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22.10.2019

Germany’s Trade Fair Market

Number one worldwide  
Germany is the world's number one location for international trade fairs. Some 160 to 180 international and national trade fairs are held in the country every year, with around 180,000 exhibitors and ten million visitors. Trade fairs in Germany bring partners together from around the world. They are forums for communication and innovation that reflect the world's markets. Around two-thirds of all global trade fairs are held in Germany
 
Important for the overall economy
Exhibitors and visitors spend a total of around €14,5 billion a year for their activities at trade fairs in Germany. The overall effect on economic production amounts to €28 billion German exhibition organisers post sales of around €4 billion a year. Of the ten highest-grossing trade fair companies in the world, five are headquartered in Germany.   

Number one worldwide  
Germany is the world's number one location for international trade fairs. Some 160 to 180 international and national trade fairs are held in the country every year, with around 180,000 exhibitors and ten million visitors. Trade fairs in Germany bring partners together from around the world. They are forums for communication and innovation that reflect the world's markets. Around two-thirds of all global trade fairs are held in Germany
 
Important for the overall economy
Exhibitors and visitors spend a total of around €14,5 billion a year for their activities at trade fairs in Germany. The overall effect on economic production amounts to €28 billion German exhibition organisers post sales of around €4 billion a year. Of the ten highest-grossing trade fair companies in the world, five are headquartered in Germany.   
Trade fair organisation secures a total of about 231,000 jobs. An average of two employees at exhibiting companies work on trade fairs. With around 58,000 companies currently active in the B2B segment at trade fairs, that means more than 100,000 full-time jobs.

Advantages for Germany as a trade fair location

State-of-the-art event facilities

Germany has 25 exhibition venues of international or national significance, with a combined hall space of 2.8 million square metres. The country’s exhibition facilities set international standards in architecture, logistics and technology. German exhibition centers invest around 300 million euros a year in optimising their facilities.
   
Four of the world’s eight largest exhibition venues are located in Germany, and ten venues in the country each have hall capacities of more than 100,000 square metres. Regional exhibition centers offer an additional combined hall space of around 380,000 square metres.

High international presence
A special competitive advantage of German trade fairs is their international appeal – the fairs draw the world’s markets into the country. Almost 60% of the approximately 180,000 exhibitors a year come from abroad, and one-third of these from countries outside Europe. Of the 10 million visitors each year, nearly 30% come from abroad.

Leading service standards
German organisers offer exhibiting companies a wide range of services. They support exhibitors by booking travel and accommodations and by doing press, publicity and marketing work. They also continuously expand their spheres of activity. In addition, many trade fair organisers have installed permanent online marketplaces, making them expert marketing partners for exhibiting companies throughout the year.

Excellent cost-benefit ratio
Trade fairs in Germany have moderate stand fees compared to other international sites. At the same time, they attract a high quantity and quality of visitors, which means that exhibitors in the country come into contact with many potential customers. Costs per visitor contact are favourable compared to trade fairs in other countries and to other marketing media.

Attractive regional trade fairs
The international and national trade fairs are supplemented by a dense network of well-organised regional trade fairs for distinct target groups. They include both specialist and consumer fairs. These events draw a total of around 50,000 exhibitors and 6 million visitors a year.
 
The exhibition business structure in Germany

Organisers

Approximately 100 exhibition organisers are active in Germany, around 40 of which handle international fairs. The largest of them are amongst the highest-grossing trade fair companies in the world. This makes the exhibition business one of the leading service sectors in Germany, also in comparison to other countries.
The German organisers in AUMA put on around 300 trade fairs in other countries – primarily in major growth regions such as Asia, North America, South America and Eastern Europe. That too benefits the German economy, because it needs expert partners for its trade fair activities – particularly in highly competitive foreign markets.

Exhibiting companies
Around 58,000 German companies are active exhibitors in the B2B segment. The majority of them are in the manufacturing sector (55 %), followed by the service sector (23 %), and trade (20 %). Medium-sized companies dominate in terms of both number of employees and sales: 51 % of exhibitors have fewer than 50 employees, and 39 % have 50 to 499. Some 47 % of exhibiting companies post sales of up to 2.5 million euros, and 35 % of 2.5 to 50 million euros.

