Book retailing is in a dynamic period where sales are moving from brick stores to online channels. That's partly driven by the switch of immersive reading to digital; it's also driven by the reduction of shelf space. There is anecdotal evidence suggesting that stores are shifting their attention to books that need to be seen and touched to be purchased: adult illustrated books and children's books. And those books are the very books that have not benefited proportionately from the growth of digital book consumption. In this presentation, Ingram Book Company will share data about recent shifts in online and print sales and insight into how retail outlets are shifting their stock and trade.
How Wireless Technology is Changing RetailMarcoMuzzi
We recently spoke at the 5th Annual Canadian Wireless Trade Show in Toronto. In our presentation, titled “How Wireless Technology is Changing Retail”, we identified consumer trends that are creating an environment for wireless technologies to change how advertisers reach consumers. We also explained which technologies are having the biggest impact and how to use each one, as well as outlined their pros and cons. Check out the slides for actionable insights and strategies that will help you take your marketing to the next level.
An introduction to Meraki as a company and a technology. Meraki have just been awarded visionary status is Gartners 2011 magic quadrant for Wireless LAN and have recently announced the MX range of Cloud-Managed Routers, Meraki, Making Branch Networking Easy.
How to make a living as a creator of artistic works?pitra.hutomo
Michael has been employed with Copyright Agency Limited (CAL) since 1995, where he has held various positions in areas ranging from customer service, policy development, information technology, and business development. Michael has most recently been employed in the position of International Affairs and Digital Strategy, where he oversees both of these functions.
In managing CAL’s international relations function, Michael works closely with other Reproduction Rihgths Organaisations (RRO’s) and related stakeholders within the IFRRO community. He is also responsible for CAL’s international revenue and bilateral agreements.
In managing the digital strategy function at CAL, Michael works with CAL’s Board and senior management team to ensure that the company’s strategic direction aligns with the ever-changing digital marketplace and with the interests of CAL’s diverse stakeholder groups.
Michael has a Bachelor of Arts from the University of New South Wales and a Masters in Business Administration (MBA) from the Australian Graduate School of Management.
This presentation by Imke REIMERS, Associate Professor of Economics, Northeastern University, United States, was made during the discussion “Competition Issues in Books and E-Books” held at the 72nd meeting of the OECD Working Party No. 2 on Competition and Regulation on 29 November 2021. More papers and presentations on the topic can be found out at oe.cd/cbeb.
How Wireless Technology is Changing RetailMarcoMuzzi
We recently spoke at the 5th Annual Canadian Wireless Trade Show in Toronto. In our presentation, titled “How Wireless Technology is Changing Retail”, we identified consumer trends that are creating an environment for wireless technologies to change how advertisers reach consumers. We also explained which technologies are having the biggest impact and how to use each one, as well as outlined their pros and cons. Check out the slides for actionable insights and strategies that will help you take your marketing to the next level.
An introduction to Meraki as a company and a technology. Meraki have just been awarded visionary status is Gartners 2011 magic quadrant for Wireless LAN and have recently announced the MX range of Cloud-Managed Routers, Meraki, Making Branch Networking Easy.
How to make a living as a creator of artistic works?pitra.hutomo
Michael has been employed with Copyright Agency Limited (CAL) since 1995, where he has held various positions in areas ranging from customer service, policy development, information technology, and business development. Michael has most recently been employed in the position of International Affairs and Digital Strategy, where he oversees both of these functions.
In managing CAL’s international relations function, Michael works closely with other Reproduction Rihgths Organaisations (RRO’s) and related stakeholders within the IFRRO community. He is also responsible for CAL’s international revenue and bilateral agreements.
In managing the digital strategy function at CAL, Michael works with CAL’s Board and senior management team to ensure that the company’s strategic direction aligns with the ever-changing digital marketplace and with the interests of CAL’s diverse stakeholder groups.
Michael has a Bachelor of Arts from the University of New South Wales and a Masters in Business Administration (MBA) from the Australian Graduate School of Management.
This presentation by Imke REIMERS, Associate Professor of Economics, Northeastern University, United States, was made during the discussion “Competition Issues in Books and E-Books” held at the 72nd meeting of the OECD Working Party No. 2 on Competition and Regulation on 29 November 2021. More papers and presentations on the topic can be found out at oe.cd/cbeb.
