What is next for publishing in Brazil

PA International Conference 201115th December, Fishmongers Hall

What is next for publishing in Brazil

Is Brazil the land of thepublishing future?


In 1941, Stefan Zweig...


“Brazil is the country of the future…

Since then, Brazilians believe:

…and will always be.”


“In the favelas, in the senateDirt is everywhereNobody respects the ConstitutionBut everyone believes in the future of the nationWhat kind of country is this?”

The idea is supported by artists...

Renato Russo,Brazilian musician,Legião Urbana,1987


“Le Brésil n'est pas un pays sérieux.”

...and by the other side of the Channel:

General Charles De Gaulle,French military and politician,

in 1963.


“Your country deserves more than ‘potential’. Brazil is a country of the future and you must resolve that the ‘future’ is tomorrow not somewhere in the middle.”

But this lady believed in us:

Margaret Thatcher,Britain’s fighting lady,in a 1994 speech


“For so long, you were called a country of the future, told to wait for a better day. That day has finally come. And this is a country of the future no more. For the people of Brazil, the

future has arrived. And it’s time to seize it.”

And this bloke also gave some support:

Barack Obama,president of a former British colony, in a 2011 speech in Rio.


So, did Mr. Obama get things right this time?


We are growing fine...

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Brazilian GNP Growth Rate*

Perc

enta

ual G

row

th

GNP in 2010:1.4 trillion GBP

Forecasted Growth for 2011: 4.0 %*Source: IBGE


2003 2004 2005 2006 2007 2008 2009 2010 20110

10

20

30

40

50

60

The Social Classes's Mobility*

E-classD-classC-classAB-class

Perc

enta

ge o

f the

Pop

ulati

onWe are distributing better...

E-class: £0 to £282D-class: £282 to £451C-class: £451 to £1945AB-class: £1945 up

* Family monthly income

*Source: Centro de Políticas Sociais | FGV


And the C-class is booming...

15.36%

11.58%

55.80%

17.26%

The Brazilian Social Classes in 2011*

E-classD-classC-classAB-class

*Source: Centro de Políticas Sociais | FGV

E-class: £0 to £282D-class: £282 to £451C-class: £451 to £1945AB-class: £1945 up

* Family monthly income


The number of colleges grew...The Brazilian Social Classes in 2011*

Source: Censo da Educação Superior 2009 | Inep, MEC

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

500

1000

1500

2000

2500

173 186 195 207 224 231 248 249 236 245

10041208

14421652

17891934 2022 2032 2016 2039

Colleges Institutions in Brazil

Public Institutions Private Institutions

Num

ber o

f Ins

tituti

ons


The number of students grew...The Brazilian Social Classes in 2011*

Source: Censo da Educação Superior 2009 | Inep, MEC

2001 2002 2003 2004 2005 2006 2007 2008 2009 -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

College Students in Brazil

Private Students Public Students

Num

ber o

f Enr

ollm

ents


So suddenly we are on the news...


We are on the movies...


And our flip-flops are trendy and cool


We will host the Olympics in 2016


We will host the World Cup in 2014

Possible 2014 World Cup Final Match


We will host the World Cup in 2014

Impossible 2014 World Cup Final Match


So, does the land of the futurehave a publishing present?


The Readers

There are 95.6 million readers in Brazil (55% of the population above 5 years of age).

47.4 million (50%) of these readers are students who read textbooks and school recommended titles.

6.9 million (7%) read the Bible

Brazilians read 4.7 books per capita per year. From which 3.4 are school-related.

Source: Retratos da Leitura | 2008


The Readers


2.6; 3%

15.5; 16%

41; 43%

36.5; 38%

Millions of Readers by Economic Class

A B C D/E


The Readers

Millions of readers by economic class


A B C D/E0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

86%

74%

61%

44%

Readership Penetration by Economic Class


The Readers



Readership Penetration by Economic Class

English Spanish French Italian Other0

1

2

3

4

5

6

7

8

98.3

4.9

0.8 0.6 0.9

Readership in Foreign LanguagesM

illio

ns o

f Rea

ders

5,1%8,7% 0.7%0.8% 1.0%


The Non-Readers

The Illiteracy is 9,7% according to official stats.*

The functional illiteracy is 20,3% according to official stats.* (Four or less years of formal education)

Classes D and E, 27% of the population, virtually can’t buy books

* Source: Pesquisa Nacional por Amostra de Domicílios | 2009 | IBGE.


The Non-Readers

Source: Relatório INAF 2009 | Instituto Paulo Montenegro

2001/2002 2002/2003 2003/2004 2004/2005 2007 20090%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Brazilian Literacy

Illiterate Rudimentary Basic Full

Perc

enta

ge o

f the

Pop

ulati

on


The Buyers

36.3 million People in Brazil bought at least one book during the last 12 months (21% of the population above 5 years of age).

Brazilians buy 1.2 books per capita per year.



The Buyers



1.8; 5%

8.8; 24%

17; 47%

8.8; 24%

Millions of Book Buyers by Economic Class

A B C D/E

Book buyer is a person who bought at least one book during the preceding year.


The Booksellers

1,000 “proper” bookstores in the country. Around 5,000 book points of sales.