Visitors
The percentage of decision-makers among all trade fair visitors is exceptionally high at 63 %. Managing directors, board members and self-employed people from Germany make up 35 % of trade visitors, and 73 % of those from abroad. The latter group commands above-average decisional powers, with 91 % having determining or co-determining influence on business decisions. Thirteen per cent of trade fair visitors come from companies with more than 1,000 employees, including top decision-makers from global corporations. Some 54 % of trade visitors come from companies with fewer than 60 employees.

More information:
trade fairs Trade Fair Market
Source:

AUMA Association of the German Trade Fair Industry

China Gerd Altmann, Pixabay
17.09.2019

FAIR MARKET CHINA

The People's Republic of China has experienced unprecedented economic growth since the late 1970s, with average double-digit growth rates. Over the past 10 years, the country has become the export world champion and holds the position as the second largest economy after the USA for almost as long. Along with the economic boom, modern China faces major challenges, including high wage increases, massive environmental problems and overcapacity in many industrial sectors.
 

The People's Republic of China has experienced unprecedented economic growth since the late 1970s, with average double-digit growth rates. Over the past 10 years, the country has become the export world champion and holds the position as the second largest economy after the USA for almost as long. Along with the economic boom, modern China faces major challenges, including high wage increases, massive environmental problems and overcapacity in many industrial sectors.
 
Unlike at the beginning of the opening policy more than 40 years ago, when foreign investors with the appropriate technology and know-how were targeted, China is now pursuing a strategy to strengthen the domestic market. With the support of the "Made in China 2025" decree adopted in 2015, the Middle Kingdom is to become one of the leading industrial nations in three ten-year programs by 2045. In doing so, the government is focusing on promoting innovation, increasing production efficiency, optimizing the industrial structure and "green" production. Key sectors such as robotics, medical technology, electromobility and modern agricultural technology are defined as particularly eligible. The development of Industry 4.0 is also of great importance.

Economic data 2018/2019* (estimates and forecasts)
GDP      USD 14,217 billion*
Population    1,395.4 billion
Exports    USD 2,487.4 billion
Exports to Germany EUR 106.3 billion
Imports USA 2,135.6 Mrd. billion
Imports from Germany EUR 93.1 billion 

    Source: GTAI, Ministry of Foreign Affairs    

China's regions have developed at different rates. Although the economically strong regions at the east and southeast coast of the country generate about half of the annual GDP, the areas in central and western China are recovering dynamically. With the "go-west" policy, since the turn of the millennium, the Chinese government has been increasingly working to promote and develop the western regions, increasing the attractiveness of the affected regions to foreign investment and business settlements. 

Another ambitious project is designed for decades: The “One Belt and One Road” initiative, i.e. the revival of the "Silk Road", which connects more than 60 states in Asia and Europe via land and water. Planned and already implemented billion investment in the construction of ports, railways and telecommunications equipment. Opportunities for German companies exist above all for providers of special equipment in rail, shipping, port and aviation technology. 
 
German-Chinese economic relations have developed very well in recent decades. At the beginning of 2014, the first Chinese Chamber of Commerce (CHKD) in Europe was founded in Berlin to promote the intensification of trade relations. Since 2011, Germany and China have been conducting regular government consultations that include comprehensive strategic partnerships.  

In 2018, German exports to China amounted to EUR 93 billion. Imports from China today amount to more than EUR 100 billion. With a trade volume of about EUR 200 billion in 2018, Germany is by far China's most important European trading partner. For Germany, the People's Republic of China is again the most important trading partner in Asia and the third most important worldwide. The main products supplied to China are machinery, motor vehicles and automotive parts, electrical engineering and chemical products. Around 5,200 German companies are based in China; around 900 Chinese companies have settled in Germany. 
          
Trade Fair Industry
Although China's economy is slowing, the world's second-largest economy continues to grow. Investments worth billions in infrastructure, housing, climate and environmental protection, combined with the construction and expansion of trade fair venues, have made China the most important trade fair venue in Asia, and this position is undisputed. Especially in cities such as Beijing and Shanghai, the professionalism of the trade fair organizers is high, above all because of the numerous international cooperation. 
 
The fairs in Beijing, Shanghai and Guangzhou continue to characterize the Chinese fair landscape. Beijing as an important trade fair location is characterized by its proximity to political decision-makers and the extensive expansion of infrastructure. The majority of the major trade fairs take place in Shanghai and the concentration of international organizers is high.  

