Germany: Europe's Gateway to America

German tradeshows offer an incentive to American participants that is hard to resist amid a troubled economy: entrée to not only German markets, but also to Europe and beyond. And that’s an important selling point for U.S.-based exhibitors.

“U.S. exhibitors don’t just 'feel’ that German tradeshows are gateways to Europe,” said Harald Koetter, director of public relations and market transparency for AUMA (The Assn. of the German Trade Fair Industry). “Exhibitors can expect lots of customers and potential customers from other countries who are on average 25 percent of all attendees.”

Officials at U.S. companies confirm the advantages of exhibiting in German shows. Dean B. Chapman, president and founder of Prepara, said, “Ambiente at Messe Frankfurt has the most far-reaching impact of any show in our industry, within Europe and beyond. We enjoy the huge variety and mix of high-quality retailers, and the show is longer than others, which gives us more value.”

And Dennis Madden, senior vice president of sales and marketing for Amalie Oil, said Messe Frankfurt represented his company’s introduction to Europe many years ago. That first show was very successful, allowing him to grow his European business rapidly and, because of the international attendees, giving the company the opportunity to launch its Asian and Middle Eastern businesses as well, he added.

In fact, most Americans with experience in international tradeshows know the value of German shows, said Art Paredes, president and CEO of Hannover Fairs USA, the U.S. subsidiary of Hannover, Germany-based Deutsche Messe.

For him, the reason Germany is Americans’ gateway to Europe is easy to figure out: roughly 25 percent of all European demand for products is from Germany, and products that sell in Germany sell elsewhere too. Plus, German tradeshows attract buyers from everywhere, especially as the gap between Western and Eastern Europe is breached, Paredes said.

“The Asian, African and South American presence at German shows has grown at our bigger events, including CeBIT, Hannover Messe and our flooring and biotechnical shows,” he added. “For U.S. exhibitors, alternative and renewable energy events are a big draw. In those industries, Germany and the U.S. are ranked Nos. 1 and 2 in the world. And, in 2010, Hannover Fairs will launch a U.S. renewable energy pavilion focusing on green technology.”

Messe Hannover knows these are challenging times for U.S. companies, Paredes said. Exchange rates are rough, and the situation with the U.S. economy is less than desirable, so Messe Hannover offers attractive packages and works with U.S. firms on due diligence with on-site teams to set up meetings in advance, working with its network of representatives in 70 countries and the U.S. Commercial Service, he added.

“We’re able to take it a step further in the U.S. because of the support of the U.S. government and the U.S. Commercial Service,” Paredes said. “The U.S. is considered an A-level market, so we put lots of effort into U.S. exhibitors.”

Selling the European market to potential American exhibitors is a major part of Hannover Fair’s pitch because, for the most part, the leading tradeshows in any industry are in Germany.

“All our shows have truly international participation, not just German: from the Middle East, Europe – everywhere,” Paredes said. “In Hannover, you’ll see the world, and that’s important in this economy.”

Still, German shows are a harder sell now, so Paredes and others have to communicate the value of their shows.

Their success is reflected in the fact that U.S. exhibitors in Hannover make up 10 percent of the showfloor and up to 40 percent of Deutsche Messe shows worldwide. “The percentage depends on the region and the industry, but more companies are looking beyond North America, either because they felt it wasn’t that necessary before the recession or didn’t have the capacity to handle increased demand,” Paredes said.

Depending on their needs and capabilities, U.S. companies might exhibit in the general population or in pavilions that sometimes are limited to American or North American exhibitors, depending on the market.

Pavilions are an excellent way for smaller companies to get started with their overseas marketing, Paredes said.

“We encourage startups to look at Germany as a starting point and consider whether their participation is a fact-finding mission, or they are actually ready to export product,” he added. “If it’s fact-finding, we recommend they not take a booth, but explore such other platforms as networking stations (kiosks) for smaller companies that want to expand internationally. And with packages from the U.S. Commercial Service, they can play on a large field for a small investment. We also have packages for mid-sized and larger companies.”

