A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Month: January 2010

e-readers dominating 2010 already

As engadget reports, e-readers dominated the Consumer Electronics Show in Las Vegas last week.

Put it all together and we begin to see the story of a 2010 e-reader market that extends way beyond just e-books to include newspapers and magazines augmented with audio and full-color animations, video, and imagery.

All of this innovation gets us close to the iPod moment for print which I have written about before.

In the magazine space, the biggest near-term potential impact these devices could have as I see it is with special interest titles.  Imagine, for example, a train magazine collector.  They could store in the one device all the articles (or magazines) of interest for readying anywhere anytime.  It’s the ability to store and search the titles which makes the devices an interesting medium in this special interest space.

There have been plenty in the newsagency channel who have said that e-readers will not impact newsagencies and that the technology will not replace the print experience.  The last week at Las Vegas will cause some of these skeptics to change their minds.

FOOTNOTE: Australian newspapers are reporting the advance of the e-readers in a positive light whereas in the past coverage has usually been negative.

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magazines

Western Union no loss six months on

I have had an opportunity this weekend to assess the impact of our decision to cease offering the Western Union service in August 2009.  We did 405 Western Union transactions in 2008 and 198 in the seven months for which we offered the service in 2009.

We are benefiting from easier management of sales counter resources, smoother customer throughput and sell time managing cash and follow up paperwork.  I cannot see a downside in the data for 2009.  While some Western Union transactions included other sales, the loss is too small to register and is covered by growth elsewhere.

Our decision to no longer offer Western Union at my newsagencies came about when we answered the question what do we stand for? – in the context of our counter offer.   Knowing how much newsagency customers like to be served quickly once they are at the counter, we knew we must stand for fast, efficient and friendly service for every customers.  Western Union was the one service offer we had which was a barrier to achieving this.  It was also the service with the potential for the most significant mistakes.

I took some time this weeked to look for a negative impact as a result of ceasing to offer Western Union.  I know that decisions can be wrong so I felt it was important to see if that was the case here.  I could find no negative impact.

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Newsagency management

Kudos to Lovatts for promoting newsagents

lovatts_crosswords.JPGThe Herald Sun is giving away a crossword puzzle book with the newspaper today and sudoku puzzle book tomorrow.  The books have been compiled by Lovatts.  In each there is a full page ad promoting Lovatts products as being AVAILABLE AT YOUR LOCAL NEWSAGENT.

No one ask Lovatts to do this.  They used the page to promote us being they are committed to the newsagency channel.

We are taking the opportunity to promote Lovatts titles near newspapers to reinforce the brand behind the promotional product.  This is in addition to the column of crossword titles (mainly Lovatts) we have next to the Australian Women’s Weekly – this location is out-performing the regular crossword section in terms of sales of the latest issue of Lovatts BIG two to one.

In terms of the promotion itself, I like it.  This is a good giveaway for the newspaper as it connects with products we sell in our business.  I’d like to see them use crossword giveaways later in the year to promote the health benefits and to promote school holiday activities.

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crosswords

Is retail theft on the increase?

Is it just us or is retail theft on the increase?  Five of my shops have experienced thefts in the last four days.  Two people have been caught and we have vision of others.  In each instance, the item stolen was small.  I have never seen it as bad as this week.  We are being as vigilant as ever and make our use of camera technology obvious in-store.

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theft

Bendable newspaper / magazine e-reader

skiff-bend.jpgDvice.com has an initial review of the Skiff Reader.  The photo is from their website – it shows how the device bends.  As I mentioned a few days ago, the Skiff is designed for newspapers and magazines. 

Computerworld also has a good review of the Skiff and the Que reader.

Wether any of these devices is the one to disrupt a marketplace, as the iPod did to music, the extensive coverage over the last few days our of the CES Show at Las Vegas is building consumer expectation.  The more early adopters play with these new devices the faster we will get to the iPod moment for a device which disrupts print.

These devices challenge us to develop more flexible businesses.  Newsagents putting in new shopfits which are not flexible are nuts.  We need to be able to change as fast as the world around us is changing.  Sadly, I still see new shop fits with purpose-built magazine fixturing.  The new concept store I have a half share in at Knox City in Victoria is completely flexible.

MarketWatch has a good review of the e-reader activity over the last few days at the Las Vegas CES show.

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Media disruption

Birthday frames replace birthday keys

18th_birthday.JPGWe are having good success selling signature frames for birthday celebrations.  We first got onto these when we were having trouble getting birthday keys.  Now, we have them in all of our stores.  We sourced them through Gibson.  They carry a good margin and fit well with the greeting card department.  We have tried a range of birthday mementos and these frames are working the best for us.

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Gifts

Packaging a magazine for Christmas

codewords_gifts.JPGI love the Codewords 2010 Yearbook which went on sale yesterday.  While it is late for the Australian marketplace, what I liked is the gift tag stuck on the front cover.  This makes it an easy Christmas gift.  The sticker peels off if you are not buying it as a gift.  It is a small packaging enhancement such as this which can make an item appealing to more shoppers.  I can see stickers working like this for seasons outside of Christmas.