The increased reorientation of the Chinese economy on the domestic market also influences the further development of the Chinese trade fair landscape, as the exhibition industry is increasingly turning to the service sector, digitization, automation, health, education and high-quality consumption.  

The "New Silk Road" project also has a major influence on the Chinese trade fair industry: Chinese organizers are increasingly conducting trade fairs and trade fair participations in countries that are to be linked via the Silk Road. In 2018, 76 trade fair organizers were involved in 718 trade fairs in 33 countries, an increase of around 14% compared to the previous year. Most of the fairs were classified as multi-sector and machine-building exhibitions. With an increase of 19% compared to the previous year, the majority of the exhibition-related projects were realized in Russia.

Country Number of Fairs Exhibitors from China
Russia 132 3,870
India 89 3,129
United Arab Emirates 82 3,906
Turkey 30 1,728
Thailand 47 1,641

Since 2015, the Chinese State Council has been pursuing the strategy of making the domestic trade fair industry more international and transparent by 2020. For example, the approval of new trade fairs is to be gradually decentralized and responsibility transferred to the provinces. There is a noticeable professionalization of trade fairs outside the traditional trade fair locations of Beijing, Shanghai and Guangzhou. In addition, China has developed into the world's largest e-commerce market, i.e. online platforms are used as distribution channels for products. This development is also increasingly affecting trade fairs as a marketing instrument, as traditional aspects of trade fairs are virtualized.   
 
The main problem for the Chinese trade fair industry remains the great complexity of the Chinese trade fair market with its many trade fair offerings, which vary greatly in terms of quality. In addition, the "Go West" strategy of the Chinese government to promote and develop the western regions has resulted in a large number of trade fair centers that are often not profitable due to their low capacity utilization. In 2018, for example, around 9.83 million m2 of exhibition space is said to have been available in 164 exhibition centers in China. More than half of the exhibition grounds had a utilization rate of less than 10%. The competition between trade fair locations for trade show themes and thus exhibitors and visitors lead to overlapping themes and schedules. Sufficient information or independently collected data on space utilization, exhibitor and visitor numbers are scarce and make it difficult for everyone involved to make the right trade fair selection.

Trade fair cities and exhibition venues
In China, many large exhibition centers have been built during the last 10 years. In 2018, 164 exhibition centers with a hall area capacity of 9.83 million m² were counted. That were 11 exhibition centers or 480,000 m² more than in 2017. Shanghai is the most important exhibition hub in the country - two of the largest exhibition centers are located here.

The 10 largest fairgrounds in China (more than 100,000 m²)
Venue     Gross hall size in m²
National Exh. & Conv. Ctr (NECC), Shanghai 400,000
China Import & Export Fair Complex, Guangzhou 338,000
Kunming Dianchi Intern. Conv. & Exh. Centre 300,000
Western China International Expo City, Chengdu 205,000
Chongqing International Expo Centre 200,000
Shanghai New International Expo Centre (SNIEC) 200,000
Wuhan International Expo Centre 150,000
Nanchang Greenland International Expo Center 140,000
Xiamen International Conference & Exhibition Center 140,000
GD Modern International Exhibition Center, Houjie 130,000

Additional fairgrounds were built over the last years e.g.in the provinces Shandong and Guangdong. With a covered exhibition area of 1.54 million m2 spread over 21 fair grounds the southern province Guangdong takes the top position in China.

German Engagement
In a comparison of countries, the People's Republic of China takes first place concerning German trade fair organizers’ self-organized events abroad. The concepts of these events are based on the standards of leading international trade fairs in Germany. Almost all major German trade fair organizers are active in China. By far the most attractive market is the economic metropolis of Shanghai.

Outside the leading trade fair cities of Shanghai, Beijing and Guangzhou, German organizers are active in Chengdu, Changsha, Foshan, Nanjing, Shenzhen, Wuhan, Qingdao and Xian. 

