How should newsagents react to the online challenge?

While every major newspaper and magazine supplier to Australian newsagents has, over the last year, invested significant sums in online businesses, newsagents have not made any similar investment. While some have developed websites to enhance customer service, none has sought new revenue streams online. In my own case we have started Inkfast to sell ink and toner online. But we’re not a typical newsagency since we have the resources on my IT company behind us. (Inkfast is now 7 months old and selling more ink and toner in a week than my retail store sells in all stationery in a month.)

Publishers are buying online business to extend the reach of their brands. I’m convinced newsagents must do the same. More interest in traditional newspaper and magazine content and lottery product will be satisfied online and this poses a considerable threat to the traffic which has been central to the performance of newsagencies over the years.

While some newsagents are successfully diversifying at the store level, the channel itself is not and I see this as a significant branding problem for all who trade under the shingle of newsagent.

I’m involved in an online start-up (more on that another time) which will actively partner with newsagents but even that will not go far enough in gaining for them a sufficiently viable connect with consumers who live online such that it replaces revenue they will lose elsewhere.

Companies like Fairfax, News Corp, PBL and Pacific are doing what they must do and I have no qualms with their online push. It is that too many newsagents remain oblivious to this which concerns me. Their associations need to educate and advise yet they remain silent.