Nürnbergmesse Group Announces Expanded International Strategy
NürnbergMesse intends to be one of the globalization winners and grow its international revenues from the recent figure of $ 7 million to some $ 64 million by 2020 – an increase of approximately 900 percent. "To do this, it will be necessary to establish subsidiaries in all key economic regions and acquire exhibitions and exhibition companies worldwide, " said Bernd A. Diederichs, Managing Director of the NürnbergMesse Group. The Nuremberg-based exhibition company now has subsidiaries in China and North America and is currently examining about half a dozen serious acquisition candidates. The NürnbergMesse Group intends to invest more than $ 125 million in international growth by 2020.
"Our strategic planning is based on the scenario that key trade shows will develop in the growing economic regions of the world and that they will be better able to reflect the product flows within regions than the existing exhibitions in Europe, " said Diederichs. "For that reason, it will become increasingly important to have a presence in these markets." Therefore, his goal and that of his team is to develop globally equivalent exhibitions parallel to the exhibition concepts in Nuremberg and, in so doing, achieve global market leadership in the best case scenario. Around 30 additional exhibition concepts are to be established worldwide by 2020 in addition to the existing twelve trade shows. For this international expansion, the NürnbergMesse Group is including capital expenditure of approximately $ 125 million in its planning for the next few years.
"In the organic products segment, BioFach in Nuremberg and its daughter exhibitions in North America (Boston), South America (São Paulo), Japan (Tokyo), China (Shanghai) and a new one to be established in India (Mumbai) have already made us the world market leader. Our progress has been very promising in areas such as refrigeration and air conditioning, windows and facades, coatings, pet products, mechanical process engineering and metrology. In other segments, we are still at the beginning, " explained Diederichs, while stressing that globalization of these topics is not an end in itself. "We want to provide our clients optimal support on the rough road to the global market, and at the same time, of course, we need to protect our existing concepts in Nuremberg and support their continued growth by establishing worldwide exhibition networks."
The growth is to be reflected in an even higher growth in revenues: Already in fiscal 2008, the NürnbergMesse Group's international revenues increased by 75 percent to just under $ 13 million (2007: $ 7.4 million). Further growth is to be accelerated by establishing subsidiaries in key growth markets, developing new trade shows and acquiring exhibitions and exhibition companies. "We are currently looking at about a half dozen exhibitions and exhibition companies and we are firmly convinced that some of them are very strong candidates for us, " reported Diederichs, who did not disclose price details while referring to current negotiations.
Trade show acquisitions already completed include IPB International Powder/Bulk Conference & Exhibition and IAC, TME + SENSOR, which in the future will be organized under the direction of NürnbergMesse China. It did not take long for word of the successful outcome to spread: After the announcement, Mesago decided to run its PCIM China exhibition with a complementary theme concurrent with IAC, TME + SENSOR. "More can be expected from this powerhouse in the future, " promised Diederichs.
In addition to China (BioFach China, Fenestration China, IAC, TME + SENSOR and IPB), the NürnbergMesse Group has a presence with trade shows in Japan (BioFach Japan, Natural Products Expo), Russia (CholodExpo), North America (BioFach America, American Coatings Show), South America (BioFach América Latina, Expo Sustentat) and will be in India (BioFach India) starting in 2009.
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