Year Number GTQ** China (without Hongkong) Shanghai
2019* 324 86 51
2018 321 88 51
2017 300 83 50
2016 296 84 49
2015 295 84 49

* preliminary
**Self-organized events by German trade fair organizers are advertised by AUMA with the label "German Trade Fair Quality Abroad" (GTQ). 
Source: AUMA database
 
Foeign Trade Fair Program 
In the PRC, German companies can present themselves at numerous well-established trade fairs under the umbrella brand "made in Germany" within the Foreign Trade Fair Program. The trade fair participations in the form of German Pavilions cover a large part of the capital goods sector, such as mechanical engineering, food and packaging machinery, automotive supply industry, plumbing, heating, air conditioning, agricultural technology, health care to chemical and environmental engineering. But also, furniture, fashion and consumer goods fairs have been an important part of the program for many years. China is the most important trade fair venue for German companies within the Foreign Trade Fair Program, with Shanghai remaining by far the most important trade fair location.

Contacts
Delegation of German Industry and Commerce Beijing
E-Mail: info@bj.china.ahk.de 
Homepage: http://www.china.ahk.de

Delegation of German Industry and Commerce Shanghai
E-Mail: office@sh.china.ahk.de  
Homepage: http://www.china.ahk.de

Delegation of German Industry and Commerce Guangzhou
E-Mail: info@gz.china.ahk.de  
Homepage: http://www.china.ahk.de

Embassy of the Federal Republic of Germany
E-Mail: embassy@peki.diplo.de  
Homepage: http://www.peking.diplo.de

AUMA e.V.
Natalja Winges
Manager
Regions: Eastern Europe, Central and East Asia
Tel.: +49 30 24 000 124 Fax: +49 30 24 000 320
E-Mail: n.winges@auma.de

More information:
China trade fairs
Source:

AUMA Association of the German Trade Fair Industry

Bild von Michael de Groot auf Pixabay
13.08.2019

TRADE FAIR MARKET NETHERLANDS

  • EXPORT NATION WITH LARGE TRADE FAIR PORTFOLIO

The economy is flourishing and economic forecasts are rising: The Netherlands is one of the five largest export nations in the world.  Motor of the Dutch economy and at the same time the cultural center is the Randstad region, which comprises the major cities Amsterdam, Rotterdam, The Hague and Utrecht. The most important trade fair venues in the country are also located here, off from the seat of the government in The Hague.

  • EXPORT NATION WITH LARGE TRADE FAIR PORTFOLIO

The economy is flourishing and economic forecasts are rising: The Netherlands is one of the five largest export nations in the world.  Motor of the Dutch economy and at the same time the cultural center is the Randstad region, which comprises the major cities Amsterdam, Rotterdam, The Hague and Utrecht. The most important trade fair venues in the country are also located here, off from the seat of the government in The Hague.
The trade fair venue of Amsterdam, which is operated by RAI Amsterdam, the Dutch trade fair company with the highest turnover, is of primary importance here. The ISE Integrated Systems Europe, IBC - International Broadcasting Convention and the Modefabriek are among the trade fairs with the largest number of visitors and an international focus. Due to the proximity of the market, however, national and regional trade fairs can also be of interest to German companies.
 
Economy
The Dutch economy is flourishing, above all due to private consumption and investment activity of companies. The Dutch economy is expected to grow by 3% in 2018 and 2.6% in 2019, according to Germany Trade & Invest. To the Dutch gross domestic product (GDP) 55% services, 12% industrial production and 4% by the construction industry contribute.

The Netherlands is one of the five largest export nations in the world. They are particularly dependent on the world trade, as around 45% of exports are re-exports. 75% of the Netherlands' exports go to the EU, 25% thereof to Germany. This makes Germany the Netherlands' most important foreign trade partner. In terms of imports, China has meanwhile taken the first place, followed by Germany, Belgium, the USA and Great Britain. From a German perspective, the Netherlands, with a trade volume of EUR 167.3 billion in 2017, was Germany's second most important trading partner (after China).
 
German exports of pharmaceuticals, food, machinery and motor vehicles play a particularly important role in the German-Dutch trade. Imports to Germany include food, pharmaceuticals, petrochemicals, gas and electronics.

The four large cities Amsterdam, Rotterdam, The Hague and Utrecht, located in the west of the country, are grouped together under the name Randstad. This region is the engine of the Dutch economy and the cultural center of the country. The Randstad is home to 42% of the total population. Half of all jobs are located there. Consequently, half of the GDP is generated in the Randstad.

