Innovation – Type8 –Channel [Case: New Horizon Media]

In our ten part Innovation series, let us look New Horizon Media’s channel innovation as the eighth article.

The book publishing business has gone thru multiple changes in the recent years, which I have been covering in my part articles. India, with diversified set of languages offers significant opportunity for the publishing industry both in print and electronic formats. However, with infrastructure (physical & electronic) challenges, building channels and newer ways to reach customers is always a challenging task especially when it comes to books. New Horizon Media (NHM), a Chennai based publishing house has brought in significant change in terms of the way books are sold to consumers by building channels, similar to FMCG way. Sounds interesting? Read on.

NHM primarily publishes Tamil books, which are sold thru existing channels like — online shopping site, books fairs conduced in various cities and by building the resellers across the state. In spite of having all these channels, NHM found they are still not covering the bigger set of readers, who come from tier-2 and tier-3 cities. A different and innovative model needs to be thought for ensuring their reach. That’s they the idea of FMCG base model kicked in – What if books can be sold like a paste or soap? How about creating thousands of small outlets across the state by applying FMCG model into book publishing? What if books can be made available in Kirana shop in your street corner?

To implement this idea, NHM set up their own stockists (exactly like the FMCG industry) in each small town to whom they supply books. These stockists, in turn, supply NHM publications to a whole range of non-bookshop outlets in that town, such as stationary stores, pharmacies, supermarkets, and even restaurants and textile stores. Assume a case, where you are purchasing diabetic medicine for your aged parent from the medical shop, where you also find a book titled ‘How to control diabetes?’ Assume another case where your family members are busy shopping in a textile store, where they are going to spend next two hours and you are bored. Won’t you feel like picking up a book to kill time?

This is precisely what they have implemented by partnering with various shops across the state by leveraging the adjacency factor. As most of NHM books are priced in the range of 70-100 INR, customers won’t mind paying for it as it is slightly more than buying a magazine. Today NHM has about 2500 such outlets across the state, which has changed the way books are distributed in the state.

By identifying such retail outlets as a new channel for books distribution, NHM is able to transform the vernacular book publishing industry. Apart from the distribution channels, NHM has also created a niche market for translated books. Many of the latest best sellers (ex: India after Gandhi by Ramachandra Guha) is available in Tamil now which is addressing relatively high end customers. I will cover this aspect in a different article.

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