The Hindu Business Line : Parragon Publishing plans co-branded initiative with retailers

New business model
Parragon will publish under the retailer's brand to suit its target audience.
It also plans to set up dedicated counters in mass-market retail chains.

Mumbai , July 4

International publishing major Parragon Publishing is planning to approach modern trade retailers with a new concept whereby it would publish books to suit their customer profiles. The co-branded initiative would have the retailer's name on the books, which would be published on their behalf - a model which has already been emulated by retailers such as Marks & Spencer and Tesco in the UK market.

Speaking to Business Line, Mr Vineet Sharma, Managing Director, Parragon Publishing India, said, "As retailing grows, we intend publishing under the retailer's brand and making products to suit its target audience and creating price points suited to them.''

Dedicated counters

Apart from resorting to the regular trade to distribute its books, the publishing company is planning to set up dedicated counters within the mass-market retail chains. It is also looking at an alternative retail model to vend its books in branded spaces within retail stores. Parragon Publishing has set up a new sales force with an FMCG background to deal with the mass market retailers.

Explains Mr Sharma, "We intend setting up stand-alone counters and various formats are being considered depending on the structure of the retail chains. Instead of putting the books up spine-wise, we would be creating formats based on impulse buys made by consumers." Apart from books, there would also items within its `booksplus' categories and these would include face painting kits and craft packs. Considering the margins and return on investment (RoI) are higher in this model, Parragon is considering striking deals with retailers to try out its new business model.

Eyes corporate tie-ups

Extending its channels to include non-conventional modern-trade retailers, the publishing house wants to graduate from being a `commodity' seller of books. "Currently, we are talking to retailers, especially those who do have expertise in book retailing. We are in the process of forging corporate relationships with such retailers and helping them in creating and leading the category for them,'' says Mr Sharma.

Besides, the publishing company is also looking forward to creating content to suit Indian audiences. This includes subjects based on Indian culture, cookery, arts and architecture. Even Indian editors will get roped in to add to the publishing list of the company. With plans of releasing 250 titles for the Indian market, Parragon Publishing India (a 50:50 joint venture company between the UK-based Parragon Publishing and Mr Vineet Sharma), expects to emerge as a publishing hub for the region in the future.

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