Crafty Publishing

Crafty Publishing

DECEMBER IS UPON US and the rush to Christmas has truly begun: how better to start the month than to join the celebrations with one of our smaller trade partners, Crafty Publishing, as their second book is released? Even better, both Young David titles are now available through CLC Wholesale. So without further ado, a warm UKCBD welcome back to Fiona Veitch Smith, author and publisher, who I’ve dragged kicking and screaming back to these hallowed pages…

IT’S BEEN THREE MONTHS since Phil found me in the gutter and elevated me to the dizzy heights of guest blogger for UKCBD [flattery will get you everywhere - Ed] (David and the Hairy Beast claws its way to market). Now in this second instalment of the trials and tribulations of a small start-up publisher trying to find space on the already overcrowded ladder, I can tell you that we’ve advanced at least one rung.

Young David Series

David and the Hairy Beast

David and the Hairy Beast

A few more bookshops have agreed to stock David and the Hairy Beast (the first in a series of quirky picture books about the life of the Young King David) and we’ve even had some orders through Bertrams. Internet sales through our website from individuals are also ticking along.

We’ve taken on a sales agent for the London area and are considering taking on a US dispatch agent as postage costs from the UK are off-putting for customers there. The London agent has approached a couple of dozen shops and most are keen to stock but wanted to wait for the second book to come out before they ordered.

David and the Kingmaker

David and the Kingmaker

David and the Kingmaker was expected to be published by the mid-to-end of October, but a change of project manager at our printer delayed production and we only took delivery of the book on 23 November. This is leaving it very tight for Christmas stocking but all but one of our ‘old’ shops have taken orders (and two of them have restocked the first book too). I also had appointments with two more shop managers this week.

However, sales have been encouraging enough to tell us we have a marketable product and that enough retail outlets are prepared to take a risk on us to make it worth our while. So we have started work on our third title, David and the Giant, which we intend to bring out for Easter.

More Authors and eBooks

The Peace Garden: an ebook from Crafty Publishing

The Peace Garden: an ebook from Crafty Publishing

It was always our plan to start with a series of books I had written to test our business model. If we felt it was workable, we would take on other authors too. It’s early days yet in our print range, but we have signed two new authors for our ebook line. For ebooks we are publishing adult novels. Again we have brought out one of my novels as a ‘test case’. The Peace Garden is a romantic thriller set in England and Apartheid South Africa. We have put it up on Kindle to start with but are in the process of rolling it out to other e-platforms through Smashwords. We hope that it will go ‘live’ on all platforms next week.

Marketing in this area is primarily, of course, online. I am arranging book giveaways and competitions through Goodreads and using Twitter, Linked In, Facebook and other social networking platforms to promote it. I approached New York Times bestselling author Ruth Downie (the Ruso series of Roman mysteries) to review it. Sales are slow, but improving.

The other two authors are writing a fantasy trilogy and a thriller respectively. Our adult range is not specifically Christian (although one of the authors is a Christian and his books have Christian themes) and we are targeting the general market.

Phil asked me why we had decided to go the ebook route. A number of reasons: firstly, our capital is currently tied up in the picture book series. Ebooks are of course far cheaper to produce. But secondly, ebooks have already overtaken paperback novels in the US and it won’t be long until the same is true in the UK. As our experience with the picture books has shown us, a small publisher such as we are, has difficulty physically getting their books to the US market. We don’t have that problem with ebooks. Also, to be honest, I’ve heard from other writer friends who have tried to self-publish adult novels in the UK, it is immensely difficult to get them into indie bookshops (Christian or otherwise). Will we ever bring out print versions? Possibly, if and if we do, you’ll be the first to know.

Disclosure notice: the links to Crafty Publishing featured in this post are affiliate links. If you click through and then proceed to make a purchase, Crafty Publishing will pay a small commission to the UK Christian Bookshops Directory. This is at no extra cost to you. Thank you.

EBOOKS. Or should that be e-books? Or even ibooks if it’s Apple as the vendor. The fact that the book industry can’t even agree on its basic terminology is perhaps telling in and of itself, but however we spell the word, the ebook challenge isn’t going away anytime soon — but physical books, according to some, might be. Whatever your views on the matter, you need to move fast if you’d like to see those views taken into account in Christian Retailing magazine’s latest Vital Signs survey: the deadline for entries is this weekend, no later than November 13th.

And now my thanks once again to Alban Books’ Jonny Gallant as he follows up on his earlier contribution. Are we ready? I think not: welcome to the Post-Digital Armageddon…

Jonny Gallant, MD, Alban Books

Jonny Gallant, MD, Alban Books

AFTER MY LAST UKCBD GUEST POST, I was literally swamped by 2-and-a-half suggestions that I explore the promised Digital Armageddon further. Just for you I have looked into my foggy crystal ball and examined the entrails of 3 chickens (that’s publishing lunches for you) to come up with a few highly speculative visions of the future.I have long had a publishing mantra: “The author is not the enemy; the customer is not the enemy”. It’s something worth remembering every now and then. We’re all in this together, so why does it feel like we have competing interests?

