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Many residents of Suzhou spent the World Reading Day in bookstores or libraries on April 23. Wang Jiankang / For China Daily |
Retailers reinvent their business models to survive in the face of online competition
On Saturdays, Liu Xincheng makes a special effort to get to Sisyphe Bookstore in central Shanghai before any other customer.
"You have to arrive early to secure a good place to read or a seat in the bookstore's cafe," the 28-year-old accountant says. "After 1 pm, the place is full, and you have to line up for a seat, to browse a shelf or to pay.
"I even bring my date here. We don't talk much because everyone is reading, we just read the books we pick," Liu adds. "It feels good when you can relax, have some quality time."
Sisyphe is one of scores of bookstores in China that are trying to balance the need to be profitable with providing a customer-friendly environment.
Rental prices at prime commercial properties in major cities have soared, forcing many to close down. Those that have survived are juggling costs and benefits, trying to offer more products and services to boost profit margins.
According to China Galaxies Securities, the gross profit from selling a book is about 10 percent, while for products such as notebooks, T-shirts and canvas bags it can be up to 50 percent. A bookstore cafe can see margins of 75 percent.
Liu Gui, managing director of JIC Books Investment Ltd, says bookstores have evolved. The company's outlets focus on biographies of business figures, celebrities, statesmen and cultural icons as well as having a cafe, a meeting room and a gallery.
"The bookstore is more like a space for people with shared interests; they can talk, appreciate art, listen to music and hold meetings," Liu Gui says. "It can serve as a gallery that displays creative works, and it can offer space for forums and salons. It's no longer just a bookstore."
JIC Books' store in Hangzhou has teamed up with a trust company to offer in-store wealth management services, while its Beijing outlet has a lifestyle area aimed at retirees.
"I believe if such models work well, more capital will enter the market to help bookstores grow," Liu Gui says.
Bookstores worldwide have had a hard time since the global financial crisis, and market players must now devise ways to take on online retailers and cope with the rise of e-book readers.
Barnes & Noble, a major bookstore chain in the United States, plans to open restaurants in its outlets, while Waterstones stores in the United Kingdom arrange lectures and reading events. In Japan, Daikanyama T-site stores have a Starbucks and pet care centers.
Cheng Sanguo, CEO of Bookdao, an online publishing market intelligence information platform, says the future of bookstores is the "x plus books" model.
"You don't have to read a book in a bookstore. You can grab a book waiting in a hospital, or choose a recipe when shopping for groceries," he says. "I like the model that Muji follows. It sells food, clothing, bedding, furniture and coffee. Buyers of these products can always extend their shopping to lifestyle books.
"This is what we call Bookstore 3.0. If investors are interested in entering the market, Bookstore 3.0 is a good option."
wuyiyao@chinadaily.com.cn
