Home » Destinations & Venues » Operation Status and Strategy of Global Top Exhibition Venues 1. Operation status and strategy of the largest exhibition venues in North America and Europe ① [Global top] Messegelande Hannover: a venue that led the revival and growth of the German economy in the wake of her defeat in World War II

Operation Status and Strategy of Global Top Exhibition Venues 1. Operation status and strategy of the largest exhibition venues in North America and Europe ① [Global top] Messegelande Hannover: a venue that led the revival and growth of the German economy in the wake of her defeat in World War II

With the globalization of the world’s event-organizing industry accelerating, global exhibition venues with a minimum area of 100,000m2 are looming as the mecca of international exhibitions. In Korea, KINTEX (Korea International Exhibition Center) secured an exhibition space of over 100,000m2 through its 2011 expansion, thus making the Global Top 50 Exhibition Centers. ICEM (Institute of Convention & Exhibition Management) published a report on the operation status and strategy of global top 50 exhibition venues in exhibition space, based on which we have prepared a special story on the operation status and strategy of the major exhibition venues of the world.
Contents

1. Operation status and strategy of the largest exhibition venues in North America and Europe
① [Global top] Messegelande Hannover: a venue with the world’s largest space that has led the revival of the German economy
② [Global 3rd] Fiera Milano: a venue with the world’s third largest space that carries out aggressive business diversification
③ [Global 8th] McCormick Place: a venue with North America’s largest space that has finished multi-stage expansion of its facilities

2. Operation status and strategy of exhibition venues based on multiplex facilities
① [Global 26th] Georgia World Congress Center: market expanded and regional economy reinvigorated with multiplex facilities
② [Global 32nd] Houston Reliant Park: multilateral markets created with the multiplex combining sports and events
③ [Global 52nd] Singapore Expo: multiplex facilities created to meet global demand

3. Operation status and strategy of Asia’s largest exhibition venues
① [Global 4th] China Import and Export Fair Complex: a venue with Asia’s largest space where China’s largest exhibition is held
② [Global 12th] Crocus Expo International Exhibition Center: an exhibition venue with Asia’s 3rd and Russia’s largest space
③ [Global 24th] IMPACT Arena Exhibition and Convention Center: a venue with Southeast Asia’s largest space

4. Operation status and strategy of eco-friendly exhibition venues
① [Global 33rd] Fiera di Roma: Europe’s foremost Green Expo hub
② [Global 36th] Leipziger Messe: Growth in Balance pursued
③ [Global 48th] Messe Stuttgart: responsibilities fulfilled through Green Statement
1. Operation status and strategy of the largest exhibition venues in North America and Europe
① [Global top] Messegelande Hannover: a venue that led the revival and growth of the German economy in the wake of her defeat in World War II
From the Symbol of the Postwar German Economic Revival to the World’s Largest Exhibition Venue
As Germany’s representative exhibition venue, Messegelande Hannover boasts a world-top size with an indoor exhibition space of 466,100㎡ on its site of 1 million ㎡. After its defeat in the Second World War, Germany decided to increase the export of its products to upgrade its economic revitalization and hold exhibitions according to its plan to revive its economy. Held at Vereinigten Leichtmetall Werke (“Combined Alloy Works“) for 21 days from Aug. 18 through Sep. 7, 1947, Hannover Export Fair attracted 736,000 or so visitors from 53 countries of the world. With 1,934 export contracts worth 31.6 million dollars signed at the venue, Hannover Export Fair became a symbol of the German economic revival.

Reborn as World’s Largest Exhibition Venue through Expansion of Infrastructure (1990-2000)
From 1990 through 2000, Deutsche Messe AG carried out a massive investment in infrastructure to ensure a successful implementation of Hanover World Expo 2000. As total 1.6 billion marks were spent in expanding the venue, the Hanover venue came to get the tagline as the world’s largest exhibition venue with the closing of Hanover World Expo 2000 on Oc. 31, 2000. Afterwards, steadily accommodating world-class exhibitions, it has maintained its status as the world’s largest venue.

Starting in 2004, Focus Placed on Globalization through Aggressive Approach to Overseas Markets
Starting in 2004, the business strategy of Deutsche Messe AG placed a focus on globalization, thus creating a portfolio of 27 exhibitions to be held abroad and pushing for event-organizing business in China, Southeast Asia, Australia, India, Brazil, Turkey, and the US. In 2008, the company began its penetration into the Russian, Chinese, and Indian markets through a joint venture with Fiera Milano, the largest Italian venue operator. Notably, the company created Hannover Fairs Shanghai Ltd. in 1999 with a view to advancing into the Asian markets, which has contributed to revitalizing the Chinese event-organizing industry by holding about 15 events a year in places including Beijing, Shanghai, Chengdu, and Guangzhou. Added to this, Deutsche Messe AG carried out reorganization to let Hannover Messe International take up the general management of the operation of its overseas event-organizing business and began its advancement into Eastern Europe in 2011 by creating the Russian branch of Deutsche Messe AG.

Averting the Worst Case Scenario for Economic Crisis by Running Strategic Program of “Hermes +”
2009 revenue for Deutsche Messe AG was 222.3 million euros, down 7.95% from the previous year (241.5 million dollars), while its net income registered a sharply increased deficit from 14 million euros to 28 million euros. The low-lying performance for 2009 seems to have been caused by the overall bad economy and the changed composition of the portfolio for the 2009 event. In 2008, Deutsche Messe AG was expected to register a 2009 deficit of up to 43 million euros, but the actual figure was 28 million euros, turning out much better than the forecast. And this is understood as an outcome of the reorganization by Deutsche Messe AG, which was grounded in the cost cutdown strategy designed to upgrade the efficiency of resource use. What was carried out as part of the strategy was Hermes+ Efficiency Program. Composed of more than 50 projects for creating profits and reducing operating costs, the program further strengthened the future sustainability of Deutsche Messe AG.

Promoting an Investment Project Worth 600 Mil. Euros, including 400 Mil. Euros for Facilities Refurbishing and 200 Mil. Euros for Acquiring an Event Organizer
It is expected that Deutsche Messe AG will continue to see improvement of its financial performance including increase in revenue and net profit from 2011 through 2014. Moreover, Deutsche Messe AG has decided to invest 600 million euros to refurbish the facilities of Messegelande Hannover and acquire an event organizer, which is the largest investment conducted for the last decade by Deutsche Messe AG. Through acquiring companies and launching new exhibitions, Deutsche Messe AG has continuously expanded its scope of operation and this aggressive business expansion is expected to continue down the road. Based on the modernization and facilities refurbishing for venues to be carried out in step with the business expansion strategy of Deutsche Messe AG, the global viability of Messegelande Hannover is expected to strengthen further while maintaining its status as the world’s No. 1 venue for the time being.

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