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Foreign participants of the VIII European Round Table of Press distributors visited „Kardos” Group and Federal Agency on Mass Communications

Foreign participants of the VIII European Round Table of press distributors visited the "Kardos" Group. Alexander Kostjuchenko (Chairman of the Board of Directors of "Kardos" Group), Oleg Berezhnoy (CEO of "Kardos" Group) and Andrei Vavilov - Commercial Director, conducted the tour. The "Kardos" Group of companies, founded in 1999, is currently among the leaders in the distribution of printed materials. The technology developed by the company's specialists, processing line which runs direct dispatching, has been demonstrated to foreign colleagues.

Through the introduction of this equipment, the number of errors by the layout of the order was reduced to 12 times. Sort circulation takes place daily from 18: 00 pm to 2 am. The range of periodicals exceeds three thousand newspapers and magazines as well as more than ten thousand of consumer goods.

A.Vavilov introduced a new publishing project of "Kardos" Group - TV Guide "Telek". Despite the decline in sales volumes of periodicals, he noted, that TV guides related to the low price category, shows the growth in sales. In order to emphasize the affordability of the publication to the public low retail price of 10 rubles is printed on the cover. This figure was part of the logo, the hallmark of the publication. "Many publishers want to enter into the segment of expensive glossy magazines. We believe that cheap periodicals are much more attractive, both for the consumer and for the advertiser", emphasized A. Vavilov.

During the meeting, General Director of Press Distributors Forum Michael Newman (England), talked about some of the features of the press distribution of his country. In the UK distributor returns to the publisher remitting circulation of only pornographic magazines. Unrealized copies of other thematic groups are destroyed by the distributor. A. Vavilov explained, that the Russian distributor returns to the publisher all unsold copies. At the same time expressed the hope that with time Russian distributors and publishers will go to the European scheme of processing circuit remission.

During their stay in "Kardos” Group guests were asking questions about the enterprise, the media market of Moscow. An exchange of views took place, at the conclusion of the visit the guests got acquainted with examples of business diversification, the development of new projects and technologies "Kardos" Group.

The same day the foreign participants of the VIII European Round Table of press distributors were received by the Deputy Head of the Federal Agency for Press and Mass Communications (FAPMK) V. V. Grigoriev. The meeting was also attended by the deputy chief of FAPMK’s Department of the periodical press Y. S. Pulya, President of PDA D. V. Martynov, Chairman of PDA A. V. Oskin, CEO of "Alliance" Group M. A. Byleva.         During the talks, the foreign participants of the meeting voiced some characteristics of the national markets of distribution of printed media in their countries, presented existing programs to support the press.

The Executive Director of the Federation of National Associations of Press Distributors Jose Manuel Anta (Spain) said that Spain has developed a program to support the specialized media outlets. This is due to the fact that the number of commercial properties that sell periodicals, is constantly shrinking.   In addition, the dialogue with the Government of the country to develop a set of measures for state support for specialized press facilities is planned to stir up. We plan to build on the experience of France, where the mechanism of state support for operating is successfully functioning for many years.

H. Anta said that according to research conducted by experts of his association, the buyer purchases a new magazine in a dedicated point of sale of the press, and not in the supermarket or at the gas station. The publishers who put money into advertising on television, seems, that are spending the marketing dollars not much effective way. "Recently, we have noted a change in the philosophy of the publishers. They begin to realize that one euro spent on promotion of publications in the specialized retail outlet gives a better return than one euro invested in the promotion on television or the Internet", he added. 

Mike Newman, CEO of Press Distributors Forum told about the peculiarities of the press distribution market in England. In the country, he said, there is a steady increase in the number of retail outlets where you can buy a press. Their number has increased from 32 thousand to 54 thousand. Unlike other countries there are no specialized kiosks and press pavilions in the UK. Newspapers and magazines are sold in grocery stores, drug stores, cafes, etc. Subscribe to the newspaper is not carried out.

Only 17% of magazines are distributed by subscription. The high social status of traditional media is the fact that the paper versions of periodicals have a zero rate of VAT, while the tax rate is the same for digital media is 21%.

The Director-General of the independent distributor Messaggerie periodici L. Maury noted that there is a change in Italy in attitude of the publishers to the problems of distribution of newspapers and magazines. Five to seven years ago, he said, there was a strong opinion, in the publishing community that the reduction in the number of outlets does not affect the circulation.

Today, this paradigm is changing; publishers have realized that the loss of a commercial facility press has a negative impact on circulation. Closing of the press kiosk is not offset by increased sales in the nearby outlet. Closing the press outlet leads to the fact that the buyer will switch to other goods entertaining subjects.

Chairman of the PDA Board A. V. Oskin recalled that the tradition of the press distributor’s round table was born seven years ago at the initiative of PDA during the "Distripress" congress. He noted as a very useful, performances of all participants of the VIII European Round Table of press distributors. He drew attention to the fact that many of the processes in the markets of the print media of the European countries, are due to similar scenarios and are objective.

However, there are significant differences that result from cultural conditions. In most European countries, the number of commercial press properties is reducing. The only exceptions are the UK and Germany, where an increasing number of outlets for the newspapers and magazines sales is observed. Great interest for Russia, according to A. V. Oskin, is the study of the Spanish experience, where a comprehensive program of support of the print media is prepared.

V. V. Grigoriev brought to the attention of foreign and a Russian participant of the meeting, that annually is allocates an amount equivalent to U.S. $ 2 billion for the media market support in Russia. Most of these funds are spent on TV.

V. V. Grigoriev estimated that by 2015, transfer of radio and television signals to digital are planned, which is a positive aspect of the media. Internet penetration in the whole country, is about 45%, in Moscow - 70%, it is one of the best figures in Europe.

Unfortunately, told V. V. Grigoriev, the system of press distribution in Russia is not supported practically. If you look at the overall development of the media business in the country, it should be recognized that not the less developed segment today is exactly the press distribution.

Deputy Head of FAPMK expressed interest to meet with the study of Spanish counterparts on measures of state support of the press. He received a positive response and a promise from H. Anta to provide PDA with the complete work, all materials on this issue.

V. V. Grigoriev expressed interest in conducting a research of the European experience of state support of market distribution of printed media. On the basis of this analysis, it would be useful to develop a set of measures aimed at supporting Russian distributors of periodicals. Supporting the distributor’s business, we will support publishers, printing houses, paper manufacturers and representatives of other sectors of the economy.

Distributor is a locomotive that can and should pull periodical market out of crisis. In the conclusion of the conversation H. Anta praised the passed VIII round table and thanked FAPMK and PDA for help in this important international forum.




Press-service of PDA