International Press Conference (Moscow, 30.05.2008)


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The press distribution in diferent european countries (Presentation for the Russian Press Distribution Association)

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International Press Conference (Moscow, 30.05.2008)

  1. 1. “ The spanish press distribution sector and the supermarket channel” International Press Distribution Conference Russian Press Distributors Association Hotel President - Moscow, 30 May 2008 José Manuel Anta Managing Director FANDE (Spanish Federation of Books and Press Distributors) “The spanish press distribution sector: Data an” International Press Distribution Conference Moscow, 30 May 2008 J
  2. 2. <ul><li>Spain: Main figures </li></ul><ul><li>Population: 45.200.000 </li></ul><ul><li>Spanish: 40,7 million. </li></ul><ul><li>Foreign residents: 4,3 million </li></ul><ul><li>(40% of them european) </li></ul><ul><li>Extension: 504.750 Km </li></ul><ul><li>17 Autonomy Communities, 50 Province </li></ul><ul><li>GDP 2007 Growth: 3,5% </li></ul><ul><li>Spain second destiny for tourists worldwide. </li></ul><ul><li>45 million tourists each year. </li></ul>
  3. 3. <ul><li>The spanish press market </li></ul><ul><li>Buying habits </li></ul><ul><li>In 2005: 48,8% of the spanish population buy newspapers and 28,8% magazines. </li></ul>31,7 14,2 10,5 32,1 16,7 12,1 1999 2005 Buy only magazines Buy magazines and newspapers Buy only newspapers
  4. 4. The spanish press market <ul><li>Market Volume (2006) </li></ul><ul><li>MAGAZINES </li></ul><ul><li>Sales: 279,9 Million copies (+0,89% than 2005) </li></ul><ul><li>Medium price: 1,90 euros (1,85 euros in 2005) </li></ul><ul><li>Turnover: 530,46 Million euros (+3,41 than 2005) </li></ul><ul><li>NEWSPAPERS </li></ul><ul><li>Sales: 997,04 Million copies (-5,67% than 2005) </li></ul><ul><li>Medium price: 1,18 euros (1,16 euros in 2005) </li></ul><ul><li>Turnover: 1.175,18 Million euros (-3,90% than 2005) </li></ul>
  5. 5. <ul><li>The spanish press market </li></ul><ul><li>Main legal and commercial aspects </li></ul><ul><li>Publisher put the selling price in the cover of the newspapers and magazines. The same price in the different selling points . </li></ul><ul><li>Levels of margin applied to the newstands, it sets a discount between 20% and 25% of the cover price. Marked by an old regulation from 1972. </li></ul><ul><li>New spanish law banning the sale of tobacco in press selling points . </li></ul><ul><li>Press selling to the local distributor and to the kiosk, with right of return. </li></ul><ul><li>Geographical exclusivity given by the Publishers/National Distributor to the local distributor (only one exlusive provider in each area for the titles of the publisher who gives the exclusivity to the distributor) </li></ul><ul><li>But great competition between distributors </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>
  6. 6. <ul><li>The spanish press market </li></ul><ul><li>Publishing Groups.- Magazines </li></ul><ul><li>750 publishing groups in the magazine sector in Spain, representing around 7.000 titles. </li></ul><ul><li>The biggest publishing groups with 116 main titles represent 72% of the market. </li></ul><ul><li>Presence of international publishing houses: Axel Springer, Bauer, G+J, Edipresse, Hachette Filipacchi, Motorpress... </li></ul><ul><li>Spanish groups: Grupo Heres, Hola, RBA, Grupo Zeta... </li></ul>
  7. 7. <ul><li>The spanish press market </li></ul><ul><li>Publishing Groups.- Magazines </li></ul><ul><li>TRENDS </li></ul><ul><li>Celebrity magazines and woman titles represent about the 40% of the total market. </li></ul><ul><li>Other: House and decoration (6,2%), Automovil (4,7%), TV (3,3%), Science and culture (2,9%)... </li></ul><ul><li>Mergers and acquisitions of big groups: G+J / Motorpress - RBA / Edipresse-Hymsa - Grupo Zeta is for sale. </li></ul><ul><li>Selling pockets of magazines, magazines/newspapers, promotions and gifts... </li></ul><ul><li>Different versions of the same magazine (standard and pocket) </li></ul><ul><li>Reduction in the price for certain promotions. </li></ul><ul><li>Alternative of other products and channels: mobile phones, sms, blogs… </li></ul>
