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FIPP Conference 2002 – Seoul Korea. FIPP 2002's theme: Magazine Media Welcomes the Digital Age: Making Technology Work for Magazines Session VI-A - 14:45-15:45 Thursday 18 April 2002 Challenges To the Future of Magazine Distribution in the Asia-Pacific region. Introduction to the session. - PowerPoint PPT Presentation
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FIPP Conference 2002 – Seoul Korea
FIPP 2002's theme:Magazine Media Welcomes the Digital Age:
Making Technology Work for Magazines
Session VI-A - 14:45-15:45 Thursday 18 April 2002
Challenges To the Future of Magazine Distribution in the Asia-Pacific region
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Chairman:
• Louis de Bourgoing, COO, Hachette Distribution
Services, France
Speakers:
• Yong-Kook Kim, President, International Publications
Service (IPS), Korea
• Masahiro Oga, President & CEO, Shogakukan Inc,
Japan
• Gordon Lang, Regional Manager, Deutsche Post
Global Mail, Singapore
Introduction to the session
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• Branch of Lagardère Group
• 2001 Key Figures:• Sales: 4.3 billion euros• 13,000 p.• 30 companies,19 countries: Europe (AMP, SGEL, Naville,
Saarbach…), USA-Canada (Curtis, LMPI…), China (Hua Dao), Australia-Singapore (Newslink)
• 2 businesses: • 50% Press Distribution
• the only multinational domestic & international press distribution group
• 50% Media Product Retailing• in travel locations: 1,000 Relay in stations and 80 airports• in high street: Virgin Megastore in continental Europe
• A press specialist: 66% of its turnover
Hachette Distribution Services (HDS)
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missing market figures: NZ, Indonesia, Vietnam, South Af, Canada, South-Central America, Middle East…
Asia Pacific Magazine Market
Domestic Magazine market + Import marketHDS estimates
5 CH
INA
Domestic Magazine market + Import marketHDS estimates (Korea: KMA)
Asia Pacific Magazine Market
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1,000 Magazine Publishers
Post office National Distributors (national and
regional offices + field force)
subscriptions
by post offices
(60%*)
Local post offices Independant wholesalers (500/1,000)
Retail (40%):
Independant street newsstands: 10/20,000
Post office newsstands: 5/10,000
Kiosks chains: 4/5,000
Convenience stores and others: 2/4,000
The Chinese model
*% in value (still large volume of titles subscribed by work-units)
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HUA DAO CompanyThe best help to
publishersfor National Distribution
of local titles in China
Hua Dao in 2002:50 titles
12 offices60 people
300 client wholesalers
HUA DAO a fully-owned subsidiary of HDS
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1,000 Magazine Publishers
(2,463 magazines)
Retail (65%):
Bookstores (mainly small independents)12,000
Convenience Stores 2,000
Travel retail stores 420-450
(Seoul subway) (270)
Street Kiosks* 1,000-1,500
data: Source KMA
* Associated with bus-stops: only dailies and a few weeklies
The Korean model
Subscriptions
(35%)
500 wholesalers
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1,000 Magazine Publishers
* Publishers owned
TOHAN* NIPPAN*
Keitokusha, Takiyama,…
Magazines & books distributors
5 main others
Magazines & dailies distributors
The Japanese model
subscriptions95%
5% Nikkei-
BP…
JR unions/subsidiaries
Retail stores:Travel retail 5,000
Bookstores 8,000 8,000 4,000
Convenience 20,000 14,000 4,500 8,500
own regional wholesale
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Single copy sales:
slower or negative growth, except China less big sellers but more specialized titles market shift from independent stores towards chains
and travel points
Subscription:
growth for specialized titles rising cost of postal services
Due to recent downturn in advertising markets,
increase of the share from copy sales
Market evolution
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To react against the increasing cost of distribution:
need for productivity gains: concentration of wholesalers, pay on scan (?), …
need to review processes in partnership with publishers
China, South Korea, Taiwan…: how to manage and structure hundreds of independent wholesalers and retailers ?
To professionalize the retail network:
sophisticated marketing and merchandising techniques
promotion of higher allocation of shelf space retail marketing program
Challenges to the future of Magazine Distribution in the Asia-Pacific region
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To consider new subscription techniques:
telemarketing (Korean experience: Mr. Kim’s presentation)
open-ended subscription Japanese experience (Mr. Oga’s presentation)
To develop export/import of Asian titles:
subscription: new actors such as Deutsche Post (Mr. Lang’s presentation)
Single copy sales: to test distribution of more titles
Challenges to the future of Magazine Distribution in the Asia-Pacific region
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