With that in mind, I have had a go at being an author (writing under a pseudonym, I may be on your shelves… though probably not) and, last Christmas, I thought I would have a go at being a bookseller: I spent a fascinating day on the shop floor of Waterstone’s West End, Edinburgh. I hope it was just a seasonal anomaly, but 80% of queries were for the latest Katie Price or the bestseller from that irritating meerkat. I was also the victim of a bookselling cliché: someone came in and said ‘I can’t remember the title or the author, but it had a blue cover’. On reflection, that may have been a set-up. What I spectacularly lacked though, was the ability to recommend suitable titles.

This leads me to my first point: More than anyone else, the Christian Bookseller has a great responsibility to suggest ‘the right book’. No matter how sophisticated the algorithm, Amazon will never be able to offer the depth of knowledge, understanding and empathy that a good bookseller can provide. It’s an oldie, but a goodie.

Those of you who have seen my book, whatever you think of its contents, will probably agree it is a beautiful object. And if the physical book, as we’ve come to call it, is to resist the challenge of the ebook, it has to look like something worth buying, worth keeping.

— Julian Barnes, acceptance speech for the Man-Booker Prize 2011.

Secondly, after years of driving down production costs and creating more and more thin-papered, flimsy paperbacks, trends suggest that e-readers will e-radicate (excuse the pun – I promise it’s the only one) these grotty-glued excuses for books. There will no-longer be the ‘disposable’ printed book. Publishers are now starting to think about making a physical book something special again. The consumer will have no idea quite how special that book is unless they can actually see it and hold it before parting with their cash. Amazon can’t offer that either.

Thirdly: The way I see it, Alban is a sales and marketing operation. Inventory management is a necessary by-product of what we do. Those of you who have ever rung us up in urgent need of 25 copies of Esler’s Conflict and Identity in Romans only to be told you will have to wait 6 weeks will know that inventory management is an imperfect science. Digital or even POD books are able to negate this frustrating problem. Sadly, this is often going to knock the B&M bookseller out of the equation.

How can we persuade people that the 20% VAT we pay on a digital book pretty much negates all the savings on print and freight?

Finally, my greatest fear for the industry is the devaluing of the book. Discounting books to consumers has led, inevitably, to readers believing that £8.99 is an unreasonable price for a paperback. It is even worse with digital product – how can we persuade people that the 20% VAT we pay on a digital book pretty much negates all the savings on print and freight? None of us in this business is working to much (if any) profit margin, but the readers seem to find this hard to believe. The way that Amazon have sold books at a loss and vilified those publishers wishing to sell their digital product at a price they choose makes me furious. Sadly, I can offer no solution to this massive problem. My concern is that it will inevitably lead to an increasingly amateur and hobbyist publishing industry.

To conclude, things have got to change and they may well get worse before they get better. In the long term, I think that there remains a market-viable argument for the high street bookseller – especially the niche and specialist bookseller. I think that the product (and the service) will gradually become more high-end. I don’t know if publishers will still be shipping books over from the US in five years time. I don’t know if, in five years time, we will purchase an unedited, poorly-marketed, terribly-designed, ill-thought out ebook and think “what have we lost?!”

Discover more…

CONGRATULATIONS TO CWR on their recent appointment of Roger Compton as their UK Retail Merchandiser for dated, seasonal and core titles — and congratulations to Roger himself, too, of course!

In a Trade Announcement posted in the Christian Authors, Booksellers and Publishers facebook group last week (Wednesday 26th October), Eddie Olliffe wrote:

CWR is pleased to inform you that Roger Compton has been appointed as CWR’s UK Retail Merchandiser for dated, seasonal and core titles. As many of you will know, Roger has long-standing experience in sales to the specialist Christian retail sector, having worked for the past 12 years with STL Distribution, latterly Trust Media Distribution.

This is a fixed term appointment, designed to maximise the sales and visibility of our dated and seasonal ranges particularly in the busy autumn period and then beyond to Lent and Easter. Roger will complement the excellent work of our three existing contracted sales reps (from Joining the Dots plus Stewart Anderson) and Roger will work mainly in London, the South-east and the Midlands. I’m sure that many of you will be pleased to see Roger again on the patch!

