Showcasing Consumer Electronics

The 6-day trade fair first launched in 1924, this year reflects the growth of the entire consumer electronic sector and boasts over 1,200 exhibitors from 32 countries. Showcasing the latest products from the entertainment and communications industry, it is expected to attract over 200,000 visitors.

With unique trade visitor services, special events and a comprehensive program for consumers, the trade show has become an annual appointment for both industry experts and the general public.

"In comparison to 2006, we have managed to set an all-time record (of members of the press in attendance)," said IFA's CEO Christian Göke ahead of the opening."We are especially pleased that this increase in figures is also a national one."

Flat panels a favorite

Within the electronic industry, current sales are dominated by the number one growth motor, television. Experts predict that some 40 million tube televisions will be replaced by flat screens in the new few years, although the boom observed in the wake of the World Cup in 2006 did not continue in the first half of 2007.

Meanwhile, the growth in the classic entertainment electronics industry was less notable than in the private communications and information technology sector. The overall market for consumer electronics grew by 4.9 percent, whereby the largest growth was in the area of private telecommunications and IT. Entertainment electronics grew by just 2.6 percent.

"In this instance, we need to bear in mind last year's World Cup effect," said Rainer Hecker from the Association for Entertainment Electronics. "Nonetheless, further growth has also been realized here in Germany."

Experts hope that IFA will also help reinvigorate the market for the second half of the year. Retailers usually place billions of euros of orders with importers and manufacturers during the event. This year, electronics industry is expecting a boost in turnover of 2 percent up to 23 Billion euros with the new televisions, digital cameras, MP-3 players, navigation systems as well as video games, mobile 'phones and Notebooks.

For the time being, it seems that the hike in VAT earlier this year has failed to dampen consumer enthusiasm in Germany.

Economic optimism

IFA director Jens Heithecker points to other factors influencing the market.

"As far as consumers are concerned," he said, "consumer electronics have never been such good value. Televisions are up to 30 percent cheaper because new models are arriving all the time and competition is very tough."

In this respect, the increased VAT plays an unexpectedly minor role in consumer decisions, while the general upswing in the German economy has triggered a renewed interest in quality products.

While visitor interest is growing at IFA, the actual event is too. This year, it encompasses some 104,00 square meters of site in Berlin -- a 10 percent larger surface area than last year's trade fair.

"These days, we're more international than ever," said a spokesman from the Association for Entertainment Electronics. "It ranges from the International Keynotes (lectures on product developments and industry trends by international top managers of the CE industry) to the international visitors and of course the global players exhibiting in Berlin."