GNS, the major stationery wholesaler used by newsagents on the eastern seaboard, has advised newsXpress that it is banned from exhibiting at the annual GNS trade shows in Melbourne, Sydney and Brisbane this year.
GNS controls the Newspower marketing group and says that it has banned newsXpress because it competes with Newspower. This is despite many newsXpress newsagents sourcing stationery from GNS, myself included. I am a shareholder in GNS as are many newsagents. Acquiring shares, or units as they were known, was part of the requirement for opening an account.
newsXpress has exhibited at the GNS trade show in Brisbane for five years and Victoria and New South Wales for two.
This decision by the Board of GNS demonstrates that key stakeholders in the newsagency channel do not understand the importance of competition. It will not help the broader newsagency cause when it lobbies government on competition related matters.
Banning newsXpress could be seen by some as an indication of fear among GNS Board members about the success of newsXpress over Newspower. In reality, these marketing groups serve different constituencies. newsXpress will only ever be a boutique marketing group with no more than 250 members. With 110 members today, it is a long way off the 1,000+ members of Newspower. That difference alone makes the decision by the Board of GNS even more curious.
I will continue to purchase stationery from GNS and support its seasonal marketing activities – despite this unfortunate and ignorant snub.
Another stupid decision by GNS.
In the supermarket/convenience industry the major trade show is the IGA Distribution Expo. IGA Distribution owns the main warehouses for independant supermarkets, they also control the IGA marketing group. It is essentially GNS and Newspower in another industry.
IGA Distribution allow the Foodworks marketing group, the main competitior to the IGA marketing group, to hold significant presence at their annual expo. These two groups are in far greater competition than Newspower and NewsXpress, yet IGA happily let them exhibit at their largest event. It is disheartening that the GNS board not longer takes the same position.
I am tired of the misguided management at GNS. They need one hell of a change in direction … and they need some new people on the Board of Directors.
Unbelievable! What is going on with this industry? Firstly VANA, our Newsagency State Association is banned because of E-VANA (if that was the real reason); now NewsExpress?
Competition is good for the industry, it keeps us on our toes and highlights the importance of service.
I did not agree with the decision by GNS to ban VANA from attending the Trade Fair, as i know many other newsagents support my thinking. Hence, i know that i and many others will not be attending the Fair. (which suppliers should be concerned about)
I also strongly disagree with GNS not supporting NewsExpress from attending, it reeks of conflict of interest. (Newspower) GNS is great for the industry as long as it remembers why it is still viable, newsagents.
If it was me running GNS, it would make me work 10 times harder to ensure my business is the best it can be to compete with competition, thus reatain market share, not just close ranks. I don’t understand the current management decision making process thay are going through. I will still support GNS and order stock from them, but i think they need to take a step back and re-think their policies.
Nelson,
You are right – GNS can do what they like as it is their show. However, they are owned by newsagents and claim to be open as well as encouraging competition.
As for the czar comment, you know this matter is different to the magazine issue.
Mark.
PS. There is progress of sorts on the magazine czar issue.
Jarryd and Vaughan,
One only has to look at the efforts by Newspower over the last year to see the value of competition for newsagents. Newspower has lifted their game considerably – primarily because of newsXpress. This is good for newsagents. Locking newsXpress out only demonstrates weakness.
mark
Locking newsXpress out only demonstrates weakness.
I beg to differ – this isn’t weakness, this is paranoia at its worst.
There is something terribly wrong with Good News for Some as reflected in this decision to exclude newsXpress from this year’s show.
Sure it’s their decision Nelson but I think they have forgotten (or ignored) who they are are, who they represent and who makes them viable.
This industry needs GNS and it needs it to be strong, viable and supportive – not condescending, dictatorial and playing favourites.
Whilst GNS is not the industry, it is in a position through it’s buying power and fair pricing to its members to put this industry into an unassailable position in the stationery business but with this decision has once again demonstrated why this won’t happen.