February 18, 2010
NOTIS once again participated in the international Upakovka/Upak Italia exhibition of packaging equipment and technologies, organized by the German company Messe Düsseldorf.
Organizers
The Messe Düsseldorf Group was Germany’s most successful exhibition company and the world’s most successful company operating its own exhibition center. It opened a Moscow representative office in 2002 and had since pursued a consistent strategy of promoting Western products and technologies in Russia. Approximately 90% of Upakovka/Upak Italia consisted of leading German, Italian and other Western manufacturers. Only a small section of the remote third hall was allocated to exhibitors from Russia and Eastern Europe.
Objectives
This was our second time at the exhibition, and we had three principal objectives:
- First, the exhibition was important for our company’s image.
- Second, participation was an attempt to enter a new market segment with more sophisticated and expensive equipment.
- Third, an exhibition of this level always offers opportunities to learn: to adopt new marketing ideas, discover new engineering and production technologies, and understand the direction of the modern packaging industry.
Many Western stands displayed only posters and video advertising
Visitors
The distinctive and relatively exclusive character of Upakovka/Upak Italia was reflected in its visitors. Most were managers of large, successful and growing businesses who were focused on the most advanced technologies. It was therefore unsurprising that attendance was approximately half that of the more broadly accessible RosUpack and Agroprodmash exhibitions.
Impressions
The economic crisis may have affected this part of the market more severely than lower-priced segments. One indication was that stands displayed less equipment than in previous years and relied more heavily on colorful posters, photographs and video advertising.
Nevertheless, we held discussions with more than 60 potential customers. We also met long-standing acquaintances who already operated our equipment.
Possible cooperation with new dealers was actively discussed.
Customers remained interested in both vertical and horizontal packaging machines. Our view that there was unmet demand for a low-output, affordable flow wrapper was confirmed. Visitors also continued to ask about weigh fillers for both small and large portions.
Our overall impression from discussions with customers and competitors was that the crisis was far from over. A degree of stabilization had occurred and would be followed by slow growth. For Western manufacturers and Russian suppliers of Western equipment, much would depend on the oil price and consequently exchange rates. If foreign currencies became less expensive, their sales would grow, and vice versa.
Results
For us, however, the period was highly favorable. It would allow us to raise the level of our engineering while the crisis supported growth in our sales.
We had a strong market reputation. Customers were satisfied with our equipment and with our response to their problems and objectives. We had a clear strategy for both development and social responsibilities. Our prospects were good. Everything depended on us.
V. N. Plekhov, Commercial Director.