Ringier wants to let mail go
Distribution Swiss Post wants to try its hand at selling press again - and becomes a competitor for Valora.
Distribution Swiss Post wants to try its hand at selling press again - and will become a competitor for Valora Swiss Post did not take the decision to return to press sales on a trial basis from June 13 and, according to a communiqué, to further expand "its traditional role as a partner to publishers" on its own initiative. A test that it had carried out from 1993 to 1998 was not profitable enough for this - "primarily due to the cumbersome processes", as Swiss Post spokesman Richard Pfister emphasizes. Sales, on the other hand, showed "that there was a need on the part of customers." Up to 1000 post offices involved
The new trial, which will initially be limited to 30 post offices and a maximum of 25 newspapers and magazines each, but can be extended to 1,000 offices if successful, therefore required an external impetus. "We at Ringier approached Swiss Post," admits Walter Lütolf, Head of Publishing Services at Ringier. The reason is simple: "Ringier publishes titles that are largely dependent on retail sales. That's why we have to use every possible channel for press sales." Pfister from Swiss Post confirms: "Publishers are looking for new sales channels and Swiss Post is looking for additional sources of income."
Ringier criticism of ValoraWalter Lütolf does not deny that the test with Swiss Post could also be seen indirectly as criticism of the press wholesaler role of retail giant Valora. "As a press wholesaler, Valora is not doing enough to open up new channels for press sales itself." According to Lütolf, however, this would be its "very own task", if only because it is well known that customers' purchasing behavior is changing and press sales at traditional kiosks have been declining for years. Ringier has therefore decided to look for additional distribution channels itself. "We have to sell - with or without Valora. That is our only goal. We are not interested in plaguing Valora."
No comment was available from Valora. "We have decided not to comment on this matter," said the press office. However, there should be no great surprise in the boardrooms, as Ringier CEO Martin Werfeli had already announced last November that his group was striving for "independence from Valora" in the distribution sector. Ringier wanted to break out of the "monopolized situation". The contracts with the press wholesaler were also terminated at the end of 2004.
A piquant fact: in the same breath, Werfeli had explicitly mentioned a second "monopolized situation" that he wanted to break away from: that of Swiss Post. The fact that Ringier and other publishers now want to use this for themselves is not a contradiction in terms. Neither is the cooperation with Valora: the latter is involved in the Alternative Delivery Organization for Magazines (AZO) project, a project which, as is well known, tends to be directed against Swiss Post and its tariffs.
This shows: Publishers, above all Ringier, have found a new way of dealing with the dominant logistics providers. They rely on Valora or Swiss Post when it is to their advantage - otherwise they will throw one or both of them out the door. Lütolf is also aware that the test with Swiss Post could provoke Valora's withdrawal from AZO. But he accepts that. "We're not obliged to share a table and a bed with the same partner and then go on vacation with them," he says.
Better framework conditionsThe question remains as to why press sales via Swiss Post should be more successful today after the failed attempt in the 1990s. Lütolf and Pfister emphasize that at the time the trial was "very complex" in terms of administration for both Swiss Post and the publishers, which is why the cost-benefit ratio was not right for both sides. In addition, Swiss Post now has more efficient processes and has also massively ramped up the convenience area. "Swiss Post is now the largest Swiss paper supplier," says Lütolf. And Pfister adds: "In 2004, the Swiss spent around 50 francs per capita on non-postal items". And something else is different today: Canal poste, Swiss Post's AdScreen service, can be used for promotion at the POS.
It is still unclear which publishers will take part in the post-test with which titles. Lütolf does not know exactly. The selection authority lies with Swiss Post as the product range provider. "We are interested in Swiss Post selecting the best-selling titles so that the trial is successful and can be extended at the end of 2005," says Lütolf. It is fairly certain that Tamedia will also take part in the trial. "You should never close your mind to a test," says Tagi publishing director Maili Wolf. Jean Frey also seems to be interested. This is despite the fact that no margin has yet been negotiated with Swiss Post. "We agree that both sides must first make an upfront investment," says Lütolf. In this respect, a direct comparison with the margin at Valora is not yet possible. Markus Knöpfli
Distribution Swiss Post wants to try its hand at selling press again - and becomes a competitor for Valora.
