Olga Ro, Editor & Columnist "Book Industry Magazine"

Since 1999 worked as an International cooperation promotion officer in higher education including:
December 2002 – August 2004: International coordinator of the World Bank/National Training Fund project “Staff
Training for Academic Publishing Houses”
April 2002 – March 2005: project manager, Tempus Tacis project “Training Infrastructures for Russian Book Industry”
April 2005 – April 2008 project manager, Dual Degree (Russian-British) MA in Publishing Programme

2000 – 2001: editor, Newspaper Techniques
2001 – 2008: journalist, Bookseller newspaper
2006 – currently: publisher, Publishing Training School
2008 – currently: editor, journalist, Book Industry Magazine

……was the vision of Brazil by Monteiro Lobato, one of country’s most influential writers and a founder of Companhia Editora Nacional in 1925, now owned by IBEP. That was how I saw Brazil after three days of intensive meetings with the country’s enthusiastic publishers as well as looking at colorful books. To do it justice I have also to mention delicious food (drinks to which I gave already given credit in a previous post), mouth watering Maria Molly sweets and heavy traffic. But who cares about traffic after Moscow’s terrible traffic jams! The “trine immersion” has put bits and pieces of a puzzle to form a picture ‘Brazilian book market’. I do not claim for the accuracy of my approach, it is just my perspective as Edward Navotka from Publishing Perspective would say, and I welcome any comments and updates.

Market
Compared to Europe, the Brazilian book publishing industry is relatively young. Its origin dates back to the second quarter of the 19th century and coincides with the Brazilian independence from Portugal. Liberalization of the Brazilian political regime in 90’s of the last century gave birth to the new generation of Brazilian publishers. The main share is middle and small-size companies, often family owned, with an average number of employees of 15 – 30 people. The juvenile age of the industry is reflected by the relatively low level of subject area specialization and by the absence of major players dominating the market. Having grown about 10% annually during the last decade the industry shows large market potential, which seems not to be effected by the current economic crisis. In 2008 with 530 active publishers released 51,129 titles, Brazil is in the club of the 10-top world countries in terms of numbers of titles published.
An industry that earned in 2008 more than US$ 1.6 billion is well balanced in terms of production versus sales. Overproduction amounts to 7 million or 2% of all copies produced in the country. Although it has a population with low reading – only 34% (66 million) of the population read books, given the current public policies for the sector, the national reading rate is expected to increase.
The Brazilian Government, the largest book buyer in the world, is responsible for 1/3 of all purchases. Through its purchasing programs for textbooks for primary (PNLD) and secondary (PNLEM) school and supplementary reading (PNBE), the Government purchases a large number of copies to supply to schools and libraries. Understandably, the publishing houses that focus on the school market retain the largest piece of the cake. Although the Government buys books with heavy discounts of up to 85% the deal is still profitable and results in higher than average (8-10%) profitability in the industry (up to 40%).
Fast economic growth during the last decade, investments in biotechnology and thoughtful social policies have been reflected in publishing trends. With the middle class (income bracket C), which has grown up to 52% of the total population of the country, books have become available to those who could not afford them in the past. After textbooks, mass market literature is the second sub-sector that has demonstrated significant growth some 20% in the number of copies sold. The religious sector, with a relatively low number of titles (5, 292), has the highest average print run in the industry – around 9,000 copies with bestsellers like “Quem me roubou de mim?” by Padre Fábio de Melo hit 400,000 copies. Cristina Maria Negrão, editor at Canção Nova is certain that “the economic crisis influenced sales to advantage. People are looking for answers and comfort”. STM books showed the greatest growth in volume of reprinted and of new titles brought to market. With an increase of 34,5%, the sub-sector is responsible for a quarter of all titles published in the country. “You can’t miss our technical and scientific books on environmental issues and bio-fuel, topics in which Brazil has become a global reference”, commented Shoshana Signer, publisher of Oficina de Textos.
Around 12,6% of the books produced in Brazil in 2008 were translations of foreign works. According to the figures of Câmara Brasileira do Livro, among 6,491 translated titles in 2008, 61% were translated from English, 11,5% from French; 16,3% from Spanish, 6,7% from Italian, and 3% from German. Translations from other languages including Japanese and Chinese did not exceed 1,5%. Tax exception on books introduced in Brazil in 2004 resulted in a price drop of 20% during the last 4 years.

