“We are investing in the brand PSI”

The PSI Show, which traditionally kicks off the season of the promotional products industry in January had to be cancelled this year due to the pandemic. The alternative date in May is not possible either because live events are still not allowed to take place. Eppi magazine spoke with Barbara Leithner, COO of the owner’s of the PSI, Reed Exhibitions Austria and Germany, and with Petra Lassahn, Director PSI, about the virtual equivalent, the PSI Digital, about Reed’s future plans for the PSI and about the future parallel existence of digital platforms and face-to-face business.

How hard was it for you to cancel this year’s physical edition of the PSI Show?

Barbara Leithner: It was a grave decision that was nevertheless easy to take. The exhibitors and visitors trust and rely on the PSI – even in spite of all its weakness. In turbulent times, there is no room for experimenting in the case of physical trade shows. The priority lies on safety, reliability and continuity. At the same time, we came to the decision to offer virtual formats in order to uphold the visibility of the promotional products industry and allow the necessary industry topics to be discussed, openly and honestly. Of course, the exhibition team that had worked hard out to put together a high-quality and safe event, was very disappointed.

Petra Lassahn: The exhibitors and visitors were also very sorry. They had all been looking forward to meeting up again in person to network.

Barbara Leithner: 2020 and 2021 have of course proved to be among the most challenging years for our industry and we haven’t been spared from the consequences of the pandemic either. The turnovers of the exhibition business have plummeted by around 75% worldwide and 800 trade shows were either postponed or cancelled in Germany alone. What the year has however made clear is that the exhibition industry has had time to do its homework and has planned ahead, has dared to take courageous steps without having too many high expectations. The result has been a huge boost on the digitalisation front. We no longer want to depend on a single event, instead we want to be there for our customers 365 days a year. And since November we have been working on restructuring our management to make it more agile and more flexible. We have pooled resources, we can bundle our strengths in the fields of technology and digitalisation, but also regarding our innovative power. We are no longer purely developing something for local markets, but indeed for the entire German-speaking zone. I am really looking forward to being able to significantly increase the added value for our customers in this way.

The PSI Digital is taking place from May 19-21. What awaits the visitors?

Petra Lassahn: The digital format builds on our existing network. We have already achieved quite a lot in terms of the digitalisation of the PSI. On the exhibition day itself we will be offering a diversified programme: We are planning among others keynotes – also on political issues – and discussion panels. A matter that is very close to my heart is the fact that we are addressing practice-related themes, i.e. we are focusing intensely on the theme sustainability, current legal topics, such as the new market monitoring regulation or the topic of product responsibility/product liability – as well as on aids for day-to-day life: The effectiveness of advertising on websites, storytelling via the social media… And, of course, the product presentations of the exhibitors, whom one can also contact via the chat function, are a significant element. Uma and Schwan-Stabilo are sponsoring the PSI Digital, but also further renowned companies like elasto, Koziol, the JCK Group, Paul Stricker, Troika, Mahlwerck, Softiebag, to mention but a few, have already confirmed their participation. We are expecting around 150 exhibitors in the course of the whole series of events.

Is the access limited?

Petra Lassahn: We are opening up the PSI Digital and the Digital Fridays, which will subsequently take place every second Friday in the month, to distributors and suppliers, who are not members of the PSI so that they have the opportunity to become acquainted with the offer. On all other days, non-members will not be able to access the portal. End customers will only be granted admission if they are invited by distributors. The plan is to continue these activities in 2022 as well.

According to a Reed survey, 65% of the visitors and 57% of the exhibitors think that digital events will also work and be in demand after Corona. Will Reed continue to rely on digital formats to a greater extent?

Barbara Leithner: Our strategic alignment is clear: Reed Exhibitions will continue to place a very strong emphasis on its core business as an organiser of physical exhibitions. There is no question about that. We believe in the face-to-face format, we believe that exhibitions create an added value, because a personal exchange between exhibitors and visitors is much more efficient and effective than is the case with the many digital formats. I believe that the importance of the face-to-face business has indeed increased. Nevertheless, we will also rely on the digitalisation of all of our formats, because this will allow us to benefit from the best of both worlds. The digitalisation allows us and our exhibitors to remain in close contact with our customers 365 days a year also at international level and thus increase the relevance and reach. The exhibitors and visitors no longer have to focus on three exhibition days, they can meet up across the different formats throughout the whole year – anywhere and at any time – whether in the scope of the Digital Fridays, via the PSI network, the Product Finder, webinars or product showcases.

