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FIPP Conference 2002 – Seoul Korea

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.

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FIPP Conference 2002 – Seoul Korea

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  1. 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

  2. Introduction to the session 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

  3. Hachette Distribution Services (HDS) • 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

  4. Asia Pacific Magazine Market Domestic Magazine market + Import market HDS estimates missing market figures: NZ, Indonesia, Vietnam, South Af, Canada, South-Central America, Middle East…

  5. Asia Pacific Magazine Market CHINA Domestic Magazine market + Import market HDS estimates (Korea: KMA)

  6. The Chinese model 1,000 Magazine Publishers Post office National Distributors (national and regional offices + field force) Local post offices Independant wholesalers (500/1,000) subscriptions by post offices (60%*) 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 *% in value (still large volume of titles subscribed by work-units)

  7. HUA DAO Company The best help to publishers for National Distribution of local titles in China HUA DAO a fully-owned subsidiary of HDS Hua Dao in 2002: 50 titles 12 offices 60 people 300 client wholesalers

  8. The Korean model 1,000 Magazine Publishers (2,463 magazines) 500 wholesalers 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 Subscriptions (35%) data: Source KMA * Associated with bus-stops: only dailies and a few weeklies

  9. The Japanese model 1,000 Magazine Publishers 95% subscriptions 5% Nikkei-BP… Magazines & dailies distributors Magazines & books distributors TOHAN* NIPPAN* 5 main others JR unions/ subsidiaries Keitokusha, Takiyama,… own regional wholesale Retail stores: Travel retail 5,000 Bookstores8,000 8,000 4,000 Convenience20,000 14,000 4,500 8,500 * Publishers owned

  10. Market evolution • 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

  11. Challenges to the future of Magazine Distribution in the Asia-Pacific region • 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

  12. Challenges to the future of Magazine Distribution in the Asia-Pacific region • 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

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