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08.09.2020

German Trade Fairs start again in September

  • 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.
 

  • 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".

Foto: Pixabay
08.09.2020

Messewirtschaft startet ab September neu

  • Noch 84 Messen bis zum Jahresende geplant

Nach fast sechs Monaten Stillstand aufgrund der Corona-Pandemie finden ab September in Deutschland wieder größere Messen für Fachbesucher und allgemeines Publikum statt, vielfach in veränderten Formaten und teilweise mit digitalen Ergänzungen.

„Viele Aussteller und Besucher warten auf den Messe-Neustart, denn Messen werden den Branchen wieder Nachfrage-Impulse geben, durch die Präsentation von Innovationen und durch persönliche vertrauensbildende Kommunikation“, erläutert Jörn Holtmeier, Geschäftsführer des AUMA – Verband der deutschen Messewirtschaft, die Bedeutung des Re-Starts für die Wirtschaft.

  • Noch 84 Messen bis zum Jahresende geplant

Nach fast sechs Monaten Stillstand aufgrund der Corona-Pandemie finden ab September in Deutschland wieder größere Messen für Fachbesucher und allgemeines Publikum statt, vielfach in veränderten Formaten und teilweise mit digitalen Ergänzungen.

„Viele Aussteller und Besucher warten auf den Messe-Neustart, denn Messen werden den Branchen wieder Nachfrage-Impulse geben, durch die Präsentation von Innovationen und durch persönliche vertrauensbildende Kommunikation“, erläutert Jörn Holtmeier, Geschäftsführer des AUMA – Verband der deutschen Messewirtschaft, die Bedeutung des Re-Starts für die Wirtschaft.

„Aussteller und Besucher zeigen durch ihre Teilnahme, dass sie sich von Messen auch unter veränderten Rahmenbedingungen hohen Nutzen versprechen. Neben dem geschäftlichen Erfolg gehören dazu noch Zusatzeffekte wie Imagebuilding etwa durch die Demonstration von Innovationsstärke, die Präsenz von Unternehmen und Branche in den Fachmedien und der direkte Erfahrungsaustausch innerhalb der Branche.“

Caravan Salon ist größte Messe zum Auftakt
Allein im September sind zwölf Messen geplant, darunter mehrere internationale Veranstaltungen, vom CARAVAN SALON in Düsseldorf als größte Messe zum Neustart und der Kompaktversion der IFA Berlin gleich in der ersten September-Woche bis zur INTERBOOT in Friedrichshafen am Monatsende.

Der Vorsitzende der Geschäftsführung der Messe Düsseldorf, Wolfram N. Diener, freut sich auf den Re-Start des Messebetriebs in Deutschland: „Wir wollen ein Signal setzen: Messen können auch in Corona-Zeiten funktionieren. In enger Abstimmung mit Behörden, Partnern und Kunden haben wir den CARAVAN SALON 2020 unter hohen Hygiene- und Sicherheitsstandards realisiert. Das Ergebnis: Rund 350 Aussteller in elf Messehallen präsentieren die gesamte Bandbreite des mobilen Reisens.“

Messen sind keine Großveranstaltungen
Von der Verlängerung des Großveranstaltungsverbots durch die Ministerpräsidentenkonferenz am 27. August 2020 ist die Messewirtschaft nicht betroffen. Bereits seit 6. Mai 2020 werden Messen separat betrachtet. Dementsprechend sind für die Monate September bis Dezember gegenwärtig insgesamt 84 vom AUMA gelistete Messen geplant, davon 47 mit internationaler oder nationaler Bedeutung und 37 mit regionaler Bedeutung. Die Termine für die Messen in der nächsten Zeit sind beim AUMA gelistet unter: www.auma.de/Messedaten.

Basis für die Durchführung der Branchentreffs sind ausgefeilte Konzepte für den Gesundheitsschutz, die von den zuständigen Gesundheitsbehörden genehmigt werden. „Die Messeveranstalter setzen alles daran, für die Aussteller und Besucher sichere und erfolgversprechende Rahmenbedingungen zu schaffen. Größe und Qualität der Messegelände bieten sehr gute Voraussetzungen, die Hygiene- und Abstandsregeln umzusetzen“, so AUMA-Geschäftsführer Jörn Holtmeier.

Die Eckpunkte der Schutzmaßnahmen sowie die Sicherheitskonzepte für alle Messestandorte in Deutschland hat der AUMA hat auf seiner Website gelistet:
www.auma.de/de/ausstellen/recht/hygiene-und-abstandskonzepte-auf-messen-in-deutschland

AUMA-Vorsitzender Philip Harting: Wer jetzt auf Messen setzt, kann Marktanteile gewinnen:
„Es gilt das Prinzip: Wer wagt, gewinnt. Wer in den nächsten Monaten auf Messen setzt, hat früher als andere die Chance, auf Innovationen eine direkte, ungefilterte Resonanz zu erhalten, denn auf Messen kann der Kunde prüfen und testen. Und wenn der Kunde sich von der Qualität überzeugt hat, entscheidet er einfach schneller.

Denn gerade neue Kunden zu gewinnen, ist mit Hilfe digitaler Formate äußerst schwierig. Das haben viele Unternehmen in den letzten Wochen und Monaten erfahren. Nebenbei bekommt ein Aussteller noch wertvolle Tipps für die Weiterentwicklung seiner Produkte“. Und, so Harting, wer auf Messen ausstelle, finde schneller fachlich und menschlich passende Kooperationspartner, um die Krise besser zu bestehen. Nicht zuletzt könne man dringend notwendige Geschäftsabschlüsse anbahnen, vielleicht nicht so umfangreiche wie gewohnt, aber aus kleinen Aufträgen würden oft genug mittelfristig große.

Ebenso großen Nutzen bieten Messen in der gegenwärtigen Situation Fachbesuchern. Der AUMA-Vorsitzende: „Fachbesucher können frühzeitig mit potentiellen neuen Lieferanten persönlich verhandeln, Technik- und Design-Innovationen früher als andere live erleben und auch Anregungen finden, wie man im Einzelhandel zögernde Verbraucher begeistern kann.“

Photo: Pixabay
24.03.2020

Coronavirus: Cancellations and Postponements of German Exhibitions May Cost up to 3 Billion Euro

  • Calculation by AUMA - Association of the German Trade Fair Industry concerning the macroeconomic impact for Germany based on ifo-survey

Germany as a trade fair venue has already been hit hard by cancellations and postponements of trade fairs. Trade fair organisers and service providers like booth constructors are already suffering from heavy financial losses. Many other branches of business are affected as well, especially the hotel and catering industry, the transport industry and numerous local suppliers and contractors. These industries are suffering considerable losses in sales with a direct impact on employees. Due to sales losses the tax revenue will fail, hence cities or regions are directly affected economically.

  • Calculation by AUMA - Association of the German Trade Fair Industry concerning the macroeconomic impact for Germany based on ifo-survey

Germany as a trade fair venue has already been hit hard by cancellations and postponements of trade fairs. Trade fair organisers and service providers like booth constructors are already suffering from heavy financial losses. Many other branches of business are affected as well, especially the hotel and catering industry, the transport industry and numerous local suppliers and contractors. These industries are suffering considerable losses in sales with a direct impact on employees. Due to sales losses the tax revenue will fail, hence cities or regions are directly affected economically.

