By Abe Peck

Even the number of b2b titles in China depends on who’s counting. But whoever’s counting, the sector is important.

“We see great value in b2b titles and take efforts to help them grow,” says Zhang Bohai, former chairman of the China Periodicals Association, noting that b2b has existed in China since at least 1903. Zhang cited seminars, working relationships with b2b publishers’ associations in other countries and sending delegates to international conferences as evidence of support.

Publishers generally recognize 800 to 1,000 titles as b2b out of anywhere from 5,000 to 8,000 overall publications. Government figures from 2004, however, declared 4,984 titles as b2b, though this figure aggregates business, financial (some consumer), industrial, commercial, trade, service and vocational titles.

In 1980, IDG became the first international publisher “on the ground” in China, and its China operation now publishes 20 titles in equity and joint venture arrangements and 22 (many of them consumer) through licensing agreements with international publishers. “We find that the revenue is rising nicely,” notes Pat McGovern, founder and chairman of IDG.

Mirroring historic shifts from macroeconomic planning toward a market economy, about a dozen b2b publishers in China have significant volume in terms of titles and revenue. Founded in 1992, HC International publishes as many as 85 “catalogs” focusing on companies in up to 30 industries, as well as an e-commerce site. Huayin, established in 2000, generates eight magazines in the corrugated carton and packaging sectors from Shanghai and partners with Reed Exhibitions. “The government will also take efforts to encourage b2b publishing in interior parts of the country as is needed by the
development of local economies,” says Zhang.

But governmental content concerns, circulation exaggerations and advertiser pressure exist – as do “soft edit” and ethical breaches – even as readers begin to demand trustworthy content. “They’re very sensitive if you’re reporting on national policy. We don’t touch those subjects,” says McGovern. “We’ve never had any problem with the government asking us not to publish anything, and they’venever said, ‘You shouldn’t have done this.’”

“Compared with consumer titles,” says Zhang, “b2b ones have better chances to establish cooperation with international publishers and enjoy more support from thegovernment.” Still, some sources were reluctant to speak for attribution; others felt that China’s joining the World Trade Organization, the forthcoming Olympics and a proposed Government Release of Information regulation
could well increase transparency.

“B2b has fewer restrictions than consumer,” agrees George Green, president and CEO of Hearst Magazines International. “My belief is that they’re more likely to open than close,’ Green says. “But it’s not something that happens quickly.”

Real opportunity exists online, however, with major e-commerce sites like alibaba.com and the cross-platform global sources.com doing well and vertical sites targeting domestic audiences. The multi-media Soufun and 51job are said to be strong in the real estate and employment categories. Hc360.com is a multimedia publisher, and Ringier is expanding its e-commerce sector, including webinars and fully interactive emagazines. Community sites for specific business
interests may be on the way.

China’s own development provides major opportunity. “There is rapid – as in light-speed – diversification of niches as China’s domestic economy develops,” says Craig Pepples, COO
of Global Sources.

Several hundred million Chinese use cell phones, which may well morph into hand-held computers with broadband. “The delivery of the marketing message to the third screen will be important,” says McGovern, especially given the potential for selling premium services to existing subscribers, compiling demographics and tracing results.

Major governmental investment in clean technology, the rise of retail with the arrival of Wal-Mart and Carrefour, and China becoming a major buyer and assembler of commercial aircraft may lead to publishing, seminar and conference opportunities. Industries with broad supply chains from factory to retailer are ripe for development.

Right now, though, b2b remains what Mike Hay, president of Ringier, calls a “dog fight – only the tough will survive and you need to have scale.” But as Hay adds, “it’s a lot of fun.”

Abe Peck is chair of journalism and cross-media storytelling at the Medill School of Journalism, Northwestern University, Illinois. He has conducted editorial seminars at Peking University and for Shenzhen Press Group, and has also presented to Rayli’s consumer titles.

Source: Magazine World, issue 52, April 2007