AJC 2011 Presentation - Building a Successful Marketing Strategy and Budgetnkristy
In today's competitive world, you must stand out - but don't let it overwhelm you. A strategic marketing plan and budget can help you avoid hasty decisions, organize your objectives and determine how and where to advertise. In this presentation, we discuss strategies and tools for creating successful plans for local businesses.
How ebooks Have Changed the Print Book Marketplace
Jonathan Nowell heads Nielsen Book. Their Bookscan service tracks sales of books and ebooks in the US, the UK, and other markets around the world.
In this presentation, Nowell will look back over a decade or more of Nielsen book sales data to tell us how the print world has changed. It is accepted fact now that ebooks work commercially for narrative books, but not so well for reference and illustrated books. What that means by category is the focus of Nowell's presentation. He will tell us both how the proportion of print and ebook sales break down in various categories, but also will show how the share of printed books has changed across categories as ebooks have taken hold in the marketplace. The data from Nowell will indicate to us what bookstores might look like in the future as the mainstay sales of bestselling authors move increasingly to digital.
Founder of Children’s Tech Review and host of the Dust or Magic Institute, Warren Buckleitner knows the ins and outs of children’s apps, ebooks, and digital games. Children’s Tech Review offers some of the best and highest quality ongoing trends reporting in the children's digital app space. Warren will explain what works and what’s next in children’s digital technology.
PlayCollective is a global research and strategy group focused on the impact of changing media and technology on education and entertainment for children and families. For the last two years, PlayCollective has also partnered with Digital Book World to track the growth of e-reading among families with children ages 2-13 and parents’ increasing belief in the beneficial power of ebooks. Join David Kleeman, PlayVangelist for PlayCollective, to get some insight on how parents', teachers', and kids' attitudes toward digital media are changing and what today's brands and tech companies are integrating into their products and content for both the home and the classroom.
In this presentation at Launch Kids, Jonathan Nowell of Nielsen Book will examine the data his company has developed about the habits and preferences of younger readers and children's book buyers. He will offer insight about the consumption habits of younger readers with some thoughtful speculation about how children's book buying is changing over time (across formats and channels) and why young people today continue to remain attached to the printed book.
The growth of digital devices, digital reading, and online purchasing is opening up new opportunities for publishers around the world, and this is particularly true in the classroom environment. Shane Armstrong, Executive Vice President of Scholastic Corporation and President of International Growth Markets, will present an overview of Scholastic’s big plans for global educational publishing, especially in the core areas of math and reading. He’ll talk about new opportunities with assessment, how ancillary products support Scholastic’s goals, and how trade pubs can take advantage of an increasingly global (and increasingly digital) education market.
Nielsen regularly tracks the children’s book consumer market through its BookScan data and on-going consumer surveys. In this presentation, they’ll look at trends in book buying behaviors among parents and kids – and help publishers understand what that means for the future of both print and digital children’s book sales.
These publishers share details about their newly launched products, partnerships, imprints and ventures. Both relatively new and long established children’s publishers will discuss how they’ve built their companies and retooled their strategies for a more digital future.
Publishers are following their customers into mobile as handheld devices take over, developing new strategies to extend print and digital products into the mobile space. This panel will review the latest data about mobile usage among kids and will discuss the impact of mobile on how children’s book consumers find, buy, and interact with books and book-related content.
SARAH MLYNOWSKI is the author of nineteen books for tweens, teens and adults, including the upcoming DON’T EVEN THINK ABOUT IT from Random House, theWhatever After series from Scholastic, TEN THINGS WE DID (AND PROBABLY SHOULDN’T HAVE) from HarperCollins, SEE JANE WRITE: A GIRL’S GUIDE TO WRITING CHICK LIT from Quirk and MILKRUN from Harlequin. Her books have more than 3 million copies in print, and have been translated into twenty-seven languages and optioned to Hollywood. Sarah started her career in the marketing department of Harlequin, and has embraced every sort of social media tool – from her own website to Instagram, Wattpad, Facebook, Twitter, Pinterest, Goodreads, Google Plus, and even, once upon a time, MySpace. You can visit her at http://www.sarahm.com or find her at @SarahMlynowski.
