Presentation on theme: "PROTECTING THE ROUTE TO MARKET - WHEN RETAILERS WANT TO TAKE CONTROL Sally Cartwright HELLO!"— Presentation transcript:
PROTECTING THE ROUTE TO MARKET - WHEN RETAILERS WANT TO TAKE CONTROL Sally Cartwright HELLO!
CIRCULATION 502,679 Source: ABC July – December 2000
THE COST OF POSTAGE NO TIME ADVANTAGE THE AVAILABILITY OF NEWSAGENTS HELLO! SUBSCRIPTIO NS
HELLO! RETURNS 18%
34% UK INDUSTRY AVERAGE
THE ENVIRONMEN T AND THE MAGAZINE
USA/UK/GERMAN MAGAZINE MARKET COMPARISON
UK MAGAZINE MARKET RETAIL GROWTH Source: Wessenden Marketing, JM \ SD \ WHS wholesale data
UK RETAIL MARKET SHARES New Entrants have gained Significant Share at the expense of the traditional sectors.
UK MARKET DYNAMICS - PUBLISHERS/DISTRIBUTORS Retail market value growth slowed to 1.5% from 10%. Number of Consumer titles grown by 45% in last decade to 3,200. Industry unsolds costs now $230m. Publisher/Distributor consolidation. Subscription sales still only 11% of market Internet “bubble-burst” means investment back into printed media.
UK MARKET DYNAMICS - WHOLESALE Wholesaling is a relic of the former dominance of the local newsagent. Market value growth over the past ten years has supported profitability. The wholesale sector will continue to concentrate.
UK MARKET DYNAMICS - RETAIL Outlets selling Magazines grown by 30% in 7 years New sectors growth Supermarket sales growth will slow Multiple retailer frustration Independents are intrinsically marginal businesses.
WHAT’S HAPPENED IN THE LAST 12 MONTHS? Tesco/WHS announced “National Direct” in March 2000 PPA/NPA fought back Tesco dropped ND in October consensual industry approach WHS dropped ND in Dec 2000 Industry “8 point plan” agreed WHS announced planned sale of Wholesale arm in Feb 2001