AUMA’s Institute of the German Trade Fair Industry has forecasted the consequences for Germany for the first time based on the calculation of the ifo Institut in regard to the macroeconomic relevance of German trade fairs in 2018.

Thus a loss of about three billion Euro for the national economy is to be expected – just by cancellations and postponements of trade fairs. This affects more than 24,000 jobs and tax authorities will miss over 470 million Euro of tax revenue.

These sums do not include lost sales of companies, which had expected to generate turnover during the trade fair. These figures are many times higher than the above-mentioned sums and can only be substituted to a limited extent through other measures. No other marketing device is able to represent a company and its products as comprehensively as the personal contact.

“Almost all plans for trade fairs during the next months are null and void. Organisers, exhibitors, visitors and contractors are losing any planning reliability. They have high up-front costs without the prospect of any benefit or they suffer from severe and acute loss of sales. The trade fairs’ annual contribution of more than 28 billion Euro to the national economy could decrease by 10%. It has to be made sure that the (German) economy – particularly small and medium-sized enterprises – in future will be able to utilise the highly effective instrument called “Messe” (trade fair) and can continue cooperating with potent contractors. Without governmental support this can hardly be realised, despite great efforts of the exhibition industry itself.”

Germany is number one worldwide in terms of organising international trade fairs. Annually 160 to 180 international trade fairs take place in Germany, with 180.000 exhibitors and ten million visitors. Partners from all over the world meet up on German exhibition sites.

German exhibiting companies are investing almost half of their b2b communication budgets in trade fair participations. The expenses of exhibitors and visitors for trade fairs in Germany result in macroeconomic production effects of more than 28 billion Euro. More than 230,000 jobs are ensured by the organisation of trade fairs. Tax revenues based on trade fairs sum up to approx. 4.5 billion Euro annually.

More information:
trade fairs Coronavirus
Source:

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

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

Foto: Vlad-Vasnetsov, PIXABAY
01.10.2019

FAIR TRADE MARKET CANADA

Economy
With an average GDP growth of 2% in 2018 and 2019, Canada now resembles the word’s 10th biggest economy and is worthy of a closer look wether it could serve as a sales market for investments.

Canada’s average GDP growth of 2 % in 2018 and 2019 initiates an examination if the country could serve as a market or if an investment in the country could be of value. In particular, the service sector, the manufacturing sector, energy and raw materials and agriculture form the Canadian economy. Canada’s business centers are Vancouver, Montreal, Toronto, as well as the provinces Ontario and Quebec. The sometimes enormous distances between those regions should not be underestimated.

Economy
With an average GDP growth of 2% in 2018 and 2019, Canada now resembles the word’s 10th biggest economy and is worthy of a closer look wether it could serve as a sales market for investments.

Canada’s average GDP growth of 2 % in 2018 and 2019 initiates an examination if the country could serve as a market or if an investment in the country could be of value. In particular, the service sector, the manufacturing sector, energy and raw materials and agriculture form the Canadian economy. Canada’s business centers are Vancouver, Montreal, Toronto, as well as the provinces Ontario and Quebec. The sometimes enormous distances between those regions should not be underestimated.

An inner-Canadian trade agreement that came into effect in 2017 aims on the reduction of trade barriers among Canada’s provinces. In addition to that, an investment plan for infrastructure by the government should enable public investments in the amount of roundabout €120 Bil. by 2028. With its national climate strategy and the ratification of the Paris climate agreement, Canada also pursues an ambitious climate policy. Today, more than 50% of the needed electricity is already created by using renewable energies, even though the country has got the third-biggest energy and raw materials reserves in the world.

Due to its dependency on export, Canada is involved in many trade agreements (about a dozen bilateral free trade agreements). The North American Free Trade Agreement (NAFTA) with Canada and Mexico, which has been in existence since 1994, is expected to be renewed and replaced on January 1st 2020 by the United States-Mexico-Canada Agreement (USMCA) With the EU, Canada's second most important trading partner, the Comprehensive Economic and Trade Agreement (CETA) has been provisionally in force since 21st September 2017. Furthermore, Canada signed the Comprehensive and Progressive Trans Pacific Partnership Agreement (CPTPP) at the beginning of 2018. Besides that, there are amongst other trade agreements with the EFTA-States, as well as South Korea and the Ukraine.

Automotive parts, oil and raw materials (excluding fuels) account for more than one third of Canada's total exports. The US are the biggest customer of Canadian goods with a share of 75.9% of exports. The majority of goods being imported in Canada are motor vehicles and automotive parts; machines and chemical products. The main exporters to Canada in 2017 were the US (51.3%) and China (12.6%), followed by Mexico (6.3%) and Germany (3.2%). Germany mainly exports cars and parts and machinery to Canada and imports raw materials.

Economy Data 2017/2018 (Estimations/Forecasts)
GDP 1,820 Bil. USD (2019)
Population 37.1 Mio. (2018)
Exports to Germany 4.4 Bil. Euro
Imports from Germany 9.7 Bil. Euro

Source: GTAI, AHK, AA

Fair market
The close economic relations with the US are also reflected in the exhibition industry. For Canadian exhibitors and visitors, it does not make much of a difference in terms of time and logistics whether a trade show takes place in the neighbouring United States or in Canada. Therefore, many of them take advantage of the opportunity to participate in international fairs in the US. However, some Canadian trade fairs are among the industry's leading trade shows in North America or even worldwide. These include, for instance, the GPS Global Petroleum Show (oil and gas industry) and the Buildings Show (construction industry), but also the PDAC (commodities) and Canada's Farm Progress Show (agriculture) fairs. For exhibitors and visitors from the US and from all over the world, participation at these fairs is indispensable. In addition to the international fairs, there are various regional fairs, which are mainly used by local companies of specific industries.
 
Just as in the US, in Canada it is common for trade fairs to be either organized by trade associations or in cooperation with a trade fair organizer. It also makes sense in Canada to first test the interest in one's own products at a trade show and, in a second step, to decide on a branch or a sales partner. Canadian trade fair visitors are accessible and relaxed, which facilitates the first conversation. The stand construction is usually less expensive than in Germany and the exhibition halls are more compact.

Since the mid-1970s, the Canadian Association of Exposure Management (CAEM) has represented the interests of the Canadian exhibition industry. The members are organizations or persons organizing trade fairs, consumer exhibitions or similar events. Fair-related service providers can become associated members. Among other, the association provides its members with ‘Best Practice Guidelines’ for health and safety. As a partner of the International Association of Exhibitions and Events (IAEE), CAEM also offers specific courses for the Canadian trade fair industry as part of the Certified in Exhibition Management (CEM).
 
Fairs und Organizers 
The Association of the German Trade Fair Industry (AUMA) approximately lists around 40 fairs in Canada every year. The majority of these events takes place in Toronto, followed by Montreal, Vancouver and Calgary.

