President & CEO (Chairman of the Management Board), Messe Düsseldorf GmbH
Der Baas trifft Wolfram Diener
Folge von „Der Baas trifft“ mit Wolfram Diener, Vorsitzender der Geschäftsführung der Messe Düsseldorf. Wolfram Diener ist in ...
About Wolfram Diener
Wolfram Diener, President and CEO of Messe Düsseldorf, has discussed the financial impact of the COVID-19 pandemic on the company, stating that business declined by over 70% in 2020 and that a loss was unavoidable for that year and 2021, with hopes of reaching a break-even point in 2022. He noted that planned investments of over one billion euros for renovating the exhibition grounds over the next 10 to 12 years have been postponed indefinitely due to a lack of funds. Diener described the Caravan Salon in 2021 as a successful restart, with over 40% new customers and high satisfaction among exhibitors and visitors. Diener has emphasized the importance of physical trade shows, stating that exhibitors view the return on investment from virtual platforms as far inferior to that of in-person events. He identified Asia as having the highest upside potential for the trade show business globally. Diener also discussed Messe Düsseldorf's expansion into the B2C market in North America, including a partnership in Detroit, while noting that the rules for consumer shows differ significantly from B2B events.
Transcript (32 segments)
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Christian Herrendorf0:06
Welcome to the podcast of the Düsseldorfer Jonges. Every Monday, a new episode appears. I am Christian Herrendorf and I moderate this meeting. Our guest today is Wolfram Diener, Chairman of the Management Board of Messe Düsseldorf. Born in 1964 in Freiburg, graduate in business administration, he started his career at the Messe Hamburg, then spent two decades in Asia in leadership positions in Shanghai, Singapore, and Hong Kong. He returned in October 2018 as COO and became CEO in July 2020. Welcome, Mr. Diener. We actually wanted to talk less about Corona, but today we have to.
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Wolfram Diener1:11
Yes, dear Christian, thank you. I think so too. The trade fair was particularly affected by the pandemic. We see the light at the end of the tunnel. Business is picking up again. We had a successful restart with the Caravan Salon as the opening event this summer. Of course, all upcoming trade fairs in the next few months are not at pre-crisis levels, but at least we have a significant volume again. All participants who were with us in Düsseldorf before the pandemic are happy to be back.
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Christian Herrendorf1:42
How much did you have to scale down operations? What was even possible?
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Wolfram Diener1:46
Last year, 2020 was a severe caesura. Our business collapsed by over 70%. Given our high operating costs, we incurred a loss. That was unavoidable, and also this year. However, the decline this year will not be as severe. From 2022, we hope to break even.
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Christian Herrendorf2:14
What phase of recovery are you currently in?
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Wolfram Diener2:18
If I describe it as a percentage of our pre-crisis business, we are currently at 55-60% pre-crisis level, and next year we are confident to reach 75-80%. So we are about halfway between zero and 80.
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Christian Herrendorf2:42
When will we reach normal levels again?
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Wolfram Diener2:44
In this projection, not before 2023, probably 2024. In 2024, the drupa trade fair will be a strong year for us. This is also because next year, many overseas participants still face travel restrictions. Indian, Chinese, and Brazilian customers are hardly able to come.
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Christian Herrendorf3:31
You opened the new Hall 1 shortly before the pandemic. How can such a building still fulfill its role after 1.5 years of little use? Is it already outdated or can it still be used as intended?
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Wolfram Diener3:49
No, it is not outdated at all. The building is very modern and functional. Needs of participants change over years, not in 1-2 years. What is now more important is expanding our digital infrastructure, and Hall 1 is well positioned for that. Also, its forecourt has become a popular public square for skateboarders, etc.
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Christian Herrendorf4:29
You had announced investments in the infrastructure. Can you still do that, or do you have to plan differently now?
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Wolfram Diener4:39
We cannot do that at all. We had planned to invest just over a billion euros over 10-12 years in renovating the grounds. Some halls are from the 1970s and need complete renewal, but we cannot afford it now. We have postponed it indefinitely. Also, we have a cyclical trade fair calendar with a strong year in 2024, so construction cannot interfere with that.
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Christian Herrendorf5:53
Have you considered reducing the size of the grounds?
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Wolfram Diener5:59
We have never considered that. First, the older halls are fully depreciated, so only maintenance costs remain. More importantly, we have at least three events a year that use the entire grounds. Each hall generates 4 million in revenue, and if we add a hall, it contributes 2 million in contribution margin. That is good money. However, we are exploring the 'trade fair grounds of the future' in a strategy process, working with external visionaries to determine requirements 15-20 years from now, and we will renovate halls step by step according to future needs.
