Publishing Market Guide

8/14/2019 Publishing Market Guide

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The Global Publishing TeamU.S. Commercial Service

Ready to help you succeed internationally!

The U.S Commercial Service (CS) global Publishing Team is made up of domestic andinternational trade specialists who focus on helping the U.S. publishing industry sell their products and services internationally. Our Team members are located throughout the UnitedStates and in U.S. Embassies and Consulates overseas.

The CS Publishing Team provides export assistance to the publishing industry - fromidentifying qualified overseas distributors to selling foreign or translation rights and providingtimely market research. We are the U.S. publishing industrys primary export resource andshould be your first point of contact when looking for international buyers. Our team is leadby International Trade Specialist Dawn Bruno, who is located New York City, the heart of theU.S. publishing industry.

Why U.S. Publishers should work with the CS Publishing Team:

Our Team of international trade specialists is on hand to help you identify markets of opportunity and connect with qualified distributors and partnersUp-to-date market research produced by our overseas specialists on market conditions,industry-specific information, areas of growth and opportunity, local competition andmore

We offer services to help you maximize your time at international book fairs, includingmatchmaking and pre-show promotional programsMarket- and issue-specific webinars with industry experts that you can participate inwithout leaving your deskWe maintain and build partnerships with key industry associations to stay up-to-date withcurrent issues and challenges faced by U.S. publishers

In 2007, CS Publishing Team members met with U.S. publishers at the Frankfurt Book Fair,London Book Fair, Beijing Book Fair, Bologna Childrens Book Fair and BookExpo to helpthese publishers sell their books and rights overseas.

For more information on how the CS Publishing Team can help your business increase itsinternational sales, please contact:

Dawn BrunoTel: +1- 212-809-2647Mail: [email protected] .

We look forward to helping you grow your business!

Guide Publ.Ind.indd 2Guide Publ.Ind.indd 2 9/25/2007 9:25:56 AM9/25/2007 9:25:56 AM


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____ _ ________________ Publishing Industry Market Brief ______________________ 2

Australia

Country: AustraliaCapital : CanberraPopulation: 20.4 millionGDP*: $674.6 billionCurrency: Australian Dollar (AUD)Language: English*(purchasing power parity)

SummaryAustralia represents the third-largest English-speaking book marketafter the United States and the United Kingdom. Australia hasfavorable demographics that will increase the demand for books.Compulsory education results in a literacy rate of almost 100%.

According to the Australian Bureau of Statistics, there are over 230book publishers in Australia. These businesses sell more than 128million books annually. The majority of book sales (77%) are to

retailers and other book distributors while the remaining 23% are direct to end-users. In2006, the demand totaled just over $1 billion.

Current Market TrendsA key trend is the increasing demand for electronic books. Publishers have managed toreduce their costs, and prices for books on average have declined. Imported titles continueto be more expensive than domestic books: the average price for imported titles hasincreased ($10.26) whereas the average cost of Australian titles decreased ($6.83). Futuregrowth is forecast for computer, business and self-help books as Australians increasinglyrefer to books for assistance with information technology and the use of the Internet.

Main CompetitorsMost of the leading publishers in Australia are subsidiaries of U.S. or European companies.These include Random House, HarperCollins, CCH, and McGraw-Hill Education. Smaller local publishers serve specialized niche markets. Membership in the local AustralianPublishers Association totals over 160 firms, which, in turn, represents 91% of the industry(based on sales figures).

Current DemandDomestic production accounts for 68% of the Australian market ($353 million). Highestdemand is for educational books, which include professional and reference books, followedclosely by general non-fiction books. These segments accounted for $394 million and $363million of sales in 2004, respectively. Fiction books are also in demand.

BarriersAs a result of the Free Trade Agreement between the United States and Australia (FTA)enacted in January 2005, books are duty free. However, books are subject to a Goods andServices Tax (GST) of 10%, which is applied to most goods upon entry into Australia.

Educational books are exempt from the GST if they appear on the syllabus of a school or university course. Under the FTA, Australias intellectual property rights laws have beenstrengthened to include the extension of copyright from 50 to 70 years.

It is essential for U.S. publishers to recognize that Australians use spelling standards basedon U.K. spelling rules. Early childhood educators in particular are increasingly promotingspelling standards for young children, with standards derived from the Macquarie Dictionary.



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Resources and Key ContactsAustralian Publishers AssociationWeb: www.publishers.asn.au

Australian Booksellers Association (ABA)Web: www.aba.org.au

Australia Council for the ArtsWeb: www.ozco.gov.au

Commercial Service Contact InformationName: Annette AhernPosition: Commercial SpecialistEmail: [email protected] : + 61-3-9526-5928

Address : 553 St. Kilda Road,Melbourne Victoria 3004Australia



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AustriaCountry : AustriaCapital: ViennaPopulation: 8.2 millionGDP*: $283.8 billionCurrency: EuroLanguage: German *(purchasing power parity)

SummaryAustria has 1,000 publishing companies, 280 periodical publishersand 100 newspaper publishers, an industry structure composedprimarily of small and mid-sized companies. With its 3.9 millionprivate households, the book market generates sales of $1.8 billion.

Household Spending on Published Materials in 2005 (in USD)Product Group Spending per Household

TotalSalesin million

Books 157.1 532.20Reference books 55.67 188.64Fiction 42.10 142.64Guidebooks 20.36 68.99Childrens books 14.70 49.76Travel guides 14.57 49.39Encyclopedias 5.78 19.60Second hand books 3.89 13.19Newspapers and magazines 337.82 1144.56Paper and stationery 51.00 172.93TOTAL 545.92 1849.69(Source: RegioPlan Consulting GmbH, Verbauchsaugaben sterreich 2005)

Book Sales Year Sales USD Change Over Previous

Year %2000 940.71 -2001 977.28 + 3,92002 993.37 + 1,72003 978.41 - 1,52004 999.91 + 2,2

2005 990.86 - 0,92006(p) 995.38 + 0,5(Source: RegioPlan Consulting GmbH)

Of the 5,424 individual new releases in Austria in 2005, just over 10% were foreign or multi-lingual. The foreign publications were released in 23 languages, of which English had thelargest share with 51%.



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New Releases 2005 in Austria

other groups34%

fine arts,architecture

6%

economic,social

6%

history8%

legislation10%

agriculture,forestry

4%geographic

6%children

6%politics

4%

fiction16%

geographicchildrenother groupsfine arts, architecturefictioneconomic,socialpoliticshistorylegislationagriculture, forestry

The following table indicates the allocation of new releases in literary fields:

(Source: National Library of Austria)

Because of its proximity and shared language, Germany is Austrias premier trading partner

in books, with 80% of new book releases in Austria imported from Germany and 80% of Austrian book exports going to Germany.

Market TrendsIn publishing, a trend toward the digitalization of content is ongoing. More and more booksare being posted on the Internet, yet the cost are still very high since the process of digitalization involves expensive manual or mechanical handling. (source: Association of theAustrian Book trade)

Book sales are still dominated by individual bookstores. The trend is, however, movingtoward increased concentration: in 2004, 28% of book sales were made through a chain; in2005, 31%. (Source: RegioPlan Consulting GmbH)

Market EntryAmerican publishing houses can approach Austrian booksellers by contacting anintermediary delivery company (please contact the U.S. Commercial in Austria for a detailedcontact list), or by contacting a bookseller directly.