Similar to the US, most of the fairs are being organized by the industry associations. Fairs and accompaniment-events are one of the key services for their members, but also the main source of income of the associations. With the main emphasis on metalworking and processing, the Society of Manufacturing Engineers organizes among other the FabTech Fair Canada. The vast majority of organizers only hosts one fair per year. The Canadian Institute of Mining, Metallurgy & Petroleum (CIM), for instance, organizes the CIM Annual Convention (Mining) annually at changing places. The Society of Petroleum Engineers organizes the ATCE – Annual Technical Conference and Exhibition fair (Petrochemistry) - and the Woodworking Network carries out the WMS - Woodworking Machinery & Supply Expo (Woodworking).
 
Also, there are for-profit fair organizers, that host different fairs in Canada. The British company Informa PLC for instance has been active on the Canadian market since the takeover of the fair Fan Expo Canada in 2010. Over the years, the enterprise continuously extended its portfolio among other with the takeover of the company MMPI Canada. Dmg events also organizes various trade fairs in Canada, for example the trade show GPS - Global Petroleum Show & Conference. In the field of food and beverage the French company COMEXPOSIUM organizes the trade fair SIAL Canada. The activities of Messe Frankfurt GmbH and Deutsche Messe AG in the Canadian market are explained in more detail in the section "German Organizers".

Year Fairs in Canada*
2020 41
2019 46
2018 44
2017 43
2016 39
2015 41

* listed in AUMA fair database

German Organizers
The Messe Frankfurt GmbH has been active in Canada since 2005. Part of the Portfolio are two fairs, that take place simultaneously, the Waste & Recycling Expo Canada and the Municipal Equipment Expo.

Since 2014 the Deutsche Messe AG is represented in Canada by its subsidiary Hannover Fairs with the CanWEA fair (wind energy). The fair has been organized annually in collaboration with the Candian Wind Energy Association. Another cooperation with the solar industry association (Canadian Solar Industries Association) concerned the organization of the solar Canada fair, which was being held until 2019. The two fairs are being merged from 2020 on as Electricity Transformation Canada. In addition to that the Truck World fair is being organized in cooperation with Newcom Business Media every two years.

Contact
AHK Kanada
Deutsch-Kanadische Industrie- und Handelskammer  Canadian German Chamber of Industry and Commerce Inc.  
480 University Avenue
Suite 1500
Toronto, Ontario M5G 1V2
Phone +1 416 598 33 55
Fax: +1 416 598 18 40
E-Mail: Info.toronto@germanchamber.ca  
Website: http://kanada.ahk.de
 
CAEM Canadian Association of Exposition Management
E-Mail: info@caem.ca
Website: https://caem.ca/
 
Germany Trade & Invest (GTAI)
E-Mail: info@gtai.de  
Webseite: www.gtai.de
 
Auswärtiges Amt
Botschaft der Bundesrepublik Deutschland Postadresse:
P.O. Box 379, Postal Station „A“ Ottawa, Ontario  K1N 8V4
Phone: +1 613-232-1101
Fax: +1 613-780-1527
Website: https://canada.diplo.de/ca-de

AUMA
Christine Zander  
Referent global markets
Regions: North America, Latin-America, Subsahara-Africa, South East Asia, Australia; Voting of foreign trade fair participations, EU-topics
Phone: +49 30 24000-125
Fax: +49 30 24000-320
E-Mail: c.zander@auma.de

 

 

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.

© Koelnmesse GmbH, Kind + Jugend
23.07.2019

KIND + JUGEND 2019: ONCE AGAIN AROUND 1,200 PROVIDERS FROM MORE THAN 50 COUNTRIES

  • For the first time with a Start-up Area
  • More than 200 applications for the Innovation Award
  • New concept for The Connected Kidsroom
  • Kids Design Award
  • Design Parc
  • Trend Forum with concentrated lectures

 
Kind + Jugend in Cologne: it is not only the most important and most international business and communication platform of the baby and toddler outfitting industry. It is surely also the world's most inspiring and cheerful event for this theme. For the coming trade fair from 19 to 22 September 2019, around 1,200 providers from more than 50 countries will present an almost complete overview of the latest trends and products for the first baby and toddler years.

  • For the first time with a Start-up Area
  • More than 200 applications for the Innovation Award
  • New concept for The Connected Kidsroom
  • Kids Design Award
  • Design Parc
  • Trend Forum with concentrated lectures

 
Kind + Jugend in Cologne: it is not only the most important and most international business and communication platform of the baby and toddler outfitting industry. It is surely also the world's most inspiring and cheerful event for this theme. For the coming trade fair from 19 to 22 September 2019, around 1,200 providers from more than 50 countries will present an almost complete overview of the latest trends and products for the first baby and toddler years.

As usual, top, smaller and medium-sized companies will explore the extensive bandwidth of the theme worlds. These include the baby carriage, children's car seat, children's furniture, textile and care outfitting, hygiene item, safety and networked electronics, as well as educational toys and toys sections. The trademarks of the exhibitors and thus also of the trade fair are the high quality requirements for the products and concepts shown, as well as the wealth of innovations presented.

The theme of sustainability is also proving to be a growing trend. Kind + Jugend is also offering the manufacturers of textiles a special listing service for the first time this year. The event programme at Kind + Jugend, with award ceremonies, special events and impulse lectures on the most important themes also plays a central role for the representation and mediating of trends.

Among the key players exhibiting at Kind + Jugend 2019 are ABC Design, Angelcare, Artsana/Chicco, Babybjörn, Babymoov, bibi/Lamprecht, Bébécar, Brevi, Britax Römer, Cam il mondo, Cybex, Delta Children, Diono, Dorel, Doudou et Compagnie, Ergobaby, Easywalker, Foppapedretti, Geuther, Haba, Hartan, Hauck, HTS Besafe, iCandy, Infantino, Jané/Concord, Joie/Nuna, Joolz, Julius Zöllner, Kaloo/Juratoys, Lässig, Leander, Mayborn/tommee-tippee, Melissa&Doug, Micuna, Munchkin, Mutsy, Nattou, Newell, Nuby, Odenwälder, Paidi, Peg Perego, Pinolino, reer, Roba Baumann, rotho, Schardt, Sauthon, Sterntaler, Thule, Tobi, Uppababy and Vulli.. New exhibitors or returnees in 2019 once again include Bugaboo, Mattel and Silver Cross. Among the new companies at Kind + Jugend 2019 are APOLO Baby from Japan, Felice from Italy or Warmbebe from France.

The share of foreign exhibitors is once again impressive. Around 85 percent of exhibitors come from abroad, with strong participation of German manufacturers on the whole. Especially well-represented are exhibitors from the United Kingdom, the Netherlands, the USA, France, Spain and Poland. Belgium and Denmark are also in place with large-scale participation. Asian providers also have their fixed place at the trade fair, China, Hong Kong, Taiwan and Korea especially worthy of mention. In addition to this, around 20 companies from Australia exhibit regularly.

The foreign share of visitors is also very high at 75% and spans the globe. In 2018, the trade visitors came to Kind + Jugend in Cologne from 125 countries. Besides Germany, the European nations also take the lead here. Asian, Eastern European and North American buyers were also strongly represented at the trade fair. Visitors come from all segments of the trade: from the specialised and wholesale trade to department stores and chemist's shops, as well as the various online commerce channels.

