The magazine market is in decline. Evidently the internet
has had a part to play, but there are other influences that the wailing cries
of print’s demise often leave out. Two that stand out above all others are the
supply chain and the publishers’ faith in digital magazines.
JG Palmer (established in 1898 and the owner of Newsstand.co.uk),
used to be the wholesaler of newspapers and magazines in the Kent area and
beyond. They were one of many independent wholesalers, renowned for innovation
and at the cutting edge of distribution progress in the industry. In fact, innovate is what independents have to do (whether they're a wholesaler or a magazine).
This healthy balance of the three multiple wholesalers plus
the many independents was slowly eroded over decades, but came to an abrupt end
in 2006 when Frontline (part owned by Emap), took the radical decision to award
all their vertical distribution contracts to the three multiple wholesalers
alone (Menzies Distribution, Smiths News and Dawson News). Other distributors
followed Frontline’s lead and independent wholesaling was removed from the
industry almost overnight and along with it a healthy chunk of competition.
Dawson News ran in to trouble not long after and the
industry is now served by just two multiple wholesalers. I am sure that it is
worth saying here that the remaining wholesalers carry out sterling work and
still provide an excellent distribution platform for all magazines (we would like to point out the superb relationship we have with our local wholesaler), but it
would be brave to assume that there has been no overall deterioration in service due to
the aforementioned reduction in competition and the subsequent centralisation
of services.
Alongside these distribution changes, the giant retailers
have been enjoying the pleasures of the fixed magazine range. To be displayed
in the supermarkets and WH Smiths can now cost the publisher no small amount of
money – and with total retail control of stock, access to the shelves of the
most visited shops in the country is no longer a luxury that most titles can
afford.
The result of these ranges was that, as magazines had to go
somewhere, the independent, non ranged newsagents would receive more and more
product. An excellent range of just about everything you may think – but these
very rarely fitted on the shelves. Displays suffered and management of the
stock became harder and harder to the point that many newsagents would either
give up magazines altogether or simply take a range of the top 40 bestsellers
and no more.
Eventually, this meant that the new launches (that didn’t
have six figure promotional budgets) were lost to the eyes of the consumer.
They either had nowhere to go or were literally stuffed into some shelving with
barely their spine on display. This environment makes it very hard to develop
circulation, and as the top sellers move on (or their readership does) there
are fewer visible magazines to fill their shoes. It also becomes a vicious
circle with the ranges in multiple retailers and the calamity on the indies’
shelf space – browsing for new magazines here became headache inducing.
Subscriptions might seem like the obvious answer, but these
should always be sold as upselling to the casual reader. If the casual reader
and single copy sale is not there, subscription marketing becomes about price
and not quality – you’re selling to people who don’t know your product. This
price war eventually ensures that subscriptions are virtually given away and
the print magazine, as a product, is cheapened almost beyond repair. Discounts
are perfectly harmless in short bursts – but to flog something at a fraction of
its cost for years on end can only damage the image of the magazine in the eyes
of the wider public – as well as make the publishing business model
uneconomical.
This is one of the main reasons that the new “indie”
magazine resurgence has been so strong. The industry was, almost unbeknown to
itself, crying out for some differentiation, allowing quality, tactile
publications to distance themselves from the mainstream 3 issues for £3 degradation.
In reality, it is this successful drive for a product to be valued that makes
it work – the care in copy, production and distribution are essential, otherwise
you do play, unnecessarily, into the hands of the internet.
It was this fear of the internet that drove many publishers
to put too many of their eggs into the digital basket, opening up the internet
media and bloggers as competition with the staggered development of digital
issues. Despite more recent attempts to progress, these digital issues were far
too much like websites – with the added silo nature of the offering only losing
it further marks.
Younger generations love print, but they do not want to be
forced to commit nor have their horizons fixed. This has a detrimental effect
on both the subscription and digital models of magazine distribution.
Understandably, publishers have looked to additional services such as in app
purchasing and events; these may well earn them important income but they do
little to help the circulation numbers.
Newsstand has looked at this from an altogether different
angle. Since 1995, it has taken the print offering and concentrated on two key
factors.
Firstly, the service to the consumer needed an overhaul.
Single copies, next day delivery and in house customer services were a must –
in these days of online purchasing, expecting customers to wait six weeks and
not be sure which issue or when it will arrive is not acceptable. Providing the
best service allows a respectable price to be asked and Newsstand has underlined
the adage that customers will pay for what they want, when they want it. This
results in an economically positive market for our publishers to operate in and
unique fulfilment systems ensure smooth operation. Holding stock on thousands
of magazines also allows the availability of each publication to be at 100%,
worldwide, always.
Secondly, Newsstand employs marketing techniques that
promote magazines as individual issues rather than so much the magazine brand
itself. Customers may design their own subscriptions across any number of
titles and keep abreast of their favourite people and topics. With excellent
response rates, this method allows for cross selling but also ensures the
products keep sight of what the customer wants. The art of cover design is back
in play, having been lost temporarily amongst the newsagents’ overcrowded
shelves.
There is still a long way to go. Newsstand has returned double
digit increases across the board for five years running, has signed up many
publishers to its fulfilment offering and has hundreds of thousands of
customers on its books, but can it ever replace the browsing experience?