In Austria, books are subject to a price-fixing restraint, which commits publishing houses andbook importers to adhere to a pre-arranged end price. The intent of this law is to ensure abroad variety of literature and enables small bookstores to produce sufficient income to stayin operation. Without this system, legislators fear that a handful of financially strongcompanies would push small booksellers into ruin and dominate the marketplace, and thateventually only books that are expected to achieve high volume sales will be available.However, the Austrian price-fixing law does not apply to books in the English language.American publishing houses can calculate their prices independently and negotiate directly

with the bookseller over discount rates and gross profit margins. In Austria the average profitmargin for booksellers is between 30 and 40%. (Source: Association of the Austrian Book trade)

Trade EventsLITERA the International Book Fair in Austria(April 23- 27, 2008, in Design Centre Linz)Web: www.linzkongress.at/litera/englisch/litera_content.html



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Resources and Key ContactsAssociation of the Austrian Book TradeHauptverband des sterreichischen Buchhandels (HVB)Web: www.buecher.at/

Association of the Book and Media IndustryFachverband der Buch- und MedienwirtschaftWeb: www.buchwirtschaft.at/Default.aspx

Commercial Service Contact InformationName: Marta HausteinPosition: Commercial SpecialistEmail: [email protected]: + 43-1-313 39 2205

Address : Boltzmanngasse 161090 ViennaAustria



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BelgiumCountry: BelgiumPopulation: 10.4 millionGDP*: $342.8 billionCurrency: Euro (EUR)Language: Dutch (official) 60%

French (official) 40%German (official) less than 1%legally bilingual (Dutch and French)

*(purchasing power parity)

SummaryThe Belgian book market, like those in other highly literate industrializedcountries, is mature but not stagnant. It has experienced normal growthof around 9% in the last few years. A linguistic divide heavily influencesthis market, with the Francophone and Dutch-speaking communitiesimporting many titles from their linguistic parent countries.

Belgian publishing sector:Production(in USD million)

Number of Enterprises Employees

3,481.6 1,119 9,786(Source Strengthening the Competitiveness of the EU Publishing Sector. Commission of the European

Communities: Commission Staff Working Paper. 7 Oct 2005.)

Current Market TrendsSales through book clubs and wholesalers have in recent years been abandoned in favor of large retailers, making it more difficult for small booksellers to enter the market. The

Internet, apart from certain specialized sectors, has not yet taken a large market share fromthe large retail outlets. In fact, many well-established retailers have been able to capturemuch of the Internet sales volume by creating user-friendly retail websites.

Main CompetitorsThe strongest local competition in Belgium mainly exists among illustrated media, such ascomic books and childrens literature.

Current DemandIn recent years, there has some been decline in niche markets, such as scientific texts,encyclopedias, and dictionaries due to electronic purchasing. The comic book format isextremely popular, and some forms that are different from local comics, such as Japanesemanga and graphic novels, have proved very successful.

BarriersCompetitive pricing not regulated pricing (value- added tax) is put on the sales of books.6% VAT



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Resources and Key ContactsADEBAssociation des Editeurs BelgesWeb: www.adeb.be/

Foire du Livre de BruxellesWeb: www.foiredulivredebruxelles.be

Commercial Service Contact InformationName: Brigitte de StexhePosition: Commercial SpecialistEmail: [email protected] : + 32-2-508-2454

Address: 27 Bd du Rgent1000 BrusselsBelgium



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CroatiaCountry: CroatiaCapital : ZagrebPopulation: 4. 4 millionGDP*: $60.26 billionCurrency: Croatian Kuna (HRK)Language: Croatian 96.1%

Serbian 1%*(purchasing power parity )

SummaryAlthough a Slavic nation, the Croatians possess an attitudetowards reading that cant quite compare to the one in Russia;on average, only one in 3 inhabitants buys a book per year.Regardless of the reading taste, one thing is certain: effectivemarketing and hype does much more for the sales than thequality of the work. Before the last sequel of Harry Potter reached the bookstores and recorded 3,810 sold copies in July,the best-selling book in Croatia was a Slovenian diet guide.

Although corporate registration documents show approximately 600 companies areregistered as publishers in Croatia, the reality is that only 30 have publishing as their corebusiness. These 30 cover approximately 80% of the market, but only a few of themmanaged to distinguish themselves as recognizable brands. Nevertheless, there is noconsolidation in the publishing/bookstore business (which is often combined); instead, thelarge bookstores tend to grow organically, spread their retail network and wait until thesmaller ones disappear. Algoritam, the largest bookstore in Croatia, claims to sell close to 1million books in a year, and together with its sales of multimedia content and accessories, itgenerates around EUR 14 million in revenues annually.

The entire sector was shocked in 2004 when the newspapers started publishing their owneditions. They employed a network of newsstands to sell books, which were usually priced atabout a third of an average price in a bookstore. Bookstores claimed that this practiceconstituted unfair competition, but everything calmed down as the newspapers eventuallyran out of material to publish their editions usually consisted of reprinted books and lessknown domestic authors.

Current Market TrendsThe number of large book retailers is steadily increasing, and the larger ones, such asAlgoritam and Profil, are comparable to bookstores like Barnes & Noble. It is estimated thatCroatia imports close to 2,500 foreign titles each year, of which some get translated, but themajority are sold in their original language. The reason for this is purely economical: the costof translation can eat up around 20% or more of the gross revenue per title. In addition,English is widely spoken in Croatia.

Main CompetitorsWhile there is no breakdown of book sales by publisher, it is safe to say that sales of foreignbooks is higher than that of the domestic ones. In addition, more expensive books pricedabove HRK 200 (approximately EUR 25) sell better than cheaper ones.

Current DemandThe top-selling books in Croatia for July 2007:



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Title Author Number of copies sold

Harry Potter andthe Deadly Hallows Joanne Rowling 3,810Frida, or About Pain Slavenka Drakulic (domestic) 921

Rabbit on the Moon Hrvoje Salkovic (domestic) 863

The Island Victoria Hislop 711Shanghai Baby Wei Hui 664

Cevdet Bey and His Sons Orhan Pamuk 568

P.S. I Love You Cecilia Ahern 505

At Risk Patricia Cornwell 472Marrying Buddha Wei Hui 459

The Witch of Portobello Paulo Coelho 451

BarriersThe Croatian Ministry of Culture recently introduced guidelines preventing bookstores fromchanging the price of a book within one year of the publishing date. While there are certainexceptions to this rule, publishers complain that they are too few and that the time for whichthe price of a book is fixed is too long. The fixed book price directive negatively affects thesale of books over the Internet (for domestic publishers and bookstores), where the buyersusually enjoyed a 15-20% discount.

Book sales are not subject to VAT in Croatia.

Trade EventsInterliber, International Books and Teaching Aids Fair (held in Zagreb every November)http://www.zv.hr/sajmovi/150/index_en.html

Resources and Key ContactsCroatian Ministry of CulturePublishing [email protected]

Top bookstores/publishers:www.algoritam.hr www.profil.hr www.vbz.hr www.agm.hr www.skolska.com.hr

Publishers Association with the Croatian Chamber of [email protected]

Commercial Service Contact InformationName: Miroslav NikolacPosition: Commercial SpecialistEmail: [email protected] : +385-1-661-2026

Address : Thomas Jefferson St. 2ZagrebCroatia



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Czech RepublicCountry: Czech RepublicCapital : PraguePopulation: 10.2 millionGDP*: $224 billionCurrency: Czech koruna (CZK)Language: Czech*(purchasing power parity)

SummaryA nation of avid readers, the Czech Republic ranks among theworlds top ten countries in terms of the number of published non-periodical titles per 10,000 inhabitants. Like many countries, theCzech Republic is facing a decline in the number of readers due tothe availability of other media and activities. However, bookreading remains a key part of the countrys cultural life. In 2006,the Czech book publishing industry released 17,000 publications

an all-time high. In comparison with 2005, this is an increase of 11%. More importantly, this record year illustrates the profound changes that have occurredin the Czech publishing industry since the Velvet Revolution and the fall of communism in1989. The total book market is estimated at CZK 4.5 billion ($200 million). Estimates for non-periodicals segment are not available, however it is a very vivid sub-sector and there is alarge (and ever growing) number and variety of newspaper and magazines available in themarket.

Market DemandIn comparison to the U.S. market, the book publishing market in the Czech Republic, withonly 10 million inhabitants and a language used only within its borders, is small. But Czechpublishers can rely on a population of avid readers that frequently buy books to create homelibraries.

The high absolute number of book titles published in 2006 testifies to the fact that Czechpublishers compensate for dropping average print runs by publishing a large number of titlesin order to sustain their turnover. Out of 17,019 titles in 2006, about one fourth representreprints of books already published, which is quite an increase compared with 2005. Expertsestimate that about 50% are produced off-market and not distributed through the generalbookshop network and which include mainly purpose & regional interest titles, state andgovernment institutions production and some university publications. Unfortunately, onlylimited information on total sales, print runs, profits and market shares in the publishingsector is available.

