Tech Feature: US trade show wars continue, December 15, 2006 United States show-down The growing popularity of the Eurobike show Photo ©: Messe Friedrichshafen The Interbike bicycle trade show may not be to everyone's liking, but is another major US trade show the right solution? Cyclingnews Tech Editor James Huang looks at some of the issues surrounding the current debate. Just five weeks after announcing plans for a rival US trade show to be held in Portland, Oregon, Messe Friedrichshafen, organizer of the Eurobike show held in Germany, has decided to postpone the event to an as-yet-undetermined date. Officially, the company has cited "delays in assembling a US management team". However, although many industry players were clearly in support of an event that would be more in keeping with Messe Friedrichshafen's decidedly more pleasant European counterpart, overall opinions on the proposed two-show format have been mixed at best. The harsh realities Messe Friedrichshafen's plans called for its Portland show to be held in early September, a mere three weeks prior to Interbike, and likely would have brought a dose of healthy rivalry to what is currently a virtual monopoly. In fact, Interbike show group director Lance Camisasca was looking forward to the challenge, saying, "We welcome competition, as it will help us do a better job. However, we are also greatly concerned about the dividing effect Eurobike's announcement may have on the industry. Many will remember the time when the industry suffered through multiple shows resulting in additional expense and heartache." "We welcome competition, as it will help us do a better job. However, we are also greatly concerned about the dividing effect Eurobike's announcement may have on the industry." -The thoughts of Interbike director Lance Camisasca are shared by many Indeed, the logistical hurdles this scenario would have presented to exhibitors would have been substantial, yet the idea still enjoyed some halfhearted support. "If there were a second show, we'd likely attend in some capacity", said Devin Walton, PR Officer for Shimano. "The biggest challenges would be resources as the timing, location, and requirements for displays, products, and personnel. In the past, we've done multiple shows over many years, attending CABDA, Interbike East and West, and even BIO all in one year, so we've proven that it can be done logistically, but whether or not it makes sense from a marketing and fiscal standpoint is another issue." Other companies that are not so fortunate to have Shimano's distinctly vast resources, however, aren't quite so enthusiastic. According to Eric Schutt, MTB Public Relations and Media Manager for SRAM Corporation, "If you look at how that show fit in the global trade show calendar, we would have had to build another booth, we would have had to have a whole separate staff... there's no way we could have attended. The only advantage of doing an additional show would be to give Interbike some competition and to make them bring their game up, but another show doesn't make [the situation] better." Competition and logistics aside, Bill Duehring, president of Felt Bicycles, added, "I feel no company in the US wants two shows. The shows have become so expensive; most small to medium-sized companies would have a very difficult time supporting two of them. Also, it's not just the expense a company goes through. More importantly, it would be a huge drain on our employees." Viva Las Vegas This year's Interbike was the largest in its 25-year history with nearly 22,000 attendees on hand, roughly 370,000 square feet of total exhibition floor space, and arguably one of the most positive vibes in recent memory. Yet, in spite of the show's apparent success, the mere fact that Messe Friedrichshafen's planning for the proposed Portland show had progressed as far as it did raises some valid questions. Curiously, industry insiders with whom we spoke were not as interested in a second show as they were in simply having a show in a new location for one reason or another. For sure, Interbike's current setting on the Las Vegas strip is contentious, to say the least, and the incessantly blinking lights, chattering machines, and general atmosphere of egregiously conspicuous consumption have apparently taken their collective toll. "Get out of Vegas as soon as possible!" says Duehring. "Years ago Vegas was affordable, but now the hotels and food are too expensive, and it's too hard on my employees after working the long days at the show. The overall feeling that I get from my staff and dealers is everyone would like to move." Ironically, though, it is Interbike's relocation from Anaheim to 'Sin City' that has had a large part in securing the show's dominant position over the now-defunct CABDA and BIO shows. Atmosphere aside, Las Vegas has a lot going for it as a convention setting from a practical standpoint, including a suitably large convention center, close proximity to a majority of exhibitors and attendees (36% come from California), mostly reasonable airfare, plentiful accommodations, ease of transportation, and generally centralized layout. "Vegas Sucks. Move Interbike to Denver"... or Portland... or, um... Messe Friedrichshafen's three CEOs: Klaus Wellmann, Rolf Mohne and Jürgen Schmid. Photo ©: Messe Friedrichshafen Many alternatives have been proposed and championed for an alternative location to hold an industry trade show, but the sheer size and logistical complexity of such an event greatly limit the list of viable options. Interbike's organizers, VNU Expositions, have long been criticized for what is perceived to be some sort of vested interest in keeping the show in Las Vegas, but VNU Marketing Director Rich Kelly adamantly claims that the choice of venue is purely a pragmatic one. Kelly himself openly admits that, "Portland is an awesome city, as are a lot of other cities. We'd love to be able to go out and do some beautiful scenic bike rides in a nice town if we were there, but in reality, people there set up their booths, they're there to entertain customers, they're there to meet with their vendors. Once that's all said and done, if there's a little free time, then you can look at some other options. But the priority here is to have a location where it is easy and cost effective to conduct business at a trade show." The more idyllic setting of Messe Friedrichshafen's proposed show in the Pacific Northwest likely would have satisfied the current show's detractors that have been continually calling for the event's relocation to a more bicycle-friendly locale, but it's unclear whether or not that sort of change in