefit to visitors in the current situation. The AUMA Chairman: "Trade fair visitors can personally negotiate with potential new suppliers at an early stage, experience technology and design innovations earlier than others. And they may find suggestions on how retailer can inspire hesitant consumers".

Interview with Steffen Jost, President of BTE e.V. and General Manager, Jakob Jost GmbH
 
On July 31 2020, the German Retail Association - HDE e.V. reported in addition to the current sales figures published by the Federal Statistical Office: “Many clothing retailers are still in danger of existence.” An HDE survey of 500 retailers showed that around two thirds of the non-grocers achieved at least 75 percent of sales in comparison to the same week last year. The main reason for this is the slowly increasing number of customers.

For 27 percent of retailers, however, the situation is still very serious: They realize their entrepreneurial existence threatened due to the corona crisis. Most retail companies will not be able to make up for lost sales that have occurred in recent months. Accordingly, two-thirds of non-grocery retailers calculated that sales would also decline in the second half of the year. Many clothing retailers continue to face difficult times.

Textination spoke about the situation with Steffen Jost, long-time president of the BTE Federal Association of German Textile Retailers, owner and managing director of Jakob Jost GmbH. The family company, founded in 1892, operates five clothing stores in Rhineland-Palatinate and Baden-Württemberg in the medium to upper price segment with more than 300 employees and a sales area of around 20,900 square meters.

How have you felt about the corona era to date - as a company and personally? What would you on no account want to go through again and what might you even consider maintaining on a daily basis?
The corona era was a challenging time for the company and its employees. You realize very clearly which employees are loyal and committed to the challenges and which are not. It is frightening to experience the appearance of mask refusers among the customers, who claim to go shopping without a mask and demand freedom for themselves and at the same time presuppose the employees' willingness to make sacrifices. The tone, the impertinences as well as the aggressiveness are alarming, it is often pure egoism. And in this context the meaning of freedom is limited to their own freedom.    

What does the pandemic mean economically for your own company so far, how do you estimate the consequences for the entire sector?
The economic impact, especially in terms of profitability, is immense. Since it affects the entire sector and thus also many companies that entered the crisis without a solid equity base, a major shakeout is to be feared. Especially because it is also not yet possible to predict how long the crisis will last.
 
What adjustments or innovations have you considered necessary for your product range?
As a result of the crisis, occasion related and elegant clothing is tending to decline, while sporty clothing is on average a bit more successful, so that more we emphasis on these aspects. The stationary trade as well as the industry have big problems, nevertheless there are acceptable solutions with many suppliers after intensive exchanges. A few suppliers try to enforce their own interests exclusively. Of course, this will result in corresponding consequences for the cooperation.

How do you consider suppliers in the future, what experiences have you made and will you draw consequences for your procurement policy?
A good cooperation between retail and industry is essential for economic success. If this basis does not exist (it has suffered considerably as a result of corona), it is also assumed that future economic success will be worse. A profit-oriented corporate management must take this into account in its procurement policy.
          
Which initiatives or instruments at politico-economic level did you welcome for the sector, of which have you been critical?
For many companies, including ours, both - the short-time working allowance and the KfW loans are essential components to secure the company's long-term future. For the first time the retail sector is applying for short-time work. We are critical of the lack of willingness on the political level to enforce the mask obligation and to punish violations of it accordingly. This has been passed on to the retailers and other sectors of the economy with corresponding problems in customer relations.
The interim aid was a great help for many small companies, but unfortunately medium-sized companies were not able to benefit from that. Corona has certainly massively accelerated the structural processes and developments in the retail sector, whereby the one-sided consideration of online sales, as currently can be seen, certainly falls short. It is also a question of the ability to generate profitable sales in normal times in order to build up business substance and also to finance necessary investments.

Did the corona era also have a positive effect, while the sector has brought forward innovations that would have been necessary anyway?
This might have happened in some cases. Especially companies that were not yet sufficiently digitally positioned may have taken action here very fast. In width, however, times of crisis seldom mean large investment periods.

What needs the stationary retail trade has to meet in future, what services must be offered in order to get a stable future?
The retail trade must be more than a place where goods are stocked in large quantities. The internet can do this on a much larger scale. Real customer service will play an increasingly important role, as will the length of stay and the design quality of the retail space. At the same time, it is important to make an optimum use of the digital possibilities. In addition, it is important to curate the product ranges in such a way, that the customers’ respective requirements are matched by an assortment that meets their expectations. Basically, this has been the original task of purchasing for decades. It is frightening to experience the appearance of mask refusers among the customers.
          
Which initiatives or approaches by or for your sector would you appreciate as support for such a future?
The cooperation between industry and multi-label retailers must definitely become more intensively and, above all, faster. Up to now, the possibilities of electronic data processing in a mutual flow of information, have been used by far too little and the corresponding consequences have not been drawn. In addition, the procurement times need to be reduced significantly.  The order and delivery dates must be set much later, and the possibility of using the digital world for ordering must also be implemented, in order to compensate at least the great systemic advantages of the vertical trade and thus also to reduce significantly the rates of write-offs and returns.

Until now the big issues have been globalisation, sustainability / climate change / environmental protection, digitisation, the labour market situation and so on. How must we rate them against the backdrop of the Covid-19 pandemic?
Covid 19 will not change the big issues seriously, they will remain with us. Possibly the negative labor market situation, which is to be feared, can push them into the background, because if existential needs have to be solved, experience shows, that there is much less attention for the other problems.
 
What are the lessons for the textile retail trade with regard to these goals for the post-corona era?
The long lead times between ordering and delivery must finally be shortened. We have to become faster, better in our product ranges and adopt a more strategic approach. We may not lose sight of our own interests and the overall strategy of a company through the specifications of individual suppliers.
The strategic goal can only be to strive for permanently profitable sales and to implement all necessary measures consistently.

The interview was conducted by Ines Chucholowius,
CEO Textination GmbH