Administration of Press and Publication (GAPP), with a total annual print run of 3,54 billion copies. The total revenue of the Chinese media industries in 2010 was €68.3 billion, with magazine advertising making up 0.53% of this share and magazine distribution 2.92%. There are less than 1,000 titles active in the retail market with approximately 800 titles available on subscription,
circulation of more than 1 million (12 of these are commercially distributed titles, 11 are published by party–owned groups and nine titles are educational). In total, 64 international brands have been approved by the Government to be published on a licensing basis. Magazines can only be delivered by the Chinese Post service which also owns 160,000 newsstands and retail
data from the annual report of China Post 2010. The annual revenue of the China Post newsstand business in 2010 was 1.8 billion yuan (€0.22 billion). There are 29 distribution groups, in which book and magazine wholesale distribution are the core business. The magazine and newspaper distribution market had an annual turnover of 36 billion yuan (€4.25 billion) in 2010.
destination / china
> ADSPEND
ADVERTISING EXPENDITURE BY MEDIUM (USD MILLION) 2005
MAGAZINES Newspapers Television Radio
Cinema Outdoor Internet Total
385
3,963 5,499 601 24
1,948 630
13,050
2006 373
4,838 6,253 885 26
2,225 1,091
15,691
2007 410
4,986 6,577 972 31
3,031 1,891
17,898
2008 480
5,303 7,761 1,058 37
2,780 2,631
20,050
2009 470
5,733 8,298 1,112 41
2,975 3,210
21,840 MAGAZINE ADSPEND GROWTH 2005~2014 (USD MILLION) 1600
internet: 14.2%
1200 outdoor: 13.2% 800 400 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0
cinema: 0.2%
tv: 43.0%
newspapers: 22.5%
2010 499
5,904
10,521 1,194 45
4,235 4,971
27,370
2011 806
7,265
13,896 1,408 53
4,278 4,592
32,299
Source: ZenithOptimedia
2012 984
7,505
15,689 1,548 61
4,406 6,797
36,990
2013 1,151 7,610
17,478 1,695 70
4,538 9,651
42,193
2014 1,346 7,694
19,925 1,865 80
4,720
13,126 48,755
% SHARE OF ADSPEND (2011) >> CHINA FAST FACTS
GDP: $12.38tn (est) GDP (real growth rate): 7.8 per cent (est) Population: 1,343,239,923 (July ‘12 est) Labour force: 795.4 million Unemployment: 6.4 per cent (est) Exports: $2.021tn (est) Imports: $1.78tn (est) Currency: Yuan
(exchange rate to dollar 6.311, est) Source: FIPP World Magazine Trends 2012/13
ple are buying magazines, but I have to face the fact that there were already 564 million internet users in China by the end of 2012, which is almost a quarter of the total internet users in the world. This includes 420 mil- lion mobile internet users (including mobile phone and tablets), a sector which saw 18 per cent growth in 2012, over 2011. Mobile is even challenging the position of stand- ard television, so it too must get smarter.
156
Foreign influences On a more positive note, travel (both geo- graphically and on the web) is generating interest in a wider range of activities. Films, food and music are now getting a lot of cov- erage. Last year, imported films accounted for 60 per cent of the box office, despite just 34 film imports, compared to 638 national films. The wine industry is another growth area, with China the world’s No. 5 wine con- suming country in 2011; and the market has reached around 80 billion yuan ($13bn), see- ing 60 per cent growth in the past four years. International magazines, meanwhile,
are faring better with advertisers than readers. In terms of advertising, interna- tional titles are dominant. But national titles still possess 76 per cent of circulation. Although meeting the needs of its own huge domestic market, little progress has been made internationally. There are some titles exploring the road to the international stage, like China National Geographic in Japan and Caijing in Europe and America, but no
fipp.com
one is making essential progress on the road. We do have national media investors inter-
ested in purchasing international media. For example, when the Financial Times announces a shares offering, many national media investment funds show a strong inter- est. But, it seems, the foreign media have concerns about being purchased by inves- tors from media-controlling countries.
FIPP WORLD MAGAZINE TRENDS 2012/2013
Brand extensions and e-commerce With a culture of entrepreneurial flair, it is little surprising, that e-commerce is abso- lutely the most important market in the whole internet industry. The online shopping market was worth 988bn yuan ($165bn) at the end of 2012, on the back of a two-digit growth rate again. The figure was USD130 billion in 2011. The biggest online B2B and C2C platform company Alibaba and the biggest B2C platform 360 Buy are showing
MOBILE FLOOD
It is still hard to tell whether magazines are thriving on the tablet, mobile or web, but I believe that tablets and mobile are crucial to the magazine industry’s future. Business models are not clear enough to support a thriving magazine industry, but 87 per cent of consumer magazine publishers have digital versions, of which 58 per cent have tablet presentation. Local brands like Lenovo and the Korean brand Samsung are catching up with iPad’s market share.
As far as trends are concerned, we have a high birth rate and a predominantly young population, but this will mainly infl uence the digital media platform. Print titles, meanwhile, have been challenged and tortured by the distribution system in China. Lacking industry rules and healthy business circles, Chinese distribution is preventing magazines engaging with readers, which we all know will kill the industry. Furthermore, magazine publishers do not accept a circulation audit system here in China. This will also be fatal for the industry.
strong growth. But magazines are failing to get an even essential share of the market.
The future Looking ahead, I see branding as increasing- ly important for the industry. Furthermore, consumer magazine titles will need to pay attention to engagement with readers. The traditional literature and digest magazines will shrink in the coming years as digital and mobile access gains more access to society, especially in urban areas. But new titles will be launched with mixed media platforms and strategy, in new territories and in new interests as internationalisation and urbani- sation develop further. Rich media content is necessary for magazines on all platforms; it is still the core value of magazines.
Xiaowei Hu is vice editor-in-chief, Economic Daily Group at Art and Design Publishing in China
“Rich media content is necessary for magazines on all platforms; it is still the core value of magazines...”
issue 76_2013 | Magazine World |45
radio: 4.4%
magazines: 2.5%
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