Boat International and Imagine Publishing have rapidly expanded their international operations. Their managing directors explain the key lessons they learned. Words by Mark Williams.
Sixteen years ago, in the days of the Soviet Union, there were no millionaires in Russia (offcially, at least). Now, according to Forbes magazine, Russia has 60 US dollar billionaires.
What unites many of Russia’s mega-rich is a love of superyachts. These huge luxury vessels, each worth many millions of pounds, have become the must-have modern status symbol. Two years ago, Surrey-headquartered publisher Boat International set up an editorial office in Moscow to serve the reading requirements of this growing market.
“Boat International Russia is the latest addition to our luxury yacht magazine portfolio,” explains Boat International managing director Tony Harris. “It’s targeted at a highly affuent, sophisticated market. The only way to reach the newly wealthy is to speak to them in their own language, which is why the magazine is produced in Moscow by a Russian team.”
Six times a year, the magazine is distributed throughout Russia’s major wealth-creating cities via airport VIP lounges, private jet fxed-base operations and exclusive restaurants and hotels in Moscow and St Petersburg. It is also sold from newsstands in major Russian cities.
Currently, Boat International Russia is the only luxury superyacht magazine with a distribution licence in the Russian Federation. “We were helped by fnding the right partner – a local businessman who knew the market and culture,” Harris reveals.
Formed almost 25 years ago, Boat International is the superyacht industry’s premier global media group. It publishes the world’s leading superyacht magazines (some 1.5 million copies of seven titles are sold in 55 countries each year), supplements and luxury books. It also organises key industry events and provides digital media services to important industry players.
“Our products are targeted to deliver superyacht buyers, sellers and operators to builders, brokers and service companies within the global market,” explains Harris. “As we’ve grown, we’ve launched new national editions in local languages, which has meant opening offices, staffed by local people.”
The Group’s global sales team is based in Kingston, although some national advertising is sold from local offices. Boat International also has offices near Paris (where Mer & Bateau is produced in French) and in Kiel, where Meer & Yachten is published in German. Boat International also has a US bureau. “Each office benefts from economies of scale, because we share resources across the group,” Harris explains.
Harris carried out a management buy-out of Boat International three years ago, setting up an office in Florida soon after. “Boat International USA and Dockwalk are produced from our Fort Lauderdale offices, where we have 14 full-time staff. From here we turn over more than US$6 million a year.
“Finding the right people is vital,” he says. “In Fort Lauderdale – the centre of world superyachting – we looked for an editor and key sales people. Only then did we consider premises. Importantly, our Florida office is within walking distance of many of our customers.”
Setting up in the US was challenging. “There’s so much bureaucracy,” says Harris. “Even simple things such as moving office can take a long time.”
Next year, Boat International plans to launch an Arabic edition, having decided to partner with a Dubai-based publisher rather than set up an office there.
Being active in non-domestic markets affects perception, according to August Equity managing partner Andrew Hartley. “Apart from the incremental proft and cash generated, it can have a signifcant impact on the company’s value. It will also open exit opportunities to overseas acquirers who can, for example, see the potential for using their own networks and resources to increase profts, as well as providing a springboard for cross-selling to the customer base.
“The market intelligence and customer feedback gathered from overseas markets can also provide valuable data to support new product development and to observe emerging customer trends in more advanced markets.”
Another option open to those looking to boost sales overseas is to license their products. One company that has benefited from this strategy is Imagine Publishing. The Bournemouth-based company publishes leading titles that serve the video games, creative, digital photography and entertainment niches.
In the past year, Imagine has signed agreements for more than 30 licensed editions in 12 countries in Europe, the Far East, South America and Africa. “Our clients are publishing companies that recognise the value of our content and want to test new markets in their home territories by using products proven in the UK,” says managing director Damian Butt.
Butt describes licensing as the perfect low-risk, low-cost strategy for both parties. “Our customers get high-quality content that is delivered in an easy-to-translate format at a fraction of the cost of setting up and running their own magazine team,” he stresses. Speed is another issue. A licensed magazine can be brought to market in a matter of weeks.
In addition to boosting its profts, licensing benefts Imagine in other ways. “It lessens our reliance on the UK market,” says Butt. “It has also enabled us to build up an international network of publishers with whom we can share ideas and fnd out what’s happening in overseas markets.”
Finding the right licensees is crucial. “They have to be passionate, but they also have to understand the benefits of
expansion, increased frequency and how to maximise the proftability of the magazines they license. Our most successful licensees understand all these things and use our magazine content to build their own portfolios.”
Another vital step is to safeguard your intellectual property. Butt argues that many companies fail to do this adequately. “The biggest piece of advice I can offer to others is to ensure they control the rights to their intellectual property,” he stresses. “It sounds obvious, I know, but you’d be amazed how few do this suffciently. Without control of your own rights, it’s impossible to earn additional revenue from licensing – due to the untold complications it causes your clients.”
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