Earlier in the month, Eddie also posted details of CWR’s growing range of ebooks, now available through Gardners to retailers offering ebook sales via their own sites or taking part in the Hive network; ISBNs added, full list including dated materials available to download:

CWR eISBNs (pdf, 49kb)

CWR eISBNs (pdf, 49kb)

CWR’s recent range of eBooks is available to trade customers via Gardners Digital Warehouse and Gardlink for Windows. There are five titles (see below) + five dated notes (including Every Day with Jesus) in both Kindle & ePub format.

  • One Step Beyond (Gram Seed, 9781853455896)
  • What to Say When People Need Help (Selwyn Hughes, 9781853456640)
  • God’s Questions (Phil Greenslade, 9781853456190)
  • Leadership (Phil Greenslade, 9781853455902)
  • Coached by Christ (Andy Peck, 9781853455919)

Ebooks Elsewhere…

CWR are not the only Christian publisher getting up to speed on the ebooks front, of course: Darton, Longman & Todd have a good selection available in Amazon Kindle and Apple iBook format; and SPCK have a growing range, conveniently showcased for the rest of us by Keith Jones, who are undoubtedly leading the way as a Christian ebook retailer, with regular updates posted via twitter:

If you’re serious about keeping up to speed with digital developments, make sure you’ve read Bendicte Page’s Bookseller report, 7/10/2011, Christian publishers turn to apps in market squeeze and

Update, 31/10/2011, 12 noon:

ALBATROSS, DODO OR JEWEL

‘Is there still a place for Christian bookshops to sparkle on the High Street’?

Introduction

Last year I was asked to give a lecture on Christian Retailing to the Librarians’ Christian Fellowship and Steve Briars of CRE invited me to deliver similar material at this year’s Christian Resources Together.  I am delighted to do so – although the two audiences are quite different!  Since that lecture in April 2010, things have moved on a pace and we are learning to live with constant challenges and change. However, there is no lack of evidence that we are involved in changing people’s lives on a daily basis.

I aim to address four incontrovertible facts facing all Christian retailers;

  •  The UK is increasingly secularised and less open to Christian forms of spirituality
  • Formats, methods and channels – but not the content – are changing almost on a daily basis
  • Consumers, and particularly younger people, are not buying as many physical books as before
  • The Christian industry – Booksellers and Publishers – is undergoing a serious and prolonged period of retrenchment and rationalisation

I have invited three practising retailers -

  • Andrew Lacey, Manager of GLO Bookshop, Motherwell, Scotland
  • Melanie Carroll, Owner of Unicorn Tree Books and Crafts, Lincoln
  • Steve Mitchell, Retail Director of Wesley Owen

each representing different facets of our trade – to address this question;

  • How can our trade best communicate the Good News in an increasingly post ‘bricks and mortar’ era and to a progressively digital generation?

Which of these three images describe and/or sum up today’s Christian book trade;

  • Albatross; large seabird, majestic in flight or as in Coleridge, a ‘burden or encumbrance’
  • Dodo; flightless bird known only in history; extinct, long gone, utterly dead and finished
  • Jewel; beautiful to look at, highly valued. precious to its owner, ‘the jewel in the crown’

A brief trade overview

  • The very first UK Christian Bookshop opened in Derby in 1810 – Just over 200 years ago!
  • The Derby and Derbyshire Auxiliary of the Religious Tract Society opened this shop in the Cock Pit area of Derby. It then moved to The Strand around 1900 (where it was renamed The Bible and Book Shop) and on to Irongate before finishing up in its present location in Queens Street. Subsequent owners have included; Scripture Union, STL/Wesley Owen and now it is owned and operated by Koorong of Australia.
  • Just to add ecumenical balance, the next Christian bookshop was opened in Bristol in 1813 by the Society for Promoting Christian Knowledge. SPCK as a society had been established much earlier in 1698 by Dr Thomas Bray, a clergyman. SPCK went on to open their second shop in London in 1836.
  • Many commentators would argue that to be a truly national retail chain, you need around 300 to 600 outlets to be represented in the main towns and cities. No Christian operator has ever come close although at one point in the 1990’s there were probably over 600 Christian Bookshops of some shape or size across the UK, but most operated independently.
  • Those numbers have dwindled and are dwindling still. There is some evidence of new players entering the market year-on-year but, in my view, numbers of Christian bookshops are consistently down.  I would estimate there are around 220 bookshops in the Christian niche capable of carrying out a viable trade.
  • Due to its unique history, Northern Ireland remains the strongest market for Christian product when compared to its population size; this region continues to sell more Christian books per head than anywhere else in the UK. Scottish shops are mostly sited in the major central belt conurbations and there are virtually no Christian bookshops in Wales outside of the Cardiff area.

