EBooks: changing the publishing industry, PwC

PwC

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 Buyers of eReaders at present are mostly 

technophile men who do not necessarily 

read a lot. In order to convince avid 

readers of the advantages of buying such 

devices, it will be necessary to emphasize 

the benefits of simple use, which requires

an integrated mobile access and shop 

(as is the case with the Kindle and 

Nook) as well as a light gadget with an 

attractive design. Significant promotion

and consumer education will also be 

necessary, particularly in Germany and 

the Netherlands, where the look and feel 

argument (contrary to the opinion of 

many experts) is more significant among

consumers than in other countries. 

In the United States and Europe, the 

primary goal of device manufacturers 

should be to gain and retain their market 

share because this strategy will strengthen 

their position automatically as the market 

grows. One strategy involves entering into 

agreements with retail chains like Amazon 

did; the online retailer is selling the Kindle 

through Target and Staples. 

Rethink price policy – low price devices with 

a clear reading focus

In addition, device manufacturers will 

have to rethink their price strategy. With 

its wide range of potential uses, the iPad 

is exerting considerable pressure on 

pricing. The performance of eReaders on 

the market can hardly be compared in any 

way with the performance of tablets that 

offer the facility for reading books as one 

of many functions. To avoid sinking into 

insignificance, manufacturers will have to

concede to a clear price reduction for the 

current devices and emphasize the benefits

of eInk technology. Moreover, they will 

have to use specific advertising to convince

their most important target group, namely 

avid readers, of the product’s advantages.