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magazines

New Idea launches new masthead and new look

new_idea.jpgOn Monday, Pacific Magazines launches a new look New Idea with a new masthead, a new team and an extensive multi-platform brand campaign.  I have seen two of the TV commercials which start airing on the Seven Network on Sunday night.  They make great use of It’s oh so quiet a song popularised by Björk in the 1990s and before that Betty Hutton and others.

The commercials are terrific and tie well with a range of collateral being sent to newsagents to support the in-store launch the new look New Idea.

While other retailers will promote the new look New Idea, newsagents have an opportunity get out early and more creatively.  This means placement of the launch material in high traffic location, co-locating to drive maximum possible impulse purchases and being ready to talk about the new look magazine with customers.  Winning new New Idea customers positions us to keep their repeat business.

While the cash prizes for great displays are enticing, the incremetal business is more valuable.  This is why I’ll be ensuring that my stores energetically embrace the opportunity.

Click here to see a copy of the press release sent out by Pacific Magazines.

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magazines

The Jennifer Aniston battle

jennifer_aniston_magazines.JPGWith our That’s Life display having worked very well in two days, we have given the promotional space at the front of our newsXpress Forest Hill store over to a display of Who and OK!, both of which are out today featuring Jennifer Aniston cover stories.

While publishers are not usually that keen for rival titles to be promoted head to head in this way, I like that these two titles have common themed covers.  We have tried to create a display which remains respectful of the two brands.

The display reminds our shoppers that Who and OK! are out today – we need to boost Friday magazine sales.

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magazines

Kids travel pack missed opportunity

kids_travel_pack.JPGI missed this Kids Travel Pack when it arrived last month.  Had I seen it I would have ordered plenty more – it’s an excellent value pack for school holidays.  It would have also worked well as a Christmas stocking stuffer.

This is one example where I am happy for a bagged item.  I am sure that a bulk display would have work well for us – especially where all the contents are clearly on show.

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magazines

Are air freight magazines hurting regular sales?

international_mags.JPGWith the increase in the range of titled air freighted in and therefore duplication of titles on our shelves, I am concerned about the cost to newsagents.  My concerns are for an overall softer sell through from the larger collective stock holding, the cost of increased space commitment to a title and the challenges with controlling supply.

This is something I plan to look at over the next few weeks in a number of newsagencies.  Anecdotal evidence I have seen so far suggests that with some titles, the air freighted issues are impacting the sales on regular issues without the supply quantity of regular issues being reduced to suit.

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magazines

Que reader launched to replace paper

Plastic Logic launched their much anticipated Que reader yesterday at the Consumer Electronics Show in Las Vegas.  They are pitching this as a business tool for replacing paper.

Like paper, only better
The inspiration for QUE was an age-old but perfect business tool: a simple sheet of paper. QUE was designed to have the benefits of paper, but without the weight and clutter. Just like paper, QUE is easy to hold and feels good in your hands. But it’s easier to search and find exactly what you’re looking for.

As I noted yesterday, this year will be the year of the device.

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Media disruption

The old XchangeIT to close January 12

The old XchangeIT EDI platform for newsagents is to close permanently on the afternoon of Tuesday January 12, 2010.  With all but 120 newsagents having now successfully migrated to the new XchangeIT Link, the time is right to once and for all kill off this old technology.

Newsagents not running the new platform need to make plans ASAP otherwise they will not receive electronic invoices for magazines.

FYI, Tower Systems is running free online training workshops on magazine management.  these include considerable information on the new XchangeIT Link platform.  The next session is today at 11am – but there are only two places left.

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newsagent software

2010: the year of device

Google launched its phone yesterday.  The Nexus has been a hot story online with close to 4,000 news items in less than a day.  I’ll leave it to others to write the expected comparisons with the iPhone and to speculate whether Google has got it right.  The real story is that Google has entered the device space.  This is the big news as it opens a door on a new strategy.

Through the Nexus, Google can provide access to the content it has collated and stores on its servers.  This phone of the next version or the one after it will attract people to stories and maybe whole publications who would otherwise have purchased a print product from one of our stores.

Coupled with the launch of their new phone is the announcement of their move into online retailing.

This is a new channel maturing before our eyes.  We need to have our own game plan for this changing world.

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Media disruption

1,400 newspapers come to Sony e-reader

Newspapers Direst has announced a deal which brings more than 1,400 newspapers to the Sony Reader.

“We are committed to providing customers with the broadest selection of titles on the most popular reading devices on the market,” said Alex Kroogman, CEO of NewspaperDirect. “The moment a title is published on our platform, it’s instantly available in print, online, on mobile devices, and on e-readers. Our customers always have access to their favorite publications on whatever screen they choose to use. At the same time, we are using a proven pay-per-view business model that has benefited our publisher customers since 2003.”

