67 WALL STREET, New York - December 27, 2013 - The Wall Street Transcript has just published its Entertainment, Toys and Games Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Brick-And-Mortar Versus Online Retail Sales - Cautious Consumer Spending - International Paid Television Growth - Digital Advertisement Trends - Mobile Device Gaming Prospects - Toy Company Competition - Publishing Demand - Competition in Publishing
Companies include: Educational Development Corp. (EDUC)
In the following excerpt from the Entertainment, Toys and Games Report, the CEO of a small children's book publisher discusses his strategy for growing his business:
TWST: What are the growth areas that you're focusing on?
Mr. White: The publishing industry is struggling right now in the fact that Amazon seems to be taking over the world, and so we made a decision almost two years ago to discontinue sales to Amazon because it was hurting all of our business. It was hurting our retail stores, as they were becoming showrooms to scan the barcode into a smartphone and order it someplace else - consequently we've had a lot of bookstores go out of business. Recently one of our preferred dealers in Mill Valley, California, said she couldn't compete anymore and wouldn't be a showroom for Amazon.
It also hurts our home business in the fact that customers attend a home party and could, with their smartphones, Google it and find it a little bit cheaper on Amazon. So we just discontinued the sales to Amazon.
What's happened interestingly enough is in the past 20 months, we've totally replaced the 20% of business - $2 million - that used to come from Amazon, because of the support from our retail accounts. In October, we recorded the largest month in our history in the publishing division, and we did it without Amazon, so we're pretty happy about that.
We think the Home Business Division, now that we're more supportive of them and they're not being undercut in price, can have growth, and actually we have just recorded five consecutive months of growth over the same period last year in that division.
TWST: Do you think this retail-focused strategy and not selling to Amazon is sustainable over time given the increased demand from consumers for e-books and purchasing books online?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.