Presentation given at the Publishers Association International Conference 2011, in London, at the Fishmongers Hall, on December 15, 2011. It gives an overview of the Brazilian publishing market, both for physical and digital books, and enlightens the opportunities for British publishers.

1. What is next for publishing in Brazil
Is Brazil the land of the
publishing future?
PA International Conference 2011
15th December, Fishmongers Hall

2. In 1941, Stefan Zweig...
PA International Conference 2011
15th December, Fishmongers Hall

3. Since then, Brazilians believe:
“Brazil is the country of the future…
…and will always be.”
PA International Conference 2011
15th December, Fishmongers Hall

4. The idea is supported by artists...
“In the favelas, in the senate
Dirt is everywhere
Nobody respects the Constitution
But everyone believes in the future of the nation
What kind of country is this?”
Renato Russo,
Brazilian musician,
Legião Urbana,
1987
PA International Conference 2011
15th December, Fishmongers Hall

5. ...and by the other side of the Channel:
“Le Brésil n'est pas un pays sérieux.”
General Charles De Gaulle,
French military and politician,
in 1963.
PA International Conference 2011
15th December, Fishmongers Hall

6. But this lady believed in us:
“Your country deserves more than ‘potential’.
Brazil is a country of the future and you must
resolve that the ‘future’ is tomorrow not
somewhere in the middle.”
Margaret Thatcher,
Britain’s fighting lady,
in a 1994 speech
PA International Conference 2011
15th December, Fishmongers Hall

7. And this bloke also gave some support:
“For so long, you were called a country of the future, told to
wait for a better day. That day has finally come. And this is a
country of the future no more. For the people of Brazil, the
future has arrived. And it’s time to seize it.”
Barack Obama,
president of a
former British
colony, in a 2011
speech in Rio.
PA International Conference 2011
15th December, Fishmongers Hall

8. So, did Mr. Obama get things right this time?
PA International Conference 2011
15th December, Fishmongers Hall

9. We are growing fine...
GNP in 2010:
Brazilian GNP Growth Rate* 1.4 trillion GBP
8.0
7.0
6.0
5.0
Percentaual Growth
4.0
3.0
2.0
1.0
0.0
-1.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
*Source: IBGE
Forecasted Growth for 2011: 4.0 %
PA International Conference 2011
15th December, Fishmongers Hall

10. We are distributing better...
E-class: £0 to £282
D-class: £282 to £451
C-class: £451 to £1945
The Social Classes's Mobility* AB-class: £1945 up
60 * Family monthly income
50
Percentage of the Population
40
E-class
D-class
30
C-class
AB-class
20
10
0
2003 2004 2005 2006 2007 2008 2009 2010 2011
*Source: Centro de Políticas Sociais | FGV
PA International Conference 2011
15th December, Fishmongers Hall

11. And the C-class is booming...
The Brazilian Social Classes in 2011*
17.26% 15.36%
11.58%
E-class
D-class
C-class
AB-class
55.80%
E-class: £0 to £282
D-class: £282 to £451
C-class: £451 to £1945
AB-class: £1945 up
* Family monthly income
*Source: Centro de Políticas Sociais | FGV
PA International Conference 2011
15th December, Fishmongers Hall

12. The number of colleges grew...
Colleges Institutions in Brazil
2500
2000
Number of Institutions
1500
2022 2032 2016 2039
1934
1789
1000 1652
1442
1208
1004
500
173 186 195 207 224 231 248 249 236 245
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Public Institutions Private Institutions
Source: Censo da Educação Superior 2009 | Inep, MEC
PA International Conference 2011
15th December, Fishmongers Hall

13. The number of students grew...
College Students in Brazil
7,000,000
6,000,000
5,000,000
Number of Enrollments
4,000,000
3,000,000
2,000,000
1,000,000
-
2001 2002 2003 2004 2005 2006 2007 2008 2009
Private Students Public Students
Source: Censo da Educação Superior 2009 | Inep, MEC
PA International Conference 2011
15th December, Fishmongers Hall

14. So suddenly we are on the news...
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15th December, Fishmongers Hall

15. We are on the movies...
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16. And our flip-flops are trendy and cool
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15th December, Fishmongers Hall

17. We will host the Olympics in 2016
PA International Conference 2011
15th December, Fishmongers Hall

18. We will host the World Cup in 2014
Possible 2014 World Cup Final Match
PA International Conference 2011
15th December, Fishmongers Hall

19. We will host the World Cup in 2014
Impossible 2014 World Cup Final Match
PA International Conference 2011
15th December, Fishmongers Hall

20. So, does the land of the future
have a publishing present?
PA International Conference 2011
15th December, Fishmongers Hall

21. The Readers
 There are 95.6 million readers in Brazil (55% of the population
above 5 years of age).
 47.4 million (50%) of these readers are students who read
textbooks and school recommended titles.
 6.9 million (7%) read the Bible
 Brazilians read 4.7 books per capita per year. From which 3.4 are
school-related.
Source: Retratos da Leitura | 2008
PA International Conference 2011
15th December, Fishmongers Hall