The new trial, which will initially be limited to 30 post offices and a maximum of 25 newspapers and magazines each, but can be extended to 1,000 offices if successful, therefore required an external impetus. "We at Ringier approached Swiss Post," admits Walter Lütolf, Head of Publishing Services at Ringier. The reason is simple: "Ringier publishes titles that are largely dependent on retail sales. That's why we have to use every possible channel for press sales." Pfister from Swiss Post confirms: "Publishers are looking for new sales channels and Swiss Post is looking for additional sources of income."
Ringier criticism of ValoraWalter Lütolf does not deny that the test with Swiss Post could also be seen indirectly as criticism of the press wholesaler role of retail giant Valora. "As a press wholesaler, Valora is not doing enough to open up new channels for press sales itself." According to Lütolf, however, this would be its "very own task", if only because it is well known that customers' purchasing behavior is changing and press sales at traditional kiosks have been declining for years. Ringier has therefore decided to look for additional distribution channels itself. "We have to sell - with or without Valora. That is our only goal. We are not interested in plaguing Valora."
No comment was available from Valora. "We have decided not to comment on this matter," said the press office. However, there should be no great surprise in the boardrooms, as Ringier CEO Martin Werfeli had already announced last November that his group was striving for "independence from Valora" in the distribution sector. Ringier wanted to break out of the "monopolized situation". The contracts with the press wholesaler were also terminated at the end of 2004.
A piquant fact: in the same breath, Werfeli had explicitly mentioned a second "monopolized situation" that he wanted to break away from: that of Swiss Post. The fact that Ringier and other publishers now want to use this for themselves is not a contradiction in terms. Neither is the cooperation with Valora: the latter is involved in the Alternative Delivery Organization for Magazines (AZO) project, a project which, as is well known, tends to be directed against Swiss Post and its tariffs.
This shows: Publishers, above all Ringier, have found a new way of dealing with the dominant logistics providers. They rely on Valora or Swiss Post when it is to their advantage - otherwise they will throw one or both of them out the door. Lütolf is also aware that the test with Swiss Post could provoke Valora's withdrawal from AZO. But he accepts that. "We're not obliged to share a table and a bed with the same partner and then go on vacation with them," he says.
Better framework conditionsThe question remains as to why press sales via Swiss Post should be more successful today after the failed attempt in the 1990s. Lütolf and Pfister emphasize that at the time the trial was "very complex" in terms of administration for both Swiss Post and the publishers, which is why the cost-benefit ratio was not right for both sides. In addition, Swiss Post now has more efficient processes and has also massively ramped up the convenience area. "Swiss Post is now the largest Swiss paper supplier," says Lütolf. And Pfister adds: "In 2004, the Swiss spent around 50 francs per capita on non-postal items". And something else is different today: Canal poste, Swiss Post's AdScreen service, can be used for promotion at the POS.
It is still unclear which publishers will take part in the post-test with which titles. Lütolf does not know exactly. The selection authority lies with Swiss Post as the product range provider. "We are interested in Swiss Post selecting the best-selling titles so that the trial is successful and can be extended at the end of 2005," says Lütolf. It is fairly certain that Tamedia will also take part in the trial. "You should never close your mind to a test," says Tagi publishing director Maili Wolf. Jean Frey also seems to be interested. This is despite the fact that no margin has yet been negotiated with Swiss Post. "We agree that both sides must first make an upfront investment," says Lütolf. In this respect, a direct comparison with the margin at Valora is not yet possible. Markus Knöpfli
Distribution Swiss Post wants to try its hand at selling press again - and becomes a competitor for Valora.
