Plan Your Exhibiting to Take Advantage of Weak Dollar
The deepening U.S. economic slump is having an impact on the activities of many German trade fairs, whose business interests span the globe. Simply put, a weak dollar relative to the euro means it costs more for Americans to travel to, and buy products from, Europe. It means the exact opposite to Europeans interested in traveling to the United States or buying U.S. products.
U.S. exhibitors and attendees are most likely thinking twice about visiting trade shows in Germany because of the expense. At the same time, the products and services U.S. exhibitors have to offer are the best value they've been in quite some time, giving them a competitive edge over European and other exhibitors at German shows, despite the higher costs of travel, housing and exhibiting.
Representatives of many messes said they are trying to lure both exhibitors and attendees to Germany by cutting costs and making the case for participating. The weak dollar is also drawing Europeans to the United States, and foreign attendees, with their stronger currencies, are "over-running" U.S. shows.
The expense of attending European shows will be a reason for caution to U.S. buyers at European shows this spring and summer. In some cases, there is really little choice. For instance, drupa, (printing industry), and interpack, (packaging), are the leading global exhibitions in their industries, yet neither is held every year. For many exhibitors, such shows are integral parts of their marketing plans and can't be ignored, despite the economic vagaries.
Even so, some U.S. companies would probably send fewer buyers to German shows because of the expense of hotels, airfare and meals. For example, some will send only two people instead of five; and shorten their stays.
Because of its size, whatever happens to the U.S. economy has an impact on the rest of the world. In fact, Europeans are having trouble selling products to Americans, both here and overseas, because of the 50-percent drop in the U.S. dollar, relative to the euro, during the past five years
On the other hand, American products haven't been as affordable as they are now in decades, making this a great time to make contact with buyers holding strong currencies. The low dollar has made U.S. products extremely competitive, and companies that in the past would have never considered exporting are now showing much more interest. For many U.S. companies, the temptation is to dig a hole and hide in it - and deny an excellent opportunity in the process.
Because of anxiety in the business world, international trade shows have become a harder sell. In a downturn though, spending should increase, not be cut back. Exhibitors should try to increase market share since the market isn't growing. Some companies may not be exhibiting overseas but, as the dollar declines, look for more, not less, U.S. participation, especially from small to midsized companies in U.S. pavilions or with turnkey packages.
Events such as IDS (dental), Intermot (motorcycles) and Anuga (food and beverage) continue to grow, even as exhibitors from countries with weak economies reduce their marketing budgets by sending fewer employees and taking smaller exhibiting spaces.
It is certainly more cost-efficient for European companies to exhibit in U.S. shows, but they may not be aware of the challenge of pricing their products for the U.S. market. At the same time, European show producers are creating more value-added services and ROI opportunities for clients, at the same time reducing as many costs as possible, such as in the area of housing, to combat the effect of the weak dollar.
All in all, it's safe to say that there is money to be made with smart investing in the right overseas venue.
- Adapted from "The Value of a Weak Dollar," Tradeshow Week, April 14, 2008