  8. 8. <ul><li>The spanish press market </li></ul><ul><li>Publishing Groups.- Newspapers </li></ul><ul><li>90 dailies: 7 national, 76 regional, 4 sport, 4 business. </li></ul><ul><li>National daily newspapers: ABC (Vocento), El Mundo (Unidad Editorial), El País (Prisa), El Periódico (Zeta), Público (Mediapro), La Razón (Planeta) and La Vanguardia (Godó). </li></ul><ul><li>Daily sports: As (Prisa) and Marca (Recoletos) from Madrid, Sport (Zeta), and Mundo Deportivo (Godó) from Barcelona. </li></ul>
  9. 9. <ul><li>The spanish press market </li></ul><ul><li>Publishing Groups.- Newspapers </li></ul><ul><li>TRENDS </li></ul><ul><li>Appearance of free newspapers: </li></ul><ul><li>Metro and 20 Minutos (Schibsted). </li></ul><ul><li>Publishers of paid newspapers have started </li></ul><ul><li>publishing free newspapers: </li></ul><ul><li>Qué¡ (Vocento) and ADN (Planeta). </li></ul><ul><li>Mergers: Unidad Editorial / Recoletos, </li></ul><ul><li>Grupo Zeta is for sale . </li></ul><ul><li>Promotional products with the daily papers </li></ul><ul><li>(Books, CD, DVD…) </li></ul><ul><li>Big impact of Internet and new ways of information: </li></ul><ul><li>blogs, sms… </li></ul>
  10. 10. <ul><li>The press distribution sector </li></ul><ul><li>National distributors </li></ul><ul><li>Two levels of distribution: National and Local distributors. </li></ul><ul><li>National Distributors (8) : Services to publishers (nationals and foreigners) distribution all over Spain: </li></ul><ul><li>ATHENEUM, COEDIS, DISPAÑA, DISPESA, LOGINTEGRAL, LOGISTA, SGEL and TOYMER. </li></ul><ul><li>Also publishers with distribution department: </li></ul><ul><li>G+J ESPAÑA, MOTORPRESS IBÉRICA, HOLA, HYMSA EDIPRESSE </li></ul><ul><li>  </li></ul>
  11. 11. <ul><li>The press distribution sector </li></ul><ul><li>Local distributors </li></ul><ul><li>LOCAL DISTRIBUTORS (100): deliver the publications </li></ul><ul><li>they receive from their suppliers </li></ul><ul><li>(national dist. or publishers directly) to the retail. </li></ul><ul><li>The local distributors work </li></ul><ul><li>in set territories on an exclusivity basis </li></ul><ul><li>for the publications they distribute (COMPETITION) </li></ul><ul><li>Three groups: </li></ul><ul><li>Independent distributors (15) </li></ul><ul><li>Local delegations of national distributors (45) </li></ul><ul><li>Distributors owned by the major newspaper </li></ul><ul><li>groups (40) </li></ul>
  12. 12. <ul><li>The press distribution sector </li></ul><ul><li>Selling points </li></ul><ul><li>27.000 press selling points in Spain (2007) </li></ul><ul><li>Influence very limited of newsstand chains </li></ul><ul><li>and supermarkets. </li></ul><ul><li>Hard decrease (-16% / 1995: around 32.000) </li></ul><ul><li>PRESS KIOSKS: 77,0% </li></ul><ul><li>BOOKSHOPS: 16,7% </li></ul><ul><li>HIPER & SUPERMARKETS: 5,4% </li></ul><ul><li>OTHER CHANNELS: 0,9% </li></ul><ul><li>Promotions by the daily papers and the increase in sales of non-press products (phone cards, recharging, CDs, DVDs etc.) have partly compensated the loss in press products. </li></ul>
  13. 13. <ul><li>The spanish press market </li></ul><ul><li>General Structure </li></ul>Publishers 8 National Distributors 100 Local Distributors 27.000 Kiosks
  14. 14. <ul><li>The spanish press market </li></ul><ul><li>General Structure </li></ul><ul><li>Geographical exclusivity given by the Publishers/National Distributor to the local distributor… but with strong competition. </li></ul><ul><li>4 local distributors </li></ul><ul><li>in some areas </li></ul><ul><li>Asturias </li></ul><ul><li>Málaga </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>Málaga: 4 local distributors Asturias: 4 local distributors
