Recently I had a casual conversation with owner of a large scale book store. His is a family owned business, been in book retailing for decades with great passion for reading. Upon further discussions he mentioned about his book retailing business heading south (for months together) due to the emergence of e-commerce portals like Flipkart. It is quite obvious that e-commerce portals enjoy benefits of on-demand inventory, lesser operational costs (ex: rental) and direct supplier relationships helps to offer a better price. Added to that, most of Indian e-commerce portals are backed by heavy funds from venture capitalists, which help them to provide un-realistic discounts on books with additional benefits like free shipping, cash-on-delivery etc. Over a period of time, these e-commerce portals build valuation for the company based on number of transactions and incrementally grow by bringing more products (apparels, electronics, toys etc…) thereby becoming online mega store. On the other hand, traditional book retailers are struggling to keep up their operations with increasing rental/labor costs, overhead of inventory and limitation of not able to offer higher discount as it will affect their bottom line.
As a matter of fact this problem is not new. In countries like US e-commerce portals (likes of Amazon) took away significant market share from traditional book stores but some of them re-invented themselves and survived this challenge. I was wondering what Indian book stores (considering Indian context) can do to compete fiercely online bookstores. Here are some of my ideas which can be considered:
- Similar to book stores of the west (ex: Barns and Noble) traditional book stores should re-shape themselves as modern libraries by creating a compelling reading experience around it. Readers should be compelled to walk in, take a look of their choice and spend hours in the shop by going thru their favorites. By adding additional factors (like coffee shop, comfortable table & chairs for reading, offering sample chapters for free etc…) these book shops can attract regular visitors who will potentially end up buying these books
- There are some specific types of books (ex: Children books) come in various shape, size and weight, which is still not comfortable to buy online. As a parent I spent lot of time considering these aspects before buying book for my daughter by physically visiting the shop. Such type of books still has a lot of ‘touch-and-feel’ factor associated with it. Traditional retailers should think of some special promotions and tie-ups to push these books thru young parents and readers
- Among adult readers (both fiction and non-fiction) there is a strong possibility to build a community based on common interest. Such communities combined with social media can be made as early adapters of new releases and share their viewpoints in terms of face-to-face get together, sharing book reviews, meeting authors directly and exchanging book related practical experiences. Such community should be provided with special discounts and covered under loyalty programs, thereby attacking clusters
- Even now many of the traditional shop owners are expecting customers to physically walk into the shop and order for books. This should be changed by adapting home delivery based on phone order, building a micro-site for the bookstore where alternative channels of reaching out to the customer. Such new channels should be backed with excellent customer service in terms of delivery time and quality to re-invent the whole business.
I am not sure if any of the traditional book store owners got necessary mindset to re-invent their business by adopting new ways to sell books in this digital era. Unless they adapt to this change and re-invent the way they do business, it is going to be extremely difficult to survive.