The ‘Missional’ nature of Christian bookselling

  • For the past 30 years I’ve had the privilege of being engaged in the vocation of Christian literature distribution in its various forms. I have been involved as a bookseller, an author, a distributor and a publisher. I retain a fundamental belief in the importance of maintaining a Christian witness on the High Streets of our country. I therefore cannot but help feel that the loss of any Christian shops on the High Street is detrimental and I, for one, mourn the demise of those that have closed.
  • Controversially, I have long pondered whether the historical separation of Christian bookshops into a specific subset of the wider book trade will turn out in the longer term to have been a mistake? Would it have been better for our specialist outlets simply to have remained part of the wider general bookselling community as it is elsewhere in the world? To outsiders, our bookshop names must inevitably seem a little twee and out-of-touch. Does such a separation help or hinder our aspirations for engaging in Christian witness?

A quick look at the wider social environment

  • The UK is a largely secularised, post-Christian society with a significant multi-cultural population. There is clear anti-Christian bias throughout the media and in politics and militant atheism is on the increase. Christian TV & Radio has very low penetration, making product mass marketing difficult.
  • Regular church attendance is in decline in most of the traditional denominations. However, there are bright spots; the Black majority and Hillsong churches are growing. Cathedral attendance is increasing and the Emerging Church movement gaining ground.
  • There is a general decline in book readership in society; not just amongst Christians.  Competing media and digital attractions vie for our time and the lack of time affects all of us however much we enjoy buying and reading books

Some thoughts about channels and digitalisation

  • The way books are being bought is changing rapidly. An experienced international bookseller said to me only last week that, in over 30 years, he had not known a time of such momentous change as there has been in the past two years. Someone else has described the current upheaval as ‘a perfect storm’.
  • There are enormous structural and societal changes taking place. These have been described as being as immense as the transition from parchment to the printing press. Most are outside of our control and are being imposed on us from outside of the trade. It therefore should go without saying that it is foolish to fall out amongst ourselves over changes which are so outside of our control and which are affecting the whole of retail.
  • Woolworths, the 45 Borders UK stores and the Irish Bookseller, Hughes & Hughes have all left the UK High Street in the past couple of years. Since Christmas this year, WH Smith bought 22 British Bookshops and Stationers stores, Borders USA entered Chapter 11 – and is effectively bankrupt – and the REDgroup in Australia went bust leaving big UK publisher debts. HMV put their Waterstones chain up for sale selling it for a knock-down £53m in the last few weeks to a Russian tycoon.
  • Supermarkets now sell one in every five books purchased and UK Libraries are under massive pressure due to imminent Government spending cuts.
  • The issue here is primarily about the explosion of differing routes to market. Print no longer dominates in terms of the delivery of ideas. Content will continue to remain key.
  • There are parallels with the development of digital television. More channels = fewer viewers.   In our field, more ‘books’ (however those are defined; print or digital) equals a dispersed customer base which is no longer dependent on the traditional bookseller.
  • Due to digital delivery channels, it is easier to self-publish now than at any other time. Blogs and social networks proliferate but some would argue that this only leads to the problem of quantity at the expense of quality.
  • Territorial Rights are clearly a problem in the context of a global marketplace. Old-style publishing rights are not always recognised in the internet environment as single copy orders are taken and shipped – often across national boundaries – on a daily basis.
  • Paradoxically, more printed books are being published year-on-year in the UK. Book production figures in the USA rose 5% last year despite a huge increase in eBook sales.

Impact of the Internet esp. Amazon, downloads and ePublishing

  • Online sales make up 17% of all UK retail spending – and growing.
  • Digital downloading is beginning to affect the sale of print items, especially newspapers.
  • Book purchasing via the internet is no longer an exception, it is the norm. Amazon recorded their first £10bn sales quarter in early 2011.
  • Several eBook Readers are competing for attention and rapidly gaining traction in the market; Sony’s eReader (Waterstones), the iPad (Apple Stores) and Kindle (Amazon).
  • There has been an inexorable rise in the sale of eBooks with PA figures showing that eBooks grew to 6% (£180m) of £3.1bn UK book market. This may grow to 10% in 2011.
  • Amazon are selling more eBooks than paperbacks; 105 on Kindle to every 100 in print. Four authors have already sold over 1 million eBooks each. Amazon lists 945,000 Kindle generated eBooks. Analysts expect 2011 sales to be $5.4bn in Kindle generated eBooks.
  • However, despite these figures, over 90% of sales continue to take place via print. Black and white text books are struggling but print Bibles and Children’s books remain strong sales lines.

Where might all this change be heading? What is the future for our trade?