22. The Readers
Millions of Readers by Economic Class
2.6, 3%
15.5, 16%
36.5, 38%
41, 43%
A B C D/E
Source: Retratos da Leitura | 2008
PA International Conference 2011
15th December, Fishmongers Hall

23. The Readers
Readership Penetration by Economic Class
100%
90%
80% 86%
70% 74%
60%
61%
50%
40% 44%
30%
20%
10%
0%
A B C D/E
Source: Retratos da Leitura | 2008
PA International Conference 2011
15th December, Fishmongers Hall

24. The Readers
Readership in Foreign Languages
9
8.3
8
7
6
Millions of Readers
4.9
5
4
3
2
0.8 0.9
1 0.6
0 8,7% 5,1% 0.8% 0.7% 1.0%
English Spanish French Italian Other
Source: Retratos da Leitura | 2008
PA International Conference 2011
15th December, Fishmongers Hall

25. The Non-Readers
 The Illiteracy is 9,7% according to official stats.*
 The functional illiteracy is 20,3% according to official stats.* (Four
or less years of formal education)
 Classes D and E, 27% of the population, virtually can’t buy books
* Source: Pesquisa Nacional por Amostra de Domicílios | 2009 | IBGE.
PA International Conference 2011
15th December, Fishmongers Hall

26. The Non-Readers
Brazilian Literacy
50%
45%
40%
Percentage of the Population
35%
30%
25%
20%
15%
10%
5%
0%
2001/2002 2002/2003 2003/2004 2004/2005 2007 2009
Illiterate Rudimentary Basic Full
Source: Relatório INAF 2009 | Instituto Paulo Montenegro
PA International Conference 2011
15th December, Fishmongers Hall

27. The Buyers
 36.3 million People in Brazil bought at least one book during the
last 12 months (21% of the population above 5 years of age).
 Brazilians buy 1.2 books per capita per year.
Source: Retratos da Leitura | 2008
PA International Conference 2011
15th December, Fishmongers Hall

28. The Buyers
Millions of Book Buyers by Economic Class
1.8, 5%
8.8, 24%
8.8, 24%
17, 47%
A B C D/E
Book buyer is a person who bought at least one book
during the preceding year. Source: Retratos da Leitura | 2008
PA International Conference 2011
15th December, Fishmongers Hall

29. The Booksellers
 1,000 “proper” bookstores in the country. Around 5,000 book
points of sales.
 2/3 of the Brazilian citys do not have a bookstore.*
 Bookstore sales grew nominally 9.6% in. Inflation was 6.4%.*
 Only 49% have e-commerce (2010).*
 78% of the booksellers intended to invest in the business
in 2011.*
* Source: Levantamento do Setor Livreiro 2010 | ANL
PA International Conference 2011
15th December, Fishmongers Hall

30. The Booksellers
The main bookstore chains:
1. Saraiva: 101 stores
2. Cultura: 13 stores
3. Laselva: 88 stores
4. Nobel: 200 stores and mini-stores
5. Leitura: 29 stores
6. Curitiba: 22 stores
7. Fnac: 8 stores
8. Travessa: 5 stores
9. Vila: 4 stores
PA International Conference 2011
15th December, Fishmongers Hall

31. The Foreigners
Portugal: Leya, Babel
Spain: Santillana, Planeta, SM
UK/Netherlands: Elsevier
UK: Pearson, Penguin, OUP
US: Thomas Nelson, Cengage
France: FNAC
PA International Conference 2011
15th December, Fishmongers Hall

32. The Rulers
 The Brazilian government is one of the largest book buyers in the
world. Public schools book purchases are centralized.
 The Brazilian government spent 408 million GBP in 2010, a 25%
increase from 2009, and worth 25% of all publishers sales.
 Books are 100% tax free in Brazil: No VAT or any other taxation.
 The Brazilian National Library will spent 4.3 million GBP in
tranalstion grants until 2020.
PA International Conference 2011
15th December, Fishmongers Hall

33. The Rulers
Government Sales in Brazil
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2005 2006 2007 2008 2009 2010
Government Private sector
PA International Conference 2011
15th December, Fishmongers Hall

34. The Bestsellers
1. Ágape | Padre Marcelo | Globo Livros | 502,240
2. The Shack | William Young | Sextante | 95.799
3. Dear John | Nicholas Sparks| Novo Conceito | 80,405
4. A Game for Thrones | George Martin | Leya | 76,651
5. Guia Politicamente Incorreto da Hist. do Brasil | Leonardo Narloch | Leya | 71,015
6. 1822 | Laurentino Gomes | Ediouro | 67,367
7. The Notebook | Nicholas Sparks | Novo Conceito | 66,253
8. Water for Elephants | Sara Gruen | Sextante | 65,935
9. The Little Prince | Saint-Exupéry | Ediouro | 63,198
10. Why Men Love Bitches | Sherry Argov | Sextante | 58,299
Source: PublishNews, 2011
PA International Conference 2011
15th December, Fishmongers Hall

