Every year there is a presentation in Readmagine focused in one particular market or region which helps the audience to get a more global perspective of the transformations in the publishing world happening in different parts of the world. During Readmagine 24 edition Brazil was chosen as the focus market and this was the second occasion when the big American country was selected.
Marcelo Gioia, Managing Director of Bookwire in Brazil, was in charge of the presentation of this Latin-American landscape. You can watch video with his complete speech and the slides of his presentation.
Here is a summary of Marcelo Gioia’s insights on Brazil market.
- Macro Environment Factors in Brazil
Marcelo Gioia began his presentation by providing a contextual overview of Brazil’s macro environment factors, highlighting the nation’s extreme economic disparities. He referenced the term “Bellinja,” coined by Brazilian economist Edmar Basha, to describe Brazil’s unique socio-economic duality. This term illustrates how Brazil, depending on the perspective, can be compared to both a developed and an underdeveloped country.
Key Points:
– Economic Disparities: Brazil exhibits significant economic inequality, with a Gini Index of 0.52, placing it among the top 20 most unequal countries globally.
– Poverty and Inequality: 20 million Brazilians are at risk of famine, and 39 million lack proper sewage systems.
– Human Development: Brazil ranks 84th in the Human Development Index and 79th in the Education Development Index.
- Brazil’s Economic Strengths
Despite the challenges, Brazil has notable economic strengths:
– Global Economic Position: Brazil is the 9th largest economy and is projected to climb higher in the coming years.
– Agricultural and Commodity Exports: Brazil leads in coffee production (45% of global production), soybean production (54%), and is a top exporter of beef, chicken, and oil.
– Renewable Energy: Brazil’s energy matrix is 75% renewable, positioning it as a potential leader in the net-zero economy.
- Economic Outlook and Inflation Control
Marcelo discussed Brazil’s recent economic momentum:
– Inflation Control: Brazil has managed to control inflation significantly, with current rates between 3% and 4%, a stark contrast to the hyperinflation of the past.
– Trade Balance: Brazil has been breaking records in trade balance since 2014, showing positive trends in both export and import sectors.
– Consumer Confidence: There is a high level of consumer confidence, indicating a positive economic outlook.
Publishing landscape
- Printed Publishing Market in Brazil
Marcelo then shifted focus to the publishing market:
– Decline in Printed Books: The printed book market in Brazil has seen a significant decline, with a 40% decrease in market size from 2006 to 2022. The sales have not kept up with GDP growth, and inflation has exacerbated the situation.
- Digital Publishing Market in Brazil
In contrast to printed books, the digital publishing market shows promising growth:
– Production and Sales: In 2023, 83% of digital production was in eBooks and 17% in audiobooks. Sales reached 12 million units, with a substantial growth in audiobooks, despite starting from a low base.
– Revenue Growth: The digital publishing market grew by 39% in nominal terms and 33% when adjusted for inflation in 2023. This trend highlights a positive trajectory compared to the printed book market.
- Initiatives Transforming the Digital Market
Marcelo outlined several initiatives that are reshaping the digital publishing landscape in Brazil:
3.1. Business to Government Initiatives:
– Government Programs: States like Paraná and São Paulo are integrating digital content into public education, making books accessible to students and citizens.
– Partnerships with Odilo: These programs involve partnerships with companies like Odilo to deliver educational content and create new readers.
3.2. Telco Apps:
– Skello Model: Skello, along with other companies like Exa and Campsoft, provides digital books through telecom bundles. This model has led to significant engagement, with Skello reporting 14 million app installations and billions of minutes of content consumed.
3.3. Virtual Libraries:
– Examples* Initiatives like Arvori and Minha Biblioteca offer comprehensive digital libraries to both high-end and underprivileged schools, aiming to democratize access to educational content.
- Conclusion
Marcelo concluded by emphasizing the necessity of digital formats and new access models to bridge the socio-economic and educational gaps in Brazil. He highlighted the importance of creating new readers to address these disparities and leverage the current economic momentum. The digital market’s growth, driven by innovative initiatives, presents a viable solution to overcoming the challenges faced by the traditional print market.
Marcelo is a book professional with a background in Marketing. He holds a degree in Marketing Administration at ESPM (Superior School of Marketing and Advertising) in São Paulo and a MBA degree at FGV – Getulio Vargas Foundation.
He has worked for a number of publishing houses, in various areas and departments, and since 2009 he has been an evangelist for books in digital formats. He was responsible for the first Brazilian e-reading platform and since 2012 has been acting as Managing Director of Bookwire in Brazil, an aggregator of ebooks, audiobooks and Print on Demand services.
Currently is a participant member of the Innovation & Tech Comittee at CBL – Brazilian Book Chamber.
