Bookstore aims to explore numerous options and educate consumers on e-books

Steve Jobs believes he can reinvent the book industry through the iPad, the long-awaited Apple tablet, which was launched on Jan 27. Aside from a host of functions which allow users to view movies, maps and pictures, the tablet also has the iBook application that enables users to download books by publishers including Pearson plc’s Penguin, News Corp’s HarperCollins and CBS Corp’s Simon & Schuster Macmillan.

If Jobs is to be believed, technology is the way forward. MPH Bookstores chief operations officer Donald Kee agrees.
According to him, MPH had been paying close attention to e-readers and e-books, and now the local retailer has begun to sell e-readers. On Dec 14, the Hanlin e-Reader V5, which retails at RM1,299, was made available at selected MPH outlets throughout the country and its online website, mphonline.

The price might seem high but Kee said that it was comparable to the prices of mobile phones and it would be a good investment due to its high storage capability and mobility.

MPH selected the Hanlin e-reader due to its usability across all platforms. Kee said that readers can download e-books from different sources, in different languages as well as read them on different platforms such as epub, mobipocket and pdf. The open source format e-reader has an e-Ink screen, which looks like paper and doesn’t strain the eye, storage capability of around 2,000 books and battery life of up to 7,000 pages. 

There are already a few e-readers in the market. Apart from Amazon.com’s Kindle 2, there’s Sony’s Reader and US book retailer Barnes and Noble’s Nook which is sold out until February. Although available in the US, Europe, Australia and certain Asian countries such as Taiwan, Hong Kong, Japan, India and Thailand, these devices are not yet available in Malaysia. 

Kee said that each device has its own attractiveness and unique selling point and it is up to the customers to choose.

“Nevertheless, we feel that the features offered by Hanlin are as competitive as the rest, the only thing is, the brand is still new to Malaysia. (It is) well known in Australia as ecoreader, in China and the UK as Bebook,” he added.

As at Jan 27, MPH has sold 60% of the first batch of 100 Hanlin e-readers it has brought in. As it is still new to e-readers, MPH has not set a sales target for the devices.

“Our main aim now is to establish ourselves quickly in this new initiative, explore as many options as possible — in terms of e-reader brands in the market (currently negotiating with a few other parties) and to educate the consumer on the benefits of e-books,” said Kee.

At the moment, customers who purchase the e-reader would be able to download free e-books, which are mostly classics, at mphonline.com. MPH has been in discussion with a supplier, which it said has one of the largest collections of e-books.

“We are now going through the legal aspects of the partnership and should be able to roll out by end of first half or beginning of second half (of this year),” Kee said in an interview on Dec 16.

Looking at the low e-book prices offered by Amazon.com, publishers are worried they wouldn’t be able to generate enough revenue to pay the authors, and some are concerned that it would even mean the end of hardcover books, Kee explained.

The authors would still get the payment for the copyright but publishers would still need to pay the cost of operations, manpower and so on.

He said that at the moment, the price of the e-books to be sold by MPH will be based on the recommended price of the supplier, which is mostly similar to the recommended price of physical books but MPH would have regular promotions to give value to the customers.

“Even when buying online, consumers will not buy if they see the same price, unless you cannot find the book in the bookshop. That’s why our business proposition for our online store is a little different. We offer a lot of discounts. For example, you get 30% off for all the bestsellers,” he added.

As the first book retailer in the country to launch the e-reader, MPH has lined up events to create awareness on the device.
“We have demo sets here. We are also going to do a lot of events to promote this to people who come here and have our promoters talk to consumers. We will also promote this through our social-networking sites,” he said.

The book retailer has not ignored its brick-and-mortar store and recently used technology to enhance customer experience by upgrading its mega outlets in 1 Utama, Mid Valley Megamall and Sunway Pyramid.

The e-book is going to change the entire book industry but according to Kee, Malaysia has an advantage in that brick-and-mortar stores and e-books can exist alongside each other. However, a balance needs to be attained between the two.

“Let’s say you have 100 stores, what are you going to do if people aren’t buying physical books?” he said.  “If you are too focused on the brick-and-mortar business, which is retail and physical, then I think it’s dangerous because eventually when e-books catch on, you’ll be stuck.”



This article appeared on the Media & Advertising page, The Edge Financial Daily, Feb 9, 2010.