Überblick Über Den Deutschen Buchmarkt
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Exporting to Germany Webinar presented by Dr. Jessica Sänger, Kathrin Scheel, and Anja Mundt July 25th, 2017 The German Book Market – Trends & Challenges Webinar for Livres Canada Books July 25th, 2017 Webinar content Overview I. The German market: Consumer behaviour & trends 1. General 2. Ebooks 3. Audio Books II. The regulatory framework & other factors 1. Fixed Book Price system 2. VAT 3. Copyright 4. Translation grants 5. Innovation German book market: A country of readers Germany is a country of readers • 83 percent of Germans above the age of 15 read at least one book in 2015; one in every five Germans is a heavy reader (more than 18 books per year) • 51 percent of Germans would not want to do without books • 42 percent of Germans have a favourite author to whom they remain faithful • Germans spent an average of €134 (roughly 195 CAD) per year on books in 2016. The German Book Market in 2016 The German book market The German Book Market in 2016 • The German book market remained one ot the most important markets in the world in 2016 • Book market turnover: 9.28 bn € • The German book market takes first place globally regarding the relation between population and turnover • Broad spectrum of titles available • Nationwide network of book shops • Strong logistics system Estimated turnover Sector turnover 2006 - 2016 (in million €) 10000 Development of turnover 2006 - 2016 + 0.2% 2015 - 2016 9500 + 1.0% 9,276 M € 9,261 M € 9,188 M € 9000 Snapchat Instagram (2011) (2010) Netflix (D: 2014) 8500 Android Twitter (2008) (2006) Google+ iPhone WhatsApp iPad (2011) Spotify (2007) (2009) (2010) (D: 2012) Amazon Video (2014) 8000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Börsenverein des Deutschen Buchhandels 7 Publishers The Publishing Landscape • About 3,000 commercial publishing houses • 24,547 employees (2014) • Overall number of publishers including institutions, universities, etc: ~ 20,000 • Largest trade publishing houses: Random House, S. Fischer, Bastei Lübbe, Rowohlt, Carlsen, dtv, Droemer Knaur, Ravensburber Buchverlag, Egmont Holding, Piper • Largest academic/STM/business publishers: Springer Nature, Haufe, Wolters Kluwer Deutschland, WEKA, C.H. Beck, Thieme, dfv/Deutscher Fachverlag, Rentrop Gruppe, Wiley-VCH • The three largest school book publishers, Westermann Gruppe, Klett Gruppe, and Cornelsen, rank among the 10 largest publishing houses in Germany. 8 Retail booksellers The Retail Landscape • About 6,000 book shops (incl. branches and outlets) • 29,800 employees (2014) • About 3,700 are small, independent book shops • 65% sell online • Number of book shops in slow decline • Trend: fewer very large stores, less floor space • Largest chains: Thalia, Weltbild, Hugendubel • Strong regional chains: Osiander, Mayersche, Rupprecht, Pustet • Largest individual book stores: Dussmann, Wittwer, Rombach, Graff, Reuffel 9 Situation of the German book market Trends in 2016 • Stable book market | Increase of turnover in 2016 (+1.0%), stable turnover (+0.2%) over the past 10 years despite transformation of media landscape • Successful digital transformation | Publishers and booksellers are active in shaping digital development • Lower footfall | Appeal to cities, municipalities and retail: many urban areas need to become more attractive to shoppers • Increasing pressure on publishers | Copyright reform increasing risks and damaging revenues 10 Estimated turnover Turnover per distribution channel in 2016 Book clubs 0.03 bn. EUR (-64.5%) Other retail outlets 0.3% 0.94 bn. EUR (+0.4%) 10.1% Book shops Direct sales from publishers (excluding e-commerce) 20.9% 1.94 bn. EUR (+1.2%) 4.39 bn. EUR (-0.8%) 47.3% Total turnover: 18.2% Internet retail 9.276 bn. EUR (+ 1.0%) 1.69 bn. EUR (+5.3%) 1.4% 1.7% Department stores 0.13 bn. EUR (+16.3%) Mail order 0.16 bn. EUR (+37.5%) 11 Source: Börsenverein des Deutschen Buchhandels Consumer behaviour Customer footfall 2016 – retail in general (compared to same month in previous year) 15% +10.5% 10% 5% +4.2% 0% -1.5% -3.0% -5% -3.3% -4.4% 5.2% -5.5% -6.6% -6.0% -7.6% -10% -8.9% September December January February March April May June July August October November 12 Source: ShopperTrak; Tyco Retail Solution Consumer behaviour Book buyers* in millions 35 33.1 30.8 30 25 Percentage 20 of potential 48.9% 45.6% customers reached 15 10 5 0 2015 2016 *Trade book market including downloads (audio books and ebooks) 13 German private individuals above the age of 10, excluding school books and specialist titles, From: GfK Consumer Panel Media*Scope Buch Consumer behaviour Average number of books purchased per buyer per year 14 12.2 12 11.5 10 8 6 4 2 0 2015 2016 *Trade book market including downloads (audio