MCH Group who runs Baselworld in Deep Trouble

[Etschell]

Business News: Baselworld Organiser Forecasts Annual Loss of Over US$100m

Largely due to having to write down the book value of the exhibition halls in Basel – which Mr Hayek pointedly criticised as needlessly expensive – MCH will endure “an annual loss running into the three-digit millions.”

[droptopman]

Oops, with the swatch group pulling out, Baselworld days could be numbered.

[beshannon]

Not surprised given how the industry delivers product

The show seems like a giant "lets pat ourselves on the back" event rather than a merchandise exhibition.

Could you imagine if car shows worked like Baselworld and models took months or years to make it to the showroom in tiny quantities?

[GradyPhilpott]

Well honestly, despite all the hype in the watch enthusiasts' world, Baselworld is just a trade show.

If the trade loses interest or finds that they're not being treated fairly or they're not getting a decent return on their investment, then it's, "See ya later, alligator!"

I think the markets have changed enough that maybe a centralized, annual exhibit of wares is not as efficient as it once was.

I seem to recall that a lot of smaller vendors left before the Swatch Group pulled the plug.

[shaunylw]

I wonder what we would see next if Bazel ceases to exist. Individual launch events, like Apple does with phones?

[Etschell]

Originally Posted by shaunylw

I wonder what we would see next if Bazel ceases to exist. Individual launch events, like Apple does with phones?

most do this already. rolex does not.

even AP has releases throughout the year.

the difference is rolex releases a few new models a year that matter. no one really cares about another new dial on a datejust.

i think a trade show works well for rolex. it doesnt work as well for brands that have rolling releases.

[austinp]

The trade show should move to Vegas. Breathe some new life into it.

[Romeojk]

Originally Posted by austinp

The trade show should move to Vegas. Breathe some new life into it.

I like this idea!


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[RW16610]

Not surprised by this either.

[Brenngun]

Originally Posted by GradyPhilpott

Well honestly, despite all the hype in the watch enthusiasts' world, Baselworld is just a trade show.

If the trade loses interest or finds that they're not being treated fairly or they're not getting a decent return on their investment, then it's, "See ya later, alligator!"

I think the markets have changed enough that maybe a centralized, annual exhibit of wares is not as efficient as it once was.

I seem to recall that a lot of smaller vendors left before the Swatch Group pulled the plug.

Totally agree. Very hard to believe they didn't see this coming. A $100M loss doesn't just happen overnight. Fine example of very poor management or extreme hubris or both.

[GB-man]

I could not care less about the existence of Basel. I just care that manufacturers develop new models and release them in a timely manner. This can all be done online.

[Chewbacca]

There’s no greater display of hubris than that of the luxe scene in Europe.

This is another fine example.

When diehards like some on this little forum say Basel is becoming a nonevent, it’s becoming a nonevent.

[superdog]

Even the mighty fall with enough time.

It’s the way of the world.

[Romeojk]

Maybe an opportunity for Gerardo to produce a 5-10 or 20K or even more event in Vegas


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[Spartacus]

The Patek exhibit in NYC was amazing. I would love to see something like that from Rolex or Omega.

[Time4aRolex]

Semicon West is a trade show for the Semiconductor Equipment Industry. Compared to Basel - It is much larger in terms of number of Exhibitors - About the same in attendance, however it is a 3 day show. About a $62B WW market for Semiconductor Equipment - about 3X the Swiss Watch Market.

Looks like the company that owns Baselworld actually owns the buildings for the show???? I am not sure of that statement - but they must be on the hooks for building costs and depreciation to have that kind of loss.

Semicon contracted for space in San Francisco and San Jose. Semicon was also never as lavish as the Stands at Baselworld. Some Exhibitors spent the bucks - but not to the degree at Basel - Setup as an example at Semicon was 2 weeks.

In looking at Semicon and Basel there are some commonalities - the company I was with got off the Semicon merry go round once the booth hit 2200 sq.ft. took two semi loads to build out and cost $100K. They now attend- buy a couple a hundred sq.ft. and now meet with customers and use displays and meetings in place of the product.

The $100K is small by Basel standards and but the concept is the same. The cost just began to outweigh the benefits.

The trend now is focused solo shows - Why not spend bucks to get customers captive in your space, with only you around, you control the agenda and spend less in the process. Way better return.

This will be the Basel trend.

[enjoythemusic]

Originally Posted by Etschell

Business News: Baselworld Organiser Forecasts Annual Loss of Over US$100m... MCH will endure “an annual loss running into the three-digit millions.”

What does he think MCH is with triple-digit annual losses, Tesla or something? Can't they find a way to have Big Gov bail them out, or at least offer big tax breaks and subsidies like Tesla gets? Maybe they don't quite have a grasp on how to work today's business atmosphere?

Have literally been to hundreds of luxury goods shows; sounds to me like show mismanagement combined with a lack of understanding business and government models.