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News

Newspapers, magazines and books in North America and Russia. Condition and perspectives

Within the 58th Congress of Distripress, the North American - Russian forum "The market of printed media in North America and Russia : trends and ways to save the business" was held in Toronto (Canada). The round table was attended by the delegates from Russia , USA , Canada, UK, and Distripress president Tony Dzhashanmal and Distripress CEO David Owen.

The following presentations from Russia were presented at the roundtable: "The market for newspapers, books and magazines in Russia" by Oskin A. V., "The economic and political features of the functioning of retail sales in Russia", by Gracheva A. K. and "Current market trends of subscription" by Chechot M. I. From U.S. PBAA President  J. Ennis, President of IPDA Jerry Lynch, a LMPI consultant Stan Sinoviki, Vice-President of Gateway Newstand Arlene Shepherd. The meeting was led by  Lisa Scott and A. V. Oskin.

After getting acquainted with the information about the situation in the market for printed products in Russia, representatives of the media industry in the U.S. and Canada talked about the condition and problems of the market of printed materials in the two countries.

The market of newspapers and magazines in USA shows an annual decline in circulation and the general turnover. In this, sales decline is observed in all segments, but is minimal in women's , children's and culinary publications. The Canadian market trends are the same, but the rate of decline is lower. The transition of publications to the Internet does not give the expected result. While the relative growth rates are in tens of percent, revenues from digital media is still 2-3% of the total turnover. At the same time there are new publishing projects in the market, which brings very good sales.

Participants of the round were telling about the changes in consumer behaviour, and this applies primarily to reduced number of visits to stores, percent drop in impulse purchases, which include magazines, aging readership, consumer fatigue from the old perennial magazine brands.

In an analysis of press sales in supermarkets, the roundtable participants noted that the market had stoned a clear trend towards an increase in the number of hypermarkets and convenience stores, with medium-sized supermarkets, which apparently exhausted its popularity. An important issue in the sale of the press in the supermarkets is the merchandisers staff turnover, their lack of professionalism. Large networks, such as Wal-Mart, behave themselves dictatorial against the publishers and distributors of press. In particular, the widely publicized event "3 magazines for $ 10", in fact, became a kick for all other publications, including the leaders. But the most important thing is that this action is extremely economically disadvantageous even to those editions, which participate in it.

An important new element in the development of supermarkets has been the emergence of various forms of payment for the goods  by the buyers. According to U.S. projections, by 2020 the fourth part of purchases will be paid through the traditional cash register, a quarter - through self-checkout, a quarter - online and another quarter - with the help of mobile phones. The task of publishers and distributors - to take into account this reality in its trade policy.

Much attention has been paid to the development of a kiosk network press. Arlene Shepard spoke about her company's kiosk network, numbering 400 in Canada and in the United States. The main principle of operation - franchising, with a good results as a family business model . With this system, the number of employees was reduced to a minimum. The company provides all the outlets with supplying products. Press assortment is formed into four types depending on the location of the object. Proceeds from sales of the press has fallen from 30 % to 12 % in turnover, so the company only works with magazines, for which publishers pay marketing fees. The company used a variety of tools to stimulate sales: plasma screens , posters on the walls and inscriptions on the floor. Advertise log on the screen gives the name an increase in sales to 100 units per day. After much hesitation, the company has taken on the distribution of free newspapers, despite the objections of publishers. Revenues from the distribution of free newspapers exceeded all marketing fees from other publications.

The drop in sales of magazines leads to the fact of great difficulty while defending the area under the press, when planning new outlets.

New trends in the market of printed products were discussed at the round table. Jay Ennis told about promoting bukazinov (symbiosis of book and magazine). This edition is formed from the best articles of the monthly magazine and is published six times a year in the format of the book. In between editions the application are published in this edition, so the frequency of the publication has a monthly turns. He outlined specific examples of this project , the use of Internet resources and advertising and promotion bukazinov.

Distripress president Tony Dzhashanmal touched on issues of press distribution in supermarkets in his speech. He praised the PDA contribution to the work of Distripress and shared his impressions about his visit to Moscow at the invitation of the association. David Owen praised the outcome of the Russian- North American forum, noting that within a few hours of operation, learned a lot of useful information.

Summing up the meeting, Oskin A. V. appealed to the Distripress leadership with a proposal to include in the program of work of the congresses of the meeting of experts on the market of printed media in a narrow format for deep study of specific problems of the media industry. All participants supported the proposal.

Lisa Scott, for his part, also supported the idea and invited all those present to the next congress of PBAA, which will be held in June 2014 in Washington.