Kind + Jugend once again covers all levels of halls 10 and 11, as well as hall 4.1, and thus spans a gross exhibition surface of 110,000 m². The clear hall structure with two entrances makes it easier for visitors to orient themselves and clusters the trade fair offerings in clearly defined theme areas. Vistors can prepare for the trade fair especially well with the help of the exhibitor database. On the grounds, the practical trade fair app assists in the search for exhibitors, products and brands. Familiar and new special events, as well as the much appreciated award ceremonies and the trend forum with expert lectures bring out the main points of the trade fair happenings.
 
For the first time: Start-up Area at Kind + Jugend

For the first time, Kind + Jugend is offering young, international companies the opportunity to present themselves in the context of a Start-up Area at favourable conditions. Sixteen providers from six countries will take advantage of the opportunity to exhibit at the world's leading trade fair for the baby and toddler outfitting industry at favourable conditions. The 16 start-ups come from Australia, Germany, France, Italy, Japan and the Netherlands. Their products suit the theme worlds of Kind + Jugend extremely well and extend from a sustainable diaper system through digital measuring devices for child care to exclusive accessories for mothers and children, as well as children's furniture for learning and playing. (Hall 11.1, B50 – C59)

Sustainability and environmental awareness are the trend. Joint action together with BTE for the first time.
Together with the German Textile Trade Association (BTE), which is also a member of the Partnership for Sustainable Textiles, we will separately list those exhibitors who can attest to the sustainable production of their exhibited textiles by means of recognised seals of approval and/or other certificates. The recognised seals include, for example, GOTS, Oekotex, bluesign or Made in Green. The BTE assumes responsibility for the formal examination of the submissions. The list of manufacturers showing sustainable textiles at the trade fair will be available at the Kind + Jugend website, so that trade fair visitors can plan their tour with a focus on this area of interest.

The Connected Kidsroom
Since 2017, the The Connected Kidsroom special event has drawn attention to digital and smart products or concepts for the outfitting of nurseries and children's rooms. The theme will also receive special attention this year with a new concept. Attractively integrated into a complete children's room with furniture, doors and windows, the special event shows the various products that control technical functions, measure values like the temperature or pulse of the child, regulate climatic room conditions, register movement and much more. All products are already available in retail outlets. In order to be able to represent the functions even more informatively for trade fair visitors, an expert will be on location to demonstrate the applications, provide explanations and answer questions. (Hall 11.2, E21)

Innovation Award
More than 200 applications for the Kind + Jugend Innovation Award have been submitted this year for evaluation by a jury of trade journalists and health experts, a new record. Following intensive consultation, the jury nominates a selection of products for a special event that is regularly one of the crowd pullers at Kind + Jugend. The Innovation Awards are then presented to the eight winners in eight categories on the first day of the trade fair. The award is the most important recognition of innovations in the baby and toddler sector, and is also highly respected outside of the industry.

Kids Design Award
The Kids Design Award promotes products and concepts that distinguish themselves through special design, but are not yet commercially available. The ten best designs of the competition, which Kind + Jugend tenders in advance of the trade fair with a particular view to young designers, are shown in an attractive special area. The winner of the Kids Design Award will also be honoured on the first day of the trade fair (Hall 11.1, D40/E49)

Design Parc
Design has a high standing at Kind + Jugend. International design products that are ready for the market therefore appear in the special event of the Design Parc, which shows select products and furniture – from children's beds to play kitchens and dishes suitable for children. (Hall 11.1, C40 - D59)

Trendforum
The stage of the Trend Forum can once again be found in hall 11.1 this year. Not only are the Innovation Award and the Kids Design Award presented on the first day. All those interested can look forward to a high quality expert lecture program on the first three days of the trade fair. The trend researchers from GfK, Trendbible and The Insights People will once again present market data, as well as trends and tendencies from a global perspective. The German association of children's outfitting manufacturers (BDKH) is also participating once again, this time with a focus on the theme of the children's car seat. (Hall 11.1, E50/F59).

Magnascan auf Pixabay
04.06.2019

Trade fairs as central marketing instruments

Successful companies have clear goals, which they follow with equally clear strategies. On their road to success, they use a mixture of marketing tools. Amidst this interplay of suitable tools, trade fairs cover by far the widest range of functions – from acquiring new customers to forging contacts with the press. It therefore only makes sense that German companies make intensive use of trade fairs.

Successful companies have clear goals, which they follow with equally clear strategies. On their road to success, they use a mixture of marketing tools. Amidst this interplay of suitable tools, trade fairs cover by far the widest range of functions – from acquiring new customers to forging contacts with the press. It therefore only makes sense that German companies make intensive use of trade fairs.

For companies that exhibit at trade fairs, these activities are their most important B2B communications tool. In 2019/2020 these companies plan to spend around 47% of their communications budgets on trade fairs. This is one result of the 2019 AUMA MesseTrend, a representative survey of 500 German exhibiting companies commissioned by AUMA. And for production companies, that figure rises to nearly 50%.
 
German companies therefore participate frequently in trade fairs, with their own stands. They average more than eight trade fair appearances within two years, of which a good five are in Germany and three in other countries. That figure rises to ten appearances every two years for companies that concentrate on industrial goods, with six appearances in Germany and four in other countries. The number of trade fair appearances rises substantially with the level of sales. Companies with annual sales of more than €125 million average 20 trade fair appearances in two years.
 
The major role played by trade fairs in B2B communications is also evident from another perspective. More than a quarter of German exhibiting companies (29%) plan to increase their investment in trade fair participations, both at home and abroad in 2019 and 2020. Some 56% plan the same level of investment and only 15% want to reduce their budget in this area.

Trade fairs consequently occupy a high position compared to other communications instruments. For around 83% of exhibitors, trade fair participation is important or very important for their B2B communication. Trade fairs are the second most important instrument, exceeded only by companies' own websites, which have become a standard feature of nearly every business today. After trade fairs, the next instruments are personal sales, which 76% of companies consider important or very important, and analogue or digital direct mailing (48%).

More information:
AUMA
Source:

AUMA - Association of the German Trade Fair Industry

Textile innovations ‘made in Germany’ in demand in the USA (c) KameraStudio for Messe Frankfurt Exhibition GmbH
05.06.2018

Textile innovations ‘made in Germany’ in demand in the USA

‘High-Tex from Germany’ at Techtextil North America and Texprocess Americas shows again how innovative the German textile industry is.

Back to the USA: ‘High-Tex from Germany’ made a guest appearance at Techtextil North America and Texprocess Americas in Atlanta for the second time from 22 to 24 May 2018. At the special exhibition organised by the Federal Ministry of Economics and Energy (Bundesministerium für Wirtschaft und Energie – BMWi) in cooperation with the Association of the German Trade Fair Industry (Messeausschuss der Deutschen Wirtschaft e.V. – AUMA), a total of 66 companies presented technical textiles, nonwovens, textile-processing machines, smart textiles and textile-research projects to the trade visitors. The textile sector made its first appearance in the USA in 2000. This was followed by highly successful presentations in Shanghai in 2002, in Mumbai in 2007 and in Moscow in 2012.

‘High-Tex from Germany’ at Techtextil North America and Texprocess Americas shows again how innovative the German textile industry is.

