The Rupp Report: ITMA Asia + CITME More Successful Than Expected

Last week, the Rupp Report reported about the opening of the ITMA Asia + CITME 2010. It was also
questioned if the exhibition would be a local show or if it would also have international
exhibitors. Now the show is over, and it was a big success. According to an intensive survey among
the exhibitors, most of them welcomed many visitors not only from China, but also from India,
Pakistan, Bangladesh, Indonesia and countries of the Middle East as well as from Brazil.

China, The Largest Exhibiting Country

Times are changing rapidly. Today, China is the largest country with reference to exhibitors
and floor space: 639 Chinese exhibitors occupied some 31,000 square meters (m
2). Germany, as the largest non-Chinese country, occupied 5,400 m
2; followed by Italy with 4,000 m
2; Japan with 3,300 m
2; and Switzerland with 2,500 m

More Exhibitions Than Ever

China leads the way in textile machinery exhibitions more than ever, and not only in terms of
floor space: At the official press conference during the show, it was officially announced that the
next ITMA Asia will be in Shanghai again in June 2012, in spite of the ITMA Europe taking place in
September 2011 in Barcelona, Spain. And, according to rumors at the show, another ITMA Asia has
already been signed and confirmed for 2014, again in Shanghai. So, at least for the next two years,
there will be an ITMA either in Asia or Europe.

In spite of the official language from ITMA owner the European Committee of Textile Machinery
Manufacturers (CEMATEX) and the unquestioned importance of the Asian markets in general, and the
Chinese market in particular, many people from the exhibitors’ staff expressed their frustration
with the concept of ITMA and the rhythm of two years for ITMA Asia going forward. Virtually all of
them questioned the need and the benefit of having an ITMA Asia every other year, keeping in mind
there is also a ShanghaiTex in odd-numbered years. “How can we present true novelties practically
every year to our customers? This is impossible,” said many exhibitors. “And our customers are
getting tired from attending too many exhibitions.”

Furthermore, the India ITME society announced that the next India ITME will be held Dec. 2-7,
2012, at Bombay Exhibition Centre, in Mumbai, India. So the basic idea of reducing the number of
shows in Asia by establishing an ITMA Asia is somewhat jeopardized.

IPR Problems

The official press release from the organizers mentioned that “traditional ITMA rules
pronounce that only manufacturers of textile machinery and accessories are qualified to take part
in the exhibition. All exhibitors must display original equipment on their stand. To ensure strict
adherence to this regulation, an on-site intellectual property office has been set up to handle any
intellectual property rights [IPR] issues.” Nevertheless, most of the Western exhibitors
articulated their disappointment, saying that their machinery had been copied and was displayed in
many Chinese booths, and that it would cost a lot of time and money to pursue a case; but after the
fact, it would be useless to press charges of IPR violations.

Unexpected Success

The current global market situation and, therefore, the overall impression of ITMA Asia +
CITME 2010 were considered to be positive — in fact, very positive. Some people even articulated
some fear regarding the current situation of the markets ending up in a big bubble.

After the disastrous years of 2008 and 2009, suppliers did their homework by reducing
capacities and — if necessary — staff. But since February/March 2010, the markets have been
booming, especially in Asia, and some manufacturers already have very long delivery times. Today,
the Asian market is extremely important for the machinery manufacturers. China is the top country,
followed by India, Pakistan, Bangladesh and Indonesia. Basically, this is thanks to the soaring
domestic market in China. Officials at the press conference said that from January to May 2010, the
domestic market in China increased by 23 percent.

Top Visitors

All machinery manufacturers surveyed expressed their satisfaction with the event and the
feedback about their exhibits. The expectations regarding ITMA Asia were fulfilled, sometimes even
excelled. The visitors’ frequency as well as the quality of the visitors was considered to be good.
Nevertheless, most of the important European exhibitors declared their will to participate in
Barcelona: “We are still Europeans, and our brain trust is in Europe,” one exhibitor said. More
detailed information will be published in the forthcoming issues of

Textile World
Textiles Panamericanos and

Textile World Asia

July 21, 2010