Table1: Number of Books Published in the Czech Republic2002 14,2782003 16,4512004 15,7492005 15,3502006 17,019

(Source: Grand Biblio magazine )

The selection of books and publications is rich and varied both in quantity and genre. Fictionliterature accounted last year for over 20% of total book production. Increases were recordedfor childrens books as well as school and university textbooks.



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Table 2: Comparison of Publication in Selected Genres2002 2003 2004 2005 2006

Fiction 3,605 3,498 3,381 3,340 3,746Children books 586 746 735 866 1,290School & UniveristyTextbooks

1,578 1,884 1,732 1,776 1,924

(Source: National Library of the Czech Republic)

Rapid growth in the number of periodicals, including newspapers and journals, occurred inthe 1990s after the fall of communism. The number of periodical publishers increased to1,6001,700. The Union of Publishers of Periodicals offers on its web pages the results of their annual Media Project, which researches newspapers and magazines by readership andsales. Their research shows that Blesk, followed by Mlada Fronta Dnes and Pravo, are themost popular dailies. In other selected categories, top three publications are: womensfashion magazines: Cosmopolitan, Elle, Marianne ; current affairs and society magazines:Nedelni Blesk, Rytmus zivota, Tydenik Kvety ; business and economic magazines: Econom,Euro, Osobni finance ; Music/Film/Photo magazines: Cinema, Premiere, Rock & Pop ; and theteen magazine market: Bravo, Divka, Bravo Girl! .

Market DataThe structure of the Czech book production market has remained largely unchanged over the past several years: Czech language publications are predominant in the Czech Republic.As far as foreign language book production of Czech publishers is concerned, English hasclearly dominated the market, followed by German and French.

Translations usually amount to about one third of the total Czech book production, making itrank among the worlds top consumers of translated texts, along with the Baltic states andHungary. The number of translated languages has in recent years been around 45. The listof the three most often translated languages has remained unchanged since 1990. Almosthalf of all published translations originate from English. Translations from German have beenthe second most numerous, with French third at some distance. Two other languagesreaching over 100 translations include Slovak and Spanish.

Table 3: Numbers of Published Book Translations in the Czech Republic2002 2003 2004 2005 2006

Total/of which 4,342 4,602 4,604 4,423 5,240From English 2,329 2,362 2,301 2,211 2,556From German 982 1,029 1,033 980 1,186From French 225 273 267 243 244From Spanish 32 52 38 43 179From Slovak 116 137 152 136 176From Polish 67 76 73 74 70From Russian 50 53 65 73 68

(Source: National Library of the Czech Republic)

One interesting aspect of the industry concerns the relationship between Czech publishersand public libraries. Czech law requires that publishers offer one copy of each publication tolibraries specified by the Ministry of Culture to ensure that selected libraries have access tocurrent production. This so-called compulsory offer does, in some cases, cause problemsbetween libraries and publishers. In addition, it promotes a disconnect between these twogroups, which tend to see each other in opposition instead of as potential partners. Since1989, publishers and libraries have viewed one another primarily through the narrow focus of profit versus public benefit.



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There are however some exceptions. The Association of Czech Booksellers and Publishersstarted a cooperation with the Svet knihy company to launch a campaign in support of books and reading aimed especially at children, entitled Growing with the Book. It drawsinspiration from similar models employed in the United States and the EU. The project isenjoying growing interest and participation. There is also a growing number of book festivalsand book awards as well as an emergence of new authors.

The operation of the ISBN and ISMN systems in the Czech Republic is based on generallyaccepted international rules and regulations. Participation in the system is voluntary, andnational agencies usually contact publishers directly. Important materials are available onthe National Library websites.

The publishing sector has not yet developed tools for a systematic monitoring of its ownprofessional activities. A number of long-term statistical indices, general as well as specificanalytical and marketing studies, and theoretical and prognostic studies for the monitoring of developmental trends in individual areas are missing. For example, statistical data on theannual production of non-periodicals and periodicals in the Czech Republic are preparedonly on the basis of legal deposits in the National Library of the CR; data on the growth anddevelopment of prices of publishers' products are only estimated.

Best ProspectsBest prospects for U.S. publishers in the Czech market are mostly in B2B sales of rights for bestselling novels, while specific niche markets may exist for other categories such asdocumentaries, arts and life style, travel and tourism, scientific, technical, medical,management, social and human sciences and childrens books.

Major Czech publishing firms usually attend international book fairs, such as the FrankfurtBook Fair in Germany. There are also opportunities at the Czech International Book Fair,which takes place annually in Prague.

Key SuppliersThe publishing of books in the Czech Republic is clearly divided between more entities thanin countries which have enjoyed an uninterrupted and continuous development towardsspecialization and concentration of book producers. In 2006, there were 3,908 publishersregistered in the Czech Republic. However, it is estimated that approximately half of thesepublishers are not active. In any case, a decisive share of Czech book production is stillattributed to only several dozen publishers. (As mentioned above, the industry could benefitfrom better systems of monitoring and tracking, such as the registration of publishers. Theexisting mechanism does not filter out defunct publishing entities.)

Last year, 170 companies published more than 20 titles, meeting the criteria for regular activity. Only 33 companies publish more than 100 books per year (half of these areuniversity or government establishments). University and state institution presses are, as inother countries, usually characterised by a large number of highly specialised titles atrelatively low print runs.

Table 4: Number of Registered Publishers in the Czech Republic2002 3,2672003 3,4482004 3,6192005 3,7752006 3,908

(Source: Grand Biblio magazine)



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The leading book distributors have begun pressing for higher discounts. As a result, theproduction of books has approached the limit of profitability for a number of publishers, sinceno marked increase in consumer prices has been registered.

Bookshops are facing competitive pressure both from market chains and bookshop chains,similar to the situation in other countries. In some regions, bookshops have disappeared,because of generation change and because new shops were opened by publishing housesand new literary cafs have come into existence.

Prospective BuyersLike many countries, the Czech Republic is facing a decline in the number of book readersdue to the availability of other media and activities. However, book reading remains a keypart of the countrys cultural life. Despite all challenges, statistics show that in terms of thenumber of book titles published, the Czech Republic ranks among the top countries in theworld. In terms of published titles per 10,000 inhabitants, the country even makes it to thetop ten.

Market EntryA recommended strategy for a U.S. company interested in penetrating the Czech publishingmarket would be to find a local partner/representative or open an office in the country.Without a local representative who can support everyday contact with customers andgovernment representatives, it is very difficult to succeed in the market. A U.S. company canstimulate further sales by working with Czech partners on effective marketing campaigns, aswell as by utilizing trade shows, in-country promotions, and advertising. The U.S.Commercial Service offers a number of ways to help U.S. companies find business partnersin the Czech market. These include setting up meetings with Czech companies interested inpartnership, government officials and associations representatives (Gold Key Service)conducting, due diligence on prospective partners (International Company Profile) andevents organizing to introduce new product lines to potential customers (Single CompanyPromotion).More information and contacts can be found at www.buyusa.gov/czechrepublic/en/

Market Issues & ObstaclesThe Czech Republic is a highly developed, open market with liberal policies and intensecompetition. While imports from the EU are exempt, products from non-EU countries aresubject to import duties. Customs duty rates are updated annually and are harmonizedwithin EU countries. In addition, all goods, imported or produced domestically, are subject toa value-added-tax (VAT). The value added tax rate for non-periodic publications (books,brochures) is 5%.

The Czech Republic is a member of various international copyright agreements. Inaccordance with European Union legislation, a protection period of 70 years from theauthors death applies in the country. One of the principles of Czech copyright is thereciprocity principle, whereby foreign authors enjoy at least the same level of protection asCzech authors, provided reciprocity is ensured.

The key factors influencing book prices are the price of the material (paper, printing services)and authors fees. Authors fees can also be considered a factor bearing the greatestinfluence on the final price of any book, especially so with foreign authors whosepublications are translated into the Czech language, and where the requested fees arerelatively high. Book prices are considered contract prices and recommended sale prices areprinted only on limited number of publications.

