20 | Magazine World | April 2007 www.fipp.com
China
B2B Publishing
SLAYING THE
B2B DRAGON
Want to know how to achieve b2b success in China?
Get yourself a local partner, produce great content
and cross your fi ngers, says Mike Hay
circulation numbers that are unsubstantiated, international publisher must face, eg. not being
little or no copyright protection on content, able to rely on ad support from international
plus stringent government policy on media bookings. Without ad revenue coming from
ownership – and China becomes a very within China, you cannot reach sustainable
challenging environment in which to operate. levels of revenue to support the title. Marketers
On the positive side, there’s a tremendous who are serious about China have localised
need for high-quality content. Suppliers need their ad decisions, which leads to unrealistically
reliable communication vehicles to reach their low page yields – too many international
potential customers across the country – both publishers have seen their projections fly
international and local suppliers. With GDP out the window as clients reject their US or
growth predicted at eight to nine per cent for European price points.
the next few years, nearly all industry sectors Looking at international publishers operating
continue to show growth. So, how does an successfully in China, the common elements
international publisher prosper in this market? are: an extensive sales force across China – their
There are three classic models: The first own people; that they can accept payment in
involves finding a Chinese partner, ideally with Chinese Renminbi; that they have multiple
a spare publishing licence. You then form an products and services; and that international
O
ne of the major challenges in agreement that effectively means you hand content is seen as a value-added element.
any discussion of the b2b market over the destiny of your title and brand to your Do you need a Chinese partner to be
in China is trying to determine partner. The second is to physically set up an successful? My answer would be no, but you
just how big it is. The official operation in China and enter into an agreement do need several key managers who have the
government body, The General Administration with your partner to manage certain aspects of necessary market knowledge and publishing
of Press and Publication (GAPP), with whom
all magazines are required to register to obtain
publishing licences, has only 140 industry
magazines listed. Yet if you attend any Chinese “With circulation numbers that
industrial trade show you can see upwards of
20 different local titles on display – regional are unsubstantiated and little or no
titles, imports from Hong Kong and Taiwan, and
just plain illegal magazines being published
copyright protection on content,
with relative impunity. A conservative estimate
would put the number at anywhere from 5,000
China suddenly becomes a challenging
to 8,000 titles, primarily in the industrial,
medical, technology (electronics/computers)
environment in which to operate”
and agricultural industries.
The market is clearly dominated by smaller,
local publishers – universities, associations or
government bodies – followed by Taiwan- and the business. Your partner is then the publisher experience to spearhead your venture, as well
Hong Kong-based publishers. International and has legal control over the title, and you as sound financial and legal advice.
trade publishers are limited to a handful, are the service provider. The third option is One final point: no matter what time frames
eg. IDG, Vogel, Global Sources, Questex to set up an offshore operation – possibly in you set to achieve certain goals, double them!
(Advanstar) and Ringier. This proliferation Hong Kong – and import the magazines into
of local titles has a serious impact on the country under licence, or have them mailed
international publishers wishing to operate in directly to readers from offshore.
China because page rates are artificially low: Of course, the challenges don’t end once
Mike Hay is the the president of
$250-$500 is the norm. Add to the equation you’re set up. There are certain realities that an Ringier Trade Publishing Ltd.
P20-21 China B2b.indd 2 27/3/07 13:42:02
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