trading terms and, perhaps most significantly, broad investment in a large range of books for every reader, from commercial mainstream fiction to specialist niche titles. LIKELY OUTCOME OF THE REMOVAL OF PARALLEL IMPORTATION RESTRICTIONS: REDUCED EFFICIENCY AND ACCESSIBILITY Fewer Australian bookshops will lead to fewer Australian books – less EFFECTIVE and less EFFICIENT Hachette Australia’s view is that, in light of economies of scale, smaller Australian retailers will probably only risk buying the top 10 to 20 Hachette Australia books a year from overseas suppliers. This is because purchase from overseas is highly likely only to be possible on a ‘firm sale’ basis, rather than on the ‘sale or return’ basis that operates between most Australian publishers and bookstores. The top 10 to 20 Hachette Australia books are the cream of its lists, and account for up to 19% of its turnover per year. Losing 19% of turnover a year from the sales of our top titles because large retailers and discount chains can bring in cheap stock from overseas would have a substantial impact on Hachette Australia’s business, particularly insofar as the range of titles it supports. Australian retailers buying books from overseas on a firm sale basis would, in turn, force Hachette Australia to also move to a firm-sale business model. This is because, in an open market, the larger bookselling concerns would quite likely place an initial firm sale order from an overseas wholesaler or publisher and then draw on local ‘sale or return’ stock to top up.
trading terms and, perhaps most significantly, broad investment in a large range of books for every reader, from commercial mainstream fiction to specialist niche titles. LIKELY OUTCOME OF THE REMOVAL OF PARALLEL IMPORTATION RESTRICTIONS: REDUCED EFFICIENCY AND ACCESSIBILITY Fewer Australian bookshops will lead to fewer Australian books – less EFFECTIVE and less EFFICIENT Hachette Australia’s view is that, in light of economies of scale, smaller Australian retailers will probably only risk buying the top 10 to 20 Hachette Australia books a year from overseas suppliers. This is because purchase from overseas is highly likely only to be possible on a ‘firm sale’ basis, rather than on the ‘sale or return’ basis that operates between most Australian publishers and bookstores. The top 10 to 20 Hachette Australia books are the cream of its lists, and account for up to 19% of its turnover per year. Losing 19% of turnover a year from the sales of our top titles because large retailers and discount chains can bring in cheap stock from overseas would have a substantial impact on Hachette Australia’s business, particularly insofar as the range of titles it supports. Australian retailers buying books from overseas on a firm sale basis would, in turn, force Hachette Australia to also move to a firm-sale business model. This is because, in an open market, the larger bookselling concerns would quite likely place an initial firm sale order from an overseas wholesaler or publisher and then draw on local ‘sale or return’ stock to top up.
sub041-intellectual-property.docx