  • Retailing is hard graft for many categories. Shopping habits are changing fast and there is much less time available for those trips to the High Street. When time is found, then competition for time and money is increasingly fierce.  Supermarkets dominate.
  • BBPA figures earlier this year show that the quintessential English Public House is closing down at the rate of 30 per week.
  • One in seven retail outlets in the UK were surveyed as being empty in September 2010. UK shop leases are the Achilles heel for all retailers. Most are expensive, with ‘upward only’ increases and, if not carefully drawn up, extremely inflexible. Many businesses struggle with high establishment costs and Business Rates for non-charity shops are high.
  • Christian bookshops are obviously not immune – and many are having a torrid time. There have been some major shake-ups in the past couple of years, with a lot of shops going and, thankfully, a few coming.  The SPCK meltdown in 2008 and the IBS-STL debacle at the end of 2009 has badly destabilised Christian retail in this country.
  • Demographics also conspire against these specialist shops. Church attendance in the traditional denominations is largely declining and newer Churches with their younger audiences, such as Hillsong, are self-contained in terms of their resource requirements.

Final thoughts

  • The challenge we face today is to ask, what should the Christian bookshop of the 21st century look like?  Will it, as an entity, soon cease to exist, lost as an irrelevance in our increasingly secular world or can it be reinvented in an increasingly ‘post-bricks and mortar’ era and for a progressively digital society?
  • Although I sincerely wish CLC, Faith Mission and Koorong well in their endeavours, I am no longer convinced of the chain model when it comes to running Christian bookshops. For a variety of reasons, so many major book chains have simply failed over the years. It would appear that, in many cases, their high central costs have acted as the drag on the business and this, in a crisis, hinders rather than helps. Once I would have argued strongly for the efficiencies of scale and the need for central buying that the chain model provides. Now I am no longer so sure.
  • In my view, there is still a lot to be said for a very good independent shop operating solely at the local level. Perhaps we’ve just gone full circle?
  • In my view, internet retailers can win every time on the basis of price, range and convenience.  If ‘Bricks and Mortar’ booksellers are to succeed in the future, they have to provide that illusive and intangible ‘sense of experience’ to their customers.
  • Nick Page has written elsewhere that ‘average’ is no longer good enough.  For a future, these bookshops have to be ‘really good’ and run by people who love books and love selling books. They have to be ‘exciting, memorable, fascinating’, places where events are held and reading encouraged. In short, such a bookshop must have ‘personality’!

A final meditation from 2 Corinthians (NIV);

2:17‘Unlike so many, we do not peddle the word of God for profit. On the contrary, in Christ we speak before God with sincerity, like men sent from God’.

4:1 ‘Therefore, since through God’s mercy we have this ministry, we do not lose heart. Rather, we have renounced secret and shameful ways; we do not use deception, nor do we distort the word of God. On the contrary, by setting forth the truth plainly we commend ourselves to every man’s conscience in the sight of God’.

Eddie Olliffe is Charity Manager at CWR in Farnham, Surrey, UK

Jonny Gallant, MD, Alban Books

Jonny Gallant, MD, Alban Books

MY THANKS to Alban Books‘ new Managing Director, Jonny Gallant, for his prompt response to my invitation to introduce himself in his new role. Jonny writes:

IT WAS WITH SOME TREPIDATION that I accepted Phil’s kind offer of writing a short guest piece for the UKCBD blog by way of introducing myself as the new Managing Director for Alban Books. Should I attempt to write some short biography, lightening the dullness of it with references to my passion for cricket or my increasingly worrying addiction to diet coke? No – it would still be boring and a bit too self-centred. Should I write some sort of ‘State of the Trade’ mission statement? No – I’m desperately under-qualified. Should I write about all the great things that Alban does and I hope will do in the coming years? No – too much like marketing.

Perhaps I can work all those aspects together into a form that Phil will be happy to put up on this esteemed trade mouthpiece. Here’s a shot:

About seven or eight years ago, at the dawn of my career in publishing, I joked with a friend at Canongate that digital books were undoubtedly coming, but hopefully we’d both be retired before it happened. On reflection, that seems spectacularly naïve, but I think that may have been how 90% of people in publishing felt at the time: “Let’s keep our heads down and get on with these lovely blocks of paper and ink and hopefully it will all be OK”.

When I moved down to London and ended up working for Alma Books, the whole company’s philosophy was (and remains) rooted to the idea of the “book as an aesthetic artefact”. I was happy to exploit all the digital world had to offer in terms of marketing and promotion, but an eBook still felt like a very distant prospect.

I returned to Edinburgh to take my first job in Christian publishing at Saint Andrew Press and found that Christian publishing brought with it a whole new range of challenges beyond the impending ‘Digital Armageddon’. It’s been an extremely turbulent few years in the trade since I started at Saint Andrew Press – the SPCK/Brewer Brothers debacle, the demise of Borders, Waterstones’ Hub, STL and Wesley Owen, the list goes on… My final year at Saint Andrew Press proved to be a turbulent one too and I’m glad that Saint Andrew Press’ future now seems more secure at Hymns Ancient & Modern and they have some brilliant books coming out this year.

