Volume : 23 No. 23 March 2014 – October 2014 NEWSLETTER THE FEDERATION OF PUBLISHERS’ & BOOKSELLERS’ ASSOCIATIONS IN INDIA 84, Second Floor, Darya Ganj, (Opp. Cambridge Primary School), New Delhi - 110002 Phones: 011-2327 2845; Fax: 2328 1227 E-mail: [email protected] Website: http://www.fpbai.org In this Issue • From President’s Desk 2 • From the Editor 4 • The Great Thoughts on Life 5 • FPBAI Welcomes New Members 6 • Terms of Supply: Journals 9 • Approved Suppliers of Journals/Subscription Agents 10 • GOC Related Warning Given to Members 12 • Safeguarding the Interests of Book Trade 12 • FPBAI Seminar in Nepal 13 • A Brief Report of Srinagar Book Fair 15 • The 7th Executive Committee Meeting of FPBAI at Srinagar 16 •12th National Book Fair, Lucknow 18 • Interview of Mr. Sunil Sachdeva of Allied Publishers (P) Ltd., Delhi 20 • Booksellers Want Curbs on Discounts by Online Dealers 22 • Benefits of Advertising in FPBAI Newsletter 23 • Trade Talk 24 — S. Chand Marching Ahead 24 — Sapna Book (P) Ltd. 25 — Restructure at PRH India–Joshua Farrington 25 — Amazon Sales Growth Slows in the UK–Lisa Campbell 26 — Amazon to Open Bookstore on International Space Station–Roger Tagholm 27 — The Journey of the ‘The Book’–Hasan Khurshid 28 • Media Scan 30 — Safeguarding the Interests of Book Trade–S.C. Sethi 30 — Publishers Throw the Book at Online Discounters–Navadha Pandey 30 — e-Retailers Threaten to Put Brick-and-Mortar Stores out of Business–Manavi Kapur 31 — Who is Funding Flipkart’s Massive Discounts? 32 — Flipkart Negotiating Fresh Deals with Samsung, LG 32 — e-Tailers Make it Dull Diwali for Retail Stores 33 — ‘Govt. to Look into Complaints on Flipkart’s Big Sale’ 33 — ‘Govt. Looking into Complaints over Flipkart Sale’ 34 — Mega Sale: Flipkart Apologises for Glitches 34 — Sorry, Say Flipkart Founders 35 — Flipcart Under Scanner for FEMA Violation 36 — Bring to e-Book 36 — e-Retailers Queue up for Hiring at B-Schools 38 — Internet Killed the Bookshop Star 38 — ‘Online Books Cannot Add New Readers’ 39 — Tihar Launches Coffee-Table Book on Prison Reforms 40 — Booksellers Face the Burnt of FYUP Rollback, Suffer Losses 40 — GST Enters Final Leg; May Stretch to 2016-17 41 — Government will not Entertain FDI in Multi-brand Retail: Nirmala Sitharaman 42 — GST set to be Rolled Out by April 2016 42 — Pirated Books Worth Rs. 31.5 Lakh Seized 43 1 FROM PRESIDENT’S DESK Dear Friends, Change is the philosophy of life. Days and nights change, seasons change, physical structure of humans, animals and plants change. There is just no restraint to change. A philosopher once said, “The key to change is to let go of fear”. Another thinker said, “Nobody can go back and start a new beginning, but anyone can start today and make a new ending”. I entered the world of publication four decades ago. There were challenges at that point of time but the same required managerial skills to come over. Whereas, today the challenges are not of organizational or simply commercial nature. The publication and book trade is faced not by local challenges but with the IT revolution that has gripped the trade across the globe. It is the age of renaissance for the trade we all are in and we have to accept this truth whatever bitterness or uneasiness it might carry with it. One can trace back the beginning of the IT era when during 1945, in his seminal article, “As we may think.” Vannevar Bush of the Massachusetts Institute of Technology (MIT) had first articulated the concept of electronic publishing. In 1991, Apple Computer introduced Jurassic Park, as an electronic book using the Adobe Acrobat Portable Document Format (PDF). Further to that the Rocket e-book came into being in the year 1998; followed by electronic novella published by Simon & Schuster and Stephen king in 1999, which could only be read on any internet browser on a computer, or downloaded to certain e-book devices. The factors behind fast proliferation of e-publishing include:- a) Technical advancement which provides increased computing functionality at a lower cost. b) Development of Intranet and Internet. c) Efforts to reduce the costs by eliminating paper, printing and inventory expenses. d) Electronic files can be searched efficiently and the information can be retrieved fast. e) Modern day generation’s choice to read on silver screen. f) The virtual ability of any author to become his own publisher. In the near past many renowned and old booksellers in India have gradually been winding up their business of book selling because the return is very marginal. Today booksellers across the country are facing tough time in the age of e-readers. All these online sellers are pushing forth the books of ‘best sellers’ and the other dignified authors are being kept aloof from public view, as their precious work is not showcased being online with the fact that ‘what is visible, can only be sold’. As of now online sale has become very competitive, both retail buyers and institutions are all lured in to buying from them. The whole idea and trend of visiting a shop, browsing of books, getting to know new books, the new authors, and new areas of publishing, has eroded completely. The cultural fabric of book world is almost at the edge of dying. Renowned and very old book stores such as oxford and the multi-national bookstores chain of Reliance are at the brink of closing down. Similarly, Capital Book Depot Chandigarh shifted from ground floor to 2nd floor. 