Thursday, September 06, 2007

One of a publisher's jobs is to ensure that an author's book reaches as many people as possible. We achieve that through publicity, marketing campaigns and most importantly through visibility in retail environments. I classify (and I think most other people would do so too) these environments into independent book shops, chain book shops, libraries, supermarkets and the Internet. Each of these environments has its own characteristics in terms of type of customer, cost base, cost to service, range, and service levels. Each is important.

Publishers are frequently under attack for favouring one channel over another and of being short-sighted in allowing different prices to prevail in different sectors etc.

You only have to run a search on this blog for 'Keeble' and click to some of Clive's comments to get a sense of the debate. In essence, independent booksellers feel that large discounts granted by supermarkets rob them of sales of mass-market titles, large discounts granted by Internet booksellers rob them of sales of higher-priced 'quality' non-fiction sales, and large discounts granted by high-street chain booksellers rob them of everything else.

I recently checked out the UK sales of two recent best sellers. The first is a mass-market fiction title in paperback. The chains represented 50% of sales, supermarkets 35%, Internet 9%, independents 5% and libraries 1%(rounded up).

The second is a serious TV tie-in hardback non-fiction title. Chains were again 50%, Internet 30%, independents 11%, supermarkets 8% and libraries once more a little under 1%.

In making these calculations I assumed that the bulk of wholesalers' sales are to independents and I included small chains (a few outlets rather than scores or hundreds) in the independent sector. In other words, I don't think I have understated the independent share of the overall market for these books.

These numbers can be interpreted many ways and I'd welcome feedback. What it says to me is that the industry needs all these (and maybe other) channels. Certainly the independent market share is a concern but if we had not offered these books through the Internet and supermarkets (by not trading with them on acceptable-to-them terms) and, say, independent sales had doubled as a result (unlikely because neither of the titles would have made the best seller lists without supermarket and Internet data), our authors would still have been significantly worse off. The result of that would have been the loss of these authors in the future and consequent medium-term damage to our business. We have to find ways of creating a viable independent book shop sector but not by impeding other routes to market.

On a lighter note I am indebted to David Silverman for alerting us to this French version of Puff to sit alongside the book and CD we publish tomorrow. Enjoy.

#    |  Comments [6]  | 
9/6/2007 8:23:46 AM (GMT Standard Time, UTC+00:00)
Richard, a thought provoking topic - especially today when HMV/Waterstone's produce their half-year results.

I'm not sure how many indies bother to stock mass-market paperback fiction because I don't ; I almost never stock TV-tie in, but do stock h/b exhibition catalogues (such as Hogarth) when I consider that they will have long term sales prospects (at full cover). My stocking attitude is governed by the fact that everything comes in firm sale or has no place in my business.

The current bestselling "new" titles in my shop would be "A Year in the Life of an English Meadow", "Moomin : volume one", and "Mr Pusskins" in childrens picture books. All three titles are not time sensitive for sales and there is no reason why they should not continue to sell well in 2010 (subject to being in print).

My shop is currently offering (and selling in quantity) a £20 h/b 'bin-end' for £7.99, first published in late 2006 : a paperback edition was recently issued at £8.99 and attracted considerable interest on media summer reading lists. The title still shows in-print at £20 : such is the weird state of play in the new book world. This title is not time sensitive : businesses like mine by purchasing large quantities of "overstocks" on selected titles are acting like the old world publishers, being prepared to laydown stock for the future.

The discounting on populist titles has eroded the potential sales for the independent booktrade : shops have had to adapt to prevailing market circumstances or go bankrupt. Potentially the independent booktrade could complete many of the sales which go to the supermarkets and or internet but we cannot afford to discount to the level offered by such sellers.

Waterstone's sell most quality books at full-cover and therefore take few sales from provincial shops like mine : for instance Collected Poems of T S Eliot which would be a standard stock item with me, and is no cheaper with Waterstone's (if you can find a copy in their locallish branches)
9/6/2007 8:56:52 AM (GMT Standard Time, UTC+00:00)
Richard

It isn't clear to me whether the breakdown of sales your report is units or revenue. I'd be interested to know if the %age breakdown changes if you report revenue instead of units (or units instead of revenue).

Assuming the numbers above are based on units rather than revenue - is it possible the independents are more important to your business that these figures appear to show? After all it is revenue that is more important than units (actually profit is what is really important).

Matthew
9/6/2007 8:59:15 AM (GMT Standard Time, UTC+00:00)
Very interesting figures. My comment is that the internet and supermarkets have between them taken the share that used to go to Book Clubs and that the internet has then taken a hefty slice of the serious book business from the chains The share of market to Independents hasn't really moved in 20 years. Libraries-- well what can you say-
9/6/2007 9:19:24 AM (GMT Standard Time, UTC+00:00)
I find the stats broken down into Chains, Supermarkets, Internet, Independents and Libraries very interesting - If only these sorts of stats could be searched 'live' by ISBN, it would be an invaluable tool to the (aspiring) independent to determine viability of titles.

Maybe even with monthly trend analysis, the independent could determine when a book has left the remit of the chain/supermarket and is a viable reseller...
9/6/2007 10:04:52 AM (GMT Standard Time, UTC+00:00)
Matthew

The figures are units not revenue. By revenue the independent share would increase by a couple of percentage points in each case although not enough to change significantly any coclusions. If however one measured by contribution after cost of distribution etc the independents' market share would reduce by a couple of points in each case. As you say, profit is the most important thing (after fulfilling an obligation to authors to sell as many copies as possible). I don't think independents are a more profitable route to market than other channels.
9/6/2007 3:28:00 PM (GMT Standard Time, UTC+00:00)
There's a wonderful article on The Register:
http://www.theregister.co.uk/2007/09/06/william_davies_panic_in_tvland/

Which discusses what happened when Vint Cerf, Vice President of Google, addressed the annual Edinburgh International Television Festival. There was a lot of fear, uncertainty and doubt about the future of the industry when new technologies (such as iPods, etc) threaten the core business.

Then Jeremy Paxman asked ‘what is television for?’ And the answer had little to do with its means of transmission.

There is an obvious parallel with the publishing industry here, and its means of delivery (traditional, Print-On-Demand or digital), and the routes to market:

Any industry that commits itself too closely to a single technology or route to market runs the risk of it being superseded.
Chris