--- Interviewee: Mr. Mao Daben, Managing Director, Munich Trade Fairs (Shanghai) Co., Ltd

Messe Munich International is a world top 10 and Germany top 5 trade show group based in Germany. In 1975, it organized in China the first German technology exhibition in Beijing through IMAG, its wholly owned subsidiary. In 1995, Messe Munich International set up Jingmu, the first joint venture trade show company in China, with CIEC Group, CCPIT.

The business Messe Munich International runs in China falls into two parts: the Shanghai New International Expo Center which started a new era of in trade show venue construction in China, joint ventured with two other trade show companies, Hanover and Dusseldorf; and its wholly owned subsidiary Shanghai --- Munich Trade Fairs (Shanghai) Co., Ltd, through which it organizes exhibitions in this country.
Through the years Messe Munich International has accumulated incomparable experiences in trade show investment and organization in this place. China Trade News recently interviewed Mr. Mao Daben, the Managing Director of Munich Trade Fairs (Shanghai), on the progress foreign trade show companies are making in China.

Mr. Mao introduced that Messe Munich International joined in the investment and construction of Shanghai New International Expo Center in 1999 in order to better serve the vast Chinese market. GEC, a venue management company, is also established together with the two other owners, Dusseldorf and Hanover, to operate SNIEC.

Now the investment is repaying very good economic as well as social benefits.  For years SNIEC has ranked top in the industry.  Authoritative research on Chinese exhibition venues shows that the turnover rate of SNIEC is among the best of the world at 18 times. Even the Munich Trade Show Center where Messe Munich International headquarters at has only a turnover rate of 14, others usually fall at around 10. Mr. Mao said that SNIEC housed 81 exhibitions last year and had a utilization rate of 58.55%, the best of all venues in China. It is a clear proof of the success of SNIEC in either its construction or management and also a model for future similar constructions.

Regular event organization in China by Messe Munich International began in 2000 since the establishment of Munich Trade Fairs (Shanghai). Mr. Mao said that apart from the transplanted shows from Messe Munich International, the Shanghai Company also organized new events as New Lifestyle and has achieved very good results. The highly professional events are not only targeted at first-tier cities as Beijing and Shanghai, but also taking place in other medium cities like Qingdao, covering nearly all industries and locations.

The eight trade show brand Munich Trade Fairs (Shanghai) runs fall into 3 categories: capital goods, consumer goods and high-tech, including bauma China, ispo China, electronica & ProductronicaChina and transport logistic China. Among them, bauma China makes the biggest hit. It is now the largest construction machinery exhibition in Asia, and the third largest in the world. In 2008, bauma China used 210,000 sqm of exhibition space, only next to bauma in Munich (540,000 sqm) and Las Vegas (320,000). A total of 1,608 exhibitors participated. The originally develop NEW LIFESTYE SHOW has been held for two times in Qingdao and Shanghai also. A large number of exhibitors joined in and enjoyed favourable results.

Mr. Mao emphasized that other than the regular shows the company organizes, it has also expanded to related areas: venue construction and management consulting, a unique service Messe Munich International offers. It is based on the experiences and resources Messe Munich derived in years of operation. The group runs venues both in Germany and China and is involved in their design and construction all the way to daily management. It also has been providing consulting to developers and regional governments in different part of the world. The consulting targets at governments and developers willing to construct venues, a trend of recent years in China. Earlier this year, Munich Trade Fairs (Shanghai) has introduced such services into this country.

The consulting includes: 1, planning, designing and construction; 2, management, framework and personnel training.
According to different conditions and needs, the consulting service is offered in 4 stages:

1. Market study --- preliminary researches in location, traffic, investment environment and other planning-related areas.
2. Design and planning --- construction planning based on clients needs, for example height of the building, capacity, logistics, traffic flow, energy-saving and efficiency.
3. Economic analysis --- advices on the orientation of the venue according to the local economy.
4. Personnel training --- training of professional personnel in management and operation.

When talking about the unique competitive edge Munich Trade Fairs (Shanghai) enjoys in the consulting service and its localization, Mr. Mao commented that through the many year of operation in China, Munich Shanghai has discovered that local authorities are eager to develop their trade show industry as the opening-up policy goes deeper. However in the past such decisions have always been made upon personal experiences rather than actual study of the region, and thus are weak in functionality and applicability. Munich shanghai uses the scientific methods Messe Munich Group adopted and applies them in the Chinese market to help Chinese governments better construct and manage their exhibition venues.

Mr. Mao used an example to illustrate to us the importance of a scientific decision: the shortest distance from the exhibition halls and the unloading areas is 38 meters at the Munich New International Expo Center. The number is not randomly selected but based on research and study. Thirty-eight meters is exactly the distance the largest truck manufactured in Europe has to use to turn around. Such design can make the loading and unloading easier while at the same time save on the use of land to the maximum. The story is a very good example of why scientific studies have to be adopted in site selection, construction or management and operation. It is also the reason Munich Shanghai introduces such services.

We are also acknowledged that not long ago Munich Shanghai set up its first office in Shenzhen to operate its business in Southern China, an important move in its localization.

Messe Munich International exports its global strategy into China. In the 10 years of operation, it is active not only in exhibition investment and management, but also venue construction and management consulting to better localize and serve the Chinese market.  From Jingmu to Munich Shanghai and the construction of SNIEC to consulting services, the group has continuously expanded its businesses and helped the Chinese trade show industry. It has made its unique contribution to the modernization and internationalization of China.

Source: China Trade News  Cao Yi