Czech is the official language in the Czech Republic. More than half of Czech companyrepresentatives are able to communicate in English or in German.



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Trade EventsInternational Book Fair, PragueMay 3-6, 2007, www.svetknihy.cz

Resources and Key ContactsMinistry of Culture,www.mkcr.czAlmanach Labyrint, www.almanachlabyrint.czNational Library, www.nkp.czThe Union of Publishers of Periodicals, www.uvdt.czThe Association of Czech Booksellers and Publishers, www.sckn.czAmerican Chamber of Commerce, www.amcham.czGeneral Directorate of Customs, www.cs.mfcr.cz

The U.S. Commercial Service Your Global Business Partner With its network of offices across the United States and in more than 80 countries, the U.S.Commercial Service of the U.S. Department of Commerce utilizes its global presence andinternational marketing expertise to help U.S. companies sell their products and servicesworldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you byvisitingwww.export.gov/.

Commercial Service Contact InformationName: Veronika NovakovaPosition: Commercial SpecialistEmail : [email protected]: + 420-257-022-334 2437

Address: Trziste 15Praha (Prague) 1 118 01Czech Republic



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DenmarkCountry: DenmarkCapital: CopenhagenPopulation: 5.5 millionGDP*: $198.5 billionCurrency: Danish krone (DKK)Language: Danish*(purchasing power parity)

SummaryDenmark is a highly developed country located in Scandinavia. Throughstate-supported granted education, reading is encouraged at an early ageand the general level of education is very high (about 99% of the generalpopulation attend compulsory elementary school (lasting 9 to 10 years); 86%attend secondary school and 41% pursue further education.). Thus, Denmarkhas a very high literacy rate (app. 99%), which naturally shapes a market for publishers.

The Danish publishing market consists of 1,160 publishing companies, 41 newspaper companies, and 1,269 printing houses, all together comprising total sales of more than $5.8billion. While newspapers in recent years have suffered from decreasing circulation due theinternet, the market for printed books is actually increasing. In the years between 1999 and2005, there was according to The Statistic of the Danish Publishers Association, an increasein the total number of Danish books sold by 8.5 million copies equivalent to 28%.

Historically, the Danish book market has been highly regulated. However, a process of liberalization has lately been taking place. Today 10% of a publishers new publications canbe sold with a fixed book price. The fixed book price can only be used on the first edition of the book. The fixed price is then depreciated over 5 years.

There are no customs duties levied on the import bound of books. However, in Denmark allconsumer goods, including published material, are charged 25% VAT.

The Union of Danish Book Retailers (Den Danske Boghandlerforening) organizes the (app.)450 Danish book retailers. The union represents the retailers in their dealings withpublishers, authors, and public authorities.

Current DemandThe Danish are avid readers and, besides a general interest in life style-related reading,such as design, fashion, cooking, etc., there is a growing demand for biographies. Thus, 8 of 10 books on the current Danish bestseller list are biographies.

Market TrendThe publishing market is currently characterized by some trends that are changing thefundamentals of the market. While the circulation of paid dailies is falling, the circulation of free dailies is increasing. Besides changing the balance in the media market dramaticallythat development has led to a shift in, especially, young peoples reading habits. Therefore, itis once again becoming in to read, which is one of the explanations of the before-mentionedincrease in the amount of books sold.

Furthermore, the media market is also undergoing a process of digitalization, leaving theprinting houses under yet more pressure. This is happening concurrently with a Europeanconsolidation of media houses, which is characterized by a high level of acquisitions (andconsequently an increasing demand for higher earnings).



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So far, the process of digitalization has had its hardest impact on the printed media.However, the concept of digital books is slowly growing in the market and will especiallywhen taking foreign experiences into consideration gain a greater market share during theyears to come.

Politically the debate is centered around the VAT of 25% levied on all books. A productspecific abolishment of the VAT can be expected within the next five years, which will makethe demand for books grow significantly. In addition, the political signals also points to anabolishment of the fixed price system within a few years.

Trade EventsEducational Forum in OdenseNovember 5-6, 2007

Book Fair; BogForum, CopenhagenNovember 16-18, 2007

Book Fair: SkolebogsmessenMarch 12-13, 2008 in RoskildeApril 9-10, 2008 in Aarhus

Book fair: KrimimessenApril 5-6, 2007 in Horsens

Resources and Key ContactsDanish Publishers Associationwww.danskeforlag.dk+45 3315 6688

Den Danske [email protected]

Aschehoug Dansk Forlag A/Swww.aschehoug.dkFiction, general non-fiction, popular reference books, juveniles,childrens books

G.E.C. Gads Forlag A/S G.E.C. Gad Publishers Ltd .www.gads-forlag.dkHigh quality non-fiction and educational/academic books. Art,biography, economics, food/drink, history, law, medicine, nursing,philosophy, popular science, reference, religion.

Gyldendalske Boghandel, Nordisk Forlag A/SAll types of books for the general trade market, fiction, non-fiction,textbooks, juveniles, art books, popular paperbacks, quality paperbacks,encyclopaedias, reference books, book clubs and periodicals, audiovisuals(video, tapes, computer-software and hard-ware).

JP/Politikens Forlagshus A/Swww.politikensforlag.dkAll types of books for the general trade market, fiction, general nonfiction,popular reference books, childrens books, travel books,dictionaries and management books



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Jurist- og konomforbundets Forlag A/Swww.djoef-forlag.dkEducational/academic books, science

Commercial Service Contact InformationName: Sabina Krigaard Position: Commercial SpecialistEmail: [email protected]: +45 3341 7202

Address: Dag Hammerskjlds All 242100 CopenhagenDenmark



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FranceCountry: FranceCapital : ParisPopulation: 63.7 millionGDP*: $1.891 trillionCurrency: Euro (EUR)Language: French*(purchasing power parity)

SummaryIn 2005, the French publishing industry posted revenues of EUR 2,747million ($3,700m), according to the National Publishing Syndicate. Themarket was almost evenly split in terms of new titles published versusreprints of previous titles (51% to 49% respectively). Books sales increasedby 2%, transfers of rights increased by 6.5%, and book prices went up by1.3% overall.

As with many industries in France, the publishing industry sees a sharpdecline in productivity in July and August (due to the summer holiday period) before shootingback up to normal or above normal levels in September.

Current Market TrendMany people (26.7%) still buy their books in bookstores, but several market studies foundthat books are one of the fastest-growing sectors in e-commerce in terms of online sales.

Sales channels, division of purchases in value in 2005Store type Percentage share

of book purchasesBookstores (of all kinds) 26.7Large or specialized bookstores 19.3Publishing houses, book and stationary stores 6.9Department stores 0.5 Specialized large-surface stores (i.e. FNAC) 21.7Non-specialized large-surface stores (i.e. hypermarkets) 20.7Mail order and clubs (not including internet) 16.7Other 6.6Online sales 5.4Sales/occasion 1.9Broker 0.3

Books in pocket size, defined in part as being of small size and modest price, make up14.9% of sales value and 28.3% of sales volume with the remainder being made up by

large format books. The pocket size has gone up 10.6% in value.Some 45% of French book exports go to other EU countries. Booksellers are finding thatexports to rich countries such as Belgium, Switzerland and Canada - the largest markets for French books - have stagnated.



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Sales to non-Francophone regions outside of the EU have declined outright, at a rate of 36%between 2002 and 2004.

English translations of French books declined by 20%, indicating a loss of territory for Frenchliterature in the Anglo-Saxon countries.

Current Demand

In 200579% of French people over 15 years old read at least 1 book in thelast 12 months38% read between 1 and 9 books25% read 10-24 books15% read 25 books or more

Books on religion saw their first upward trend in several years,possibly due to events in the Catholic church (a new pope).Dictionaries and encyclopedias also saw increased sales. Scholarlybooks experienced an increase for the first time in the last threeyears. On the other hand, fiction was in decline for the first time inyears.

