New Retail Bookstores: Non-book businesses are saving brick-and-mortar bookstores
Updated 16:11, 20-Aug-2018
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A report released at the Shanghai Book Fair today shows sales at China's bookstores are actually recovering. Brick-and-mortar bookstores are getting a respite from the pressure of online book sales as they zoom in on the various types of non-book businesses that they're introducing to draw in customers. So, how is this shift in business model performing? Our Chen Tong took a stroll to these new-look bookstores to find out.
Step into this bookstore in Shanghai's Yangpu district, and what catches your eye first is not the bookshelves, but the drink bars and the reading lounges. This bookstore is one that has combined book shopping with other types of businesses. Customers can order drinks or meals while looking for a good read.
CHEN TONG SHANGHAI It's hard to tell whether this is a real bookstore or not. You order a cup of coffee, then just pick up an interesting-looking book. It seems more like spending some pleasant time, rather than just shopping for some books.
And most customers here seem to be feeling the same way.
CUSTOMER "This is more leisurely than a traditional book store, and caters more to the tastes of young people."
CUSTOMER "I think it's more like a break room where you can spend some time."
Even the name has changed. The owner doesn't call it a "book store", but rather a "book mall". And selling books turns out to be only part of the business, as the food sales can also bring in considerable revenue.
XU JIE, ON-DUTY MANAGER DAYIN BOOK MALL "We have many types of business. We offer snacks and drinks and Japanese-style meals, though not every customer likes it. But during weekends, the sales of drinks can equal the sales of books. Books are more important from Monday to Thursday."
CHEN TONG SHANGHAI "Bringing non-book elements into the bookstores is probably the key to their business recoveries. A number of bookstores like this one have emerged in Shanghai. Books are no longer their only attraction. And it seems like the strategy is working."
A report released at this year's Shanghai Book Fair shows the value of China's book market increased by 15 percent year-on-year in 2017. Online sales are still the major driver, but sales at brick-and-mortar stores have recovered from their decline -- growing 2.3 percent year-on-year in 2017. That may not seem like a lot, but the important thing is that people are coming in, and then buying books on their way out.
ZHANG TIANBING, PARTNER DELOITTE CONSULTING SHANGHAI "Anything related to selling a cup of coffee, hosting some forums or workshops or any events. These can all sell as a revenue stream. Certainly people still going there as they experience all those different things at bookstores. They are still buying books as part of driving up the traffic. It all helps with both income direct generation as well as traffic generation in turn then sells the books."
The bookstores are also receiving support from the government. In 2017, the State Council released its 13th five-year plan for public services, which made a point of supporting the development and strengthening of the country's bookstores.