Hannover Messe also is marketing its shows to U.S. attendees. Much of industry and technology is U.S.-driven, with the decision makers in the U.S., so a new group is being created in Hannover to focus on attendee marketing, recognizing that the U.S. is the top market worldwide for attendance.

Separate attendee and exhibitor marketing programs are more important than ever, Paredes said. Putting more effort and investment into attendee marketing nearly guarantees buyers, who used to attend automatically. Their presence keeps exhibitors coming back, he added.

Anne Meerboth-Maltz, public relations director for Messe Duesseldorf North America, said if one had to pick a country that was the “headquarters” of the global exhibition industry, Germany should spring to mind first.

According to AUMA, she added, nearly two-thirds of the world’s leading events are held in Germany. Annually, around 150 international tradeshows take place there, attracting 160,000 to 170,000 exhibitors and 9 million to 10 million attendees. Overall, 2.7 million square meters (29 million square feet) of space is available at 23 different facilities in Germany, many of which are huge – four of the five largest exhibition centers in the world are in Germany.

But, perhaps even more important, is the economic impact of German tradeshows. Exhibitors and attendees spend €10 billion ($14.1 billion) annually on their tradeshow participation in Germany. That generates €23 billion ($32.4 billion) in economic activity and 250,000 jobs, according to AUMA.

Unlike most U.S. shows, German events tend to stay at one facility in one city. The facilities themselves, which usually are owned in large part by local municipalities, also often own the show brands as well. With fixed facilities and infrastructure and a set schedule of regular events, German tradeshow organizations can focus on the promotion and organization of their events, with the goal of turning them into the leading platforms for their respective industries, Meerboth-Maltz said.

Most importantly, several of these large shows truly are international, often with 50 percent or more of the exhibitors coming from outside Germany and one-third of the foreign exhibitors coming from outside Europe. Attendee-wise, almost one-fifth are from countries other than Germany, according to AUMA.

With statistics like these, it’s no wonder that U.S. companies, when looking to expand overseas, especially to Europe, choose Germany, Meerboth-Maltz said.

Despite some signs of recovery, budgets remain tight, and there simply is not enough money to take part in too many shows that do not provide a substantial ROI. The sheer number and quality of international attendees and exhibitors at German tradeshows give many U.S. companies the best bang for their buck, Meerboth-Maltz said.

Nearly 30 years ago, Messe Duesseldorf North America was the first German tradeshow subsidiary to be established in the U.S. Today, many of the biggest German players have U.S. subsidiaries or representatives.

“Because of the significant differences in how German and U.S. shows are organized, our goal is to make sure that our customers not only find the right show for their products, but to prepare them properly for the German exhibit experience and have a local contact to help arrange all the logistics required to do successful business overseas,” Meerboth-Maltz said.

Alexandra d’Archangelo, marketing manager for Messe Frankfurt, said the German exhibition industry has the longest tradition, most modern infrastructure and services, most important events across many industries, most innovative event formats – and is the best organized. For these reasons, Germany has more than 50 percent of the world’s tradeshow market.

And, with 28 subsidiaries and more than 50 sales partners worldwide, Messe Frankfurt has the tightest network to facilitate active consultation and support for its customers from approximately 150 countries, she added.

“On one hand, Messe Frankfurt USA knows the precise needs and cultural background of American customers,” d’Archangelo said. “On the other hand, Messe Frankfurt knows the conditions in Frankfurt. This results in the most convenient and efficient participation possible for our customers.”

Stan Fradin, president of Rockland Industries, said the most important reason he exhibits in German shows is his experience with Messe Frankfurt’s Heimtextil, the oldest and most successful international home textile tradeshow. The success his company has had in the international market during the past 30 years has been a direct result of attending and exhibiting at this show, he added.

“And, because Messe Frankfurt USA operates in Atlanta with English-speaking contacts who work as liaisons with Germany, (it) makes my life much easier,” Fradin said.