Back to the USA: ‘High-Tex from Germany’ made a guest appearance at Techtextil North America and Texprocess Americas in Atlanta for the second time from 22 to 24 May 2018. At the special exhibition organised by the Federal Ministry of Economics and Energy (Bundesministerium für Wirtschaft und Energie – BMWi) in cooperation with the Association of the German Trade Fair Industry (Messeausschuss der Deutschen Wirtschaft e.V. – AUMA), a total of 66 companies presented technical textiles, nonwovens, textile-processing machines, smart textiles and textile-research projects to the trade visitors. The textile sector made its first appearance in the USA in 2000. This was followed by highly successful presentations in Shanghai in 2002, in Mumbai in 2007 and in Moscow in 2012.

“Taking ‘High-Tex from Germany’ to Atlanta again was a very good decision. The southeast of the USA has a long tradition of textile manufacturing. It is home to many companies that are always on the lookout for innovative textiles and machines for textile production and processing”, explained Detlev Rünger, German Consul General in Atlanta during the ‘High-Tex from Germany’ press conference. “Fairs bring people together. And this was evident here in Atlanta. With the overseas exhibition programme, we give small to medium-sized companies the chance to show their products in foreign markets”, said Patrick Specht of the Trade Fair Policy and EXPO Participations division of the BMWi.

“‘High-Tex from Germany’ within the framework of Techtextil North America and Texprocess Americas was a very good platform for our small to medium-sized companies. After Techtextil and Texprocess in Frankfurt, these two events are the second-most important editions of the trade-fair duo. ‘High-Tex from Germany’ came fully up to our expectations and anyone who failed to take part missed a great opportunity to be noticed”, said Marc Lorch, Member of the Board of Zwissler Holding, who represented the participating companies as exhibitor president.

Michael Metzler, Sales President of ZSK Stickmaschinen, confirmed this saying, “A German pavilion of this scope makes us extremely visible. Thanks to the excellent organisation, we were also able to concentrate on promoting our company and products.” In addition to the appealing exhibition-stand concept and the excellent organisation, the companies taking part were particularly pleased with the high visitor standard. “We regularly exhibit at Techtextil North America but taking part in ‘High-Tex for Germany’ resulted in our best ever day at a fair here. The pavilion is a real eye-catcher”, said Thomas Wiederer, Area Sales Manager, Brückner Textile Technologies. “The visitors to our exhibition stand were very interested in our products. We gained potential customers and were able to make numerous high-grade contacts. The level of interest shown in our highly innovative e-textile solutions, which are completely new in the sector, was very high. We are looking forward to the follow-up phase”, said Andreas Lanyi, Vice President Digital Unit and Internet of Things of the Hamburg-based start-up, Lunative Laboratories.

Besides gaining new customers, the focus of the companies taking part in ‘High-Tex from Germany’ was on cultivating customer relations. “The German pavilion in Atlanta once again gave us a good opportunity to get to know the US market better. We have had a factory in the vicinity of Atlanta for two years now and aim to expand our network in the long term”, said Ronny Schröder, Associate Sales Director Technical and Comfort Products, Sandler. “We like making presentations within the framework of the German pavilion very much”, added Georg Voggenreiter, Technical Sales, Maschinenfabrik Herbert Meyer. “Once again, ‘High-Tex from Germany’ was a good starting point for cultivating contacts with our customers in the USA.”

The companies taking part in ‘High-Tex from Germany’ made their presentations on around 1,300 square metres of exhibition space with their own exhibition stands, with selected exhibits on a central ‘Plaza’, in guided tours and no less than 35 lectures. Additionally, the German Institutes of Textile and Fibre Research (Deutsche Institute für Textil- und Faserforschung – DITF), the Association of the Finishing, Yarns, Woven Fabrics and Technical Textiles Industry (Industrieverband Veredlung, Garne, Gewebe und Technische Textilien – IVGT), the Tübingen-Reutlingen-Zollernalb location agency and the German American Chamber of Commerce of the Southern U.S. provided insights into current research projects and offered information about the sector.

21.11.2017

ITALY'S LEADING TRADE FAIRS ARE GAINING IMPORTANCE AGAIN

  • Rising numbers of visitors and exhibitors
  • Internationalization is progressing 
Milan (GTAI) - The Italian exhibition companies are emerging stronger from the economic crisis in the country: acquisitions and mergers have brought consolidation to the sector.in addition there is an increased internationalization of leading companies. The major trade fairs are again being better visited, the number of exhibitors is increasing. Italy is one of the leading trade fair locations in Europe, especially in the fashion, engineering, furniture and food sectors. 
 
More than half of the Italian exhibition companies reported that the number of exhibitors and visitors increased in the second quarter of 2017 compared to the same period of the previous year. This is the result of the latest survey by the Italian trade fair association Associazione Esposizioni e Fiere italiane (AEFI).
  • Rising numbers of visitors and exhibitors
  • Internationalization is progressing 
Milan (GTAI) - The Italian exhibition companies are emerging stronger from the economic crisis in the country: acquisitions and mergers have brought consolidation to the sector.in addition there is an increased internationalization of leading companies. The major trade fairs are again being better visited, the number of exhibitors is increasing. Italy is one of the leading trade fair locations in Europe, especially in the fashion, engineering, furniture and food sectors. 
 
More than half of the Italian exhibition companies reported that the number of exhibitors and visitors increased in the second quarter of 2017 compared to the same period of the previous year. This is the result of the latest survey by the Italian trade fair association Associazione Esposizioni e Fiere italiane (AEFI). Compared to the whole year, the development seems to be less positive, in 2016 significantly fewer customers attended exhibitions than in 2015. The main reason for this, however, is the World Expo in Milan, which attracted more than 21 million visitors in 2015.
 
According to the AEFI survey, more and more visitors and exhibitors from non-EU countries are coming to the fairs in Italy. The highly specialized, internationally oriented trade fairs in the fields of food and wine, tourism, fashion and cosmetics, furniture and design as well as mechanical engineering are particularly well-frequented.
 
Another trend is the increasing internationalization of the Italian trade fair landscape with the number of foreign exhibitors rising again in 2016, their share is amounting to 34 percent. One reason for this development is the fact that the number of Italian exhibitors fell during the years of the economic crisis from 2009 to 2015. At the same time, the Italian fair exhibitors are focusing on the internationalization of the offer; in concrete terms they are setting up subsidiaries and joint ventures abroad. Last but not least, the Italian Government encourages the participation of small and medium-sized enterprises in trade fairs abroad, relying on joint stands and subsidies.
 
Developments of fairs in Italy *)
  2014 2015 2016
Number of exhibitions 54 57 56
Exhibition space (Mio. sqm) 1,9 1,6 1,6
Number of exhibitors 39,640 35,635 39,690
.. from abroad 12,610 12,601 13,379
Number of visitors 3,201,234 3,017,166 2,732,838
.. from abroad 779,096 805,960 551,013

*) Members of the Federation Comitato Fiere Industria

Source: Comitato Fiere Industria (CFI)
 
Consolidation of exhibition companies offers opportunities
The Italian exhibition companies have developed differently in recent years. Large exhibition centers such as Milan, Verona, Bologna and Parma held up better than second-tier locations in terms of sales. The stronger international presence of the companies has a positive Impact.
 
