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News

Press in the supermarkets in the focus of interest of publishers, distributors and retailers

Within the framework of the PDA’s XXV International Media Conference In Turkey,  a meeting of the section on the press distribution in networks of self-service stores took place. Moderators of the Section were the CEO’s of two major distribution companies for the distribution of printed materials in Russia – A. N. Bogdanov ("Sales" JSC) and K. P. Nedosekin ("Media Distribution"Ltd. ). The event was attended by representatives of the publishing and distribution businesses.

 

A. N. Bogdanov opened the section with a response to a question about the prospects of press sales in supermarkets: "Prospects for press distribution in food networks, of course, are, in else we would not engage in it". At the same time he noted that the Moscow market in food distribution networks has been structured already, customer needs of the press in supermarkets are also well structured, as well as their price preferences. The owners of grocery chains have done a great job, the results of which we, as distributors , now use during the design of assortment and pricing strategy.

K. Nedosekin continued the theme of the prospects of press sales in supermarkets and gave a detailed analysis of the reasons for the growth segment of the press distribution in the FMCG network  against falling market as a whole.
Publishers position on the development of prospects of the distribution segment of the press in supermarkets have been mixed . In particular, A. Avdonin, General Manager of "World News Bulletins”, expressed his opinion that for a number of publishers press distribution through supermarkets - it's a dead end road .
Bogdanov , commenting on this opinion, said that the range of supermarkets and press kiosks are intersected by 40 %. Press kiosks - it's a different distribution channel with a different range of goods, and possibly with the approval of the recommendations mentioned in the Order of the Ministry of Communications, the situation in kiosk retail will be improved.

In the ensuing discussion, a question was raised about the interaction between the publisher , distributor and retailers.
The possibility of expanding the number of objects in the segment, at the account of non-network format "shop by home" was also discussed at the meeting. A. Bogdanov related about an experiment with such objects. The negotiations on the introduction of the press as a product category in this format were conducted with 200 non-chain stores.

To align supply with any of the store with a reasonable assortment array fails, the only question was considered by the owners of newspaper stands. In this case, the owners could increase the amount of commercial facility’s revenue from 15 to 50 thousand rubles per month through the introduction of periodicals.
The discussion on this issue concluded S. Gavrilov, saying that with the supplies of such objects in the regions are engaged regional publishers  themselves, thus greatly increasing their circulation. If in Moscow the share of such objects is rapidly declining due to the increase of network objects, in regions such objects still occupy a significant part of the market so far. But the question of how cost-effective is  to engage in supply of press to such networks for distributor and publisher, is still open. Not every distributor will be able to gain profit from the service of format stores "by home".
The meeting participants emphasized that here is still no unity in the publishing environment in the understanding of the problems of a press in the supermarkets. Printed products publishers are dealing separately and are in a sharp competitive relationship with each other.
Finally, the participants of section meeting agreed on the need of consolidation of press distributors for establishing a meaningful dialogue in times of economic difficulties in the industry.