35. The Bestselling Publishers
1. Sextante | 69 hits on the list
2. Record | 56 hits on the list
3. Ediouro | 39 hits on the list
4. Intrínseca | 31 hits on the list
5. Santillana | 26 hits on the list
6. Companhia das Letras | 22 hits on the list
7. Saraiva | 22 hits on the list
8. Leya | 20 hits on the list
9. Planeta | 15 hits on the list
10. Elsevier | 14 hits on the list
Source: PublishNews, 2011
PA International Conference 2011
15th December, Fishmongers Hall

36. What about digital?
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37. October 19, 2009: the first day
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38. The cat and the submarine
 First Brazilian e-bookstore
founded in December ’09
 It has 8,500 Portuguese titles
in the catalogue (Dec. ‘11)
 Partnered with Submarino
from August ’10 until the
end of this year
PA International Conference 2011
15th December, Fishmongers Hall

39. Livraria Cultura followed
 Founded in March ’10
 It has 5,800 Portuguese titles
in the catalogue (Dec. ‘11)
 First to offer Positivo Alfa
PA International Conference 2011
15th December, Fishmongers Hall

40. And then Saraiva...
 Founded in June ’10
 It has 6,200 Portuguese titles
in the catalogue (Dec. ‘11)
 Offers apps for
iPhone, iPad, Android, Wind
ows.
PA International Conference 2011
15th December, Fishmongers Hall

41. The Brazilian e-bookstores
Number of Portuguese Titles
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
Gato Sabido Saraiva Cultura
June August October December
PA International Conference 2011
15th December, Fishmongers Hall

42. On the distribution front...
 Started operations in July ’10
 Same owners than Gato Sabido
 100% Brazilian technology
 150 publishing houses distributed
PA International Conference 2011
15th December, Fishmongers Hall

43. One for all and all for one
DLD
 Acronym for Distribuidora de Livros Digitais
 Started operations in April ’11
 Almost 1,000 titles today
 Consortium of publishers
PA International Conference 2011
15th December, Fishmongers Hall

44. The educational market
 Estácio de Sá University plans to distribute
tablets to its 260K students
 Pasta do Professor and Xeriph are involved in
the process
 Minha Biblioteca is a consortium of publishers
to offer subscription-based access to textbooks.
PA International Conference 2011
15th December, Fishmongers Hall

45. Some numbers
 One thousand eBook editions of “The Shack” (Sextante) were sold
in 6 months, while 200 thousand pBook copies were sold in the
period.
 Steve Jobs biography, by Walter Isaacson, sold 3,000 e-copies in 10
days.
 Livraria Cultura expects its digital sales to be 1% of overall sales in
the next semester.
Fonte: O Globo PA International Conference 2011
15th December, Fishmongers Hall

46. eReaders in the Brazilian market
Kindle: 160 GBP
iPad: 588 GBP
Cooler: 213 GBP
Galaxy: 356 GBP
Positivo alfa: 285 GBP iRiver: 427 GBP
PA International Conference 2011
15th December, Fishmongers Hall

47. On the price of eReaders, watch out!
Brazilian senator Acir Gurgacz, from Rondonia State
PA International Conference 2011
15th December, Fishmongers Hall

48. On the price of tablets, watch out!
Foxconn will produce iPads and iPhones in Brazil in 2012.
PA International Conference 2011
15th December, Fishmongers Hall

49. And this lady can change everything
The Brazilian government has announced
the purchase of digital content by 2013
PA International Conference 2011
15th December, Fishmongers Hall

50. But gringos seize the future now
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15th December, Fishmongers Hall

51. What about Print On Demand?
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52. POD is now an option in Brazil
PA International Conference 2011
15th December, Fishmongers Hall

53. Global Connect
 Complements the Lightning Source print & distribution services by
establishing alliances with partners around the world.
 Sales growth as a result of “always available” titles
 Add titles previously not offered
 Eliminates shipping costs
 Possible front list solution
Talk to David Taylor
PA International Conference 2011
15th December, Fishmongers Hall

54. Singular highlights
 Founded in 2010 as the digital distribution division of Ediouro Group.
 Operational digital printing plant producing 60,000 books per month.
 First Lightning Source books to be printed in Brazil next semester.
 It will shorten fullfilment time for English titles from 6 weeks to 5 days.
PA International Conference 2011
15th December, Fishmongers Hall

55. So Brazil has a huge potential for a fruitful
publishing future, and, as the Hawaiian
bloke said, “it is time to seize it”.
PA International Conference 2011
15th December, Fishmongers Hall

56. What?!?!? You don’t subscribe to
PublishNews Brazil yet?
www.publishnewsbrazil.com
Questions?
We have Brazilian gifts for the inquirers.
Carlo Carrenho
Founder of PublishNews | CEO of Singular Digital
carrenho@gmail.com
@carrenho
PA International Conference 2011
15th December, Fishmongers Hall