Trendspotting 2007

To start the year off on the right foot, we’ve asked some industry innovators to share their insights for the near future. . .

Scott Watrous,
President and Publisher,
Globe Pequot

For companies that are in the mid-range like Globe Pequot, the biggest challenge that we face is getting presence for our books, not only on retail shelves, but also in the media. The top range of publishers command so much space at retail, and so much industry mindshare, that competing mano a mano has gone from challenging to almost impossible. In the key battlegrounds — front-of-store, reviews, TV… the vast majority of space is clogged by the many imprints of major houses, and books well published and sold and marketed hard face a steep and slippery uphill.

Publishers strategy must consistently shift towards the small windows of opportunity that we can get through. The “big guys” don’t really do regional, so that can be a focus. With publisher and retailer commitment, small non-book outlets can sell hundreds of books. The New York Times recently did an article on books in non-traditional outlets, and wrote “Mike’s Deli in the Bronx, for instance, has sold more than 4,500 copies of Ann Volkwein‘s Arthur Avenue Cookbook at $25 each.” This is incredible! “Micro-markets” can pay off, as long as the publisher can get the retailers to take a stand.

The challenges that we face as an industry, including the Internet, television and other entertainment forms, certainly affect every publisher. However it is the small to mid-size guys who can be nimble, keep costs down, manage tight inventories, and be innovative. We really can’t do what the big publishers do-but we CAN stick with a strategy and make money by doing many things better.

Charles Melcher,
President,
Melcher Media

As Al Gore illuminates in his book An Inconvenient Truth (produced by Melcher Media for Rodale), the scientific debate about global warming is over and the clock is ticking.

All of us need to become aware of the energy we consume, the waste we produce, and the toll we take on the environment. For those of us in publishing, this means recognizing our industry’s negative environmental impact and taking necessary steps to clean up our act.

There are many areas of our operations that we need to reevaluate, from our manufacturing processes to the inefficiencies of our distribution model. The single biggest issue is, of course, paper. Of all industries, paper manufacture and processing is the fourth largest producer of CO2 emissions – only surpassed by the chemical, oil/coal, and metal industries. Among the assaults of the paper industry are the destruction of forests, the vast consumption of energy, the release of toxic by-products into air and water, and the huge contribution to landfill. (Paper waste accounts for 35% of our trash.)
Primarily, publishers need to be more discriminating in our paper choices. We must depart from and ultimately eliminate the use of papers made from 100% virgin fiber. We must choose stocks made with a high percentage of recycled content and the lowest possible amounts of chlorine and other toxins in production. For Al Gore’s book we used Appleton Green Power Utopia which is made of 30% post-consumer waste. The virgin fibers are grown under a certified forestry management system and the pulp is produced chlorine-free using 100% green power.

Simultaneously we need to explore alternative papers – those made from hemp or other biological sources that can be cultivated more rapidly than wood, that are fully biodegradable. And we need to experiment with papers made from synthetic sources that, instead of winding up in landfill, can ultimately be reclaimed and fully re-utilized. At Melcher Media, we’ve been inspired by the model presented by the renowned green Architect William McDonough in his classic book, Cradle to Cradle (which Melcher Media produced for FSG). In his prescription for a viable future, Bill suggests that all products must be designed to be either biologically compostable (i.e., to break down and become a nutrient for a next natural cycle) or technologically reusable (i.e., to be reclaimed and reused as raw material for a next industrial cycle.) In this way, we eliminate the concept of “waste” altogether and create a closed loop system wherein everything is re-circulated and becomes “food” for the next cycle – the way things work in nature.

To bring this philosophy to the publishing industry, Melcher Media has developed and patented a unique format – the DuraBook™ – which uses synthetic paper made of extruded polymers and a binding process that uses special threads and glues to make a durable, waterproof book that uses no trees and is “up-cyclable” – that is, it can be melted down and its materials can be reused to make new books or other products. To date, we’ve produced about 20 titles with over 800,000 DuraBooks™ in print, including Green Clean, The Beach Book and Charlie Palmer’s Practical Guide to the New American Kitchen. We are continuing to refine the process and make the product more effectively reusable.