With special regard to comic books, in both France and Belgium many comic books, or bandes dssines , are popular among both children and adults. These can cover manytopics, ranging from the traditional cartoon-type character to historical and science fiction.Comic books are very mainstream and are not limited to special-interest groups or collectors. For 2005, they posted revenue of more than EUR 211 million ($287.1 million), afull 8% of the total revenue from book sales in France. The growth in revenue was thesecond largest in the sector, after that of youth books. There is also a trade fair for comicbooks; see the appropriate section below for more information.

Market change by book type, 2005Book type Percentage

change in marketScholarly books +1.5Technical and commercial +9.1Secondary school +6.5 Primary school +0.9Sciences, technical and medicine -1.8Medicine -6.2 Management -6.4Data Processing +7.5 Human and social sciences -2.1Law -3.5

General human sciences -4.8 History +15.2 Religion +0.7

Esoteric -6.2Dictionaries and encyclopediasFrench dictionaries +6 Foreign language dictionaries -4.6 Multi-volume encyclopedias -27 Booklet encyclopedias +4.3General literature



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Book type Percentagechange in market

Fiction -1.6 Documentary +1.7 Novels (classic, contemporary, sci-fi) -5.0 Novels (crime) +13Novels (romance) +9.4Youth +15.6Fiction* +23Baby +21.7 Comic books +5.3Manga +22.9

Art and practical books -1.3Cooking +5.4Sports +15.5 Tourism +5.8 Geographic maps and atlases +3.9

*Note: Youth fiction was helped along tremendously by the new Harry Potter volume.

Price barriersFrance is one of several countries in Europe that use a system of fixed prices for books onbooks (Germany being another). The law that permits this in France is called Loi Lang (Langs Law), which was instituted in 1981. Anyone who publishes or imports a book intoFrance is required to fix one price for the books sale to the entire public. Discounts cannotbe more than 5% of the price set by the publisher. The growing success of Internet salesmay be detrimental to this policy, however, as books can be bought more cheaply fromBritish or other booksellers online. The policy of fixing prices on books is beginning to beexamined by several European Union governing bodies, as some find it to be a barrier tofree trade in the European market.

In France, books are subject to the reduced tax rate of 5.5% (the standard rate being

19.6%).Trade EventsFestival International de la Bande DessineThe International Comic Book Festival is held in January in Angoulme.The next one will be from January 24-28, 2008.Web: www.bdangouleme.com/

Salon du LivreMarch 14-19, 2008Paris, Porte de Versailles Hall 1Web: www.salondulivreparis.com/

Resources and Key ContactsSyndicat National de lEditionThe National Publishing Syndicate is Frances trade association for book publishing. Itadvocates publishers interests, supports publishing and intellectual property rights,promotes/defends a fixed book price, and promotes literacy.

Reed Expositions FranceWeb: www.reedexpo.fr/

Bureau International de lEdition FranaiseThe International Bureau of French Publishing is a French news and information resource for the publishing industry. Its goal is to promote French books internationally.



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Web: www.bief.org/Centre National du LivreThe National Book Center is a public administration establishment that also serves as aplace of exchange between professionals in the book industry.Web: www.centrenationaldulivre.fr

La Centrale de lEditionThe Publishing Centrale aims to help and to develop the export activities of its members.(professionals in the book industry).Web: www.centrale-edition.fr

Centre dExportation du Livre FranaisThe French Book Exportation Center is a professional site that serves as adistributor/supplier of French books. It does not sell in France, nor to individuals.Web: www.celf.fr/

Commercial Service Contact InformationName: Valerie Ferriere Position: Commercial SpecialistEmail: [email protected] : +33-1- 43-12-70-77

Address : 2, avenue Gabriel75008 ParisFrance



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GermanyCountry: GermanyCapital : BerlinPopulation: 82.4 millionGDP*: $2.63 trillionCurrency: Euro (EUR)Language: German*(purchasing power parity)

SummaryIn terms of market volume, the German-language book market isone of the largest in the world. In fact, more books are published inGerman each year than in any language apart from English andChinese. Considering that Switzerland and Austria import morethan 80% of books with Germany as their major import source Germany dominates book production and sales in this combinedmarket.

With 94,700 new and reprinted titles entering the market in 2006, Germany is among theworlds leading book producers. According to the German Publishers and BooksellersAssociation (Brsenverein des Deutschen Buchhandels), the book trade in Germanygenerated total sales of EUR 9.2 billion; representing one-third of the total EU market. Italso reflects a 1.1% increase over 2005, an encouraging sign of continuous growth since2004.

Current Market TrendsThe German book industry started the 2007 Book Year with improved confidence in themarket. In a survey conducted by the German Publishers and Booksellers Association in2007, 21% of German booksellers anticipated very good to good sales for the year 2007 and60% assumed moderate growth. Along with fiction and childrens and teen literature, theschool and educational books segment is expected to have the strongest growth in 2007.Around 30% of those retailers surveyed stated that sales in these categories had alreadybegun rising in the first half of 2007.

There is considerable demand for English language books in Germany. Not only is Englishthe first foreign language in German education, it is also one of the most widely spokenforeign languages in the country. Currently around 8 million school children are enrolled inEnglish language courses. Furthermore, all primary schools in Germany are now required toprovide foreign language courses as part of their main curriculum starting in the 3 rd grade. Infact, some primary schools offer foreign language courses (in most cases English) as earlyas the first and second grade. A 2003 survey estimates that over 40% of the populationspeaks English as a foreign language and this number keeps growing. These statisticsdemonstrate that learning English, especially from early childhood on, has becomeincreasingly important in turn this will continue to drive demand for English language booksin this country.

Main CompetitorsSince 2002, imports of books as well as license sales from the UK to Germany havesurpassed the U.S. book business in Germany. The reasons may include a declininginfluence due to the ongoing reduction of U.S. military personnel. Also, materials used inGerman classrooms at the elementary and intermediate level are consistently British. Only atthe advanced levels, are teachers and students free to choose the sources they use for their lessons.



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Current Demand

Independent bookshops dominate the retail sector in Germany. In 2005, sales by traditionalbookshops accounted for 53 % of total market revenue. However, there has been a trendtoward larger retail formats. Direct sales by publishers to end-users have a strong share of total sales. Germans are buying books on the Internet, and e-commerce now accounts for 7% of all book sales, leading the German book market in terms of growth. Amazon.de is theleader in this channel with an estimated share of more than 50% of all Internet sales.

Table 1: Segment Share of Sales by Edition Format (2006) in PercentHardcover Paperback Audio

Fiction 18.6 68.2 48.5Non-Fiction 20.9 9.8 7.2Childrens and TeenLiterature 14.6 6.5 25.3School and Learning 11.7 0.9 10.6Other 34.2 14.6 8.4

(Source: German Publishers and Booksellers Association. The Book Trade in Numbers 2007. July 2007.)

BarriersImported books are free of any customs charges and licensing agreements are also under no legislative restriction. The success of a book, like anywhere else, depends on itsrelevance, pricing and design. Imported goods into Germany from non-EU countries aresubject to an import sales tax, which in later distribution channels is passed on to the end-

user as a value-added tax (VAT). Presently VAT levied on books and periodicals is 7% of the import value.

Trade EventsFrankfurter Buchmesse(Frankfurt International Book Fair)Web: www.buyusa.gov/germany/en/bookfair.html , www.buchmesse.de/en/portal.php

Resources and Key ContactsBrsenverein des Deutschen BuchhandelsWeb: www.boersenverein.de

Commercial Service Contact InformationName: Volker Wirsdorf Position: Commercial SpecialistEmail : [email protected]: +49-69-7535-3150

Adress: Giessener Strae 3060435 FrankfurtGermany



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Israel

Country: IsraelCapital : JerusalemPopulation: 7.2 millionGDP*: $170.3 billionCurrency: new Israeli shekel (ILS)Language: Hebrew (official), Arabic used officially for Arab minority*(purchasing power parity)

SummaryIsraels book market is valued at around $500 million annually,with around 35 million books sold each year in a wide spectrumof categories. Though Israel has a relatively small population of about 7.2 million, Israelis as a whole are highly educated withthe highest number of academic degrees per capita in the world.While Russian, Arabic and English language books are read inIsrael, the large majority of regular book buyers read in Hebrew.