Economic data 2017/2018 (estimates/forecasts)
GDP 733.1 bn. EUR
Residents  17.1 bn. EUR
Exports to Germany 91.3 bn. EUR
Imports from Germany 85.8 bn. EUR

  Source: AHK, Ministry of Foreign Affair, GTAI
   
Exhibition industry
180 trade fairs were organized in the Netherlands in 2017. As in the previous year, 68% of these trade fairs were nationally oriented, while 21 trade fairs had an international reach (12%). This means that fewer international trade fairs took place than in the previous year (26), but four more than 2015 (19), which is the more meaningful year of comparison due to many trade fairs with a two-year cycle. 45,144 exhibitors and 1.7 million trade visitors took part in the 180 trade fairs in 2017. The 21 international trade fairs, which had 9,527 exhibitors and 310,065 visitors, were also very successful.

Between 2010 and 2014, there were significantly more trade fairs than in 2017, around 230 trade fairs per year. The decline primarily affects national trade fairs and is attributable to cooperation between organizers and the consolidation of trade fairs. The average number of exhibitors and visitors in 2017 was significantly higher than in 2014, while the number of trade fairs with an international orientation changed only slightly.

In 2017 a total of 539 professional trade fairs and public exhibitions took place in the Netherlands. 6.3 million visitors came to see the products and services on offer from 101,780 exhibitors. These figures were announced by the Dutch industry association Centrum Voor Live Communication (CLC-VECTA).

  2017 2016 2015 2014
Industry and consumer fairs 539 608  562 579
Thereof industry fairs 180 214 207 231
- thereof international 21 26 19 28
Consumer fairs 359 394 355 348

Source: Jaarcijfers Beurzen 2017, CLC-VECTA

Trade fair organizations
The trade fair industry in the Netherlands is represented by the association CLC-VECTA. This is the industry association for companies and professionals who organize, host and provide trade shows, conventions and events. The network has around 200 members. CLC-VECTA publishes annual figures on the Dutch trade fair market and provides information about events in the industry.

In the smaller NVBO (Nederlandse Veriniging van Beursorganisatoren) with 18 members, mostly smaller Dutch trade fair organizers are organized usually without an exhibition venue of their own.
For their foreign trade activities, Dutch companies are looking for international platforms abroad, especially in Germany. In 2017, 5,576 companies from the Netherlands exhibited at 148 trade fairs in Germany. This corresponds to 59% of companies represented at international trade fairs in the Netherlands.
 
The AUMA trade fair database lists between 85 and 90 trade fairs in the Netherlands every year. Only individual trade fairs have tested figures. Due to the proximity of the market, national and regional trade fairs may be of interest to German companies.

The Dutch industry association CLC-VECTA announces the number of exhibition organizers at 270 in 2017. Of these, 95 organizers organized 180 trade fairs. Most fairs are organized by Easyfairs, Jaarbeurs Utrecht and RAI Amsterdam.

Trade fairs and organizers
Of the 25 most visited trade fairs in 2017, six are internationally oriented:

Exhibition City Organizer Number of visitors Number of
exhibitors
ISE - Integrated Systems Europe Amsterdam Integrated Systems Europe 73,413 1,192
IBC - International Broadcasting Convention Amsterdam International Broadcast Convention 57,669 1,076
Modefabriek Amsterdam Modefabriek BV 38,000 600
Europort Rotterdam Rotterdam Ahoy 26,733 1,100
METSTRADE - Marine Equipment Trade Show Amsterdam RAI Amsterdam 24,865 1,552
Aquatech Amsterdam Amsterdam RAI Amsterdam 20,490 909

Contact

German-Dutch Chamber of Commerce and Industry
Website: https://www.dnhk.org/

German Embassy Den Haag
Website: https://niederlande.diplo.de/nl-de/vertretungen/botschaft

German Consulate General Amsterdam
Website: https://niederlande.diplo.de/nl-de/service/generalkonsulat1

Germany Trade & Invest (GTAI)
E-Mail: info@gtai.de
Website: http://www.gtai.de

AUMA
Heike Schöttle
Specialist global markets
Regions: Western Europe, Middle East / North Africa, South Asia
Tel.: +49 30 24000-126
Fax: +49 30 24000-320
E-Mail: h.schoettle@auma.de

Source:

AUMA Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V.