  15. 15. <ul><li>The press distribution sector </li></ul><ul><li>Data and statistics (FANDE profile study 2006) </li></ul><ul><li>Turnover level by channels 2001-2006 </li></ul>
  16. 16. <ul><li>The press distribution sector </li></ul><ul><li>Data and statistics (FANDE profile study 2006) </li></ul><ul><li>Turnover level by channels 2001-2006 </li></ul>
  17. 17. <ul><li>The press distribution sector </li></ul><ul><li>The supermarket channel </li></ul><ul><li>Kiosks in the near area of one that close only recover 50% - 70% of the preview selling level. </li></ul><ul><li>The new selling points (supermarkets, fuel stations…) are less profesionals thant the independent kiosks. The press market is not is “core business” </li></ul><ul><li>Limited the catalogue of publications . Only the most profitable. Difficulty for the publishers to reach the potential customer. </li></ul><ul><li>Pay per scan & pay per situation in the shop. </li></ul>
  18. 18. <ul><li>The press distribution sector </li></ul><ul><li>The supermarket channel </li></ul>
  19. 19. <ul><li>The press distribution sector </li></ul><ul><li>The supermarket channel </li></ul><ul><li>Main supermarkets chains </li></ul><ul><li>Eroski Center: 457 selling points </li></ul><ul><li>Opencor: 156 selling points </li></ul><ul><li>Carrefour Express: 87 selling points </li></ul><ul><li>Vips: 72 selling points </li></ul>
  20. 20. <ul><li>The press distribution sector </li></ul><ul><li>The supermarket channel </li></ul><ul><li>Main hipermarkets chains </li></ul><ul><li>Carrefour: 161 hipermarkets </li></ul><ul><li>Eroski: 97 hipermarkets </li></ul><ul><li>Alcampo: 49 hipermarkets </li></ul><ul><li>Hipercor: 36 hipermarkets </li></ul>
  21. 21. <ul><li>The press distribution sector </li></ul><ul><li>The supermarket channel </li></ul><ul><li>The fuel stations </li></ul><ul><li>SPRINT (Repsol YPF): </li></ul><ul><li>178 selling points </li></ul><ul><li>Only the more profitable </li></ul><ul><li>press titles (not more </li></ul><ul><li>than 50) </li></ul>
  22. 22. <ul><li>The press distribution sector </li></ul><ul><li>The supermarket channel </li></ul><ul><li>Main press specialist chains </li></ul><ul><li>RELAY: 100 selling points </li></ul><ul><li>(airports, rail stations, metro stations) </li></ul><ul><li>BDP: 82 selling points </li></ul><ul><li>(presence in malls) </li></ul>
  23. 23. <ul><li>The press distribution sector </li></ul><ul><li>The supermarket channel </li></ul><ul><li>Distributor example in a city (% Channel turnover) </li></ul><ul><li>Press Kiosks & Booksellers: 87,70% </li></ul><ul><li>Fuel stations: 4,20% </li></ul><ul><li>Travel retail (Airport, Rail, Metro…): 3,72% </li></ul><ul><li>Hiper & Supemarkets: 4,38% </li></ul>
  24. 24. <ul><li> The European Press Distribution Sector: Some data Germany Italy Great Britain France “The spanish press distribution sector: Data an” International Press Distribution Conference Moscow, 30 May 2008 J </li></ul>
  25. 25. The european press distribution sector: Germany <ul><li>Main characteristics </li></ul><ul><li>DISTRIBUTORS: 76 wholesalers with exclusivity in one area (only one distributor per area). Except Berlin and Hamburg (2 distributors) </li></ul><ul><li>SELLING POINTS: 119.800 (in 2002 there was 125.000) </li></ul><ul><li>LEGISLATION: General agreement between the Publishers Associations (Magazines & Newspapers) and the Distributors Association (Presse Grosso) for a press distribution frame. </li></ul><ul><li>INITIATIVES: Support from the publishers and distributors for develope merchandising improves in the kiosks. </li></ul><ul><li>Great collaboration in technological and management projects </li></ul>