Publishers
Currently and according to the CBL, the major 7 publishing houses in Brazil, taken in random order, are Record, Compania das Letras, Rocco, Planeta, Moderna, Cosac Naify, and Editores Saraiva, the latter of these is also a part of the umbrella company also active in the retail book trade. Accelerating development in the book sector attracted the attention of many multinational publishing companies. Thus, Editora Moderna, a publisher of school textbooks, was acquired by Portuguese Santillana, whilst Spanish Planeta is a player in the country through Editora Planeta do Brazil and Editora Academia de Inteligencia. Following Larousse, Hachette, Pearson, and Harlequi, Penguin have started entering the Brazilian book market through a joint publishing programme with the Sao Paolo based Companhia das Letras.
To sustain their businesses, publishing houses depend either on the Brazilian Government purchases or on private investments; Cosac Naify, for example, roughly increases its investment by 30% per annum. In terms of profitability, several publishers report that usually 6 out 10 books show ‘good sells’.
This is not the case with non-commercial publishers however like Imprensa Oficial de San Paolo, with a publishing list of around 500 books including biographies and coffee table reading – more of a craft than being a bestseller.
With 350 Universities in the country, amazingly there are only 120 University Publishing houses. Amongst those, the only one – Editora UNESP (The Publishing house of the University of Sao Paolo) with some 1200 titles on the backlist and 200 fresh titles published each year mainly in the social sciences and humanities – is commercially viable and successful.
Absence of digital content distributors and virtual warehouse make e-books unpopular in the country not to mention their high price. Nevertheless, experts see room for growth and potential especially for libraries.

Trade
With about 190 million people, Brazil has 2,676 bookstores, which is about 1 book outlet per 71 thousand people (3 thousand in the USA, 9 thousand in Western Europe, 66 thousand in Russia). Unevenly distributed throughout the country, 68% of bookstores are concentrated in the South and Southeast, which results in 1 bookstore per 300 thousand people in some other regions. Thousands of door-to-door sellers bring books especially religious ones and those of self-help into people’s homes. Around 14% of all sales are made through this channel allowing to reach “those, who otherwise would have never come to a book store.”
The oldest Brazilian bookstore chain Siciliano founded in 1928 and its 46 stores was acquired by Livraria Saraiva last year. The acquisition made Saraiva with its own 41 outlets the biggest book chain in the country. In addition to Saraiva, among the bookshops that integrate large national networks are Fnac (Fond National d’Art Contemporain) and Livraria Cultura, with a wide range of international titles and arts books. The retail chains containing assortments that go far beyond books, CDs and DVDs are also active in online business competing with online Submarino. On-line book trade showed a 15% increase last year. The six-store chain Livraria Travessa is well established in Rio de Janeiro confidently Twittering with their customers.
Publishers supply books to stores on consignment conditions, the average return amounts to 30%. Livraria Cultura is said to be among few to actually purchase books from publishers. The trade agreement on the retail book price does not allow the trade to down-price books. French-owned Fnac as well as small independent retail outlets are in a privileged position regarding discounting. Whilst the average discount for the wholesalers is around 55%, discounts in the retail sector amounts to 40%. Traditional book stores, “reporting of [which] death is [obviously] an exaggeration” remain the main channel of cash-flow in the industry.

Some of the professional bodies and press
SNEL – Sindicato Nacional dos Editores de Livros (National Union of Book Publishers) is Rio-based publishers Association promotes Bienal do Livro de Rio de Janeiro.
CBL – Câmara Brasileira do Livro (Brazilian Chamber of Books) is a San Paolo-based publishers’ Association, together with SNEL is an active supporter of an APEX-Brazil project aimed at international promotion of the Brazilian literature. CBL is an organizer of the International Biennial Book Fair in Sao Paolo.
Libre – Liga Brasileira de Editoras (Brazilian League of Publishing Houses) unites 106 small independent publishers. Organizer of the Primavera dos Livros Book Fair.

Resources on Brazilian Book market
www.publishnews.com.br
Monthly Panorama Editorial Magazine with publishing statistics and trends
Weekly Vision prints bestseller list

For those, whose courage has brought them to this point there is a couple of useful links. Those who is interested in in-depth view of the Brazilian book market could browse two sources (have to admit that I have read neither of them myself so far)
1) A book “O livro no Brasil: sua história [The book in Brazil: its history]” by Laurence Hallewell can be found at:
http://revistapesquisa.fapesp.br/?art=2274&bd=3&pg=1&lg=en

2) An article “The book publishing industry in Brazil “ by Robert E. Baensch from NYU published by Publishers Research Quarterly, Springer
http://www.springerlink.com/content/r18g38p416126638/

3) “The Market for Publishers in Brazil” by Tainã Bispo, Jornal Valor Econômico, Avenida Jaguaré 1485, 1° andar, Sao Paulo, CEP 05346-000, Brazil
http://www.springerlink.com/content/x804176342113830/

Question of the day: Will I ever be back?
Joy of the past days: Rio’s become the capital of the summer Olympics 2016

The similarity of book fairs is astonishing and unique. Each fair consist of people passionate about books, especially their own of course. Each fair creates an aura, a halo, around writing, the written word, with authors to the forefront.
All book fairs differ, of course, and they come in different flavours. The fair in London is a trade fair with emphasis on sales, purchase and of copyright negotiation. Frankfurt is the major international book event for it provides insight, and the opportunity to network, promote and purchase translation rights for new issues with emphasis on media, and the general public.
Moscow’s Book Fair is a larger version of a shop window. Publishers use it as an opportunity to showcase their titles and boost sales after the quiet summer period.

