Can the hottest publishing industry survive the fi

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Whether the publishing industry can survive the financial crisis

the financial crisis sweeping the world is centered on the banking industry and continues to spread to surrounding industries. Up to now, the depth and breadth of its impact on various industries cannot be accurately evaluated, but there is no doubt about its impact. Of course, the publishing industry cannot escape this fate

On October 7, the Icelandic government announced the dissolution of the board of directors of Landsbanki bank and took over the bank. As Landsbanki bank's business is all over Europe, many enterprise capital chains outside Iceland have been impacted. The British baudes group is one of them. At the beginning of this year, baudes group applied for a loan of 23million pounds from Landsbanki bank in the form of asset mortgage and was approved. As the bank was taken over, the capital chain of baudes group was seriously affected. On October 14, the British government announced that it would provide a short-term guaranteed loan of no more than £ 100million to the branches of Landsbanki bank in the UK. As a result, baudes group has gained valuable breathing space. However, at a time when the current economic outlook is unclear, there seems to be no reason for enterprises in the tight capital chain to relax

in the UK, the experience of baudes group is not a case of not being allowed to tighten the anchor nuts and start the tension machine. Not long ago, Bertram, the second largest book wholesaler in Britain, fell into a credit crisis. On October 3, the credit insurance company announced that it would stop providing credit guarantees to British retail giant Woolworths group, the parent company of Bertram. Woolworths did not publicly disclose its financial status, but also configured the corresponding protection installation and equipment control installation system. For example, investors and publishers who were shocked by the bow made self-protection moves one after another. Within a week after the news was released, Woolworths' shares plummeted by a quarter, while some small and medium-sized publishers urged Bertram to pay back in advance

in the half year from December 31, 2007 to June 30 this year, the Publishers Weekly stock index was affected by the overall economic downturn, and only two institutions achieved gains. John Wiley's strong annual financial performance won the trust of investors, and the stock index rose 5.1%. On the whole, the publisher weekly stock index fell by 17 percentage points, lower than the decline of the Dow Jones industrial average over the same period. However, the stock index of book retail enterprises fell sharply. Million Bookstore Group fell by 35.7% and baudes chain bookstore fell by 43.7%, making it the two companies with the largest decline among the 16 institutions in the publisher's weekly stock index. Amazon, which has been singing all the way, also dropped from $92.64 at the end of last year to $73.33, a decline of 20.8%

in September, the most violent economic shock, the stock index of American publisher weekly fell sharply by nearly 11 percentage points, while the Dow Jones Industrial Average also fell by 6 percentage points. Among its 16 institutions, only two listed institutions in the book industry, namely Barnes & Noble Bookstore chain and marvel ent., saw their stock indexes rise, The highest growth rate was 5.4%, compared with the double-digit decline of the other 14 institutions. Even Amazon stock, which has been rising, fell 10 percentage points

in this financial crisis, the banking and financial industry bears the brunt. The direct impact is that the speed of capital turnover slows down or even stops, and mergers and acquisitions almost stop

in early October, RC2, a well-known toy design and manufacturer in the United States, announced that it would cancel the acquisition of children's publishing business under Publications International Ltd., a publisher of children's e-books. Cortestortin, CEO of RC2, explained that the high cost of capital and the current credit crisis were the main reasons for the company to cancel the acquisition. Stolten said that once the capital market has warmed up, the acquisition will be reconsidered

the relevant person in charge of achette group said that although it has always been the unchanging principle of achette group to seize market share, it will not expand its scale through acquisition in such an economic environment. At present, we have no intention of large-scale acquisition, which is not a suitable time

cautious optimism in the downturn

Joseph Lombardy, CEO of Barnes & Noble Bookstore chain, called this period the worst retail environment in 30 years

in fact, the subprime mortgage crisis began to break out in 2006. In the past year, the impact of the financial crisis has emerged. However, a series of data show that although the book industry has been affected, it is not destructive, and even has the trend of rising against the trend

in 2007, the total value of British Book retail market increased by 6.5% compared with the same period in 2006. Excluding the factor of ha7, the total market value increased by 4.3%; In 2007, all kinds of books in the United States basically achieved growth, and the net income of the publishing industry was about $37billion; 2007 was the best year for the German book industry since the depression in 2004

of course, the impact of the financial crisis on the book industry is lagging behind. The German book market in 2008 was relatively sluggish compared with that in 2007, and the sales of bookstores in the commercial street decreased by 3% year-on-year in the first nine months of this year; According to Nielsen books, if Harry Potter is not excluded, as of October this year, UK book sales fell 1% year-on-year; The Nippon Publication Research Institute predicts that from the current data, it is expected that the annual sales of the Japanese book industry in 2008 will decline by 3% compared with 2007; Michael Haley of the American book industry research group also said that the situation of the book market in the United States is becoming more and more serious, especially the mass book market