The largest trade fair company in Italy, Milan Trade Fair, has founded several joint ventures abroad in recent years. In India and China Fiera Milano is cooperating with the Hanover Fair. In October 2017, Messe Düsseldorf announced a cooperation between the Düsseldorf-based Interpack and Ipack-Ima in Milan, Europe's two largest packaging and packaging-machine trade fairs. At the same time, Milan Trade Fair is retracing its activities in Brazil, South Africa, Russia and Thailand, due to the economic situation in these countries. In total, the Milan Trade Fair achieved sales of EUR 221 mio 2016, EUR 7 of which abroad. Since many years, however, the business has been in deficit. In 2016 the losses totaled to EUR 23 mio ros. In addition to the difficult financial situation, the fair had to cope with a (financial) scandal that affected the infiltration of a subsidiary by the mafia. Only in 2015  the company - in the context of the Expo 2015 – wrote black figures.
 
In 2016 the exhibition companies of Rimini (important in the areas of environment, tourism, and transport) and Vicenza (mainly in the area of gold and jewelry) are merged to the Exhibition Group (IEG). The group generated in the report-year sales of EUR 125 mio. However, this meant that it was not able to displace the Bologna trade fair - measured in terms of sales - from second place among the Italian suppliers. The Bologna Fair, which is also responsible for the exhibitions in Modena and Ferrara, reported sales of EUR 132 mio and a profit of more than EUR mio in 2016. IEG and Bologna Fair are expanding their business in Asia and especially in China.
 
The smaller exhibition companies have felt the long economic downturn in Italy. The fair in Brescia has gone bankrupty, it had to become rescued in Reggio Emilia by the provincial administration. One of the former most important fairs in southern Italy, the Fiera del Levante in Puglia, lost its importance during the crisis years. The main reason for the consolidation of the trade fair sector is the oversupply of events in Italy. More than twice as many trade fairs are organized here as in Germany.
 
An international trade fair overview is offered by the Exhibition and Trade Fair Committee of German Business (AUMA). Information about the foreign fair programs of the federal and states can thus be obtained here (http://www.auma.de).
 
Contact
Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V. (AUMA)
Exhibition and Fair Committee of German Business e.V.
Littenstraße 9
10179 Berlin
POB 02 12 81
10124 Berlin
T +49 (0)30 240 00-0
F +49 (0)30 240 00-330
info@auma.de
http://www.auma.de

Comitato Fiere Industria (Industriemesse)
Via Pantano, 2
20122 Milan, Italy
T +39 (0)2 720 002 81
info@cfionline.net
http://www.cfionline.net

Associazione Esposizioni e Fiere italiane (Italian Association of Fairs and Exhibitions)
Via Emilia, 155
47900 Rimini, Italy
T+39 (0)541 744 230
info@aefi.it
http://www.aefi.it
More information:
Fairs Italy
Source:

Robert Scheid, www.gtai.de

08.08.2017

INDIA'S TEXTILE AND CLOTHING INDUSTRY STRONGLY SUPPORTED

  • Textile companies comparatively broadly placed 
  • Garment sector scores too little internationally 

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

  • Textile companies comparatively broadly placed 
  • Garment sector scores too little internationally 

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

The Indian textile and clothing industry is of an overall economic importance. It accounts for 14% of the total industrial production and employs directly 51 million people. Additional further 68 million people in households and micro enterprises are working for the industrial companies. Because the national economy as a whole needs to create about 12 million additional jobs per year, the government has chosen the textile industry as an employment motor. India, in contrast to the textile giant PRC, has high advantages with its labor cost.

 
The availability of natural materials such as cotton, jute and silk is a further advantage of the textile industry, which can look back on a long tradition of processing. India is now the world's largest producer of cotton. In the cultivation year 2016/17 year (4.1 - 31.3) estimated 5.9 million tons are expected to be harvested.

The cotton will be processed into yarns and fabrics. For the production of yarns, 61 million spindles (measured in spindle equivalents) are available. In 2015/16, they spun about 5.7 million t of yarn, of which 4.1 million t are made out of cotton fibers. The production of cotton cloths was about 38 billion sqm., mainly produced in decentralized weaving mills with simple mechanical looms. The global trend in clothing, however, goes to artificial fibers. In order to protect their domestic production the Ministry of Finance levies tariffs.

Textile industry with its own ministry and many promotional programs 
The Ministry of Textiles subsidizes the sector through several programs, which support the technical modernization, the construction of industrial parks, qualification, training and marketing. Garment factories may even be reimbursed for duties and fees paid. For this purpose the budget of the Ministry of Textiles was once again significantly increased in the financial year 2017/18.

The textile and clothing industry does not only want to score on the domestic market, it also wants to play a bigger international role. In a five-year plan, the Ministry of Textiles had targeted an expansion of exports to USD 64 billion by 2016/17. This target has not yet been achieved, in 215/16 the exports of textiles and clothing amounted to USD 37.6 billion. The exports of textiles even shrank against the year before. 

Textile and clothing industry in India (financial years from April to March) 
  2014/15 2015/16
Export of textiles in USD Billion  21.7 20.6
Imports of textiles in USD Billion 5.5 5.4
Export of clothing in USD Billion 16.8 17.0
Imports of clothing in USD Billion 0.5 0.6
Change in the production of textiles (in %) 3.7 2.2
Change in the production of clothing (in %) 0.2 14.7

Sources: Ministry of Textiles, Ministry of Statistics and Programme Implementation

The local garment industry has good chances of development on a large and growing domestic market. According to industry estimates the retail sector sold clothing worth approximately USD 45 billion in 2016. Experts say the world's fifth-largest market is expected to grow well above 10% in the medium term. The backlog of the 1.3 billion inhabitants is not yet covered. The trade imports international branded goods mainly from China and Bangladesh. Standard articles and custom-made products are sewn by the local industry.

Garment sector with opportunities and problems 
Cheap wages are a location advantage. They vary however very different within the subcontinent. The statutory minimum wage regulations differ between the 29 federal states. In addition the person's age, the company membership and abilities are used to calculate the minimum wage.

Due to the increasing production costs in China, labor-intensive manufacturing is moving to more favorable locations. Not only labor costs play a major role here. The complex labor law strongly restricts the efficiency of labor markets in India. Investors consider the labor law, logistics and the structure of supply chains as to be difficult. The World Bank found in its study "Stitches to Riches" in 2016 (see https://www.openknowledge.worldbank.org/handle/10986) that Bangladesh, Indonesia, Cambodia and Vietnam, surpass the competitor India in the points quality, delivery times, reliability and sustainable social responsibility.

India is also missing free trade agreements (FTAs) which facilitate access to international markets and regulate them reliably. The European Union and India have been negotiating as an example a comprehensive FTA for over 10 years with longer interruptions.

