Emerging

Markets
Forum

Press Markets in the

Gulf Region

October 28, 2008

 Speakers
 Narain Jashanmal (Moderator)
 General Manager – Periodicals & Books,
Jashanmal National Company, UAE

 Sanjay Malik
 Group Circulation Manager,
Al Nisr Publishing, UAE

 Achilles Tsaltas
 VP Circulation & Development
International Herald Tribune, France
 Countries in the Gulf Cooperation Council

 Kuwait
 Bahrain
 Qatar
 United Arab Emirates
 Oman
 Kingdom of Saudi Arabia
 GCC Demographics

Total Area: 2.6 million km2

Population: 35.1 million

GDP: USD 75.1 billion

GDP per Capita: USD 20.4 thousand

Annual GDP Growth of 7.1%

1995
2005
 Dubai Demographics

Population 2005: 1.2 million

 Visitors 2005: 6 million

 GDP/Capita 2005: USD 31,000

 Dubai Demographics

Population 2005: 1.2 million

 Population 2010: 2 million

 Visitors 2005: 6 million

 Visitors 2010: 10 million

 GDP/Capita 2005: USD 31,000

 GDP/Capita 2010: USD 38,000
Domestic Press Demographics - Dailies

 9 English Language:
 Largest Gulf News – 115,366 Circ.
 3 International: FT, The Times, IHT
 1 Free-sheet: 7Days
 7 Arabic Language
 3 Market leaders claim 90k+ Circ.
 1 Indian Language: Malayalam Manorama
 2 Online: Kipp Report, Dubai Courier
International Press Demographics - Dailies

 4 Distributors
 Over 50 titles
 12 from the UK
 From over 20 countries
 Domestic Press Demographics - Magazines

 Over 700 Consumer &B2B titles.

 Several prominent licensed editions:
 Time Out, Hello, OK!, Harpers Bazaar,
Grazia, Car – with more on the way…
Arabic Editions:
 Forbes
 Newsweek, Business Week (regional)
International Press Demographics - Magazines

 4 distributors
 Over 2,000 titles
 From over 25 countries
 UK titles largest by volume & value
 Over 300 points of sale
 Largely Mass Market & Travel Retail
 Doing Business in Dubai

 Free Zones:
 100% Foreign Ownership
 Tax Free
 Repatriation of Income

Has driven FDI in the Publishing Sector

 Challenges

 Regulatory issues:
 Censorship
 Lack of clarity

 Commercial issues:
 Cost of doing business
 Size of market
 Logistics of regional export
 Category Management
How a traditional distributor made the transition
to mass-market wholesaler
 Category Management Defined

 Consolidation of supplies
 Range management
 In-store merchandising service
 Complete reverse logistics
 Dedicated account management
 Single invoice
 UAE Retail Sales by Channel

7% 3%
8%
36%
10%

24%

11%

Supermarkets Travel Retail Hypermarkets Other Bookshops

Hotel Bookshops CTN Jashanmal Bookstores

 Travel Retail

 Dubai Duty Free

 15 Outlets in Dubai Airport
 7 Airside
 8 Landside
 Sales 2007: USD 3 million (RSV)
 Sales 2008: USD 4.5 million projected (RSV)

 2007 Traffic: 33 million PAX

 30% of passengers disembark in Dubai

 New Concourse opened October 2008

 New Airport opening end 2009
 Landside Retail

 Press sold predominantly through mass-market

chain retailers

Supermarkets dominate:
 Spinneys – 30 outlets
 2007 Sales: USD 3.5 million (RSV)
 2008 Sales: USD 4.3 million forecast (RSV)
 Opened 9 new stores in 2008.
 Situation in 2005

 Distribution:
 1,500 titles
 90% imports
 10% domestic

Wholesale:
 200 points of sale
Category Managed: 18%
 External Factors Driving Growth

 Growth of domestic magazine publishers

 More licensed titles
 Growth of mass-market retailers
 Increased competition
 Our Strategy

 Increase share of sales from domestic titles:

 10%  35%

 Grow number of category managed accounts

 Impact

Volume Unit Value

Import Low High

Domestic High Low

 How we had to Change

 Increase in headcount in distribution & wholesale

 2005: 12
 2008: 60

 Re-organization of department structure:

2005 Distribution
Manager

Accountant

Assistant
Manager

Warehouse
Team

Delivery Team
2008 General
manager

Logistics Distribution
Manager Manager

Warehouse Sales & Account

Team Management

Merchandising
Delivery Team
Team

Accounts &
Returns Team
Administration
 How we had to Change

 Move into purpose-built facility

 Overhaul of back-end system and IT infrastructure

 Increase in fleet size:

 2005: 8
 2008: 25

 Introduction of technology such as handheld

scanners
 Situation in 2008

 Distribution:
1,500 titles*
 65% imports
 35% domestic

 Wholesale:
 250 points of sale
 Category Managed: 35%

Overall Sales growth of 150%

 Summary

 In a fast growing market we needed to devise and

invest in a strategy that addressed short-term
challenges while providing a platform for sustained
long-term growth.

 We did this by specializing in a segment of the

market: Category Management of Mass-Market
retailers – and building our organization around this
service.
Thank You!
Q&A