The promotional products industry relies on haptic experiences and direct personal contact. Is the digital transformation more difficult here than in other industries?

Petra Lassahn: The industry is currently undergoing radical change. Of course, people are longing to meet up in person. And multisensory experiences have been an important topic for us for years. However, there are a few tasks that can’t wait. And everyone is grateful that we are picking up on these tasks and finding ways to bridge this time. Whereby the formats that are serving to bridge this period will also be continued after the pandemic.

There are rumours that Reed Exhibitions considered selling the PSI. Benedikt Binder-Krieglstein, the new CEO of Reed Austria and Germany, refuted this. What are Reed’s further plans for the PSI?

Barbara Leithner: I am very glad that you have posed this question, because such rumours really have been circulating over the recent weeks and months. I can make a clear statement here: The PSI was, still is and will remain to be one of the essential brands in the trade fair portfolio of Reed Exhibitions Germany and Austria. Selling the PSI, as is rumoured, has not been a topic of discussion at any time. On the contrary: We are currently at the beginning of a major strategy process. We are investing in the future of the brand. I think it quite rightly deserves after 60 years of history that we take a courageous approach and ask ourselves: How can we use the PSI to lead our members – distributors and suppliers – onto the road to success again? What services can we offer that will allow us to completely serve the industry as an enabler and as a supporter again? We will also have to invest money in our realignment over the coming years.

Are there any concrete ideas for this further development?

Barbara Leithner:  We are considering implementing several strategic changes, but we won’t be able to announce any details until the summer, when the well-founded agreement processes with our partners have been completed. Whereby we will remain open to any ideas and proposals that are put forward to us.

The PSI is supposed to take place again live in January 2022: Can we then expect a PSI as usual again?

Petra Lassahn: At the present point in time, we are assuming that the vaccination process will then have progressed forward to such a degree that it will be possible for trade shows to take place again. There may still be some restrictions, but we already developed a hygiene and safety concept last year, which is similar to that implemented in the retail trade, which encompasses all of the familiar measures. We will no doubt plan a little more space to cover for waiting areas. Overall, we assume that we will reach a similar magnitude as in January 2020.

Will it once again be a trade fair trio comprising of the PSI, viscom and PromoTex Expo?

Lassahn: The textile segment and the theme customisation have always made up part of PSI, they are two important elements of the promotional products industry and will thus remain firmly integrated into the PSI Show. However, we are also developing new formats and concepts here.

Will Düsseldorf remain to be the event location?

Petra Lassahn: Düsseldorf has established itself for almost 60 years and has proven to be the best location for us: with its central position in Europe and modern exhibition grounds including a fantastic infrastructure and technical conditions. We won’t be changing anything here.

How is the theme end customers going to be addressed in the future?

Petra Lassahn: This too forms part of our concept-related deliberations. Most importantly: We are currently holding many discussions with the industry, because one can’t organise a trade fair without partners in the industry.

Reed has carried out reorganisations, this also included some management changes of many well-known executives with the PSI/Reed team. Is the PSI not running the risk of losing its proximity to the market as a result?

Barbara Leithner: We have a clear pledge to the promotional products market. The basic attitude of all our trade fair and sales teams is to live market proximity, customer proximity and customer understanding. Changes in management won’t affect that. Petra Lassahn and her entire exhibition team are very committed, particularly innovative and they are really devoted to the network and the brand. We won’t lose a centimetre of the market.

There are several new trade show projects: Do you believe the trade fair landscape will undergo a realignment after the pandemic?

Barbara Leithner: We are focusing on ourselves and on the further development of the PSI. We will only succeed in creating more added value for our customers, for our network, for our distributors if we follow this strategy. After 60 years of the PSI, we will further promote the networking principle and the feeling of solidarity, which is what distinguishes the PSI, over the coming years and emphasise this more.

The PSI claims to be the leading trade show for the European promotional products market. How do you intend to maintain your position?

Petra Lassahn: The major strength of the PSI is its internationality. With around 6,000 members we have the largest network in Europe. We will do everything in our power to further extend this network, offer our members the best service and also implement new formats. No other event within the industry can boast such an international alignment as the PSI, its share of foreign visitors is almost 60%: No other trade fair is as representative as the PSI. These two points – together with the services we provide for the entire network and particularly also for the smaller distributors and suppliers – are important arguments for the PSI.

// Dr. Mischa Delbrouck spoke with Petra Lassahn and Barbara Leithner.

Photo source: Reed Exhibitions (2), © WA Media (1)