Work the Frankfurt Book Fair Like a Pro

1

• Work the Frankfurt Book Fair Like a Pro

An International Business Webinar
Presented by The U.S. Commercial Service and The
Association of Educational Publishers
April 10, 2008
2
Who We Are

• Charlene Gaynor, Association of Educational
  Publishers, USA
  
• Dawn Bruno, International Trade Specialist,
  U.S. Commercial Service, New York, USA
  
• Elizabeth Powell, Commercial Specialist, U.S.
  Commercial Service, GERMANY
  
• Stewart Gough, Commercial Specialist, U.S.
  Commercial Service, UNITED KINGDOM
  

3
Frankfurt Book Fair

• Worlds largest book fair
• Over 7,000 Exhibitors from over 100 countries
• 283,293 Visitors
• 2,700 Media Reps

4
Fair Layout
5
What to Expect

• Business Opportunities
• Publishing/Education Trends
• International Contacts
• Global Perspective
• The Frankfurt Experience

6
What is the EPP?

• Focused business area for educational publishers
• Exhibit stands
• Programming
• International CEO Roundtable
• Publishers Forum
• Learn Over Lunch
• Networking Receptions
• Appointments
• Support

7
Hall 4.2
8
Our History with the EPP

• AEP launched in a partnership with the Frankfurt
  Book Fair in 2007.
  
• We are pleased to have a role as a governmental
  organization promoting trade at the event.
  
• The EPP is more than a space at a fair. Its a
  framework including workshops, CEO Roundtable,
  networking receptions and customized business
  services - all aimed at helping you do business
  internationally.

9
U.S. Commercial Service

• The U.S. Commercial Service is the export
  promotion agency within the U.S. Department of
  Commerce.
  
• Our mission
• To promote the export of goods services from
  the United States, particularly by small- and
  medium-sized organizations
  
• To represent U.S. business interests
  internationally
  
• To help U.S. manufacturers and service providers
  locate qualified international partners

10
The U.S. Commercial Service Network Programs

• We have International Trade Specialists in over
  100 U.S. Cities and more than 150 offices
  overseas who can
  
• Provide on-to-one export counseling
• Use our global network to tap into market and
  industry expertise from our colleagues in
  Embassies and Consulates overseas
  
• Help your organization through every stage of the
  export process

11
The CS Global Publishing Team

• Global network of 25 domestic and international
  publishing specialists
  
• Connect U.S. publishers with partners, agents,
  distributors, etc at BookExpo, London BookFair,
  Beijing Book Fair, Frankfurt Book Fair
  
• Provide market research, matchmaking services,
  assistance with IPR issues, background partner
  due dilligence and more to U.S. publishers

12
Key Markets Germany

• German book market ranks 3rd worldwide
• Translations are key component of annual
  publications
  
• Newly translated titles from English account for
  2/3 of market
  
• 3rd largest market overall for books in English

13
Key Markets Germany(continued)

• Childrens book market has had accelerated growth
  in recent years
  
• 466 Million Euros in 2003
• With 11 share of total German book market,
  childrens and teen books are one of strongest
  market segments
  
• Amongst the top 100 German publishers, 25 publish
  literature as well as books for children and
  teenagers

14
Germanys Sales Report

• 94,700 new and reprinted titles in 2006
• Total sales of EUR 9.2 billion generated
• Reflecting a 1.1 increase over 2005

15
Current Market Trends in Germany

• School and educational books segment expects the
  strongest growth along with fiction and
  childrens and teen literature
  
• Around 8 million school children enrolled in
  English courses
  
• All primary schools in Germany are now required
  to provide foreign language courses (most of
  cases English) starting in the 3rd
  grade

16
Main Competitors in Germany

• Materials used in German classrooms at the
  elementary and intermediated level are
  consistently British
  
• Independent bookshops dominate the retail sector
  in Germany
  
• In 2005, sales by traditional bookshops accounted
  for 53 of total market revenue
  
• Direct sales by publishers to end-users have a
  strong share of total sales
  
• E-commerce now accounts for 7 of all book sales
• Amazon.De is the leader in this channel with an
  estimated share of more than 50 of all internet
  sales
  

17
Segment Share of Sales by Edition Format (2006)
in 0
18
United Kingdom Book Second Largest Market in
Europe

• Value of UK book market in 2007 was approximately
  8.5billion, 3.7 increase over 2006
  
• UK publishers sold an estimated 787 million books
  in 2006
  
• Books represent 22.3 of the UK publishing
  sector
  
• In terms of volume, UK book market increased by
  12 between 2002-2006 with a 5 growth in 2006
  
• Almost 4 growth expected in UK book market 2008
  through 2011 with book sales projected to reach
  9.87 billion by 2011, a 16 increase over 2006
  
• 1.6 million titles available for sale in UK with
  240,000 new and revised titles in 2006 compared
  to 161,000 in 2004
  
• In 2006, paperback market share was 52.7
  compared to hardback market share of 39
  

19
UK Book Markets 3 Major Segments by Sector by
Value at Current Prices (m) 2005/2006

• Consumer Books - 68 market share by value and
  85 by volume
  
• Academic Professional Books - 26 market share
• Schoolbooks - 6 market share
• --------------------------------------------------
  ---------------------------------------

20
UK Books Import/Exports

• Value of books imported into the UK in 2006 was
  834 million
  
• US market share in 2007 was over 51 at 431
  million
  
• Note These figures may be distorted as they
  include books printed by UK publishers abroad and
  then brought back into the UK
  
• Value of UK book exports in 2006 were 2.8
  billion, a 0.7 increase over 2005
  
• U.S. represented 11 of UKs export book market
  in 2007 a growth of 12 over 2006
  
• Value of UK book exports to U.S. in 2007 was 338
  million

21
International Rights/Agents

• Authors and publishers earn over 600 million a
  year in foreign rights and co-edition income.
  
