Non-fiction, journalism, fiction, crime, or thrillers – these are just some of the popular genres that readers all over the world love. For many, reading is a regular ritual and a true pleasure that cannot be replaced by anything else. Today, readers celebrate their holiday, International Book Lovers Day. However, the increasing debt in the book market casts a shadow on this special moment of the year and brings concerns about the condition and future of the national sector and its participants. Especially as, according to data collected in the Register of Debtors BIG InfoMonitor and the BIK credit information database, overdue bookshop debts already amount to PLN 14.4 million. A little more, because PLN 14.5 million is currently owed by book publishers, while the stage is closed by their authors, who have PLN 12.4 million in overdue arrears.
However, an uncertain financial condition of the companies operating in the book market does not mean a sudden decline in interest in books in society. That – as shown by the latest report of the National Library (BN) “The state of book readership in 2023” – we read more and more, although we still have a lot to catch up.
In 2023, 43% of the respondents declared reading at least one book during the twelve months preceding the BN survey, 9% more than in the last two years, and the most in 10 years. The way we relate to reading and how often we reach for books also depends on various factors. As the authors of the report claim, one of the variables is our education. Holders of university degrees, i.e. those aimed at acquiring knowledge corresponding to their professional practice, scored the highest result, 54%. Right behind them are adults, who completed high school (46%). Interestingly, the percentage of readers of at least seven books is highest among people learning and studying and is almost twice as high as in the entire population (15%).
At the same time, according to BN analysis, basic reading is also increasing in relation to the population level of places where we live. Readers of at least one book can most often be found in cities with 200 thousand inhabitants and more (54%), i.e. where retail outlets, libraries, or institutions promoting reading are more accessible. Interestingly, people read the least in small centers from 20 thousand inhabitants (34%), which is worse than in the countryside (41%).
Difficult Battle for SMEs
So, if the role of reading is growing, what is causing the difficult financial situation of Polish bookstores? And which companies, due to their size and scale of operations, are experiencing the most significant crisis? According to Dun & Bradstreet’s data, there were 2.2 thousand companies dealing with retail sales of books in Poland at the end of 2023. Ninety-five percent of them are micro and small businesses, often single-person businesses. “Currently, large chains and online discounts can offer books with huge discounts. Publishers grant them discounts of up to 50% of the cover price, supporting sales through their channels, such as online bookstores. As a result, customers often buy books online cheaper than local booksellers pay for them wholesale. Operating a company under such conditions becomes very difficult,” explains Szymon Szwajger, a former bookseller, and graduate of the Polish Academy of Bookselling.
The difficult situation in the industry is also illustrated by the latest data gathered in BIG InfoMonitor’s Register of Debtors in Poland, where the delinquency rates in the repayment of current bills and invoices in relation to their counterparts, and in the BIK credit information database, which also contains data on unpaid credit obligations on time. From them, it follows that the accumulated debt in the book market has been growing continuously since 2021. ” Currently, at the end of May 2024, the overdue arrears of book retailers amounted to PLN 14.4 million, which means an increase of PLN 2.1 million (17%) compared to the situation from three years ago. Every bookstore today has an average of PLN 82.5 thousand to return. In turn, the percentage of all entrepreneurs from this category, having arrears towards banks and counterparts, remained in recent years at above 4%, whereas currently we have 175 active, suspended or closed companies from the described segment in Poland,” comments Sławomir Grzelczak, president of BIG InfoMonitor.
Publishers’ overdue debt decreases, though the situation is still far from stable
Book publishers are in a slightly different, albeit still worrying, situation. At the end of May 2021, they owed a record PLN 33.3 million, and today their overdue debt balance has decreased by PLN 18.7 million (56%) compared to that period and amounts to PLN 14.5 million. The number of unreliable companies visible in BIG InfoMonitor’s Register of Debtors and the BIK credit information database has also decreased since 2021 – from 288 to 243. “Currently, the average publisher has unsettled receivables of PLN 60 thousand, which means that his debt is by PLN 55.5 thousand less than in the analogous period three years ago. As in the case of bookshops, smaller and specialized enterprises looking for their niche that suppose a better future for themselves in the development of legislation are in the most difficult situation,” adds Sławomir Grzelczak, president of BIG InfoMonitor.
“The market primarily needs systematic support, especially a sensible book law – not only about a uniform price, but also about discounts for distributors, book buybacks by libraries and many other changes that would allow for fair competition. Today, the biggest advantage is for the largest enterprises who are owners of not only publishing houses but also distribution companies, warehouses, or large internet platforms. A small publisher is in an extremely difficult position. Although we are in quite a unique situation, because we have many engaged readers – an average company overwhelms the production costs and high distributor discounts, which can reach at least 50%, which in turn impedes real earning,” convinces Krzysztof Cieślik, editor-in-chief of the publishing house Artrage.
The uncertain situation in the market for books and related products and services is closed by the financial troubles of book authors, among whom we find artists, writers, and independent journalists. According to BIG InfoMonitor and BIK databases, their unpaid obligations on time are growing in recent years at a rate of several dozen percent per annum. In 2021, the debt in this group amounted to PLN 8.9 million, i.e. PLN 3.5 million less than currently (PLN 12.4 million at the end of May 20204). This also means that the average writer today owes his creditors PLN 45.2 thousand – PLN 11.6 thousand more than even three years earlier.
Sources:
“The state of book readership in Poland in 2023” report prepared by the National Library based on a CAPI survey conducted in November 2023, on a sample of 2012 persons aged 15 and over.
Dun & Bradstreet’s analysis of the Polish book market at the end of 2023.
Source: https://ceo.com.pl/rosnace-zadluzenie-na-rynku-ksiazki-rzuca-cien-na-przyszlosc-branzy-30599