About 4,000 titles are published annually and distributed to 1,500 book selling points. Thereare about 800 private bookstores and subsidiaries of big bookstore chains. Books are alsosold at book stands in large stores, such as music shops and stationary stores. Books arerelatively expensive in Israel, ranging from $11 (small format) to $20 (trade size), including a15.5% tax. The vast majority of books are trade paperback originals. Educational books takethe lead with annual sales of $180 million, followed by fiction and nonfiction books at $170million annually. The used books market is estimated at around $50 million. Encyclopediasand religious books are also sold in significant quantities in Israel.

The number of copies necessary to be sold in order to capture a spot on a bestseller list inIsrael is changing. For example, a translated title that sells over 5,000 copies within a year isalready considered a winner; a huge seller is one selling between 20,000 to 50,000. For anIsraeli work of fiction, sales of 10,000 copies typically ranks the book as a success, thoughthe really big names can approach 100,000 copies. In nonfiction, on the other hand, anythingover 2,000 will satisfy the publisher. The leading book retailer sin Israel are: Stimatzki andZomet Sfarim. The leading book publishers in Israel are: Yediot Books, Kineret ZemoraBitan, Keter Books, Modan and Meter.

Resources and Key ContactsBPAI, The Book Publishers Association of IsraelWeb: http://www.tbpai.co.il/

Ministry of Educationhttp://www.education.gov.il/moe/english/ind.htm

Commercial Service Contact InformationName: Sigal MendelovichPosition: Commercial SpecialistEmail: [email protected] : +972-3-5197491Address: 71 Hayarkon Street

Tel Aviv 63903Israel



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ItalyCountry : ItalyCapital: RomePopulation: 58.1 millionGDP*: $1.756 trillionCurrency: Euro (EUR)Language: Italian *(purchasing power parity)

SummaryThe Italian publishing market has experienced several years of consistent growth. The Association of Italian Publishers(Associazione Italiana Editori) reported that, in 2005, the overallcover price turnover of the Italian publishing market (includingdigital publishing) was $4.93 billion; this figure represents a0.4% increase over 2004. Italy published over 53,000 titles in2005, and 63% of these were new titles. The market for titles in

English is growing as part of a worldwide trend and, in fact, U.S.book exports to Italy increased by 13% in 2006 over the previous year. Reading ratesgenerally remain below those of Northern European markets with only 42 % of Italiansconsidered to be readers (defined as having purchased at least one non-scholastic title over the last year).

Market OverviewThe Italian publishing market was valued at $4.93 billion in 2005, and while that figurerepresents a 0.4% increase from the previous year, the growth rate was significantly lower than in recent years. Italys market experienced growth rates of 2.2% in 2003 and 3.1% in2004. Educational and childrens books continued to make up a large part of the publishingmarket (36%). Over 4,500 educational titles and 2,300 childrens books were published inItaly in 2005.

In terms of distribution, bookstores traditionally account for roughly 28% of all books sold inItaly. In 2005, bookstores sales rose by 0.8% and were valued at $1.41 billion. Other keydistribution channels included the Internet, newsstands, and large-scale distribution(supermarkets and department stores) all of which experienced significant growth. Internetsales grew by 28% while newsstands and large-scale distribution both grew byapproximately 12%. Another growth area was the sale of books bundled with newspapersand sold at newsstands. Income from these package deals grew by over 11% and salesbrought in over $680 million in 2005. However, this growth rate is significantly lower than thepreceding years indicating that this segment of the market may be reaching maturity.

Of Italys literate population (people over 6 years old), 42% bought at least one book to readin 2005. This is an increase of 0.95%, but the overall percentage still lags behind that of other EU countries. The reading rate in the north of Italy (50%) is significantly higher thanthat in the south (30%).

Competitive EnvironmentItaly continues to have a large appetite for translated works although this market has seen aslow decline over the last five years. In 2005, 22% of all titles published were translated(down from 25% in 2000). Titles translated from English made up over half of that statisticwith 14.2% of the 53,000 titles coming from original English works. The majority of theremaining percentage was translated from French, German and Spanish, respectively.



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Italy maintained a positive trade balance with $53.7 million in exports and $38.7 million inimports of books. However, the value of imports was significantly higher in 2005 than inrecent years and represented a 32.7% increase over 2004.

Best ProspectsThe spending of Italian families on the aggregate content industry (publishing, music, TV,films) reached $18 billion in 2005. Almost $5 billion of that was on published products and36% of this amount was on schoolbooks or other educational materials.

One bright spot, in a country with a generally low number of readers and a declining number of school kids, is the relatively high rate of reading among children. Since the mid-eighties,that rate has been climbing and reached a peak of 71% in the late nineties. The number hasfluctuated somewhat over the last five years, going down and then up again. In 2006, 59.4%of school-age children read at least one non-school book putting them in the readercategory. This puts children almost 18 percentage points over the general population interms of reading rates. The preferred books by Italian children are adventure stories (29%),fairly tales (26%), comic books (17%), fantasy (9%), horror (7%), coloring, cutout andconstruction books (5%), and crime and mystery novels (4%).

Market AccessAs a member of the European Union, Italy applies the EU common external tariff to goodsimported from non-EU countries. However, no tariffs or import duties are levied on booksentering EU countries from the United States. A Value Added Tax (VAT or IVA) of 20% isassessed on products based on their cost, insurance, freight (C.I.F.) value, plus the importduty at the port of entry.

On July 1, 2003, a European Union Directive relating to VAT on digital services came intoforce. The legislation now requires any seller of electronically supplied services andbroadcasting services from a non-EU member state to charge and collect VAT on thoseproducts and services sold online to EU private consumers. This would include e-books andother publications delivered online. For additional information please contact the U.S.Mission at the European Union in Brussels or visithttp://europa.eu.int/comm/taxation_customs/taxation/ecommerce/vat_en.htm

Another issue publishers should consider is the protection of intellectual property. Despitethe implementation of the 2000 Copyright Law and increased enforcement actions, piracyand counterfeiting rates in Italy remain among the highest in Western Europe. Piracycontinues in virtually all copyright-based sectors.

Italy is a signatory of both the Berne Convention and World Trade Organization's (WTO's)Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Therefore, theauthor or creator of any original intellectual work is protected in Italy, even withoutregistration. However, U.S. copyright registration is advisable. U.S. registration through theU.S. Copyright Office of the Library of Congress provides documentation of date andoriginality and is an important safeguard in case infringement occurs and legal action isnecessary. In Italy, copyright protection is automatically provided for during the life of theauthor plus 70 years after his or her death.

For works created in Italy, authors and publishers can register copyrights in Italy with theItalian Society for Authors and Editors (SIAE). See Key Contacts section for contactinformation.



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Market EntryWhen approaching the Italian market, there are a number of key questions U.S. publishersmust face. The first is translation for print media or localization for multimedia products and,therefore, building a strong relationship with an Italian publishing house is key. Ideally, thiswill be a partner that is experienced in translations and has an established distributionnetwork. Issues to be negotiated will include the licensing of texts, images, and graphics aswell as licensing fees, advances and royalties. It is strongly advised that publishers seeklocal legal counsel before entering into an agreement. Perhaps the best place to identify aninternational partner is the annual Bologna Childrens Book Fair, the worlds largest fair for the childrens publishing industry. Another key venue is the springtime Turin Book Fair,Italys largest event covering the entire publishing industry. Many Italian publishers alsoattend and exhibit at the Frankfurt Book Fair in Germany. See Trade Events section for moreinformation.

Publishers may also consider exporting English language titles to Italy to take advantage of the global trend of increased reading of original English language works. U.S. book exportsto Italy rose 13% in 2006 over the previous year for a value of $6.7 million. In this case,publishers may want to work through some of the large international book distributors either based in the United States or Europe supplying the English language bookstores andEnglish sections of large retail chains. In Italy, Feltrinelli, Marzocco, and other booksellershave stores dedicated to foreign language works with much of the shelf space dedicated toEnglish titles.