• UK publishers new markets were East and Central
  Europe in the 1990s
  
• Current emerging markets are China/India
• It is unusual for translated works to break
  through into the bestsellers lists
  
• Authors agents play increasing important role in
  consumer publishing
  
• Most fiction acquired by or commissioned through
  agents
  
• Tension between agents and publishers with former
  wishing to separate out as may rights as possible
  and license them separately, publishers prefer to
  get control of all language, territorial and
  format rights

22
Internet

• Internet market share expected to rise to 14.5
  by 2010
  
• Internet book sales in UK expected to rise from
  592 million in 2006 to 1174 million by 2010
  
• More consumers expected to spend time online
• Amazon may lose its first-to-market advantage as
  competition within online book market increases
  
  
• Publishers slow to use Internet. Positive
  examples are penquin.co.uk, bloomsbury.co.uk,
  harpercollins.co.uk, randomhouse.co.uk
  
• Macmillan sells books online through 60
  specialist sites
  
• Hodder Stoughton list links to other online
  bookstores

23
Is There A Standard Deal?

• Consider Are you buying or selling?
• Ask How many units will sell? At what price?
• Set royalties (based on net receipts) 8 -15
• Establish advances one quarters royalties
• Spread advances out
• Agree on the term of the agreement 3-5 years
• Discuss minimum guarantees
• Consider royalty-inclusive deals

Source Bill Evans, Evan-Moor Educational
Publishers
24
Where You Stand Depends on Where You Sit

• Sellers Perspective
• Get as much up front
• Get more downstream
• Keep the term short

• Buyers Perspective
• Invest little up front
• Pay little downstream
• Go for the long term

Source Bill Evans, Evan-Moor Educational
Publishers
25
Some Dos and Donts

• Manage expectations quantity/pricing/size
• Set term limits
• What do you do if minimums arent met?
• Set a specific pub date
• Buy or sell only what you can use
• Have confidence in your partner

Source Bill Evans, Evan-Moor Educational
Publishers
26
The EPP What We Will Do For You

• In 2007, per your questionnaires and our
  conversations with you, we contact exhibitors and
  pre-registered visitors (almost 2,000 companies
  total).
• Promotion at London Book Fair with CS UK.
• Collaboration with our global team of specialists
  to schedule appointments with international
  buyers and partners from around the world.
  
• Your packets contain appointment schedules,
  company profiles of meetings, market research
  and tourist information

27
What to expect at the Fair

• Reception Desk for companies to check-in
• Well touch base frequently to help keep track
  of your appointments and receive updates if you
  gained other meetings on your own
  
• Re-confirm meetings each morning through
  reminder cards we provide to your appointments
  
• Any no shows or rescheduling well track
  people down at their stands or on cell phones
  
• Our Staff Elizabeth Powell, Volker Wirsdorf,
  and Dawn Bruno

28
Last Minute Advice

• Better to have appointments vs. traffic - spend
  1st day trying to gain any additional meetings
  
• The fair is open to the public, so be extra
  mindful of any belongings at your booth
  
• Security Dont leave valuables in your stand -
  especially laptops, cell phones, digital camera,
  etc.

29
Support at the Fair

• Reception Desk for companies to check-in
• Well touch base frequently to help keep track of
  your appointments and receive updates if you
  gained other meetings on your own
  
• Re-confirm meetings each morning through reminder
  cards we provide to your appointments
  
• Any no shows or rescheduling well track people
  down at their stands or on cell phones
  
• Our Staff Elizabeth Powell, Volker Wirsdorf,
  and Dawn Bruno

30
At the Fairs End

• Please complete and submit Commercial Service
  forms to us before you leave important for us
  to be aware of any leads and agreements
  (information is kept confidential)
• Post-Fair continued assistance our domestic and
  overseas offices have services that include
  
• 1. Export counseling A-Z
• 2. Getting into a new market
• 3. Signing a contract
• 4. Performing due diligence

31
Housekeeping Details

• For Exhibitors Hours 800 a.m. - 730 p.m.
  (Wed-Sat)
  
• Sunday 800 - 530 p.m.
• For Visitors Hours 900 a.m. to 630 (Wed-Sat)
• Sunday 900 a.m. to 530 p.m.
• Exhibitors pass required for early entry
• All EPP activities in Hall 4.2
• Email/refreshments at EPP reception desk
• Tech support at EPP reception desk
• Frankfurt catalog for complete Fair listings
• EPP booklet for program details and restaurant
  recommendations

32
Best of Luck

• Dawn Bruno, International Trade Specialist,
• U.S. Commercial Service, New York, New York
• Volker Wirsdorf, Commercial Specialist, U.S.
  Commercial Service, GERMANY
  
• Elizabeth Powell, Commercial Specialist, U.S.
  Commercial Service, GERMANY
  
• Stewart Gough, Commercial Specialist, U.S.
  Commercial Service, UNITED KINGDOM
  
• Charlene Gaynor, Association of Educational
  Publishers, USA