Michael Healy,
Executive Director,
BISG

In spite of my short tenure as Executive Director of BISG, it is already clear that 2007 will be an important year for standards in the US book trade. The year starts with the launch of ISBN-13 on January 1, and signals from the industry are looking positive at this late stage: Most of the major players indicate they are ready, but it will be interesting to see how prepared the long tail of publishers, booksellers and service suppliers really is. The Book Industry Study Group will continue to offer extensive support resources via its office and web site (www.bisg.org) and to run its ISBN-13 Task Force for the foreseeable future.

Also in 2007 we will see progress on a new standard to provide a unique numbering scheme for authors and other types of contributors, as well as imprints and publishers. The International Standard Party Identifier (or ISPI for short), once completed and implemented, is likely to have important applications in the supply chain. We all know how imprecise personal names are as unique identifiers, with many authors having the same name and other authors choosing to use different names when writing in different genres. When available, ISPI will enable every author to have a unique ID number, thereby eliminating ambiguity in databases, connecting pseudonyms and personal names, and supporting more accurate distribution of dues and royalties.

Digital publishing will be the other main front line for standards effort. With so many major publishers and service suppliers now developing or planning systems for the distribution of digital content, we are closer to the reality of standardized messages that support the seamless movement of electronic content between trading partners.

Of course standards only make a difference to our industry’s efficiency if a critical mass of businesses complies with them, so in 2007 we will see the emergence of independent certification programs to encourage and acknowledge compliance with standards and good practice in product data, EDI usage and product labeling.

Malle Vallik,
Director, New Business Development,
Harlequin

“I am a wife and a mother of two. When I cook dinner at night I set my laptop up with the current book I am reading in a large font, and I can read my book across the counter!! I haven’t cut a finger yet, either… When I go to bed at night, I read the same eBook on my PDA. I don’t keep my husband up with the light on, since I can read the screen in the dark. When I go somewhere, DMV, vacation, etc., I can bring as many eBooks as I want with me.”
– Harlequin Customer

This reader’s comment encapsulates why Harlequin has entered the digital market in 2006 and has aggressive plans for 2007. At first the phrase Going Digital seems far removed from what publishers have traditionally delivered — printed books — but the much-imagined future where you can access the latest novel from your favorite author “hot off the press” whether you are on safari in the Serengeti, stuck on a subway on the way to work, or at home on a Sunday afternoon is here.

It’s also key to recognize that the digital audience is not exclusively a group of high-tech afficionados. Lots of “geeks” like new gadgets and toys and the challenge therein; most women — and Harlequin customers are primarily women – do not enjoy technology for its inherent techiness but because it provides a benefit. Being able to access books immediately, being able to store a large quantity of novels with little space, being able to find out-of-stock stories means that the traditional book customer is willing to take on the challenge of going digital.

And that is what publishers should be focusing on – how to make this experience easier and better. Purchasing digital is not always easy – many of my colleagues are still struggling to make an eBook purchase – although Apple’s ubiquitous iPod has made downloadable audio more accessible and “do-able” than ever.

At Harlequin we will be focusing on growing the digital audience through several different methods. We are offering stories in multiple formats – eBooks, downloadable audio and mobile (cell-phone) content. We are offering a wide breadth of product. We started publishing eBooks in October 2006 with 10 titles a month and will be publishing 60-90 titles a month throughout 2007. We work closely with the various eRetailers on promotions. We are putting an added focus on our online eHarlequin.com community to learn about our customers’ experiences and to teach digital how–to in a one-on-one, relaxed online environment. We listen and respond to customer feedback about title selection and will be experimenting with digital-first content. Wherever readers are, we plan to be there!