MCH Group: Haste but not delay

The MCH Group will focus on exhibitions, congresses and events in Switzerland and on the internationalization of the leading exhibitions Baselworld and Art, as well as on digitization. 

This is good news for the service industry, which is attached to this core business: The hotel industry, local commercial enterprises in Basel and Zurich, and numerous exhibition construction companies in Switzerland. It is also Good News for the shareholders, since the internationalization, as is now evident, has only been partially successful and the focus on the core business promises higher profitability. In fact, the future strategy set out in the press release of 19 September reverses a large part of the internationalisation and the former strategy of the "one-stop store" (providing all services in the exhibition value chain). The MCH Group is going back a field.

Chairman of the Board of Directors Ulrich Vischer says of the new strategy: "With our own exhibitions and our Live Marketing Solutions, we have two business areas with great development potential, but we have to concentrate on one of them due to limited investment funds."

The transformation of certain exhibitions, brought about by a change in customer behavior, for example in the field of public exhibitions, is undeniable. In the trade fair sector, the MCH Group has a number of well-functioning exhibitions of a respectable size. According to the new CEO Bernd Stadlwieser, these are Art Basel, Baselworld, Swissbau, Powertage, Ilmac or Smart Suisse, which are now to be strengthened. "Our goal is to build communities beyond the physical event," he says.

Interestingly, most of the successful trade shows are held at the Basel location and one wonders what will happen in Zurich. According to reports, a buyer or operator of the exhibition centers in Basel and Zurich is still being sought. As far as the event business is concerned, the exhibition centers are to be better utilized. 

The MCH Group is considering a sale for its Live Marketing Solutions with the American exhibition construction company MC2, with the Swiss exhibition construction company Expomobilia, and with the event companies MCH Global (formerly Rufener Events) and Reflection Marketing. The internationalization of the business with the acquisition of the American exhibition construction company MC² and of Expomobilia did contribute a great deal to sales and helped put the MCH Group on the list of the world's top-selling companies. But apparently the profitability of these service providers was "underground". Expomobilia is building the country pavilions of Switzerland, Finland, Norway (pictured above) and Holland at the upcoming World Expo 2020 in Dubai. Perhaps more countries will be added. As is well known, there is no good money to be made here either. But they help to anchor the MCH Group brand globally, an advantage for the internationalization strategy that should not be underestimated.

The funds saved are to be used to promote innovation and digitization. According to the press release of September 19, the cost base must be significantly reduced. 

In contrast to the services sector, the MCH Group considers the staging of the leading Baselworld and Art Basel exhibitions abroad to be successful and intends to continue them. "At Art Basel, we already have a strong community and want to expand this with extended offerings. At Baselworld, we want to build up an extended industry community and are therefore also considering additional events abroad," says Bernd Stadlwieser.

According to its own information, the MCH Group is doing well digitally with the world's leading exhibition, Art Basel, and the successful concept is now to be transferred to Baselworld - and then to all MCH Group events. Apparently, the MCH Group wants to move forward with a concerted digital strategy and create a digital platform for the corresponding community for each event, as it did in 2019 with memtec.plus for the Prodex machine tools exhibition. Digital transformation is a declared objective of the "new" MCH Group. 

The MCH Group is spelling back. It has long described itself as the world's leading live marketing company. And rightly so. In terms of turnover, it had risen to number five among exhibition organizers worldwide (!). Now Live Marketing Solutions, as the service division of the MCH Group's event and exhibition construction business is called, is to be sold.

Where they used to want to pick up the entire value chain (trade show business + trade show construction + event business), they are now focusing on the event business again. And apparently they also believe in the national business again, but in an expanded form with digital "twins" of the trade shows. This promises more profitability. The press release postulates that they want to "generate adequate profitability again". It will take years. 

On the subject: Restructuring: MCH examines sale of service business