Taiwan cooperative established by indie booksellers

2015-01-05

A Taiwan independent bookstore cooperative was officially launched Dec. 29 in Taipei City, providing small retailers with a viable platform for competing with larger brick and mortar rivals and e-commerce giants.

Comprising more than 40 members, Taiwan Friendly Book Suppliers Cooperative emerged in May following an industry conference staged by the Ministry of Culture. Each member has invested a minimum of NT$10,000 (US$333), with NT$2.5 million collected to date.

Cooperative initiator Edward Su, who runs NTHU Books at Hsinchu City-based National Tsing Hua University, said the owners of small bookshops had tried to implement a similar initiative in 2009 but failed due to lack of members and funding. “This time we have adopted the business model employed by farmers’ cooperatives and expect better results.”

According to Su, online retailers sell books at a discount of 21 percent or more. “In contrast, indie bookstores are forced to stock titles at 70 percent of the recommended retail and face massive hurdles in placing orders due to low volume.”

Su said the cooperative aims to level the playing field by securing a 40 percent discount from publishers and selling to members at 30 percent off. The difference will be channeled into building a collaborative management and supply chain featuring cooperative-run digital platforms, shipment fees and storage facilities, he added.

These efforts are already paying dividends, Su said, with 30-plus publishing houses voicing support for the cooperative’s principles. “At the end of the day, publishers, distributors and bookstores all want the same thing: to protect and foster the habit of book reading.”

Cooperative Chairman Dennis Chan, owner of River Books in Tamsui, urged all players in the publishing sector to create a win-win-win situation for bookstores, distributors and consumers.

Echoing Chan’s remarks, Locus Publishing Co. founder Rex How said small bookstores nowadays are different in that they bring local elements and distinctive lifestyles into their operations. “They can also encourage readers to research their purchases online but shop offline.”

Taiwan Association for Independent Bookshop Culture Chairman Chen Lung-hao, who runs Tonsan Bookstore, shares How’s sentiments and said indie sellers enjoy a key advantage over bigger players in that their businesses are highly flexible.

“Many of them have already forged niche markets by selling coffee, local produce or cultural and creative items,” he said. “Some of the stores even appeared in dramas and documentaries, becoming Taiwan tourist attractions in their own right.”

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=225845&ctNode=445)