books and ebooks) 14 German private individuals above the age of 10, excluding school books and specialist titles, From: GfK Consumer Panel Media*Scope Buch Consumer behaviour Average price paid per book purchased 14 13.09 € 12.59 € 12 10.70 € 10.98 € 10 8 6 4 2 0 2015 2016 Total market Trade book market Expenditure per buyer*: 2015: 122.78 € 2016: 134.29 € (+ 9.4%) *Trade book market including downloads (audio books and ebooks) 15 Red columns: All sales from product categories 1 - 9, from the retail panel of Media Control Grey columns and boxed text: German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch Retail prices Development of retail prices (compared to previous year, percent) 10% Average price paid by buyers Average price of new titles (weighted according to turnover) (set by publishers) 8% +6.3% 6% +4.0% 4% +2.6% 2% 0% -2% -1.2% -2.3% -2.9% -4% 16 Red columns: All sales from product categories 1 - 9, from the retail panel of Media Control Grey columns: average price of new titles, German national library data, VlB (books in print database) Title production New releases 2006 - 2016 100000 90000 86,084 83,381 84,351 81,177 81,793 82,048 81,919 79,860 80000 76,547 73,863 72,820 70000 60000 50000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sources: German national library data, VlB (books in print database) Calculation: Börsenverein des Deutschen Buchhandels 17 Publishing sectors Turnover by product categories 2016 (comparison to previous year) Fiction 31.5 (-0.5%) Childrens' & YA books 16.5 (+9.0%) DIY, health, self-help 14.5 (-0.1%) School & education 10.9 (+6.1%) General non-fiction 9.8 (-2.7%) Travel 5.7 (+0.2%) Humanities, art, music 4.8 (+13.4%) Science, medicine, IT science, technology 3.8 (-11.6%) Social sciences, law, economics 2.5 (-10.7%) 0 10 20 30 40 Source: Media Control 18 Translations Translations into German: new releases 2006 - 2016 12000 10,862 10,760 10,716 10,731 11000 10,599 9,962 9,882 10000 9,454 9000 8000 7000 7,340 6000 6,160 5000 5,773 4000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: German national library data, VlB (books in print database) Calculation: Börsenverein des Deutschen Buchhandels 19 Licenses License sales from Germany 2006 - 2016 10000 9500 9,225 9000 8500 8,828 8,191 8,000 8000 7,521 7,605 7500 7,310 7000 6,855 6500 6,278 6,443 6000 6,466 5500 5000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Licensing survey, Börsenverein des Deutschen Buchhandels 20 Ebooks in Germany in 2016 Ebooks Turnover share & development 2010 - 2016 (percent) 6% 5% 4.5% 4.6% 4.3% 3.9% 4% 3% +67.8%* +191.4%* +60.5%* +7.6%* +4.7%* +2.6%* 2.4% 2% 1% 0.8% 0.5% 0% 2010 2011 2012 2013 2014 2015 2016 Basis: GfK, Period: January - December each year, German private individuals above the age of 10, excluding school books and specialist titles, * Development compared to previous year from GfK Consumer Panel Media*Scope Buch 22 Ebooks Turnover share in selected European countries 2015 (percent) 14% USA: Turnover share in 2016 approx. 20 percent; 12% Development compared to previous year: 11.5% 2016: -16.4% (2015: -9.5%, 2014: +4.7%) 10% 8% 6% 5.0% 4.5% 4.5% 4% 3.0% 3.0% 2% 0% Germany France Spain Italy Netherlands U.K. Source for European figures: Federation of European Publishers: The book sector in Europe - Facts and figures 2017 Source for USA: Association of American Publishers / Wischenbart, R. „Global eBook. A report on market trends and developments“ (Update 2017) 23 Ebooks Sales and consumer expenditure 2010 - 2016 Ebook sales in the trade market rose by 4.1 percent to 28.1 million copies in 2016. The price paid for these by consumers dropped by 10 Euro cents to 6.72 € (~ 9.76 CAD). Ebook sales in million copies Average price paid for an ebook in € 27.0 28.1 24.8 12 10.71 21.5 10 8.03 7.72 7.58 8 7.08 6.82 6.72 13.2 6 4 4.3 1.9 2 0 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 Basis: GfK, Period: January - December each year, German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch 24 Ebooks Buyers: number and share among consumers 2010 - 2016 In 2016, 3.8 million individuals purchased ebooks. This constitutes a slight decrease to 5.6 % in the share of ebook buyers among consumers. Portion of consumers buying ebooks Ebook buyers in million individuals (percentage of potential customers reached) 5.7% 5.7% 5.6% 5.0% 3.9 3.9 3.8 3.4 3.5% 2.4 1.5% 1.0 0.7 1.0% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 Basis: GfK, Period: January - December each year, German private individuals above the age of 10, excluding school books and specialist titles, from GfK Consumer Panel Media*Scope Buch 25 Ebooks Number of ebooks purchased per person 2010 - 2016 The average number of ebooks purchased by ebook buyers in the trade book market rose to 7.4 titles in 2016.