surroundings would have made the situation as a whole any better. Even if completely sold out wall-to-wall, Portland's convention center could house a show only one-third the size of the Sands Convention Center, and moreover, would essentially have no room to expand. Speaking of rooms, lodging would also be a concern as there are roughly only 4000 hotel rooms in Portland's "metro area". In this case, "metro area" does not necessarily equate to "downtown", nor does it imply "walking distance". To put things in perspective, Las Vegas' Venetian hotel, which is physically connected to the Sands Convention Center, contains over 4000 rooms on its own. On the other hand, Denver's convention center is large enough to house a major US bicycle trade show and has an abundance of lodging available, but one that is scattered in a broad area. In addition, the convention centers of both cities are not located in close proximity of their respective airports. The Eurobike "feel" Eurobike's exhibition grounds in Friedrichshafen, Germany Photo ©: Messe Friedrichshafen Having said that, industry perspectives on Messe Friedrichshafen's Eurobike show have been quite positive overall, in spite of the fact that it is neither easy to get to nor is it immediately surrounded by any plentiful supply of food or lodging. Much of that perception, and the show's general success, seem rooted in the general environment of the show's setting. Eurobike is held in the picturesque German countryside and the physical layout of Messe Friedrichshafen's convention center itself encourages frequent jaunts outdoors and bathes its interior with natural lighting. Much of the excitement with the proposed Portland show laid in the hope that Messe Friedrichshafen would somehow be able to transfer some of that ethos to the States, but how that would be physically possible is unclear to say the least, particularly considering that Eurobike's halls are wholly owned by the organizers. Still, Scott's Adrian Montgomery perhaps puts it best in saying that, "The only advantage [to the Portland show] would have been to encourage the Eurobike feel." Fresh air and sunlight notwithstanding, a key element of that Eurobike "feel" is the consumer component of the show; while the majority of the event is only for members of the industry, the last day of the exhibition is open to the public. Presumably, Messe Friedrichshafen's plans for its Portland show also would have incorporated such a feature. This idea garners some similarly lackluster industry support, but would likely be wholeheartedly embraced by the general cycling public. "One of the things we were lobbying for was the additional of a consumer element to the existing trade show, not another show", said Schutt. "We spend an extraordinary amount of time and energy to do Interbike, and [the media] does a good job, but at the end of the day, the consumers don't experience it firsthand. To have a consumer element would be our goal." That being said, Schutt also adds that "I don't think Vegas is a place for people to travel to for a consumer bicycle show, so I'm not saying that it's an easy solution, but we weren't fond of an additional show." The flight's been delayed, but is still US-bound Interbike's Outdoor Demo is among the most popular aspects of the show, Photo ©: James Huang In light of the recent setback, Messe Friedrichshafen has just announced new plans to enter into a strategic partnership with the Sea Otter Classic Festival. Sea Otter has already established itself as the premier venue for early season introductions of new product, and the new partnership can only serve to expand that reputation. Erich Reiss, General Manager of International Sales & Organization for Messe Friedrichshafen, was unavailable for comment at the time of writing, but a department spokesperson revealed that meetings had already been scheduled with the Sea Otter Classic organizers for mid-January at which time more information would be made public. Regardless, the company's intentions were reinforced in a recent press release from Messe Friedrichshafen CEO Klaus Wellmann that stated, "Messe Friedrichshafen is committed to raising its profile in the United States." Piggybacking on to an existing, and well-established, forum such as Sea Otter is likely to be a successful way to do so. Wellmann added, "We'd like to harmonize the trade show with the sporting event for the spring start of the cycling season, in order to reach manufacturers, retailers, the media, and consumers more consistently." While still not an 'easy' solution, Messe Friedrichshafen's new arrangement is likely much more tenable to the industry from a logistics standpoint and would also address the consumer aspect as the event is already open to the public, plus it still manages to shoehorn in some of that open air feel of Eurobike. Upon learning of the idea, SRAM's Schutt stated, "Look at how many major bicycle brands already don't go to Interbike: Trek, Specialized, Cannondale. You have major players that aren't attending the normal forum in a meaningful way, so why would they go to a startup show? There are a lot of reasons to support an existing forum like Sea Otter. It makes a lot more sense." Paul Kantor of Avid added, "I think that sort of bike festival/race situation is a much better format. Personally, I don't think a trade show is a good forum for consumers to come and see product; the aisles aren't big enough, and we can barely move up and down. Throw in a bunch of consumers and it'd be chaos." By all accounts, however, Messe Friedrichshafen is still actively pursuing the US trade show project, so the situation is still far from resolved. In spite of of the final outcome, though, it seems that US bicycle consumers may stand to gain the most from the battle. Photography For a thumbnail gallery of these images, click here Images by Messe Friedrichshafen Messe Friedrichshafen's three CEOs: Klaus Wellmann, Rolf Mohne and Jürgen Schmid. Coming soon to a US bicycle trade show near you? Eurobike's exhibition grounds in Friedrichshafen, Germany offer up a decidedly more pleasant atmosphere than Interbike's Las Vegas, but trees, grass, and sunlight do not make a suitable place to conduct business on their own. The growing popularity of the Eurobike show has resulted in a planned expansion of the current exhibition floorspace to a grand total of 85,000 sqm. Images by James Huang/Cyclingnews.com Interbike's Outdoor Demo is among the most popular aspects of the show, and the proposed Portland event also would have included such a venue where retailers (and maybe consumers?) would have been able to experience new products firsthand.