Fragmented sector structure with international Champions 
Information on the number of companies, their size classes and investment volumes are not available. Smaller textile companies and retailers are partially not registered and do not pay taxes. Medium-sized companies are very flexible, but they need to   mechanize, automate and upgrade technically in order to survive.
Larger companies look back on their long-standing tradition and have developed into internationally networked corporations. According to the Indian financial service Moneycontrol, the three largest corporations in the clothing industry are: KPR Mills (last net sales circa USD 300 million), Page Industries (USD 270 million) and Gokaldas Exports (USD 170 million); In the textile sector in general: Bombay Rayon (some USD 640 million), Sutlej Textiles (USD 350 million), SEL Manufacturing (USD  300 million), Mandhana Industries (USD 250 million); in the knitting sector: Nahar Industrial Enterprises (USD 270 million), Rupa (USD 160 million); Cotton spinning: Vardhman Textiles (USD 860 million), Trident (USD 560 million), Indo Count (USD 310 million); Spinning of synthetic fibers: RSWM (USD 450 million), Indorama (USD 390 million), Sangam (USD 230 million); Weaving and other processes: Alok Industries (USD 1.8 billion), Welspun (USD x750 million), Garden Silk (USD 370 million); Other areas: Arvind (USD 830 million), Nahar Spinning (USD 310 million), JBF Industries (USD 550 million), Bombay Dyeing (USD 280 million).

Foreign textile companies invest and explore
The government is promoting the "Make in India" campaign in the textile sector for foreign direct investments. Company foundations are for 100% in foreign hands (see http://www.makeinindia.com/sector/textiles-and-garments). The sector attracted USD 2.4 billion from 2000 to 2016 in FDI.

Foreign companies can explore the markets at various trade fairs. The textile ministry wants to expand the “Textiles India”, which took place in Gandhinagar (Gujarat) in June 2017, to a mega-event (https://www.textilesindia2017.com). The international garment industry also met at the same time at the „India International Garment Fair" (http://www.indiaapparelfair.com).

The "National Garment Fair" will take place from July 10th to 12th in Mumbai (http://cmai.fingoh.com/event/65th-national-garment-fair-1/Registration). And Messe Frankfurt is organizing "Techtextil India" from September 13th to 15th in Mumbai. Here German exhibitors can participate in a community stand (http://www.auma.de/de/messedatenbank/seiten/moesetailseite.aspx?tf=135499).

Internet addresses
Name Internet address Remarks
Germany Trade & Invest http://www.gtai.de/Indien Foreign trade information for the German export economy
AHK Indien http://www.indien.ahk.de Starting point for German companies 
Ministry of Textiles http://www.texmin.nic.in Ministry
Office of Textile Commissioner http://www.txcindia.gov.in Authority
Confederation of Indian Textile Industry http://www.citiindia.com Textile confederation
Textile Association India http://www.textileassociationindia.org Textile industry association
The Clothing Manufacturers of India http://www.cmai.in Clothing industry association

 

Source:

Thomas Hundt, Germany Trade & Invest www.gtai.de

Kind + Jugend - Fair in Cologne © Koelnmesse GmbH
27.06.2017

KIND + JUGEND 2017 GATHERS THE WHO'S WHO OF THE CHILDREN'S OUTFITTING INDUSTRY

Preparations for a successful Kind + Jugend from 14 to 17 September 2017 in Cologne are running at full speed, and the leading international trade fair for baby and children's outfitting is really picking up speed. Four months before the event, around 1,000 exhibitors from more than 50 countries have already confirmed their participation in the trade fair. Virtually all of the renowned manufacturers and brands have applied to participate. Around 85 percent of the confirmations are from foreign companies. In addition to the comprehensive industry offerings, the target group-specific event program, the so-called Support Circle, is considered to be one of the key factors of the trade fair’s success.

Preparations for a successful Kind + Jugend from 14 to 17 September 2017 in Cologne are running at full speed, and the leading international trade fair for baby and children's outfitting is really picking up speed. Four months before the event, around 1,000 exhibitors from more than 50 countries have already confirmed their participation in the trade fair. Virtually all of the renowned manufacturers and brands have applied to participate. Around 85 percent of the confirmations are from foreign companies. In addition to the comprehensive industry offerings, the target group-specific event program, the so-called Support Circle, is considered to be one of the key factors of the trade fair’s success.

In past years, the traditional trade fair Kind + Jugend has been able to continuously expand its position as the world's leading trade fair of the baby and children's outfitting industry. Exhibitors from the industry of many years, including the following key players, contribute to this: ABC Design, aden & anai, Alvi, Angelcare, Artsana-Chicco, Baby Björn, Babymoov, bibi-Lamprecht, Bebecar, Brevi, Britax Römer, Cam il mondo, Combi, Concord, Cybex, Delta Children, Diono, Dorel, Doudou et Compagnie, ergobaby, Easywalker, Foppa Pedretti, Gautier, Geuther, Hauck, Hartan, HTS, iCandy, Infantino, Jané, Joie/Nuna, Joolz, Kaloo, Kiddy, KidsII, Kidsmill, Lässig, Lodger, Mayborn – Jackel, Medela, Munchkin, Mutsy, Nattou, Newell, Noukies, Novatex, Nuby, Nürnberg Gummi, Odenwälder, Paidi, Peg Perego, Philips Avent, Pinolino, Playgro, reer, Reisenthel, roba-Baumann, rotho, Schardt, Sauthon, sigikid, Silver Cross, Sterntaler, Suavinex, Takata, Tobi, Uppababy, Vulli, Wickelkinder – manduca and Julius Zöllner. Kind + Jugend also has renowned exhibitors or returnees in all segments, like Blue Seven – H. Obermeyer, David Fussenegger, Didis, Koelstra, lief! Lifestyle, nobodinoz, Teddy-Hermann, Tiriciclo and VTech.

In addition to the high-class product show, the leading international trade fair once again offers an interesting event and supporting programme with many awards for all exhibiting companies, from start-ups and young designers to established, globally active brand manufacturers.

The successful and proven concept of the "Support Circle" is thereby oriented to the typical development and distribution chain of a product. A convincing concept and a prototype is always at the start of a product development process. Kind + Jugend presents the best prototypes with the nominees of the KIDS DESIGN AWARD. Further information can be found here:
http://www.kindundjugend.com/kindundjugend/Trade-Fair/Events/Kids-Design-Award/index.php 

The DESIGN PARC presents extraordinary objects, furniture and toys that are already ready for the market, and thus offers a good possibility for traders to distinguish their assortment from those of competitors. The newly created #DESIGNINFOCUS design hotspot in hall 11.1 rounds off the offering in this segment.

The Kind + Jugend Innovation Award is a permanent fixture in the industry and is viewed as an important marketing and sales argument in the trade. The award is seen as a springboard for establishing oneself on the market with a product. The award is traditionally conferred in eight categories at the start of Kind + Jugend on the first day of the fair.
Further details: http://www.kindundjugend.com/kindundjugend/Trade-Fair/Events/Innovation-Award/index.php or http://news.kindundjugend.de/2017/02/kind-jugend-fragt-nach-ein-interview-mit-whisbear/

A real drawing card is the Consumer Award, which was established in 2014, with which Kind + Jugend addresses the wish of visitors to also be presented with the favourite products and best sellers of the consumers that are already well-established on the market in addition to the brand-new product innovations. This year the following partner magazines and portals provided support with the surveying of consumers: Germany participated with 1st Steps, the Netherlands with Baby Stuf, Austria with NEW MOM, Poland with Branza Dziecieca, Russia with Rodi, France with Parole de Mammans, Turkey with Baby & Kids Store and the UK with Mother & Baby.

Kind + Jugend supports startups and smaller companies in the form of country pavilions. This year there will be group stands from Australia, the UK, France, South Korea, Latvia, Singapore, Spain, Taiwan and the USA. Twenty young German companies will also present themselves in the special area of the Young Innovative Companies, which is sponsored by the Federal Ministry for Economic Affairs and Energy (BMWi).