2 Teksons Book Shop South Ext. 1, New Book Depot, Connaught Place have also been closed down. Another 60 year old Mehta Bandhu Book Store, situated in ‘N’ Block of Connaught Place is suffering from the absence of buyers. Another 25 year old book store in Mayur Vihar is likely to be closed soon. However, there are a large number of booksellers who are about to close their business, which include: Danai Book Shop Mumbai; Strand Book Store, Bangalore; Reliance Book Stores across the country; Odyses stores including stores at Airports; Teksons relocated to Defence Colony and closed other branch at GK; Crossword, Delhi; Landmark Gurgaon and Delhi are on the anvil; PG Lifestyle, Delhi’s two stores are also in the process of closing. Hudson and Café in Metro stations of Delhi; Ganga Ram has relocated from the main premises to smaller premises from 3 floor to 1 floor; Crossword Bangalore on MG road; Media Marts at Metro stations; Large chains at airports in Delhi and Mumbai are reducing their areas; Considerable number of jobs are also suffering with the country riding high on technology, internet and smart gadgets. Readers will continue migrating from print to screen, the early adopters have adopted and the laggards will shift more slowly. Readers will continue transition from print to e-books, making the print distribution to physical bookstores less important, thereby weakening the grip big publishers once had on famous bigger-name authors. However, books are pleasure delivery devices and bookstore is a spa of mental health. The trend of e-book business can be brought back to basics by providing the readers an unlimited quality of high-quality and low-cost books. The authors who can achieve great success will be those who take their readers to the most emotionally satisfying extremes. The subjects can vary ranging from romance novels, gardening, memoirs or political treatise, etc. This also involves great writing skills, professional quality editing and the best layout. The booksellers and publishers need to frequently sit together to devise ways and means for promotion of books. “For everything you have missed, you have gained something else and for everything you gain, you lose something else”. Acting on this maxim we must look forward to embrace the change which is inevitable, while simultaneously struggling to keep the traditional system alive and intact. The opportunity with young readers is ripe, but to reach them, publishers are required to have a strong digital strategy that offers customized content catering to specific needs of the readers. The digital age offers an abundance of opportunities. The conventional publishers who introspect and self-analyse themselves taking advantage of these opportunities and avoid common pitfalls, are likely to prosper. Whereas, those who do not wake-up and keep sticking on traditional publishing models will find it increasingly difficult to make hay with the time and tide and hence it will be difficult for them to chart a profitable course in the midst of the industry’s digital transition. S.C. Sethi President 3 FROM THE EDITOR Today, there is a loud cacophony pertaining to digital onslaught impacting upon the survival of the book industry including the publishing, selling, distribution, etc. The threat on one side is not quite totally imaginary, it is not real as well. It is the time for introspection and action in case we the ones in book trade are serious enough to save the industry from extinction. We have to think optimistically keeping the following facts in mind:- That the online bookseller’s policy of offering heavy discount does not much affect the sale of printed books, as their policy is limited to a few front list bestsellers. Moreso, the online booksellers offer discounts on dollar or pound price of the book, whereas, the conventional bookstores go by the rupee price of the book. We have to accelerate the distribution channel as the retail bookstores take four to six weeks for delivery of an imported title, whereas, the online store does the same job within one week. This inefficiency of distribution diverts away the willing customers from retail to online.