  26. 26. The european press distribution sector: Italy <ul><li>Main characteristics: </li></ul><ul><li>DISTRIBUTORS: 8 national distributors (De Agostini, Mondadori and Rizzoli 60% of the market). Also 140 local distributors </li></ul><ul><li>SELLING POINTS: 36.000 (in 2000 there was 40.000). Mainly independent kiosks. The supermarkets, at the moment, don´t have too much power </li></ul><ul><li>LEGISLATION: Legal regulation from 2001 about the press distribution in Italy. </li></ul><ul><li>INITIATIVES: Great collaboration between the Publishers and Distributors Associations for improving the kiosks (computers, internet, merchandising…) </li></ul>
  27. 27. The european press distribution sector: Great Britain <ul><li>Main characteristics: </li></ul><ul><li>DISTRIBUTORS: 3 national wholesalers (Smiths News, Menzies and Dawson) and 16 small local distributors </li></ul><ul><li>SELLING POINTS: The independent kiosks represent the 30% of the market (40% in 2000). Very fast growht from supermarkets (Tesco, Sainsbury…) and press chains (WH Smith, HS...) (supermarkets+chain represent 50% of the market) </li></ul><ul><li>LEGISLATION: Actually, the Office for Fair Trade (OFT) is developing a inform for a probably elimination of the exclusivity from the distributor. Big pression from the supermarkets for choose the distributor that they prefer as provider. </li></ul><ul><li>INITIATIVES: Collaboration between distributors and supermarkets for become non press products providers (electronic devices, candies, food...) </li></ul>
  28. 28. The european press distribution sector: France <ul><li>Main characteristics: </li></ul><ul><li>DISTRIBUTORS: 2 national distributors (NMPP and MLP) and 187 local distributors. In 1988 it was 2.900 local distributors. NMPP controls 50% of the local distributors </li></ul><ul><li>SELLING POINTS: 29.700 (in 2000 there was 33.400). The press chains Maison de la Presse, Mag Presse, Relay and Agora represent 20% of the market. </li></ul><ul><li>LEGISLATION: Bichet Law from 1947 that rules the press distribution and the service to the publisher. </li></ul><ul><li>INITIATIVES: The French Parlament develope a paper about the need to protect the press distribution channel ( Dossier Brossia , October 2007) </li></ul><ul><li>Agreement between publishers, national distributors and local distributors for give better commercial conditions to the independet kiosks (protection) </li></ul>
  29. 29. <ul><li>European Press Distribution Round Table </li></ul><ul><li>1º Round Table (Bilbao - Spain, 5 July 2007) </li></ul><ul><li>2º Round Table (Vienna - Austria, 25 September 2007) </li></ul><ul><li>3º Round Table (Istanbul - Turkey, 27 October 2008) </li></ul><ul><li>Participants: </li></ul><ul><li>ARPP (Russia) </li></ul><ul><li>ADN and NDM (Italy) </li></ul><ul><li>ANMW (Great Britain) </li></ul><ul><li>PRESSE GROSSO (Germany) </li></ul><ul><li>FANDE (Spain) </li></ul><ul><li>SNDP (France) Invited </li></ul><ul><li>With the DISTRIPRESS support </li></ul>
  30. 30. <ul><li>European Press Distribution Round Table </li></ul><ul><li>European Survey with anual data from the different european markets: </li></ul><ul><li>Market information (population, number of retaliers, national newspapers, regional newspapers, magazines, distributors) </li></ul><ul><li>Sales data (Magazines, newspapers, partworks, other products) </li></ul><ul><li>% Unsolds (Magazines, newspapers, partworks, other products) </li></ul><ul><li>Interchange of information about different common topics (supermarkets role, distribution technology, legislation…) </li></ul><ul><li>Promotion of the press distribution sector and his associations </li></ul><ul><li>Cooperation for improve the role of the press distributor </li></ul><ul><li>at national and european level </li></ul>
  31. 31. <ul><li>Большое спасибо </li></ul><ul><li>José Manuel Anta </li></ul><ul><li>[email_address] </li></ul><ul><li>FANDE </li></ul><ul><li>C/ Santiago Rusiñol, 8 </li></ul><ul><li>28040 Madrid (SPAIN) </li></ul><ul><li> </li></ul>