Central & South America Opportunities for growth in the new world

1. Central & South AmericaOpportunities for growth in the new world ASA Conference February 2009, London

2. Agenda • Market profiles • Stability of countries • Main countries in terms STM • Products that are in demand • Best market approach • Government support • Agent penetration • Consortia/agent relationships • Ways of doing business

3. Market profiles Countries:

4. Stability of countries • Political stability • Not equal • Costa Rica maintained political stability since 1948 • Cuba might change its political status as talks with President Obama are expected • Venezuela shows changes in its democracy

5. Stability of countries • Stability of currencies & impact on library budgets • Stable until 2008 global economic crisis • Devaluation of 15% to 40% of local currency against USD • Library budgets are in local currency but expenditure mostly in USD • Most budgets increased by 15%-40% to keep/renew current subs • Still many financial studies to find funds for new subs/titles

6. Main countries for STM • “Maturing” markets: • Brazil • Chile • Argentina • Mexico • Colombia

7. Main countries for STM

8. Main countries for STM

9. Main countries for STM

10. Main countries for STM • Maturing Latin America is still considered “emerging” in comparison with markets like US and Europe: • New consortia • Migration to online

11. Main countries for STM • “Emerging” markets: • Venezuela • Cuba • Costa Rica • Peru • Puerto Rico • Uruguay

12. Main countries for STM

13. Main countries for STM

14. Main countries for STM

15. Main countries for STM • Less “Emerging” markets: • Dominican Republic / Paraguay / Ecuador / Guatemala / El Salvador / Panama • Not so “Emerging” markets: • Haiti / French Guyana / Bolivia / Nicaragua / Honduras

16. Products in demand • Survey amongst librarians (2007) Resources planned to be added to library collections: Access to resources currently:

17. Products in demand • Traditionally print was main subscription format • Migration to online journals: • Since last few years • Bigger countries: Mexico / Brazil / Argentina / Chile / Colombia • More computers, improved internet access & technology • Requests by users

18. Products in demand • E-Books: • Mexico, Brazil and Chile started buying e-Books • Other countries just starting to look at e-Books • Products in demand: • Online journals / Journal packages / e-Books / Databases

19. Best market approach • Local presence is crucial • Frequent visits to libraries and conferences • Speaking their language makes great difference • Offer trials and initial discounts to enter the market • Customer service and technical support, also locally

20. Best market approach • Survey amongst librarians (2007)

21. Government support • Brazil • CAPES: • Access provided to state universities and academic institutions • Increased 2009 sponsorship by 40% to remain strong against currency devaluation • BVS (Biblioteca Virtual em Saude): • Virtual Library of Health • For state hospitals and other medical institutions • Free or low cost access to medical publications

22. Government support • Mexico • CONACYT: • 198 members • State universities and other academic institutions • Starts purcahsing in 2009 • Aim: review collection and add new content every 3 months • Still at initial phase

23. Government support • Colombia, Cuba, Venezuela • Trying to follow example of Brazil and Mexico • Political situation makes purchasing processes difficult: • Cannot purchase directly from foreign publishers • Must buy through local agents in local currency • Complex approval procedures to buy content not published locally

24. Agent penetration • Whole region • EBSCO: Offices in Mexico and Brazil with staff in different countries • SWETS: All except Brazil. Office in Mexico and staff in different countries • ACCUCOMS: Office in Costa Rica. Only sales representation and customer service. No back office functions.

25. Agent penetration • Mexico • Grupo Difusión Científica • Nye Omicron • Brazil • DotLib • Periodicals Publicações Técnicas • Chile • Librería Ciencias Médicas

26. Consortia

27. Ways of doing business • General aspects • Cultural differences to US/Europe • Difficult to spot real prospects • More follow-up and regular contact necessary • Attitude and a good ear is expected • Aggressive sales approach not appreciated

28. Ways of doing business • Pricing • Do agents mark-up? • Do libraries want to buy directly or through an agent? • Maturing markets vs. smaller countries • Tenders push change of sub agent more frequently

29. Ways of doing business • Preferred service (2007 survey)

30. Ways of doing business • Conclusions • Market is still growing • Economical crisis slowed down growth temporarily • Publishers should not stop investing in this market • Success through: Ongoing communication programs with librarians, local presence and language skills, customer service and non-aggressive sales that fit the cultural habits, technical support and trainings

31. Ways of doing business • Recommendations • Spanish and Portuguese translations • Email communication program with librarians • Free trials • Follow-up post sales and technical support • Close relationship with subscription agents • Understanding of each consortia and their preferred channels • Long term pricing options • Personal visits and understanding of market needs

32. Thank you! Pinar Erzin pinar.erzin@accucoms.com