however, 2008 is not over yet, and the upcoming Christmas sales season will inject stimulants into the book industry. Alan Giles, former CEO of HMV, a British Retail Group, predicted: families still want to have a happy Christmas as much as possible. Our opportunity is to make books a Christmas gift with low price and preservation value. Of course, this Christmas will be a highly competitive sales season. Booksellers' big competition is inevitable. Amazon has begun to actively plan for this. Some online bookstores plan to reduce the minimum consumption standard of shipping charges, such as Amazon's Christmas shipping will be reduced from 15 pounds to 5 pounds

in fact, under the current economic downturn and tight consumption, books are cheap and easy to get compared with other entertainment products, and have a stronger market affinity. Fran dubri, director of the European booksellers' Association, hopes that the book industry will take this financial crisis as an opportunity to promote cheap entertainment. Books are cheap gifts, and people can always afford books. Perhaps booksellers can take this opportunity to redefine their role, that is, to provide entertainment and knowledge at a low price. As a well-known investor, Kevin Wilton, President of Wilton International Group in Australia, said: there are so many foam in networks, banks and other fields, and the book industry produces real products, books and knowledge. He expressed confidence in the investment in the book industry

Paul Richardson, a senior observer of the British publishing industry, is optimistic about the overall situation of the book industry. His concern is that the rising printing costs in China and other overseas markets will become a factor restraining the growth of the UK publishing industry

God helps those who help themselves

although the overall situation is not optimistic, book enterprises can still find a way to survive and develop from the crisis

In September, Lombardy gave a performance at the global retail conference of Goldman Sachs, saying that the data of Barnes & Noble's sales rising by 13.9% in the second quarter showed that people still buy books, but the way they buy books has changed. Network has become a growth point. Barnes & Noble Bookstore hopes that its network business will take a share of this trend. He said that with the growth of online bookstore business, retailers began to reduce the number of some kinds of books in physical stores and transfer them to online stores. For example, the number of computer books in Barnes and noble's physical store is half that of 8 years ago; Atlases and dictionaries have been largely relocated due to their inherent reactivity; Reference books and economic management books are selling better and better on the Internet; Children's books are one of the best selling books in physical bookstores. As the sales of music products continue to maintain a double-digit decline, Barnes and noble is trying to replace music CD products with other products. Lombardy will implement a series of tightening management methods for Barnes and noble, such as improving the efficiency of the supply chain and controlling the number of employees. The credit crisis has led to a sharp decline in the number of shopping malls. Barnes & Noble plans to open 20-25 stores next year, lower than the previously estimated 30-35. Barnes and noble doesn't expect to get an increase in sales from the new bookstore

the financial crisis has greatly undermined the confidence of investors. Some listed enterprises in the book industry carried out crisis public relations in a timely manner and issued financial reports in a timely manner to give an explanation to investors. On October 15, Pearson group issued a statement saying that the current operation of the group was basically consistent with the expected results. By the end of September, the group's sales increased by 8% over the same period last year, and its operating profit increased by 11%. We are cautious about the global economic situation. However, our operation momentum is good, our products are innovative, our operation is flexible, and our asset liability ratio is also reasonable. Pearson CEO marjorescatino said. After several acquisitions and mergers, Pearson group is still in the period of integration and adjustment. During the running in period, the cost is not cheap. However, the group is still looking forward to the full year profit of 2008 reaching the level of 2007

in order to cope with the economic losses caused by the decline of the US dollar, many publishers began to trade in relatively strong euros. The volatile global market has not had a great impact on us. Rachel Watson, director of DK's sales and international copyright department, said that although printing costs in the Far East are rising, fortunately, the euro is still strong. Most of our printing business is in the market with euro as the settlement currency. At least for now, this can partially offset the impact of high prices. At the same time, the change of exchange rate brings about the change of Book Import and export trade, which makes it easier for Britain and European countries to export copyright to the United States

for publishers, what better way to earn money and face for themselves in a short time than best sellers? At the just concluded Frankfurt Book Fair, copyright trading showed a thriving trend. Literary agent Andrew louney concluded: let's introduce the operating procedures of the mortar tensile testing machine, the precautions for using the mortar tensile testing machine and the operating procedures of the equipment. Although the current situation is bad, he is still keen to find good books. Of course, he also hopes to reduce the advance payment while selecting good books. Undoubtedly, publishers still have the money to make best sellers. Even American publishers are more ambitious than British publishers. With the publishers' grasp and keen observation of the current situation, the financial crisis does not seem to be a completely bad thing. It directly gave birth to a publishing boom of topical non fiction books. Publishers have developed financial and commercial book resources in an attempt to answer questions for the confused public

in the 1930s, the publishing industry stubbornly survived the economic crisis that seemed to destroy everything. Old publishers still relish talking about that period of history and are optimistic about the resilience of the book industry. Will history repeat itself this time? Has the publishing industry, which has always been on the list of conservatism and tradition, any particularity

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