Goodbye and Good-riddance Angus & Robertson/Borders!
Thursday, February 17, 2011 at 6:56PM | by
Damian Damjanovski As many of you have probably heard at this point, our own Aussie book retail chain Angus & Robertson has entered administration, merely days after US giant Borders filed for Chapter 11 bankruptcy.
No doubt you'll see a lot of commentary over the next few days about the "future of the publishing industry" who will be the dominant force, what will happen, who will be the big money makers etc... But I'd just like to take a moment to reflect.
There are three major contribution factors to why this has all happened.
Firstly - for over 30 years in this country, the publishing industry has had the Australian consumers by the balls. We've had to pay ludicrous pricing compared to our english-speaking brethren in the US and UK. Our books are not made of some kind of magical paper that has super powers, the ink is not created from crushed unicorn remains nor is it blessed by the pope. Yet again, we pay (sometimes up to 50%) more than everybody else.
Publishers in this country lobby our Federal Government to be able to keep despicable restrictions on retailers importing cheaper stock from overseas, and retailers are stuck selling the only stock available to them at the only price available to them.
Secondly - Amazon.com has now been around 17 years. Think about that for a second, SEVENTEEN years. It's been selling books (with a wider selection and at cheaper prices than most retailers) since the beginning. Angus & Robertson and other Aussie retailers *cough* Dymocks *cough* certainly did look at Amazon's model back in 1997 and go "Hey, you know what, we also have a massive warehouse filled with books, maybe we should let people buy them online!".
In 2003 when music-retailers were starting to feel pressure from iTunes sales and saw plummeting sales, our local book-sellers still didn't say "Hmm... I wonder if this could ever happen to us! Maybe we should start looking into it".
It wasn't until 2006, when Amazon's annual book sales totalled $3.8billion and it had overtaken Borders in Nth American sales for the first time did Dymocks finally decide to launch an online book-selling presence (and for those of you who remember the site will know just how appalling it was from a user experience perspective).
In 2007 Amazon launched it's Kindle e-Reader which allowed for users to download books directly to the device without needing to go to a computer, without having to pay for data, nothing. Just straight on there. It was magical! But did our local retailers go "Hey, they might be onto something?". Again, no. In fact, REDGroup (which owns both Borders and Angus & Robertson here in Aus) only launched their local store for selling electronic books last year! Four years later.
Finally - Back in the "twilight" years of us consumers being recommended a book by our friends, family or colleagues we would have to write it down on a little piece of paper somewhere, and store it in our wallet or pocket and then remember the next time we were in a shopping centre to have a look for it in the local bookstore, if they had it in stock, and it wasn't misplaced or damaged due to the dude handling before you eating a ham sandwich whilst reading the first 20 chapters of the book, then you might look at the price tag, and if you didn't need to re-mortgage your house to buy it, you might just make the purchase.
These days, if somebody is reading a book you like, you can turn it over, pull out your iPhone, open the Amazon app, scan the barcode, and it'll be yours for half the price in a couple of days.
As if a further coffin in the nail of the inevitable death of the local book retailing industry, international retailers such as bookdepository.com not only sell most any book at a cheaper price than locally, but they will also ship for free to Australia. So if you don't need the book this very second, you can just order it for cheap on BookDepository and have it at your doorstep within a week or so. Their customer service is impeccable, their range is vast, and their price is pretty much as low as you can get for a brand new title.
So I for one would like to say: See ya Angus & Robertson! See ya Borders! You both should have seen this coming for nearly two decades. Your board of directors should be banned from ever running a company again. Your failure to respond to changing market conditions, and complete inability to innovate in an industry that was clearly changing was your downfall.
And I hope the Australian publishing industries realises that you can only milk consumers for so long before they just find a cheaper option and the well runs dry.