Organized by the National Book Publishers Association (SNEL) the 10-day Bienal do Livro de Rio de Janeiro is both a cultural and a colorful event; a 55,000 sq m bookstore, so to speak, aimed at attracting readers of “all ages and profiles”. Big sales are made here. Based on the figures of the last event, Book Fair 2009 awaits 300,000 young readers and an equal number of adult visitors, 71% of whom, as we were told, buy books. People buy around 6 books at an average sale price of US$12.18 (22 R$). The one who is keen on arithmetic can work out the rest.

Brazilian books are a delight to see handle and wonder: colorful, reader – friendly, eye – catching, superb in quality and of impeccable graphic design, simply look at Editoria Cortez books for children or for business, and at books on design and for vocational training (Editora Senac), or for ethnic and non-fiction (Editoria Pallas).
The experience has been a treat and a delight to all that feel the wonder of the written word.

Surprise of a day: number of kids at a Book Fair

Question of a day: With 95% of exhibitors being from the domestic market, the Book Fair is planning to become increasingly international with the laudable attempt to become more professional. What will be the main gain of going international?

Lesson of the day: in what way Caperinia, Caipiroska and Sakeroska differ from each other

Rio de Janeiro remains a focal point for the Russians, featured in the 1930’s and encapsulated in the Russian novel “Golden Bull Calf” as being the city of dreams.
No hesitation was necessary to accept an invite to a press tour to that country; how one could be so dumb, I thought. Become acquainted with the Brazilian Book market, it was said; so I did and I was there. A 5-day event, so rich and so enchanting; meeting countless people, which has taken sometime to absorb and reflect.

After 20 hours in the air and 7 hours time difference, the “Time machine” brought me back to where I should have woken up rather than sleeping, the time when I first read the “Golden Bull Calf”, from the Northern to the Southern hemisphere upside down if you wish, from early autumn into late winter (+25 C, the temperature winters should be to protect our bones and our sanity). Smiling faces greeted us, people jogging along the hotel-ridden beaches and every girl an image of the song “Girl from Ipanema”– ‘dark and lovely, the girl from Ipanema came walking…..’.

Rio, the second largest city in Brazil consists of neighborhoods separated by green plains and areas of Atlantic Forest with their own special architecture, a reflection of the different historic epochs defining the environment with ‘favelas’ bordering some of the cities wealthiest areas. Nicknamed A Cidade Maravilhosa, or “The Marvelous City”, Rio is famous for its natural settings including its landmark Sugar Loaf resembling the Popa mountain in Myanmar, and the Corcovado mountain with statue of Christ, known as Christ the Redeemer (’Cristo Redentor’), or other such words, depending where you live, whose blessing we waited in vain, it was draped in mist.

My first encounter with the Brazilian book industry was at the Leblon branch of Livraria da Travessa – a book chain. A store of roughly 5,000 sq m was packed of books and people. Paulo Freire, born in Recife and one of the countries greatest and most influential educators and thinkers, would have been proud that his education for the masses had come true. However the shop does not seem to employ a witty merchandising tricks. Certainly instant purchase is not expected. Purchase takes time and effort, of a different kind. Don’t tag the book seems their creed, so to find a price one has to place a book barcode against one of the barcode readers scattered around the place. A legal ‘Net book agreement’ (fixed price) is substituted by a trade agreement between Brazilian publishers and bookstores; therefore bookstores are careful about discounting. Books are not cheap to buy even in traditional soft cover. Prices range from R$ 18 – 30 US$ (US$10 – 16) for a children’s browse, R$ 30 – 70 (US$17-38) for fiction, textbooks, and non-fiction books and up to US$100 for books on design and those of artistic bent. Numbers of foreign language and translated titles grouped by geographical regions reflect the taste for diverse reading. Every bookstore has a children’s corner and so should it be, in keeping with educating the young.

Surprise of the day: Assortment of Hitler, Stalin and Roosevelt biographies on display

Question of the day: Why are Rio’s citizens are called Cariocas?
Lesson of the day: Cupim (rump) is a delight to the mouth.