2/3 of the Brazilian citys do not have a bookstore.*

Bookstore sales grew nominally 9.6% in. Inflation was 6.4%.*

Only 49% have e-commerce (2010).*

78% of the booksellers intended to invest in the businessin 2011.*

* Source: Levantamento do Setor Livreiro 2010 | ANL


The Booksellers

The main bookstore chains:

1. Saraiva: 101 stores2. Cultura: 13 stores3. Laselva: 88 stores4. Nobel: 200 stores and mini-stores5. Leitura: 29 stores6. Curitiba: 22 stores7. Fnac: 8 stores8. Travessa: 5 stores9. Vila: 4 stores


The Foreigners

Portugal: Leya, Babel

Spain: Santillana, Planeta, SM

UK/Netherlands: Elsevier

UK: Pearson, Penguin, OUP

US: Thomas Nelson, Cengage

France: FNAC


The Rulers The Brazilian government is one of the largest book buyers in the

world. Public schools book purchases are centralized.

The Brazilian government spent 408 million GBP in 2010, a 25% increase from 2009, and worth 25% of all publishers sales.

Books are 100% tax free in Brazil: No VAT or any other taxation.

The Brazilian National Library will spent 4.3 million GBP in tranalstion grants until 2020.


The Rulers

2005 2006 2007 2008 2009 20100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Government Sales in Brazil

Government Private sector


The Bestsellers1. Ágape | Padre Marcelo | Globo Livros | 502,240

2. The Shack | William Young | Sextante | 95.799

3. Dear John | Nicholas Sparks| Novo Conceito | 80,405

4. A Game for Thrones | George Martin | Leya | 76,651

5. Guia Politicamente Incorreto da Hist. do Brasil | Leonardo Narloch | Leya | 71,015

6. 1822 | Laurentino Gomes | Ediouro | 67,367

7. The Notebook | Nicholas Sparks | Novo Conceito | 66,253

8. Water for Elephants | Sara Gruen | Sextante | 65,935

9. The Little Prince | Saint-Exupéry | Ediouro | 63,198

10. Why Men Love Bitches | Sherry Argov | Sextante | 58,299Source: PublishNews, 2011


The Bestselling Publishers1. Sextante | 69 hits on the list

2. Record | 56 hits on the list

3. Ediouro | 39 hits on the list

4. Intrínseca | 31 hits on the list

5. Santillana | 26 hits on the list

6. Companhia das Letras | 22 hits on the list

7. Saraiva | 22 hits on the list

8. Leya | 20 hits on the list

9. Planeta | 15 hits on the list

10. Elsevier | 14 hits on the listSource: PublishNews, 2011


What about digital?


October 19, 2009: the first day


The cat and the submarine First Brazilian e-bookstore

founded in December ’09

It has 8,500 Portuguese titles in the catalogue (Dec. ‘11)

Partnered with Submarino from August ’10 until the end of this year


Livraria Cultura followed

Founded in March ’10


First to offer Positivo Alfa


And then Saraiva... Founded in June ’10


Offers apps for iPhone, iPad, Android, Windows.


The Brazilian e-bookstores

Gato Sabido Saraiva Cultura0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Number of Portuguese Titles

June August October December


On the distribution front...

Started operations in July ’10

Same owners than Gato Sabido

100% Brazilian technology

150 publishing houses distributed


One for all and all for one

DLD Acronym for Distribuidora de Livros Digitais

Started operations in April ’11

Almost 1,000 titles today

Consortium of publishers


The educational market

Estácio de Sá University plans to distribute tablets to its 260K students

Pasta do Professor and Xeriph are involved in the process

Minha Biblioteca is a consortium of publishers to offer subscription-based access to textbooks.


Some numbers

Fonte: O Globo

One thousand eBook editions of “The Shack” (Sextante) were sold in 6 months, while 200 thousand pBook copies were sold in the period.

Steve Jobs biography, by Walter Isaacson, sold 3,000 e-copies in 10 days.

Livraria Cultura expects its digital sales to be 1% of overall sales in the next semester.


eReaders in the Brazilian market

iPad: 588 GBP

Kindle: 160 GBP

Positivo alfa: 285 GBP

Cooler: 213 GBP

iRiver: 427 GBPGalaxy: 356 GBP


On the price of eReaders, watch out!

Brazilian senator Acir Gurgacz, from Rondonia State


On the price of tablets, watch out!

Foxconn will produce iPads and iPhones in Brazil in 2012.


And this lady can change everything

The Brazilian government has announced the purchase of digital content by 2013


But gringos seize the future now


What about Print On Demand?


POD is now an option in Brazil


Global Connect

Complements the Lightning Source print & distribution services by establishing alliances with partners around the world.

Sales growth as a result of “always available” titles

Add titles previously not offered

Eliminates shipping costs

Possible front list solution

Talk to David Taylor


Singular highlights

Founded in 2010 as the digital distribution division of Ediouro Group.

Operational digital printing plant producing 60,000 books per month.

First Lightning Source books to be printed in Brazil next semester.

It will shorten fullfilment time for English titles from 6 weeks to 5 days.


So Brazil has a huge potential for a fruitful publishing future, and, as the Hawaiian

bloke said, “it is time to seize it”.


Questions?We have Brazilian gifts for the inquirers.

Carlo CarrenhoFounder of PublishNews | CEO of Singular Digital

[email protected]@carrenho

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What is next for publishing in Brazil