When my predecessor, Wendy Rimmington, was offered a job she couldn’t refuse at Nelson Thornes, I was fortunate enough to be chosen to take up the helm at Alban. I’ve now been here for three weeks and am greatly impressed by the excellent team that has been built in the course of Alban’s 16-year history. Their diligence and commitment to a list of some six-thousand titles and our thousands of trade and direct customers is our greatest asset. We will have to tackle the great challenges faced by the book industry as a whole – some harder than others – but the opportunities are even greater… But you know all this already. With our fantastic range of publishers, Abingdon Press, Augsburg Fortress Publishers, Ave Maria Press, Eerdmans, Hendrickson Publishers and Orbis Books, I’m really looking forward to working with my colleagues to steer a clear path through Alban’s exciting future.

Jonny Gallant
Managing Director
Alban Books Ltd
Edinburgh

Personally I’m hoping that Jonny can be persuaded to say a little more about the ‘Digital Armageddon’ and how Alban Books in particular are dealing with it: the end may not have been nigh last weekend despite all the hype from the USA’s prophets of doom, but unless the Christian book trade begins to get to grips with this particular publishing revolution, I suspect the end may well be nigh for even more bookshops — perhaps some publishers too — before too much more time passes…

What topics would like to see Jonny exploring further if we can persuade him, and what questions would you like to put to him in his new role?

This list documents extraordinary activity in the wider Book Trade in a few short weeks;

  • UK book sales fell 3% in 2010, selling £56m less than in 2009
  • NIV Bible eBook tops the USA bestseller list over the New Year
  • 2011 marks the 400th anniversary of the King James Bible
  • Barnes & Noble USA do well over Christmas – thanks to their Nook eReader
  • Physical book sales continue to decline around the world
  • British Bookshops and Stationers go into administration
  • eBook debate intensifies – but with little clarity emerging
  • Digital Book World Conference is held in New York
  • Kindle; the most popular eBook reader – with sales overtaking paperbacks
  • Amazon record their first £10bn sales quarter
  • Waterstones owner HMV; shuts 11 UK stores, cuts HO jobs
  • WH Smith buy 22 British Bookshops and Stationers stores
  • UK Libraries under massive pressure due to imminent spending cuts
  • Borders USA enters Chapter 11 – and is effectively bankrupt
  • REDgroup Australia goes bust – leaving big UK debts
  • Borders Singapore shuts its doors
  • Zondervan loses its President and CEO, Moe Girkins 
  • Gardners launches the HIVE website in the UK
  • STL Distribution UK rebrands as Trust Media Distribution
  • Living Oasis has its ups and downs, causing some uncertainty

Only another 10 months left for this year – don’t hold your breath!

From January 24 – 26, the Publishing Industry will gather in New York for the Digital Book World Conference to debate the new technologies. I really wish I was going but, like me, you can follow it on Twitter during the coming week. As Christians in this industry, we simply cannot ignore such immense changes to our market. If you are part of Linked In, you could also join the group, Digital Book World.

Like it or not, the eBook revolution is here. There’s also a lot of puff around with some drawing parallels such as the shift from the horse to the automobile! Somehow I doubt it. Print is still pretty massive! However, a number of commentators, admittedly mostly American, are stating that this Christmas was absolutely a ‘change point’ in terms of the sale of eBooks. Barnes & Noble, the largest USA bookshop chain, announced it sold one million e-books on Christmas Day. The fact that they developed their own ‘Nook’ eReader has been credited with keeping them ahead of faltering rivals, Borders USA.  

USA Today’s ‘Best-Selling Books’ list demonstrated digital’s new popularity; their top six books outsold the print versions in the week following the Christmas holiday. Of the top 50, 19 had higher e-book than print sales. Perhaps not a great surprise when around 3 to 5 million eReaders were activated in that same week resulting in this surge of sales. The big question is; will it continue? It’s obviously still early days but insiders are predicting that by 2012 three in every 10 books could be delivered digitally. Publishers are aiding this trend by very quickly adding more and more back-list titles.

According to AAP sales figures in the USA, eBook sales were significantly up in November. At the same time, adult paperback sales were down 19% compared to the same period the previous year. Their release states, ‘eBook sales continue to grow, with a 130% increase over November 2009 ($46.6 million); year-to-date eBook sales are up 166%’. It will be interesting to see the December eBook figures when they are released as what starts in the USA tends to end up here.

Gartner predicted that more than 15.8 million e-readers will be in use by 2013.  Some in the industry have expressed surprise at the speed of this transition, which has quickly gained ground particularly in the area of mass market fiction. eBooks sales account for about 9% of the USA market. Bowker, the research company says sales may flatten this year but could still be twice as high as they were in 2010.