Insight Strategy Group provides research and consulting services to big brands and media companies. CEO Stacey Matthias will take a look at general kids' digital media trends and how books fit into larger digital ecosystem. She'll look at how, when, where kids are consuming their books, games, movies, and video; and she’ll examine how child development impacts media consumption at each stage, and the role of books at each level.
Eric Huang, formerly at Disney, Penguin, and Mind Candy, now works with all manner of kids' brand owners and creators of IP – from publishers to broadcasters to museums and film studios – helping them build forward-thinking digital strategies and multi-format/multi-media approaches to brand development. Eric has seen licensing, franchising, and brand development from all angles, and he will help book publishers better understand both the business of buying licenses to publish books and the business of selling licenses to make product from powerful book brands.
Reaching a Global Audience of Readers -- Presented by Allen Lau, CEO and Co-Founder, Wattpad
At Publishers Launch Frankfurt, Frankfurt Book Fair, 8 October 2013
Wattpad has a fast-growing user base of over 15 million members, including readers and emerging writers from the English-speaking world as well as from Spain, Mexico, Germany, the Philippines, Vietnam, the BRIC countries, Singapore, Saudi Arabia, and elsewhere around the globe. Wattpad will describe how some pioneering publishers are using the Wattpad platform as a marketing tool: building author-reader connections, publishing original short stories and prequels within existing series, and creating direct relationships with an increasingly global audience that buys their ebooks. And they'll point to the major markets where their user base is growing quickly, like Germany.
Digital Publishing in the Developing World -- Presented by Octavio Kulesz, Director, Editorial Teseo - Alliance Lab
At Publishers Launch Frankfurt, Frankfurt Book Fair, 8 October 2013
Octavio Kulesz studies the world’s emerging markets: China, India, Russia, Africa, and Latin America. In this quick summary, he will tell us what we can expect to see as they develop into real ebook markets in the near future. How do local players and cultural differences change the game for publishers hoping to find new readers? Where can we expect to see the biggest breakthroughs soonest? How should publishers approach new business partnerships in these markets?
Data-Driven Publishing: Using Big Data and smart analysis to make better decisions across the business -- Presented by Ken Brooks, Senior Vice President, Global Supply Chain Management, McGraw-Hill
At Publishers Launch Frankfurt, Frankfurt Book Fair, 8 October 2013
With more data from more internal and external sources available to publishers than ever before, and with ever-more powerful tools and service providers to crunch them, it is incumbent on C-level executives to build Big Data capabilities into their organizations. The possibilities, and the imperatives, will be the topic for Ken Brooks, who has held senior management positions at Bantam Doubleday Dell, Simon & Schuster, Barnes & Noble, and Cengage, and is both a master of data and experienced with all kinds of publishing.
Although there are service providers to do Big Data crunching, and any publisher might use them for some challenges, Brooks believes that learning to use available tools routinely will become a necessary skill set in most publishing houses. He says the key is to become more “data-driven” in analysis and decision-making, because data-driven decisions are possible in more ways than ever before and because publishing is particularly amenable to improvement through the skilled use of data.
Brooks also points out that routine Big Data analysis will become increasingly accurate and beneficial over time. He believes it is an emerging competitive tool of great importance and that the companies that get it soonest will gain great advantage. In this presentation, he will give publishers ideas about how to use Big Data across their enterprise: marketing, editorial, operations, and finance.
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How ebooks Have Changed the Print Book Marketplace
Jonathan Nowell heads Nielsen Book. Their Bookscan service tracks sales of books and ebooks in the US, the UK, and other markets around the world.
In this presentation, Nowell will look back over a decade or more of Nielsen book sales data to tell us how the print world has changed. It is accepted fact now that ebooks work commercially for narrative books, but not so well for reference and illustrated books. What that means by category is the focus of Nowell's presentation. He will tell us both how the proportion of print and ebook sales break down in various categories, but also will show how the share of printed books has changed across categories as ebooks have taken hold in the marketplace. The data from Nowell will indicate to us what bookstores might look like in the future as the mainstay sales of bestselling authors move increasingly to digital.
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PlayCollective is a global research and strategy group focused on the impact of changing media and technology on education and entertainment for children and families. For the last two years, PlayCollective has also partnered with Digital Book World to track the growth of e-reading among families with children ages 2-13 and parents’ increasing belief in the beneficial power of ebooks. Join David Kleeman, PlayVangelist for PlayCollective, to get some insight on how parents', teachers', and kids' attitudes toward digital media are changing and what today's brands and tech companies are integrating into their products and content for both the home and the classroom.
