Ger­man events or­ga­nizer finds suc­cess in China

China Daily European Weekly - - Business - By WANG ZHUOQIONG wangzhuo­qiong@chi­

Messe Munchen GmbH, a Ger­man com­pany that spe­cial­izes in or­ga­niz­ing in­dus­try ex­hi­bi­tions, ex­pos and fairs, has in­creased its share of rev­enue from the China mar­ket on the back of strong growth of the high-tech sec­tor.

“Over the past 10 years, we’ve in­creased our rev­enues in China by 10 per­cent an­nu­ally, com­pared to 3 to 4 per­cent growth in Ger­many,” says Rein­hard Pfeif­fer, deputy CEO of Messe Munchen GmbH.

He at­tributes the com­pany’s suc­cess in China to the gov­ern­ment’s strong sup­port for emerg­ing, in­no­va­tion-driven, dig­i­tal seg­ments of in­dus­try.

Pol­icy sup­port has fa­cil­i­tated rapid growth of the high-tech sec­tor. This led to an in­crease in the num­ber and fre­quency of in­dus­try events, thus ben­e­fit­ing com­pa­nies such as Messe Munchen, he says.

Messe Munchen’s sub­sidiary, Fen­es­tra­tion BAU China, which was es­tab­lished more than 15 years ago in Shang­hai, or­ga­nizes 10 trade fairs in the coun­try.

Now, the China mar­ket ac­counts for 15 to 20 per­cent of to­tal rev­enue, he says. In 2016, par­ent Messe Munchen GmbH’s rev­enue reached 428.1 mil­lion eu­ros ($506.1 mil­lion) and is ex­pected to grow con­tin­u­ously this year.

Pfeif­fer is also bullish on China be­cause other emerg­ing seg­ments, like green build­ings, are gen­er­at­ing big growth op­por­tu­ni­ties for ex­hi­bi­tion or­ga­niz­ers.

For ex­am­ple, China’s prop­erty and con­struc­tion in­dus­try is spread­ing aware­ness of the burgeoning high-qual­ity build­ings seg­ment, which uses ad­vanced tech­nolo­gies, through ex­pos and fairs, he says.

Sim­i­larly, in­dus­tries like cap­i­tal goods and con­sumer goods, two of Messe Munchen’s strongholds, are wit­ness­ing adop­tion of ad­vanced tech­nolo­gies, ne­ces­si­tat­ing events and boost­ing the com­pany’s pres­ence in China, he says.

Fen­es­tra­tion BAU China is fo­cus­ing on the mod­ern con­struc­tion in­dus­try’s aware­ness needs in a holis­tic way, not just on or­ga­niz­ing its events, he says.

The fo­cus is not only on build­ing ma­te­ri­als but on build­ing sys­tems. Events or­ga­nized by Fen­es­tra­tion BAU China serve as a plat­form for the en­tire in­dus­try to solve prob­lems and de­velop a sup­port­ing pro­gram that can look at all is­sues in a com­pre­hen­sive way, he says.

“Ev­ery­thing is in­ter­con­nected with new tech­nolo­gies. For ex­am­ple, a ‘smart home’ is not only a way to live more com­fort­ably in your home but a ne­ces­sity to re­duce emis­sions and build an en­ergy-ef­fi­cient, sus­tain­able so­ci­ety.”

Messe Munchen ex­pects strong growth in China, given that the num­ber and qual­ity of new build­ings are get­ting higher, he says.

Other bright spots are the shows of the laser and elec­tron­ics in­dus­try, which have in­creased in China. The num­ber of Chi­nese ex­hibitors at such events has risen from 83 in 1998 to 1,569 in 2016, he says.

Sim­i­larly, Chi­nese pres­ence at fairs held in Mu­nich, Ger­many, is in­creas­ing. Chi­nese com­pa­nies go­ing global started with rel­a­tively sim­ple prod­ucts priced com­pet­i­tively. Now they boast big brands that of­fer top qual­ity and com­mand high prices, he says.

Every year, Messe Munchen holds more than 50 large-scale in­ter­na­tional ex­po­si­tions in Mu­nich and other parts of the world.

Rein­hard Pfeif­fer, deputy CEO of Messe Munchen GmbH

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.