Within Publishing, there’s a lot of uncertainty about what to do about piracy and DRM (digital rights management). Should DRM be employed at all as it can so easily by cracked? Is piracy really such a threat to book publishers in the same way as it was for the music industry? The answers may be different depending on whether you are a small niche publisher or one producing high volume, high worth, popular titles. These days it’s just so easy to scan and digitise a printed book and put them up on a web site. For a really informative thread discussion here.

Google’s announcement earlier this week of its acquisition of eBook Technologies, a company that sells the technology used to operate digital reading devices is fascinating. Google by dint of its size, power, wealth and global reach has the ability to utterly transform the eBook landscape. Already consumers can browse and search through more than 3 million free books on its site.

Publishers are on the defensive. As eBook sales rise, the unspoken question is; will authors still need a publisher? It’s just possible than in the fast-approaching digital future that it will be the (online) retailers who will come to dominate the customer relationship. Why? Because it is the retailer who has the knowledge of their consumer base. They have the ability to market a book far more effectively. Why has Tesco been such a successful retailer? In one word; Clubcard! Consumer data and customer knowledge are all.

The future of eBook selling may therefore lie with the likes of Amazon, Apple and Eden. However, as of today, there are no Christian eBooks for sale on Eden.co.uk. As I write, one site launching to sell Christian eBooks is www.10ofthese.com - so I guess we shall see!

A way does need to be found quickly for small retailers to gain access to this market. Andrew Lacey from GLO has suggested something along the lines of the now defunct Crown customisable website?

What all this tells us is that retail as we know it will need to be reinvented if it is to survive. My view is that we have a few short months to act and make changes before the impact fully begins to bite.

Phil Groom was kind enough to invite me to cross-post from my personal blog where I have taken a periodic interest in the rise of the eBook. I’m fascinated by the explosive potential of their impact in our small niche within the wider book trade. Digital is clearly not going away but somehow it doesn’t quite feel real to us yet! It soon will. I contend that we all – publishers and retailers alike – need urgently to better understand what’s happening around us.

Retail as we’ve known it is under threat like never before. Major market forces are changing the High Street before our very eyes. Even since Christmas we’ve had news of Waterstones closing branches in order to meet their banking covenants and British Bookshops continues to trade but now under the watchful gaze of the administrator. Today HMV – the last major entertainment retailer apart from WH Smith – has brought in KPMG for advice on external banking and debt concerns. Content remains but format and delivery are all over the place. If you want to look at another industry under even greater pressure, just look at what’s happening to newspapers!

So here’s the post I ran several days ago;

Having castigated The Bookseller recently for poor journalism, I draw your attention to a superb and in-depth reporting piece looking at what life for the trade could look like in 2011. Bringing together the opinions of a wide range of UK book industry leaders it looks at, amongst other things, the likely impact of digital sales on the industry.

You can read the full article here but I want to highlight the main points of interest to High Street book retailers as they face the imminent digital challenge.

Amongst the key points of the article;

  • Industry chiefs unanimously earmark digital as a key area of opportunity in 2011
  • Digital sales have reached a tipping point and will grow further next year
  • Those booksellers not getting a good share of e-book sales are going to find business tougher than ever
  • The main challenge lies in supporting retailers in an uncertain economic environment
  • However, nearly 95% of all books sold in the UK in 2011 will still be in print format

To my mind, here is the killer statement; ‘Growing e-book sales could lead to the Total UK Consumer Market being negative in 2011 as they hit 7% of the adult trade market’.

Print may no longer be capable of ongoing growth. Fiction – in particular – and mass market publishing in general, is highly susceptible to this drift. How are High Street shops to deal with this change in their market? If print is dropping away, what steps do they need to take to get a bigger slice of the digital cake? If the High Street trade is not careful, it will be the publishers and not retailers that will benefit from an inevitable sales shift to digital.

Gardners’ respected commercial director, Bob Jackson, is quoted in the article as saying:

I think that the retailers who continue to focus on customer service and manage overheads will be doing the best they can. They need to stay very consumer focused. It won’t get any easier in 2011. We launched our digital service three years ago, so it’s available to every single retailer. I think the challenge might come more as retailers using e-books as part of their retail offering, I’m sure they [retailers] can be as creative as they have been to date. That’s the challenge’.

Faber Publisher, Stephen Page, said:

‘The big question is how retailers fared at the end of last year and how they will fare in 2011. Looking around the world I can see the retail environment changing and that change is not complete. Retailers have to adapt to a world with very powerful mass market retailing and online retailing and now there is a digital component too. Look at the REDGroup in Australia, Borders in the US. Here we have had a narrowing of the specialist chains to Waterstone’s and W H Smith, and it’s a question of how they adapt. Waterstone’s over the last nine months have been pursuing quite a different tack and it’s a question of where that gets them to. We all want a healthy retail environment. In 2011 we will see a hardening of the e-book market and a lot of people becoming habitual about reading electronically. We will catch up quickly with America – I’m estimating e-books will be 3-5% of the [UK] market in a year’s time’.