In this presentation at Launch Kids, Jonathan Nowell of Nielsen Book will examine the data his company has developed about the habits and preferences of younger readers and children's book buyers. He will offer insight about the consumption habits of younger readers with some thoughtful speculation about how children's book buying is changing over time (across formats and channels) and why young people today continue to remain attached to the printed book.
The growth of digital devices, digital reading, and online purchasing is opening up new opportunities for publishers around the world, and this is particularly true in the classroom environment. Shane Armstrong, Executive Vice President of Scholastic Corporation and President of International Growth Markets, will present an overview of Scholastic’s big plans for global educational publishing, especially in the core areas of math and reading. He’ll talk about new opportunities with assessment, how ancillary products support Scholastic’s goals, and how trade pubs can take advantage of an increasingly global (and increasingly digital) education market.
Nielsen regularly tracks the children’s book consumer market through its BookScan data and on-going consumer surveys. In this presentation, they’ll look at trends in book buying behaviors among parents and kids – and help publishers understand what that means for the future of both print and digital children’s book sales.
These publishers share details about their newly launched products, partnerships, imprints and ventures. Both relatively new and long established children’s publishers will discuss how they’ve built their companies and retooled their strategies for a more digital future.
Publishers are following their customers into mobile as handheld devices take over, developing new strategies to extend print and digital products into the mobile space. This panel will review the latest data about mobile usage among kids and will discuss the impact of mobile on how children’s book consumers find, buy, and interact with books and book-related content.
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9. Why?
40%
Fiction
Sales
Gift and
Natural competitors
Ease of use and
penetration of e-books
Internet Sales concentrated in
low number of titles and
Accounts few publishers
10. Fiction and Nonfiction*
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2009 2010 2011 2012
Fiction Non-Fiction
*As a Percent of Sales to Independents.
11. E-reader Growth = Category Shifts
Bibles Design
Photography
Antiques &
Art
Collectibles
House
Architecture Study & Home
Aids
Reference
Fiction
Political Business &
Science Self- Economics
Help
Increase Decrease
Chart based on dollar sales.
14. More than one quarter increased sales with us last year
75% are up YTD vs. LYTD
40% experienced growth of 50%+
Almost three-quarters experienced growth of 20%+
The stores that grew had a
30% increase in nonfiction
The stores with no growth
increased only 5% in nonfiction
15. 2010 Top 700
independent
bookstores
vs purchased more
individual EANs
2011
in several
nonfiction
categories
16. 23% 22% 14%
20% 12% 14%
Increase in categories in merchandising mix.
17. Fiction will not save the independent bookstore.
Bookstores will not just be places for literary discoveries—
rather for book sales and discovery overall.
What can publishers do to compete for
shelf space at these stores?
18. 1
DISTRIBUTION is ubiquitous.
Because discovery is consumer-driven, having
books in the most channels is key to success.
2 Help bookstores DISCOVER what sells in
their market.
Is the shift we think that’s happening in the book industry between physical and online stores and category sales real? Are sales made online versus in stores changing at different speeds for narrative books and illustrated books? The answer is yes. From where Ingram Content Group sits and observes the publishing world and by looking at our data, which is a slice of the total pie, we’ve come to some conclusions on where we see the industry going.
In the last five years, Ingram has opened more than 13,000 new retail accounts
40 percent of which are in growth markets including Internet and gift. These new accounts selling books create opportunities and challenges for publishers. By definition, once the top customers are accounted for, there are more total customers selling fewer books per location, and more titles competing for less and less shelf space in these locations. The problem now is about distribution reach (which can be expensive) and relevant marketing (which with today’s growing title base is hard to do).
At Ingram, we are selling a broader list than what our independent stores are buying. A snapshot of a sample store indicates that a typical, stand-alone independent is only buying about 14% of the top 10,000 Nielsen titles in the market. A broader sampling of our top 700 independents shows that as a whole they are buying 95% of the top 10,000 Nielsen titles. In the aggregate, independents are buying the top 10,000, but at individual stores, stock outs, assortment gaps, and lack of information about the market all cause lost sales. Yet independent bookstores collectively purchased nearly a half a million unique titles in each of the past three years. While unit sales have declined, the number of unique titles has gone up, and the “long tail” has become thicker—from Ingram’s data, roughly 50,000 titles sold more than 50 copies to indies in each of the past three years, and the number of titles above that threshold has risen steadily in each year.