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Christian Herrendorf7:49
Are there already theses from this working group that you can talk about?
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Wolfram Diener7:52
Yes, of course. One topic is digital infrastructure: hotspots, WiFi. Then sustainable construction – we are already a pioneer in NRW with solar panels and hydrogen buses. Also, improving the quality of stay with comfortable zones, lounges, natural light, etc. And perhaps most important for our core business: multifunctional use of halls. Currently, our smallest hall is 6-7,000 sqm, average 12,000 sqm, which is too large for smaller events. We need to create flexibility.
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Christian Herrendorf10:13
You worked in Asia for a long time. What attracted you to go there?
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Wolfram Diener10:21
It was actually a coincidence. As a young project manager at Hamburg Messe, I was assigned to look after Chinese delegations. That built my network, and later I was offered a managing director position in Asia. It was an evolution, never planned. Those years shaped me – I brought back a souvenir: my wife is Asian. It shaped my life attitude and work style. In Asia, business is more dynamic and ambitious. Coming back to Germany, I had to slow down.
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Christian Herrendorf12:06
Why did you decide to come back?
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Wolfram Diener12:08
Two things. First, my wife wanted to spend time with my aging parents. Second, my predecessor Werner Dornscheid called and offered me the opportunity at Messe Düsseldorf. I came in spring 2018, brought my wife, and we both got a very good impression of Düsseldorf – the Rhine, the people, the company. That made the decision easy.
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Christian Herrendorf13:35
I'd like to talk about public trade fairs. You said the restart was with the Caravan Salon. How did you experience it? What is your assessment?
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Wolfram Diener13:41
Very good. Participants were highly satisfied, exhibitors were in a celebratory mood, partly because the caravan industry is booming. On the visitor side, we had over 40% new customers and a rejuvenation of the audience. It used to be for retirees, now younger people and families are buying campers. The Caravan Salon was a great start to the season.
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Christian Herrendorf15:10
Can you be similarly optimistic about the BOOT trade fair?
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Wolfram Diener15:17
Yes, similar. There is a trend in both industries that users' leisure activities are becoming more diverse. For BOOT, the yachting sector is doing very well, even for small boats. The only weak sector is diving, due to travel restrictions. But that doesn't hurt the core. We will present dozens of world premieres. I've talked to industry representatives, and they are eager to come to BOOT.
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Christian Herrendorf17:36
For public trade fairs, are there already ideas about new trends we can expect in Düsseldorf?
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Wolfram Diener17:42
Yes, we have ideas. I just spoke with someone about a new trade fair concept. We are working intensively on forward-looking topics, but I don't close myself to traditional topics as long as there is demand.
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Christian Herrendorf18:08
What does the trade fair of the future look like after the pandemic?
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Wolfram Diener18:11
There was much talk that physical trade fairs would collapse due to virtual media. But from early reactions, that is not the case. In Düsseldorf, over 90% of our value comes from investment goods and machinery fairs. Heavy machinery is not bought online. However, we need to integrate virtual media: networking, web sessions, social media news blogs, and limited virtual showrooms. The main reason pure virtual fairs don't work for us is complexity: with 5-6,000 exhibitors, it's impossible to represent that in a user-friendly virtual environment. Also, the concept of a fixed duration for a virtual event is absurd – you can't expect people to sit in front of a screen for four days straight. Instead, we advocate an omnichannel approach: a constant digital base buzz throughout the year, with a huge peak during the physical fair. We also think about a subscription model where customers pay an annual fee for digital services and can combine it with physical participation. That is the hybrid model.
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Christian Herrendorf25:00
You have already answered all my questions. Now we come to the quick questions, quick answers round.
Quick round: Who is the most famous son of Freiburg? Wolfgang Schäuble or Jürgen Schrempp? If I want to see the future, should I go to Shanghai or Singapore? What is the most important future topic for the trade fair: digitalization or sustainability? What is the most important event in 2024: the Euro football championship or drupa? What do you speak better: English or Mandarin?
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Wolfram Diener25:21
Jürgen Schrempp. Shanghai. Digitalization. Drupa, though you could also watch a football game in the evening. English.
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Christian Herrendorf26:15
Dear listeners, we have reached the end of today's podcast. I thank our guest Wolfram Diener, our moderator Christian Herrendorf, our technician Thorsten Runte, our photographer Wolfgang Harste, and all others. All episodes and more info can be found at düsseldorferjonges.de and on Facebook.