’In five years’ time, we want to rank number one in the British children’s book market, be up among the top five in Australia and grow in the USA. That is our goal,’ states Rob McMenemy, regional manager for Kids Media’s Englishspeaking countries. The division intends to reach its goal by securing the best rights on the market, expanding geographically and creating economies of scale.

At the moment Egmont UK sits solidly on the British book throne while Hardie Grant Egmont also numbers among the heavyweights in Australia. Egmont has set a more modest goal in the USA. However, this modesty should not be confused with lack of ambition, but seen as a more realistic approach for a relatively small publishing company, only one-year-old, in a gigantic market.

‘We have skilled employees who constantly acquire new titles and strive to expand the business, but it’s hard work, especially because we entered the US market in the middle of the recession, when consumers were very cautious. Our market entry also coincided with the digital era, which was in full swing at the time. Everyone was fixated on digitalisation, and print books were in low demand. But it is a huge market – the world’s largest. The children’s book market alone is worth three billion dollars, so there is more than plenty of potential!’ smiles Rob McMenemy.

Acquisitions, partnerships and networks create growth
All three business arms are aiming at growth – no easy task in today’s print publishing market. However, strong publishing rights lead to good economy, and the slogan ‘united we stand’ applies equally here.

Employees in the three English-speaking countries share information about authors and agents via a relatively new network called the English Language Network, and they work together on rights acquisitions when necessary. The greater the market access and the larger the portfolio, the greater the chance of getting the best rights. The network has operated for almost a year and fostered the acquisition of 13 titles for all three English-speaking businesses. The German publisher Egmont Verlagsgesellschaften recently joined the network project.   

So what is the wisest tactic for capturing new markets? Entering partnerships or trying to do it alone? Company acquisitions?

‘When your company moves into a new market, a joint venture can lessen your risk somewhat and you also gain the other company’s experience – their knowledge, market position and expertise in the market concerned. You have to look at the conditions in the new market. We are currently examining the potential for geographic growth, and have discussed the possibility of collaborating with a number of players in the market, if this fits with our business. But it’s too early to say anything about where and when,’ says Rob McMenemy.

‘Our future challenge in the case of printed books is that they are in mature markets that grow only slowly, if at all, which makes it more difficult to boost income. However, we can generate income by drawing on our cost-effectiveness ability and focusing on the economies of scale – “Bigger scale equals better prices”. And by growing geographically,’ says Rob McMenemy.