Page 2: Do trade fairs like IFA still have a future?

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We have talked about the public trade fair. Now such major events are increasingly taking place in hybrid formats to include online communities. What is IFA doing in this direction?

That's a good question. When it was clear that IFA Management GmbH was being founded, one of the strategic cornerstones was also how IFA would position itself digitally in the future and we will also do this in a completely different form next year.

I think it's a useful addition, but it shouldn't be overrated. From my point of view, we saw this at CES, which teamed up with Microsoft during the pandemic to create a digital trade fair. And my first thought at the time was that they were laying the foundations for the future. Of course, I don't know the details now, I just saw that they are no longer cooperating with Microsoft.

I also don't think it's currently relevant in this form. Of course, the website is important, that's clear, and we have completely overhauled it. But next year we will also be presenting a modified digital presence with other options.

Do tech trade fairs still play as big a role for the industry in the post-corona and digital age as they used to?

Well, when I'm out and about and talk to customers and marketing departments, you can clearly see that trade fairs actually play a role in all marketing budgets. The question for companies is whether they still need twelve trade fairs worldwide.

The big ones – to which we belong – if they do their job well and focus on the future, then customers will concentrate on them. The medium-sized trade fairs will probably have a harder time because the return on investment in terms of media and consumer contacts will be more difficult.

If fewer trade fairs are attended here and there, this also has to do with the brand's market situation, but it doesn't necessarily mean that trade fairs will be dispensed with or that we will only focus on our own events.

I think the currency currently is interaction: how often a consumer interacts with the brand. And a physical presence is always necessary for this. Apart from retailers and the media, they can communicate with consumers on site. And we have a good basis for this with IFA, which we want to expand.

Corona was the big reset for the entire event industry. We can now see that visitor numbers are slowly recovering. Do you think this is a sustainable development?

I believe that it is a sustainable development. Why is that? We are currently seeing that formats such as SXSW, EuroCucina, OMR and Gamescom are on trend and are partially fully booked. This will continue to be the case. Trade fairs that manage to turn it into a cultural event will also succeed in attracting the younger generation.

With the Sommergarten, we also have an entertainment platform that is very popular with artists. Even if it's not easy as a production location because concerts don't take place there every day. The cost is relatively high.

Bryan Adams is coming.

Exactly, Bryan Adams is coming this year to kick off the IFA, so to speak. And on Friday we'll have a lot of German artists on board with the 6Pm label, especially from the German rap scene, who appeal to the very young target group. They might not even have IFA on their radar yet. On Saturday we'll be addressing the electro audience again, Faceless will also be there.

So last but not least, I think that the trend is sustainable for those who are also working on their concept and developing it further.

We see that many new brands are coming from China, be it consumer electronics or household appliances. The topic of China is currently somewhat politically charged. How do you maneuver IFA through this area of tension with Chinese companies and possible political reservations?

This is a challenging topic, also because we are a member of the Clarion Group. If there are global decisions or sanctions, such as those against Russia, then of course we abide by them. We don't have a Russian exhibitor.

As far as China is concerned, as you know, China is Germany's largest export country. There are currently no indications or reasons for us to take a contrary position. On the contrary, China is an important driver of innovation from Asia. Anyone who lumps all Chinese companies together is making a huge mistake.

Let's take a look at drones for the consumer sector, I'm explicitly not talking about war material. It was the Chinese company DJI that developed this market in the first place and set quality standards. And this is also inspiring other companies to develop more in this direction. Companies that drive, don't copy.

With companies like Haier, Hisense or TP Vision, you can also see how the reputation of Chinese companies has changed. The quality standards have become higher and the products are much more durable than in the past. For specialist retailers, these are now adequate products that can also be recommended.

Then of course there is the other part, where I would say ten relatively unknown companies offer more or less the same product. They certainly only help the IFA to a limited extent. But the bottom line is that there is a tremendous amount of power coming from China, which is also part of IFA.

One of the living traditions of IFA was the opening by the Chancellor in earlier times. Olaf Scholz is also coming again. What do you expect from the German government with regard to a technology trade fair like IFA and the trade fair business as a whole?

That's an interesting question. I have learned that the Federal Chancellor and previously the Chancellor have not been here for a long time. That's why we are of course particularly pleased that this year the Chancellor will be opening the 100th anniversary gala, i.e. our birthday celebrations, and will also be taking a tour on the first day. That certainly shows the focus and appreciation.

Apart from that – and I know this doesn't just apply to us, but also to other trade fairs – it is very important for us to be international. Here and there, it is not so easy with work visas to ensure that all exhibitors who want to come get visas for their employees in time. I would like to see more accommodating processing of work visas within a reasonable period of time – because this sometimes prevents us from being bigger. The point is that people who support our economy here should also have quick access to our country and the trade fair.

You mentioned Clarion. That's the new partner in the team, an international organizer. What can it bring to the table and to what extent does it get involved?

Before I started working here, it was of course important for me to get to know who I was actually working with. The good thing is that I already knew one of them because I was on the supervisory board of the GFU. And of course I got an idea of how far Clarion intervenes, how detailed you have to coordinate day-to-day business or not, but also how I can benefit from their experience. Clarion has over 300 trade fairs, and they are very individual because they also have different laws in their countries because they have different cultures and so on.

You have to think of it like a construction kit: We decide which building blocks we use from the Clarion universe to build our house and which we leave in the box. That is a huge help because if you have people in the company who have a lot of event experience, then I would be pretty stupid if I didn't try to use them.

Finally, what would you say, are there any highlights you can already tell us that we absolutely must not miss at IFA 2024?

Firstly, there will be products launched on the same first day that will really make a global impact – and I'm not trying to exaggerate now. Secondly, there will also be movement in the area of household appliances that could influence the market. There will be something extraordinary in the beauty tech sector and also in digital health.

Mr. Lindner, thank you very much for the interview.

We conducted the interview in Berlin at the beginning of August.

(vbr)