The Kind + Jugend Trend Forum also offers valuable pro tips and best practices for everyday application in the form of lectures, discussion groups and workshops. High-quality speakers will pick up on the trend themes of the industry and acknowledged experts will present information and strategies that are tailored to meet the needs of the trade and which are practice-oriented, as well as offering the trade visitor added value. The benefits of visiting the trade fair are thus double.

Online admission tickets are available under the following link:
http://www.kindundjugend.com/kindundjugend/For-Visitors/Admission-ticket/index.php

Chinese textile and clothing industry © Walter Babiak / pixelio.de
02.02.2016

CHINA'S TEXTILE AND CLOTHING INDUSTRY IS ORIENTATING TOWARDS NEW

  • Creating local branding
  • Gradual relocation towards abroad

Beijing (gtai) - Away from cheap mass production or relocation are the alternatives for the Chinese textile and clothing industry. A domestic "Go-West" does probably not pay off in the long term, the migration however to Southeast Asia has already started. At the same time German quality suppliers expect new sales opportunities if the companies strengthen their competitive position through more quality. This became clear at the last "Intertextile" October 2015 in Shanghai.

  • Creating local branding
  • Gradual relocation towards abroad

Beijing (gtai) - Away from cheap mass production or relocation are the alternatives for the Chinese textile and clothing industry. A domestic "Go-West" does probably not pay off in the long term, the migration however to Southeast Asia has already started. At the same time German quality suppliers expect new sales opportunities if the companies strengthen their competitive position through more quality. This became clear at the last "Intertextile" October 2015 in Shanghai.

The Chinese textile and clothing industry is under massive pressure of costs. Away from cheap mass production or relocation is the need of the hour. Until now the industry is primarily located at the Pearl River and the attached Yangtze River Delta, where wages on average are the highest nationwide. According to the China National Garment Association (CNGA) about 70% of the production volume account for the five provinces of Shandong, Jiangsu, Zhejiang, Fujian and Guangdong.

Supported by the policy is the move to the more favorable central and western provinces. This happens not least to the preservation of local jobs and the development of the far less booming regions of the country. In this sense not only the CNGA endorses the relocation of clothing manufacturers to Xinjiang. In the western province 30% of the cotton of the country is grown, which with 6.2 million tons in 2014 is the largest cotton producing area in the world. After association investments the authorities are planning investments amounting to USD 3.2 billion, amongst other things for the establishment of "Textile Industry Parks".

Another attempt to shift the Chinese textile industry from the coast to the west, represents the Ningxia Ecological Rextile Industrial Demonstration Park, which was opened in December 2014. According to China.org.cn by 2020 here about 50,000 people work should be working there in the textile industry.

"Go West" is not attractive for private textile and clothing companies

To which extent these efforts will be successful remains to be seen. However, said by a Chinese businesswoman, "Go West" at best will be a medium-term solution, because also there sooner or later the wages would rise (not to mention the already there noticeable higher logistics and other costs). If to move, then only to permanently cheaper overseas locations. A migration to Vietnam, Bangladesh or Cambodia is already going on. But the fact is that so far a large displacement wave - at home or abroad - has not yet happened.

That Vietnam and Bangladesh have climbed in a few years to the third and fourth place of the main source countries for the PRC in terms of clothing (Vietnam: USD 587.5 million, Bangladesh: USD 364,7 each in the first ten months of 2015 for HS-Pos. 61 and 62), results very predominantly on already shifted production capacities of Chinese manufacturers. They bring their products from there back to China to sell them here.

Vietnam as a manufacturing site should also gain in the course of the in October 2015 successfully completed negotiations for the Trans-Pacific Partnership (TPP) trade agreement between the US and Vietnam in importance for Chinese enterprises. After coming into effect exports from Vietnam to the United States will be duty-free. In November 2015 for example was to read in China Daily, the Huafeng Co. of Shandong would be planning to build a textile mill in the Southeast Asian neighboring country with an investment of 700 million Renminbi (RMB - approximately 110 million USD, 1 USD= 0,157 RMB, the average rate as of November 2015).

Cambodia does not play in the foremost league yet, but pushes with power forward: During the named period, imports of knitted and crocheted clothing rose by 38.1% to USD 124.8 million (HS-Pos. 61) and other clothes (HS-Pos. 62) by 18.4% to USD 32.3 million.

However, for the relocation certain limits are set as the target countries often reach their capacity limits. Considered has to be the in China existing extremely advantageous integration of the various stages from cotton growing over the wide textile processing up to the final cutting and sewing of clothing.

Superiority in quality rather than relocation

Instead on a further relocation innovative companies and designers rely on an upgrading of their products. The aim is to serve more demanding customers in the Chinese market - and to position themselves abroad. To these belongs the fashion designer Ma Ke, who designs clothes for China's First Lady Peng Liyuan, or Guo Pei, who caused stir with her creation for the singer Rihanna at the Met Gala 2015 in New York.

Apart from individual stars of the scene also increasingly large companies such as the down jacket specialist Bosideng or the men’s wear designer Mark Fairwhale and Ningbo PeaceBird move away from pure volume production towards brand building and quality. Bosideng has even opened its own flagship store in London. The awareness of important Chinese brands such Heilan Home or Metersbonwe is still limited to local customers, for the majority of European buyers they are not a concept. But according to sector insiders this is likely to change, step by step.

Market share of the 10 most important suppliers for men’s wear in China 2014
Brand Country of origin Market share (in %)
Heilan Home PR China 2.9
Jack & Jones (Bestseller) Denmark (Tianjin) 2.4
Nike USA 1.0
Youngor PR China 1.0
Uniqlo Japan 1.0
Romon PR China 1.0
GXG PR China 0.9
Adidas Germany 0.8
Metersbowe PR China 0.8
Mark Fairwhale PR China 0.7

Source: China Daily based on Euromonitor

For German suppliers in terms of top materials (usually the most expensive materials), accessories (such as interlinings, buttons, thread, packaging) or also in cutting and sewing, China remains interesting. This was demonstrated once again at the last "Intertextile" in October 2015 Shanghai.

Two opposing trends are apparent: On the one hand exhibitors reported about a shift in demand to other countries in the wake of rising wages and ancillary wage costs. On the other hand suppliers of more expensive products can now look and hope beyond of inexpensive mass markets to the emergence of new niches, so a producer of woven-real hair fur materials. A provider of real horn buttons thinks similar.

The next "Intertextile" with a German pavilion takes place from October 11th to 13th 2016 in Shanghai ("Intertextile Shanghai Apparel Fabrics Autumn Edition"; information under www.auma.de or www.intertextile.com.cn).

Generally exhibitors recommend for risk diversification to build a second pillar next to the site in China. "The caravan moves on," is said. Currently the lowest wages for garment workers are being paid in Bangladesh, the country also benefits from duty-free agreements for imports into the EU. The latter also applies for Cambodia. Also very competitive the seamstresses are working in Vietnam and India. Moreover, Africa (specifically for example Ethiopia) will play an important future role, also a production facility in Korea (Dem.) is not outrageous for Chinese textile companies.

In general free trade agreements should get considerably more weight in future, as this is the case today.