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Media disruption

Promoting Better Homes and Gardens

fhn_bhg_jan0610.JPGBetter Homes and Gardens is the feature magazine on the aisle end between our two main magazine aisles. This display went up yesterday and is already driving good business. We also have the title in its usual location as well as in two pockets in with the women’s weeklies titles. It warrants all of the real-estate, Better Homes and Gardens performs very well for us.  The colours used for the cover make it stand out.

We will move Better Homes and Gardens a couple of times in the month – it responds well to change, especially around weekends when we sell most copies.

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magazines

Chasing Rolling Stone sales

fhn_rstone_jan0610.JPGWe are trying Rolling Stone next to our main newspaper stand. We created the tactical displayin the photo yesterday. We are keen for Rolling Stone to work here as it struggles in our shop.  We plan to try several things to see if we can find a market for what is a very good product. Hopefully, this stand next to our newspapers will work for us.  If not, we will try something else.

We newsagents have an obligation to do more than just put magazines out and take them off the shelf when they are due for return. We need to use our skill and resources to help them find incremental sales where possible.

I don’t have time to invest in all titles which struggle so I select them based on the opportunity as I see it.

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magazines

Jennifer Hawkins naked at the counter

marie_claire_feb_2010.JPGWe have placed marie claire with Jennifer Hawkins naked on the front cover at the premium space at our main counter as well as in its usual location with women’s magazines. While the counter placement will generate some negative feedback from customers it will also sell more copies.

Personally, I think the interest generates is terrific as it gets people engaging in the body image debate.

The free sunglasses with the magazine are a bonus for an already much talked about issue.

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magazines

Merchandising Vogue and the travel bag

fhn_voguebag.JPGWe have placed the oversized issue of Vogue in a ‘dump bin’ at the entrance to our women’s magazine aisle. See my earlier blog post on the challenge.  We also have limited stock in the magazine fixturing in its usual space (we reclaimed space from other titles) but we expect the ‘dump bin’ to work best for us.

These wire rack units are useful when you need a quick solution and the ability to move the stock around.

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magazines

Promoting the first That’s Life for 2010

fhn_thatslife_jan0610.JPGWe are promoting the first issue of That’s Life for the year at the counter as well as with the display you can see in the photo – this is placed at the entrance of the shop as people approach our main lottery counter. That’s Life responds well to promotional displays, especially at holiday time when people have spare time on their hands. We will leave this display up until Friday when we will reassess use of the prime space based on sales.

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magazines

Displaying the free travel bag with Vogue

vogue_bag_feb09.JPGThe free travel bag which comes with the latest issue of Vogue, on-sale today, is a challenge to display.  It will not work in regular magazine fixturing so we are displaying it in a feature space.  To me, Vogue is a destination purchase.  I have no evidence to support this, it’s just a hunch.  The large bag means that our regular Vogue customers may miss the title. The other challenge is that the magazine is in a plastic bag with the free travel bag.  This will frustrate browsers who enjoy flicking through Vogue.

The upside is that the free bag may drive some impulse business – I guess this is what the publisher wants. In an ideal world, I could see Vogue being supplied bagged as it has been with a copy un-bagged, a free travel bag and a purpose created stang to display the gift, the magazine and to house the stock for customers who wish to purchase. I appreciate the cost of this approach would be prohibitive. The problem with what he have this morning is that every newsagent will handle this differently and this may reflect poorly on the brand.

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magazines

Selling the Australian Open tennis program

aust_open_tennis.JPGWe’ll sell out of the official program for the Australian Open thanks to our co-location display of this with newspapers.  We have sold more copies from this location and not the sports magazine location where it is often placed in newsagencies.  Not every magazine works with newspapers – we choose titles carefully for this premium space.  We have an acrylic pocket for a single title above our stack of The Age and the Herald Sun.  It’s terrific seeing a newspaper customer purchase the tennis program on impulse.

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magazines

Old XchangeIT platform in last days

I am told that this is the last week electronic invoices will be provided to newsagents still using the old XchangeIT platform.  If XchnageIT moves proceed as planned, next Monday’s invoices will only be provided to newsagents through the new XchangeIT Link platform.

There will be no excuse for the small number of newsagents who have not made the move given the considerable coverage about the change throughout 2009.

Newsagents wanting to know more about complying with IT standards for magazines are welcome to book for the free Tower Systems online workshops on Magazine Management.  To book, click on the workshop title.

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newsagent software

Skiff e-reader for magazines and newspapers

Check out the report on the Skiff e-reader at geek.com.  The Skiff is a black and white e-reader designed with magazine and newspaper like content in mind.  It’s large screen and slim design make it appealing to road warriors – take the reader and you have hundreds of magazines and newspapers in less space.  Click here to see it in 306 degree rotation.

2010 will be the year of the e-reader with major announcements set to hit regularly over the next few months.

While there will be a lag before they hit here, they will make it.  Publishers say the e-readers will generate incremental business.  I don’t full agree with this.  Sure, they will drive some incremental business.  They will also attract some consumers who purchase magazines and newspapers over the counter today.

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Media disruption
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