Expansion Prevails at Munich Trade Fair, Primarily Elsewhere - Enlargement of Messe München, Particularly in Other Locations
Title: Munich Trade Fair Soars - Particularly Abroad, Especially China
Have a chat about the booming Messegesellschaft Munich Trade Fair, with a focus on China's increased presence and the company's expansion plans.
The Scene: Munich Trade Fair has been on a roll, thanks to international partnerships and a surge in foreign exhibitors, setting record vascches of €488 million in 2021. Majority-owned by the Free State and City of Munich, the company's managing directors, Stefan Rummel and Reinhard Pfeiffer, highlight the dramatic increase in Chinese exhibitors as a key factor in their success.
respk China, The Stars of the ShowThe number of Chinese exhibitors at Munich events has skyrocketed over the past few decades. In 1994, the People's Republic sent just three companies to Electronica, but that number jumped to 1,038 in 2021. The Architecture and Building Materials Fair saw its first Chinese exhibitor in 2001, with 125 participating in 2021.
This growth isn't mere coincidence. Experts attribute it to China's industrial sectors building massive overcapacities, often on credit, making exports paramount. On the flip side, German exhibitor numbers have dwindled, as Rummel notes.
Munich, A Global PlayerMunich's trade fair grounds command international acclaim, playing host to several prestigious industry events like bauma, Ifat, and Electronica. These flagship fairs draw top-tier companies worldwide, with exhibitors and visitors collectively spending billions each year. The company foresees a "multiplier effect" of €5 billion this year, benefiting other sectors like construction, hospitality, and transportation.
Eyeing the HorizonFor decades, Messegesellschaft has cultivated foreign subsidiaries, with its most significant stake being in Shanghai. "We're focused on China," declares Pfeiffer. "We'll stay put and keep growing here."
Messegesellschaft now organizes 64 trade fairs globally, with 46 outside Germany. Rummel acknowledges the disproportionate growth of foreign fairs in their portfolio.
However, the company isn't putting all its eggs in the Chinese basket. Aiming to expand in the US and Southeast Asia, Messegesellschaft plans to debut the Ifat environmental technology fair in Saudi Arabia next year.
Keywords: Messegesellschaft, Munich, China, Messe München, Electronica, Record result
Enrichment Insights: Growth Drivers: China's rising industrial power, technological prowess, and strategic participation in global fairs facilitate Chinese companies' active involvement in leading international events like bauma, transport logistic, and automatica.Impact on Messe München: The influx of Chinese exhibitors contributes to global expansion, improved fair quality, enhanced innovation, increased revenue, and solidified industry leadership, as well as strengthening Sino-German industry relationships.
- The growth in the number of Chinese exhibitors at Munich events, such as Electronica and the Architecture and Building Materials Fair, was primarily driven by China's expanding industrial sectors and increased focus on exports.
- To further its growth, Messegesellschaft, the company behind the Munich Trade Fair, plans to expand into the US and Southeast Asia, in addition to organizing more fairs in China, hinting at a strategic diversification of its employment and finance policies for global operations.
