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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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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
FIPP Conference 2002 - Seoul Korea Session: Challenges To the Future of Magazine Distribution in the Asia-Pacific region • Introduction to the Session • Overview of the theme in relation to the Asia-Pacific region. • Presentation by Speakers of their own markets and trends in these markets • (13 mn each)
FIPP Conference 2002 - Seoul Korea Session: Challenges To the Future of Magazine Distribution in the Asia-Pacific region • Session chairman: • Louis de Bourgoing, COO, Hachette Distribution Services, France • Speakers: • Yong-Kook Kim, President, International Publications Service (IPS), Korea • Masahiro Ohga, President & CEO, Shogakukan Inc, Japan • Gordon Lang, Regional Manager, Deutsche Post Global Mail, Singapore
FIPP Conference 2002 - Seoul Korea Hachette Distribution Services (HDS) • BRANCH OF LAGARDERE 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 retail: Relay in stations and 80 airports • in high street: Virgin Megastore in continental Europe • A PRESS SPECIALIST: 66% OF ITS TURNOVER
FIPP Conference 2002 - Seoul Korea Asia Pacific Magazine Market HDS estimates Domestic Magazine market + Import market missing market figures: NZ, Indonesia, Vietnam, South Af, Canada, South-Central America, Middle East…
FIPP Conference 2002 - Seoul Korea HDS estimates Domestic Magazine market + Import market
FIPP Conference 2002 - Seoul Korea The Chinese model Publishers (1,000) Post office National Distributors (national and regional offices + field force) Independant wholesalers (500/1,000) Subscription Local post Independant steet news-stands: 10/20,000 Post office news-stands: 5/10,000 Kiosks chains: 4/5,000 Convenience stores and others: 2/4,000
FIPP Conference 2002 - Seoul Korea The Korean model Magazine Publishers (a few hundreds) 4-500 local wholesalers = 5-6 wholesalers/ku (county) Bookstores (mainly smal independents) 4,000 CVs 1,500-2,000 travel retail stores 150-200 (Seoul subway 130) kiosks (street)* 1,000-1,500 * Associated with bus-stops: only dailies and a few weeklies
FIPP Conference 2002 - Seoul Korea The Japanese model 3,000 Magazine Publishers Magazines & books distributors Magazines & dailies distributors TOHAN* NIPPAN* 5 main others Keitokusha, Takiyama,… JR unions/subsidiaries own regional wholesale travel retail stores 5,000 bookstores CVs 10,000 20,000 10,000 14,000 7,500 4,500 8,500 * Publishers owned
FIPP Conference 2002 - Seoul Korea Challenges to the future of Magazine Distribution in the Asia-Pacific region • 97-98 Asian financial crisis: slower or negative growth (except China), less big sellers, more specialized titles, more returns: • increasing cost of distribution, need for productivity gains • less shelf space, reluctance of retailers to take titles • Recent downturn in advertising market: • copy sales larger source of income • more competitive environment • need of better/more aggressive distribution • Need of lower costs/productivity gains/concentration of wholesalers • Market shift from independents towards chains and travel points: need for new innovative marketing approach – more investments in tools and people • Development of subscription: positive trend but high risk of delivery cost increase • China, South-Korea, Taiwan …: how to manage and structure hundreds of independent wholesalers and retailers ? • Growth potential in export/import of Asian titles • Pay on scan: opportunity/risk in Asia/Pacific ?