The question for publishers is how to raise awareness of what sells in a way that leads to stocking decisions at the store level. Mike Shatzkin would say this is the value that sales representation brings to the independent market.
At the same time that title count has increased, unit sales per title have decreased, which make it very difficult for a physical retailer to compete with an always “in stock” assortment at an online retailer. Looking at the merchandising mix of the new independent accounts, we found that these bookstores are still focused on fiction, with the category making up 68% of what they buy from Ingram, and nonfiction trailing at 32%. This also reflects the same approximate percentages of the Nielsen top 10,000.If you consider a general trade bookstore, is it possible that by looking at new categories or expanding some they already carry, they may attract new book buyers?
Overall, we have seen our sales in narrative fiction decline to our independent bookstore customers in the past five years while sales of nonfiction has increased slightly; however, nonfiction sales have expanded to more outlets but with lower sales per outlet. My assumption is that narrative fiction has some natural competitors in certain market segments, or formats, which leave traditional channels, like bookstores, a less attractive place for purchase. At the same time, aggressive discounting in fiction in Internet and mass merchant channels makes competitive pricing difficult for independent stores. This factor combined with the ease of use and penetration of fiction in e-books makes recovery of past sales levels in fiction at independents unlikely. A final factor is that fiction sales are fairly concentrated in a low number of titles and few publishers (the big six). The publishers with the most in terms of selling resources are selling products (bestselling fiction) to the stores that can least compete on price in the subject and have the most competition from other outlets (Internet and mass).
Fiction has declined at the same time nonfiction has risen as a total percentage of sales.
The increase in e-readers has definitely played a role. Narrative books have shifted to digital while “books you can use” have increased on the physical side.
Nonfiction categories have greater competitive moats, at least in terms of price and location competition, but receive lower selling resources to independent stores. Bookstores have more opportunities in nonfiction and will begin to take advantage of selling opportunities in this category. Going forward, publishers will see a reduction in the number of locations selling fiction, making the stakes even higher in competing for diminishing shelf space in this market. At the same time, the sale of nonfiction titles has more potential. The challenge with the nonfiction—“books you can use”—category is that there are more titles (as opposed to fiction sales concentrated in bestsellers) and more potential locations for those titles. Add in assortment inefficiencies across the independent channel and publishers have a real distribution and reach problem.How can you get more revenue out of a growing list of available nonfiction books across more outlets?
To look at sales and categories from a specific market view: Following the close of Borders, Ingram analyzed our sales of bookstores in the same zip code as a former Borders.
What we found: in those first months after the close of Borders, we saw an increase in sales over prior year from more than a quarter of our independent bookstore customers located in the same zip code. Perhaps Borders’ customers began shopping at another local bookstore. However, 72% had no increase. I would not suggest to those stores that they stock a standard inventory, but an increase in sales just carrying more of the same thing won’t help bookstores compete in the long run . Further analysis shows that of the stores with an increase, 75% of them are still up YTD vs LYTD and 40% have experienced growth of 50% or more. Almost three-quarters experienced growth of 20% or more. The stores that did not experience growth had only a 5% increases in NonfictionWhen I look at this data, I see opportunities to help physical bookstores to develop category strengths outside of fiction, and publishers need to be thinking about how to help bookstores understand customer need at the store level, and support those needs.
Our data shows that our top 700 independent bookstore customers purchased more individual titles in several nonfiction categories in 2011 versus 2010.
We are finding that our top independents are expanding their categories, and purchasing deeper across our offerings.Travel books were up 23%; Antiques & Collectibles up 22%; Design up 20%; Crafts & Hobbies and Photography both up 14% while Art increased 12%. Broad general assortments are being trumped by deeply assorted verticals targeted at more specific communities, whether in a physical store or online. .
Publishers will need tocreate content that grabs the attention of the enthusiast customer. Informing bookstores of what they are missing is going to be a big part of this equation. Unfortunately, the fiction category is not going to be the category that carries the day in independent stores. Ironically, it is the fiction publishers that have the resources to sell to these stores, but they are selling them the least competitive choice.