The long-serving chief executive of the Booksellers Association, Tim Godfray, stated:

‘This Millennium has seen a huge amount of change in the way books are sold and in the formats available. As ever, booksellers have shown great resilience and those who have adapted have survived. As we enter a new decade, only further change is on the cards. We face in particular three challenges. First, the Government cutbacks and the state of the economy; secondly, the digital economy; thirdly, the consumer having fewer leisure pounds to spend. But with challenges, there are opportunities. The tipping point concerning e-books has been reached and digital content is coming of age. The popularity of e-book readers demonstrates this. The selling of digital content is a threat to traditional booksellers, but it is also an opportunity. A lot has been written about the death of the printed book and the bookshop. Not far short of 95% of all books sold in the UK in 2011 will be in print format and booksellers will develop their offers, customer service and specialisations’.

Victoria Barnsley, chief executive of HarperCollins is quoted as saying:

Digital developments continue to present both the challenges and the opportunities for our industry. E-book sales more than trebled over the Christmas period as people rushed to buy e-books for their new gift devices. And, unlike some, I really do think the growth of the digital market is a huge opportunity for bookshops—not only to provide a unique and personal service to book lovers, which is hard to replicate online, but to capitalise on the new readers these devices are creating. …  finally, I believe that we should all fight vigorously to support and encourage a broad range of retail options on the high street and online which hugely benefits consumers, retailers and our own industry’.

Well done, The Bookseller – some fascinating opinions and really insightful reporting. I cannot help but think that we continue to be in very uncertain territory with even the most able minds in the trade pretty unclear as to how that future may turn out.

However, I am beginning to think that the tipping point for eBooks is beginning to tilt – albeit slowly but surely.

POSTSCRIPT – If all this gloom and uncertainty is getting you down then read these recent comments by the Editor of The Irish Times;

‘Yet there are opportunities for the retail sector. Barnes and Noble in the US have really got on top of things with their own device and have encouraged their customers to become digital readers. They’re looking at sales of about $400 million (€308 million) for digital content in a 12-month period – and that’s impressive’.  He believes, though, that there will always be a market for print books. ‘It might not be huge. It might be down to 30 per cent of the market in 10 years’ time, but there will still be a demand for physical books and the browsing experience that you can’t get from Amazon or the Book Depository’.

Update, 23/01/2011

I spotted this on the Times online, an ad in the header of last Saturday’s article about Christian bookshops, The call goes out to keep Jesus on the High Street:

The short-sightedness of helping an important industry to cause its own collapse is staggering.

"The short-sightedness of helping an industry cause its own collapse is staggering" — Frank Pope

It’s an excerpt from an article about overfishing of bluefin tuna, which begins:

Two weeks ago a single bluefin tuna sold in Japan for a surreal £111,000. The price of this fish, which ends up in the best sushi restaurants, will carry on rocketing so long as the tuna population keeps plummeting.

It struck me as remarkably apposite for the book trade too: not just the Christian trade, but the wider trade. This week we’ve been having a lively debate about the pros and cons of publishers promoting Amazon in their advertising: A Polite Request to Christian (and other) Publishers: Please don’t do this; and I’m delighted to say that the Evangelical Press, whose posters gave rise to the discussion, have acknowledged their gaffe and apologised.

But I still find myself looking at Amazon askance as publishers seem to cave in to their ever more extortionate demands, supplying them at terms that allow them to sell at below trade or wholesale prices. Did someone forget to put up the warning sign: “Do not feed the troll”? Or are most publishers really that short-sighted that all they can see is the immediate sale and not the long term future?

Of course, it’s not just Amazon and the publishers: it’s the buying public. I’ve long since lost track of the number of people who wander into my shop, tell me how much they enjoy being able to look at a book before buying it — then promptly go off to purchase it online. Hello? Wakey wakey, people: how long do you think your local bookshop will survive if you treat it as nothing more than a showroom for Amazon?

There are notable exceptions, customers who call in, tell me that they know they can get a book cheaper online but they appreciate the service I provide; my thanks to them: you know who you are, and I salute you.

Then we have the rise of the ebook. They still occupy a relatively small sector of the marketplace: I’ve yet to see more people on the train with their ebook readers out than with paperbacks; but with Apple’s rumoured iTablet on the horizon, the tide may be about to turn and all those books we’ve buried in the sand may be sucked out to sea, where, with the bluefin tuna, they’ll be fished to extinction.

Or if not to extinction, to the point where they’re so rare that the only bookshops left will be like those top sushi restaurants, selling paperback books for £111,000…

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