Trade EventsBologna Childrens Book Fair April 2008, BolognaWeb: www.BolognaFiere.it/BookFair

Turin Book Fair May 2008, TurinWeb: www.fieralibro.it/

Resources and Key ContactsAssociazione Italiana EditoriWeb: www.aie.it

Italian Trade Commission Chicago OfficeWeb: www.italbooks.com

Commercial Service Contact InformationName: Barbara LapiniPosition: Commercial SpecialistEmail: [email protected] : +39 -55-292-266

Address: Lungarno Vespucci 38Florence 5012Italy



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NetherlandsCountry : NetherlandsCapital: AmsterdamPopulation: 16.6 millionGDP*: $529.1 billionCurrency: Euro (EUR)Language: Dutch (official)Frisian (official)*(purchasing power parity)

SummaryAfter a slight decrease in annual sales in 2004, favorable economicconditions contributed to an increase in sales of books in 2005 anda 5% growth in 2006, to $5.4 billion. The increase is attributable tohigher volumes, as prices have remained relatively constant.

The use of media has changed tremendously in the last few years.Between 1975 and 2005, the time spent reading printed mediareduced by 40 %. Electronic media has gained significant importance. As a result the

number of bookstores has dropped considerably, with small bookstores being the mostaffected. To counter these developments, the Dutch book industry has developed newinitiatives to promote book sales. These initiatives include the Book Week and the BookToken.

In larger cities, a visit to a bookstore has become a new shopping experience apart frombooks, periodicals, newspapers, stationery and postcards, consumers also have access tomultimedia and on-site restaurants and bars. As a result, sales are increasing. Internet salesare currently 8% of total sales, and growing.

High consumer confidence and a stable economic environment provide a favorable outlookin the short term. In the long term there are some challenges. The shift from media attentionto electronic media will continue unabated. This implies that the book business will have toadapt itself constantly. To survive it is fundamental to find ways to reach young people andto be innovative. Presenting bookstores as a shopping experience or a place where youcan purchase a book quickly (book stand on train stations) can assure attention fromconsumers.

Commercial Service Contact InformationName: Jennifer RitfeldPosition: Commercial SpecialistEmail: [email protected]: +31-70-3102416 / 7

Address : Lange Voorhout 1022514 EJ The HagueThe Netherlands



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PhilippinesCountry: PhilippinesCapital : ManilaPopulation: 91.1 millionGDP*: $449.8 billionCurrency: Philippine Peso (PHP)Language: Filipino (official; based on Tagalog)

English (official)*(purchasing power parity)

SummaryGrowth prospects in the Philippine book publishing industry are drivenby such factors as the countrys growing population (which translates toan increasing readership base), the strong local currency (which makesimported books more attractive price-wise), continuously evolvinglifestyle trends and preferences (which creates new market niches), thelargely underserved areas outside Metro Manila (which creates new

markets) and relatively stable economic growth prospects (which ultimately lead to higher disposable incomes).

The market remains price-sensitive for both academic and trade books, so much so thatbooks sold in the Philippines are relatively lower-priced than in other parts of the region. Thisprice consciousness is also manifested by a growing market for used and second-handbooks, (particularly in the provinces) and foreign publishers authorizing lower-priced, localreprints.

Current Market TrendsThe main distribution channels in the Philippines are bookstore chains (that actually sellmore than books), institutional direct sellers and direct marketers, a majority of which arebased in Metro Manila. Recently, retail chains like Fully Booked and Powerbooks haveestablished more upscale retail stores in the metropolis to cater to the higher-end segmentsof the market. Local book retailers and publishers have likewise begun using the webprimarily as a promotional medium, although major retail chains such as National Book Storenow offer online shopping. Book retailers also note that buyers have utilized their onlineportals to inquire about hard-to-find or out-of-print books. Meanwhile, electronic books (e-books) and audio books have yet to gain traction, owing to limited market interest.

Main CompetitorsMajor U.S. publishers dominate the market for imported books sold in the Philippines. Per industry estimates, books from the United States account for at least 75-80% of totalimported books (i.e., academic and trade books combined). In recent years, however, anumber of publishers from the UK and India, as well as from neighboring countries likeMalaysia, Singapore and Hong Kong have found their way into the market.

Local book publishers take up a lions share of the grade school and high school textbookmarket, and have started to make inroads in publishing certain types of trade books such ascoffee table and childrens books, self-help, inspirational, literary and mass-market romancepaperbacks. Each year, local publishers produce an average of over 5,000 new titles (basedon ISBN issuances).

Current DemandPer industry sources, product categories that enjoy increasing demand in the Philippines areacademic and reference works (especially on professions enjoying high demand such asnursing and culinary arts / hospitality management), nonfiction inspirational titles (owing to a



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predominantly Christian population), business references (notably those with anentrepreneurial theme) and fiction for adults and children. English is one of two officiallanguages in the country, so Filipino translations of imported books is not required. However,industry sectors note that books written in Filipino appeal to certain market segments (e.g.,mass-market, popular romance pocketbooks, humor and self-help books) and geographicareas.

BarriersThere are no tariffs imposed on imported books. However, piracy (most notably in the formof illegal photocopying and pirate offset printing of university textbooks, technical andprofessional references resulting in significant losses) is a prevailing concern. In response,publisher representatives, with support from the American Association of Publishers (AAP)have been coordinating public and private sector initiatives to curb piracy, including publicawareness campaigns, cooperation with law enforcement agencies and making lower-pricedlocal reprints available. Strict enforcement of intellectual property rights laws remains apriority agenda in advocacy efforts.

Resources and Key ContactsNational Book Development Board (NBDB)Web: www.nbdb.gov.ph

Book Development Association of the Philippines, Inc. (BDAP)Web: www.bdap.com.ph

Publishers Representatives Organization of the Philippines (PROP)Mr. Rolando Olan de Vera, ChairmanEmail: [email protected]

Philippine Booksellers Association Inc. (PBAI)Mr. Paolo Sibal, Presidentc/o Central Book Supply Inc.Email: [email protected]

Association of Booksellers for the Academe and the Professions (ABAP)Ms. Evelyn Millar, Presidentc/o Golden Books Inc.

Commercial Service Contact InformationName: (Mr.) Edu NialaPosition: Commercial SpecialistEmail: [email protected]: +63 2-888-6619

Address: 25/F Ayala Life FGU Center 6811 Ayala Avenue, Makati CityPhilippines



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Resources and Key ContactsMinisterio de Educacion Ministry of Educationwww.mec.es

Federation of Book Distributor Associations:FANDE- Federacion de Asociaciones Nacionales de Distribuidores de EdicionesWeb: www.fande.es/Inicio.aspThe Federation of Book Distributors Association allows free on-line access to their databasewhere different selection criteria are available.

Commercial Service Contact InformationName: Josefina OrtegaPosition: AssistantE-mail: [email protected] : +34-91-308-1545Address: Serrano 75

28006 MadridSpain



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SwedenCountry : SwedenCapital: StockholmPopulation: 9.0 millionGDP*: $290.6 billionCurrency: Swedish krona (SEK)Language: Swedish

small Sami- and Finnish-speaking minorities*(purchasing power parity )

OverviewThe Swedish book market experienced strong growth in 2006 andincreased by 7.4%. The general book market is estimated to beworth around $1 billion. The market for printed educational materialsis estimated to be worth $16 million. Imports of foreign books areestimated to be worth $108 million (8% was English languageliterature, Amazon excluded.) More new titles were sold in 2006 thanever before and sales of books in Sweden, in financial terms as well

as in number of copies, have never been as high. Sales of non-fiction and fiction increasedduring 2006 while sales of translated literature decreased slightly. The Swedish bookmarket has changed considerably over the last few years. Before, books were traditionallysold via bookstores and book clubs. In recent years, you can find books (mainly paperback)in grocery stores, gas stations, kiosks and convenient stores. Sales via the Internet continueto increase and already capture around 20% of the entire market.

There are around 400 bookstores in Sweden, slightly more than 50% are part of a chain,there are more than 5,000 retailers throughout the country, and there are around 50 bookclubs with close to 2 million members.

