The signs are promising that Jimmy Lai's first venture in Taiwan
may be spared the fate which has befallen so many foreign titles that
have tried to land in the country.
The market, which has buried a host of foreign titles, has allocated a
special place in Taipei's newsstands and convenience stores for the Hong
Kong media tycoon's Next magazine.
Sales clerks have given it pride of place, stacking it next to the cash
register. Part of the reason is due to its size. Next is too small to
sit in the racks with its like-themed competitors - gossip veterans such
as China Times Weekly, TVBS Weekly, Scoop and Dujya Baodao. But the
sensationalist Next is also too outre to fit either among the like-sized
but mainstream titles such as Cita Bella, Nong Nong and GQ Taiwan.
For now, its place near the cash register is assured, considering that
the May 31 launch issue reportedly sold all 275,000 copies in eight
hours, making it Taiwan's largest-circulating magazine. That roughly
equalled the combined circulation of its main rivals, China Times
Weekly, TVBS Weekly and Scoop. None are audited, but each is believed to
sell between 80,000 and 100,000 copies.
By any measure, it was a stunning launch, but what fuelled it? More
importantly, can Next sustain sales, even reach ad targets, at a time
when the Taiwanese economy has hit a rough patch? Next editor-in-chief
Peir Woei pins its launch success squarely on its content.
The launch issue had Taiwan's first family on its cover, with much of
the attention focused on President Chen Shuibian's daughter. "We wrote
about her feelings, her past romances, and we profiled her current
boyfriend by interviewing his former girlfriends."
Another example? The story about United Bamboo, a triad
organisation.
"Usually the triads are reported second-hand, but we sent reporters to
their meeting." The photo spread bears this out. Perplexed yet
malevolent faces glare at the camera.
Such fare would be watered-down whisky by Western tabloid standards.
Yet this is heady paparazzi stuff in Taipei, where the press is usually
deferential when it comes to society's high and mighty.
Its racy approach is potentially Next's key strength in attracting
readers, but there's a danger it could have the opposite effect on
advertisers.
As media went to press, it emerged that the Taiwan Advertisers'
Association had circulated a memo advising its members not to advertise
in Next. The memo cites the magazine's tabloid approach and the
potential privacy threat it poses.
The view that Next's controversial approach could be counter-productive
when it comes to attracting advertisers was backed up by K F Lee, chief
executive officer of Carat United Media Services Taiwan: "Here the media
are very friendly to big corporations, but Next is saying it doesn't
care who has placed ads," he says. "It could be risky for them."
Next's sales director, Wilson Chou, confirmed that a number of
advertisers had also taken a wait-and-see approach. Next had targetted
100 ad pages for the launch, but only managed 83. Its pages boasted
quality advertisers - Apple Computer, Nokia, Aetna Insurance, Mercedes
Benz, Ralph Lauren, and SK-II.
New titles in Taiwan frequently give space away for free, especially
given the wobbly state of the economy. George Shen, managing director of
CIA, says: "Offering free space is a common practice here for new
media.
The cable TV channels, TVBS and JET, gave spots to premium advertisers
for free when they started up. That practice lasted half a year." Chou,
however, insisted that no free ads were given away. He said the company
had developed several packages such as a half-year nine-plus-six
package, in which advertisers receive six free ads for nine paid, but
have to sign a contract and pay.
Another obstacle Next faced was pricing. It was entering the market as
an unknown with a megalomaniac circulation goal. Chou's solution was to
lower costs. "We couldn't guarantee any numbers, so we priced at 1.2
times the cost of a page in China Times, and that is cheap considering
that our circulation is so much larger."
Next is now aiming to repeat the success it achieved with its launch
issue each week. In fact, those are the direct orders of NextMedia
publisher Andrew Chow, who oversees the parent title in Hong Kong as
well as its Taiwan offspring. His first year goal for Taiwan is a
circulation of 250,000 to 300,000 copies, including 100,000 in
subscription sales. He also expects ad revenue of NTdollars 500 to
dollars 600 million (USdollars 14.5 to dollars 17.4 million). The
numbers work out just about right, when compared to the NTdollars 1.8
billion in advertising - 20 per cent of the island's NTdollars 7.9
billion magazine market - currently commanded by Next's gossip
rivals.
Taiwan is a graveyard of foreign titles that have come and gone. And
it's not the best of times to launch a magazine.
Next's success may have been fuelled more by curiosity in Jimmy Lai's
latest venture and by the inspired advertising campaign by Saatchi &
Saatchi (media, June 8) than by the magazine itself.
The real issue will be whether Next still enjoys pride of place in
stores six months from now, or whether it eventually finds itself
relegated to the low-traffic shelves.
