The global finance sector is investing in trade fairs. And Italia (for now) is standing on the sidelines

At present, in fact, Italia and Germany (which boast the world’s fourth and third largest trade fair systems respectively in terms of volume and visitor numbers) are sitting on the sidelines. It is important to point out that the transactions mentioned above involve US and UK giants active in the organisation of trade fairs and B2B events, which explains why Italia and Germany are excluded from these developments: both countries have, in fact, ‘a trade fair industry based primarily on the activities of trade associations and industrial bodies, which therefore prioritise the promotion of their local areas and the businesses within their respective sectors’, observes Francesca Golfetto, professor of market strategy at Bocconi University and an expert in the trade fair sector. ‘It is unlikely,’ she notes, ‘that Italian companies – be they trade districts or associations – would decide to sell or open up to foreign capital.’

However, Golfetto herself admits that there is a need for substantial capital. This is because the facilities need to be modernised and adapted to a changing market, observes Francesco Conci, CEO of Fiera Milano, who calls for innovative spaces and services to manage not only B2B events but also consumer events, live shows, sporting competitions, conferences and trade fairs with hybrid formats.

So, sooner or later, our country too will have to play its part in this phenomenon, ideally by managing it rather than simply enduring it. “There are many ways to be competitive,” notes Golfetto. “We can form partnerships at an international level, something the Germans have been doing for decades and which our trade fairs have also begun to do in recent years, with interesting results.” Partnerships to take successful trade fair formats abroad (as the major groups do – Milan, Bologna, Rimini-Vicenza, Verona, Parma). But also partnerships to better manage exhibition spaces across Italia, which are increasingly opening up their venues and halls to live events, both to meet growing market demand and to maximise profits and margins by utilising the venues all year round, not just during trade fairs.

“The Italian trade fair model, characterised by fragmentation, the small size of companies and the fragmentation of the sector itself, but also by the involvement of public shareholders, serves the country’s economic system – a manufacturing system based on a network of small and medium-sized enterprises,” observes John Shehata, an adjunct faculty member at Luiss Business School. ‘But the economy does not stand still, and I believe we will inevitably have to see the sector evolve in Italia too.’ One possible solution, suggests Shehata, could be a ‘dépeçage’ – a separation between the organisational structure and the infrastructure. ‘The infrastructure should remain public, which would allow us to continue to enhance the region and the national business fabric, whilst the organisation of events, certain exhibitions and conferences, could be privatised.’

“The fact that investors are showing an interest in the trade fair sector, including the Italian one, is an excellent sign,” observes Giovanni Bozzetti, chairman of Fondazione Fiera Milano. “Italian trade fairs, unfortunately, are still very under-internationalised, apart from a few brilliant initiatives. We should invest more in this direction, acquire events abroad and open up our capital to foreign operators,” he adds. But here lies the flip side of the coin, namely the risk that international operators might take control of highly successful events, which are global benchmarks for their respective sectors (from the Salone del Mobile in Milan to Vinitaly, from Cosmoprof to Vicenzoro or Cibus, to name but a few of the jewels in the crown of our trade fair system).

“Trade fairs are extraordinary tools of industrial policy, capable of drawing the world’s attention to entire Italian production sectors,” says Bozzetti. “We cannot risk some of our events – or, worse still, our exhibition centres – being sold to foreign operators.” Hence Bozzetti’s proposal to establish a form of ‘Golden Power’ over trade fairs, as is the case in other strategic sectors such as energy, telecoms and defence, to prevent any foreign investor from acquiring more than 51 per cent of the capital, “so as not to squander a valuable asset for industry and the regions”.