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| Summary: New Media - New Prospects |
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Delegates then enjoyed a lunch generously sponsored by LKW Walter, perhaps lightening the mood in advance of an afternoon conference session that looked at high-performance forest-products businesses, growth in free daily newspapers, success at an on-line-plus-printing venture and positive initiatives such as the Print Sells campaign and other promising prospects.
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The afternoon session was kicked off by Friedrich Huber from Accenture, who looked at high-performance businesses in the paper industry.The company has identified more than 500 high-performing businesses in 36 industries, all of which display 5 traits, no matter which industry they belong to.These traits are Consistency (reliable and predictable performance), Profitability (higher ROI than expected), Positioning for the Future (increasing and accelerating market value), Growth (simply turnover) and Longevity (continued performance over industry eras and lifecycles). In the forest products industry, Accenture has analysed 36 businesses, and the high performers include Aracruz, Votorantim, Portucel, CMPC, SCA Hygiene and Kimberly-Clark. He then gave delegates an overview of how high-performing businesses distinguish themselves from their peers.
Huber was followed onto the stage by Professor Piet Bakker, who took a look at paid and free daily newspapers. Circulation of paid newspapers in a group of 21 countries with available data has been falling gradually on average for years, he noted, with every new generation reading less. However, while various media do change, they almost never disappear, he pointed out. Changes have included switching to tabloid format (which can bring short-term gains, but are uncertain to do so in the longer term), redesigns to cheap or lite newspapers, local and extra sections and Sunday editions, but according to research in the Netherlands, the main successes in circulation have come from flexible subscription structures and e-subscriptions. Free papers have also been growing rapidly, he explained, and in several countries, free newspapers now have a larger share of the market than paid newspapers. However, it now appears that growth in circulation of free newspapers may be peaking, he pointed out, although there is still good growth in South America and South Africa, and possible prospects for growth in Germany, China, India, Japan and more in South Africa. Free newspapers have had success in terms of circulation, advertising and profits, but he noted that this has been at the expense of paid newspapers to a certain extent.
From one generally upbeat story in the paper and related sectors to another, Mr Bakker was followed by Bert Driessen, who gave an exposé of his company, VistaPrint, an e-commerce-based supplier of printed paper- and card-based products. Having started in e-commerce in 2000, the company has seen growth of more than +50% per annum, Driessen explained, by bringing long-run, low-cost economics to short-run print jobs for the SOHO (Small Office Home Office) market. One of the key points is that the designs of the printed products are customisable by the customer, but according to standardised criteria for the printing equipment, and comparable products are automatically aggregated into production lots. The standardisation also applies to the types of paper used, as the company uses only a limited range of papers with low weight-to-stiffness/thickness ratios, sourced globally, to achieve price reductions from suppliers that can nevertheless guarantee frequent deliveries.
Ending the first day of the conference, Hans Sohlström, UPM´s Executive Vice President, Marketing, gave a presentation on Paper Initiatives. He noted that paper demand growth per point of GDP growth is gradually declining globally, and is becoming negative in the most mature markets. There are encouraging signs, though, he pointed out, citing the Chinese print market, which is developing rapidly, as well as growing, new and developing end-uses in the magazine and newspaper sectors. However, he echoed some earlier speakers by underlining that in today´s fast-changing media landscape, paper-based media are facing a challenge, which is why the sector needs to take action, he urged. He then presented the Euro 5 million Print Sells campaign, which will give a powerful message to advertising decision makers in 13 countries: Print. Your brand in their hands. By joining forces to take this action, all of the value chain will benefit, he argued - a sentiment much appreciated by the audience.
That more upbeat afternoon led into a wonderful evening, with Mondi Business Paper hosting a Cocktail and Dinner at the spectacular Palais Ferstel. The chefs dazzled the delegates, and their creations were accompanied by Germany´s entertainment Act of the Year and a highly-talented and versatile band that played everything from old jazz classics to Eastern European folk tunes to Cyndi Lauper. In a witty and moving speech during the Dinner, Frank Leerkotte handed over the Chairmanship of PRIMA after four years to Emanuele Bona, Director General of Cepiprint.
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Friedrich Huber
Prof. Piet Bakker
Bert Driessen
Hans Sohlstroem
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