Within the book selling industry, strong pricing power exists for national chains and independent stores, but web-based sellers have significantly lower pricing power with consumers, according to a recent study conducted by Kanbay Research Institute (KRI). Strong ratings have allowed Independents to win a substantial share of consumers even though they make up only 9% of the market. The study, “Book Selling Demand Today," shows that although revenue growth is up in the book industry, same store sales is down, masking the need for organic growth in this industry.
The study found Barnes & Noble (NYSE: BKS) and Hastings Entertainment (NASDAQ: HAST) to be the most desired national chain bookstores, and Amazon.com (NASDAQ: AMZN) as the most desired web-based retailer. Independents were measured by regions of the country, with the South rating the highest among consumers. Overall, consumers shopping at national chains, web-based retailers, and independents possess similar desires.
“Traditional book retailers must build competitive advantage by creating strategies that others cannot duplicate easily,” said Gary A. Williams, President of the KRI. “Proven approaches exist and winning concepts can be borrowed from the Restaurant, Hotel and Pet Supplies industries.”
Through five years of consumer interviews and financial analysis Gary A. Williams, President and Founder of KRI, and his research team have identified a core set of principles that create and build competitive advantage across six different industries. Williams will announce the results of the 2007 Book industry study later today at BookExpo America.
The report also identifies that among both the national bookstore chains as wells as online book retailers only one company possesses a competitive advantage.
The report, "Book Selling Demand Today," is sponsored by Bowker and Capgemini U.S. LLC, an affiliate of Adjoined Consulting LLC, of which KRI is an operating unit. To download a copy of the report, go to https://www.kanbayresearch.com/bea2007.php.
About the Kanbay Research Institute
The KRI conducts primary research on an original set of leading indicators that measure competitive advantage. Through our patented research system, we build industry landscape models based on consumer desires covering emotional, functional and economic needs. We then measure how well today’s companies are meeting those desires. We research and analyze 350+ market leading companies on a continual basis, with 20+ million data points collected since 2001 in a standardized way.
For more information, contact (800) 840-5148 (U.S. only) or (703) 788-6751 worldwide, or visit www.kanbayresearch.com.
About Capgemini Group
Capgemini, one of the world's foremost providers of Consulting, Technology and Outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, which it calls the Collaborative Business Experience. Capgemini reported 2006 global revenues of EUR 7.7 billion and employs more than 75,000 people worldwide. More information is available at www.capgemini.com