Move It
Distribution Companies Thrive
Despite Constant Flow of New Competition
FROM PUBLISHING
TRENDS (JUNE 2004)
By
its most elemental definition, “distribution” means
“to move,” so perhaps it’s no surprise that this arm
of the book publishing business is doing laps that even
the Queen Mary 2 can’t keep up with. It seems everyone
is re-evaluating the most efficient ways to get their
books to market. Constant attention to new competition,
paired with always-evolving technologies, creates a
high-stakes environment in which distributors are expected
to move even faster.
Even distribution mammoth PGW is jostling for
a competitive advantage. Coming on the heels of its
PG Worldwide announcement last fall, PGW is launching
PG Kids, a sales and marketing division that
will support “the needs of independent children’s book
publishers,” says President Rich Freese. Having
grown by 15 new publishers — some with children’s titles
— in the past 12 months, the company “thought [it] had
met a critical mass in this area and we wanted to continue
to leverage the quality of publishing we had, so we
thought it was important to have a group focused on
just that part of the market,” Freese explains. PG Kids
is headed by longtime children’s veteran Patricia
Kelly. Overall, PGW is expecting 7% sales growth
for fiscal 2004, Freese says.
Though many full-service distributors offer sales reps
with specialties in the gift or gourmet markets, honing
in on the children’s sector is a new strategy. Formed
in 2002, when Germany’s Coppenrath Verlag was
looking for a US distributor for its beloved Felix
the Bunny series, Parklane Publishing touts
itself as the only children’s-only distributor. “Nobody
that I know out there just distributes children’s books,”
says Tammy Johnston, who does just about everything
for the burgeoning company (no official titles, according
to company policy). It’s now ready to pound the pavement
for new clients at this year’s BEA, with success stories
like its Rip Squeak titles — now at all the major
booksellers and being tested at Wal-mart and
Toys ‘R’ Us. (Although it’s a subsidiary of Book
Club of America, Parklane does not deal with remainders.)
Banta’s
Dave Schanke, market segment VP, general publishing,
said more and more publishers are re-evaluating having
their own distribution facilities, and many are deciding
that the costs outweigh the benefits. “With larger retailers
becoming very dominant … you have to have the systems
and relationships established with them. It’s becoming
a much more capital-intensive business, as retailers’
requirements for shipping become more rigorous,” he
says. Still, he said he thought few publishers knew
about all of their options for fulfillment and distribution.
Primarily known as a printer, Banta is looking to increase
its distribution clients.
A flurry of activity is brightening SCB’s 15th
anniversary year and Lance Tilford’s (formerly
of PGW) first with the company. The Gardena, Calif.-based
distributor announced 13 new publishers signing
on, bringing its total client count to about 90. Among
the new clients are Vox Pop, Dunhill Publishing,
the UK’s FAB Press, and a number of Canadian
houses. This growth spurt will result in a 200-title
fall catalog, compared to 120 in the spring.
Some in the industry, such as Eric Kampmann,
President of Midpoint Trade Books and himself
a veteran of the industry’s rough waters, see
distribution “in a period of remarkable stability” since
the early 1990s, when “the democratization of the trade
universe made it possible for somebody to really compete
with Simon & Schuster.” A major ownership
shift in January (the book division split from the distribution
center, Midpoint National) has freed the company for
some major changes in the near future. The company anticipates
$12 million gross sales in 2004, a 20 percent increase
over last year. In recent weeks, Midpoint executives
met to discuss how they can “open our doors to independent
booksellers … Many of them carry our books, but don’t
know who Midpoint is,” Kampmann says, adding that this
is at the top of their agenda at BEA.
Furthering the trend of U.K. publishers seeking to enter
the U.S. market via sales rather than licensing, Octopus
Publishing Group’s VP and managing director Neil
Levin said it will offer 32 titles (including four
of its imprints) in its fall catalog. “Business is growing
dramatically across all accounts,” he touts, adding
that as a natural part of this growth, the company will
be transitioning from Weatherhill to CDS
for all shipping and fulfillment, effective July 1.
Many smaller companies are focusing on distribution
into niche markets on behalf of large and small publishers.
One such, BookWorld (working in Christian, New
Age, and Spanish markets), recently gained eight clients
from the now dissolved Words Distributing, following
parent company Bookpeople’s bankruptcy.
©2004
Publishing Trends