Current Market TrendsEver since the VAT on books was lowered from 25% to 6% in 2002, the book market inSweden has continued to see healthy growth. Increasing competition between departmentstores, bookstores, grocery stores, and the Internet is fueling the positive development for the Swedish book market from a consumer point of view. It is estimated that 23 million newtitles and 19 million older titles were sold in 2006 and with the new channels available,further development of the market is expected. Sales of books from publishers to resellersand directly to consumers were divided as follows in 2006:Fiction 39%Non-fiction 35%Childrens and young adult literature 16%Audio books 8%Reference 2%

Main CompetitorsBonnier (group of publishers of fiction and non-fiction), www.bonnier.comForma Publishing (group of publishers of non-fiction), www.formapg.seLiber (group of publishers of educational and reference literature), www.liber.seNorstedt (group of publishers of fiction and non-fiction), www.panorstedt.seStudentlitteratur (educational literature)Natur & Kultur, (publishers of fiction, non-fiction and educational literature)

Current DemandSwedes are avid readers and they especially love detective stories. Eight out of ten titles onthe Swedish top ten list are detective stories. This genre is especially popular as vacation



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reading and will continue to be popular on the Swedish market. Swedes are also veryinterested in interior design, gardening, and cooking, etc. Consequently, sales of life styleliterature are expected to continue to increase.

BarriersThere are no barriers for importing books into Sweden.

Trade EventsGothenburg Book Fair www.bok-bibliotek.se

Resources and Key ContactsTrade AssociationsThe Swedish Publishers Associationwww.forlaggare.se/English

The Swedish Booksellers Associationwww.booksellers.se/

DistributorsSamdistribution ABwww.samdistribution.se

Forlagssystem ABwww.forlgassystem.se

Liber Distributionwww.liberdistribution.se

PublishersBonnier Bookswww.bok.bonnier.se/new/hem.htm

Forma Publishing Groupwww.formapg.se

Liber ABwww.liber.se/wps/portal

Norstedts ABwww.panorstedt.se

Studentlitteratur ABwww.studentlitteratur.se

Natur & Kultur ABwww.naturochkultur.se

Commercial Service Contact InformationName: Gunilla LaRochePosition: Commercial SpecialistE-mail: [email protected]: +46-80-783-5353

Address : Dag Hammarskjolds vag 31SE 115 89 StockholmSweden



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SwitzerlandCountry: SwitzerlandCapital : BernPopulation: 7.6 millionGDP*: $255.5 billionCurrency: Swiss franc (CHF)Language: German (official) 63.7%

French (official) 20.4%Italian (official) 6.5%

*(purchasing power parity)

SummaryThe total value of Swiss book imports is increasing every year and amounted to $647 million in 2006, a 4% increase from theprevious years figure of $622 million. Of these imports, $10million came from the United States. Germany is the mainsource for imported books in Switzerland, followed by France

and Italy. Although no precise figures for the value of localproduction are available, it is estimated that about half of theSwiss book production is exported, mostly to neighboring

countries.

Switzerland is a highly developed, multilingual country situated in the heart of Europe with apopulation of 7.6 million people. Its population is culturally diverse (approximately 20% non-Swiss residents), very well educated and affluent. Switzerland is home to some of thekeenest readers in the world, as reading is encouraged at an early age. With a literacy rateof 99%, reading is a popular leisure activity at all educational levels.

The market is comprised of three main segments based on the official languages in thecountry: German, French and Italian. The largest market is the German-speaking part of the country with a 75% share, followed by the French-speaking region with 22%, and theItalian with 3%. The German-speaking area, in particular, is regarded as very receptive toEnglish books.

Even though there are about 630 companies specializing in the book trade at the wholesaleand retail levels, the Swiss distribution system is dominated by three major wholesalers/dealers, which act as intermediate logistics centers between the publishers andthe bookshops. There are also small wholesalers for special publications and product lines.

Two significant changes in the Swiss educational policy represent opportunities for U.S.publishers.

1) The recent liberalization of the educational curriculum, which made the teaching of two foreign languages, including English, mandatory in many cantons.

2) The second factor is that there are on-going discussions to privatize the five statepublishers that supply books to the public schools. This could lead to better marketaccess and opportunities for U.S. companies in the Swiss public educationalprocurement market.

In addition, Switzerland is also famous for its approximately 400 prestigious private andinternational boarding schools, hosting about 25,000 students. Forty of these internationalschools offer international, U.S. or British curricula and, therefore, represent an opportunityfor U.S. publishers in the educational sector. Furthermore, the rigid procurement regulationsof the public schools do not apply to the private and international schools, which are free to



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choose their own books. There are also about 200 different language schools in Switzerlandoffering English courses, from the beginners level up to advanced diploma preparationcourses. Most of the students prefer American English to British English.

Main CompetitorsThe main competitors are publishers from neighboring countries (Germany, France, Italy andthe United Kingdom). Recently, the three major German educational book publishers(Cornelsen, Klett and Westermann) entered the market and now sell their products throughcommon retail channels. On the educational front, popular publishers of language teachingmaterials include Klett, Cornelsen, Oxford University Press, Longman, Macmillan, PearsonEducation and Scholastic . Major Swiss educational book publishers include the ScolaVerlag (Orell Fuessli AG), Compendio, Schroedel Schulbuchverlag, Schubi Lehrmedien andProfax Verlag.

Current DemandIn Switzerland, English has become the first language in the business and sciencecommunities. Fiction, childrens books, educational books as well as educational multimediaand educational audio material will have strong market demand in the next few years as aresult of the educational reforms. Fiction and non-fiction are most widely read in theGerman-speaking part of the country. French-speaking Swiss prefer fiction, crime novelsand comics, which, surprisingly, account for about 20% of total sales. Many schools useEnglish short stories, novels or bi-lingual publications in their English-language curriculum.

Market EntryImported books are free of duty. After importation, audio-books and other digital productsare assessed a normal Value Added Tax of 7.6%. A lower 2.8% VAT is levied on books inorder to support book production and higher book consumption in Switzerland. Swisseducational publishers license about 20% of their products from other publishers.Successful market entry depends on the pricing factor, book design and product line of theU.S. publisher. The Swiss prefer conservative book design and good quality paper.Increasing Internet sales have not had a negative effect on the retail segment, sincetraditional bookshops still fulfill Swiss expectations of high quality and service.

Swiss Pricing PolicyHistorically, publishers would enter into a fixed-price agreement with booksellers in theGerman, Swiss and Austrian markets. In Switzerland, this helped the publication of booksthat were not widely read. Recently, however, the Swiss competition authority prohibitedsuch price fixing. Retailers are now free to price books below the wholesalers suggestedprices.

Interesting Facts about the Swiss Book MarketSwitzerland ranks high on quality-of-life indices, including per capita income, concentrationof computer and Internet usage per capita, etc. (Source: OECD, 2001).Reading is a leisure activity at least once a week for 89% of the Swiss; 70% of the Swissread at least 30 minutes per day; and 60% of the 9-16 age group read on a daily basis(Source: Swiss Office of Statistics).There is one bookstore per 11,400 Swiss. This ratio surpasses other countries per capitashare, such as Germany and the United States, with 15,300 and 39,700 citizens per bookstore, respectively (Source: University of St. Gallen).Sixty-five percent of all books are sold in bookshops; the rest is sold in department stores,newsstands, through book clubs (Swiss Office of Statistics) .Switzerlands 500 book publishers introduce about 11,000 new titles per year.



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Trade EventsThe two main trade shows Switzerland are the Basel Book Fair ( Web:http://www.buchbasel.ch/) for the German-speaking area (400+ publishers and 40,000visitors), and the Geneva International Book Fair for the French area (300 exhibitorsrepresenting 1,000 publishers). The Salon du Livre attracts some 120,000 consumers everyyear (Web: http://www.salondulivre.ch/).

Resources and Key ContactsSchweizerischer Buchhaendler- und Verlegerverband (SBVV)(Swiss Booksellers and Publishers Association German-speaking area)Web: www.swissbooks.ch/

Association Suisse des diffuseur, editeurs et li

Publishing Market Guide

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