As Barnes & Noble prepares to launch its Nook e-reader in the UK, we look at the implications and ask whether it can compete with Amazon’s Kindle
Why are we talking about this now?
US bookseller Barnes & Noble is to strike partnerships with UK retailers to launch its e-readers, the Nook Simple Touch and the Nook Simple Touch with GlowLight, and open an associated online store - Nook.co.uk.
How big is the e-book market?
Last year Amazon reported Kindle ebook sales had overtaken its sales of physical books for the first time. In 2011 e-book sales in the UK rocketed 366%, while physical sales fell by 7%, according to Publishers Association data.
How has the Nook fared in the US against the Kindle?
The Nook, in which Microsoft invested $300m in May, is the Kindle’s closest rival and accounts for 30% of the US e-book market. Vital to its success is the device’s presence in Barnes & Noble’s 691 standalone stores and 647 shops in colleges and universities, which offer staff assistance and advice on titles. Last year Barnes & Noble’s sales of Nook devices in the US surged 45% to $933m.
What are the implications of the Nook e-reader’s UK launch?
Amazon dominates the e-books market but there is some competition. WHSmith, for instance, sells the Kobo device.
Planet Retail analyst Lisa Byfield-Green says the Nook is “a very good product” but observes: “The Nook’s chances of success are dubious as it is so late to the UK market they might have missed the opportunity. The Kindle has such a large market share and loyal following. Amazon has sold a lot of Kindles. Even if people are looking to get a new [e-reader], why would they switch platforms when they can’t read already purchased titles on other devices.”
Which UK retailers should Barnes & Noble link up with?
Waterstones would have been a good partner thinks Byfield-Green, but has already agreed a deal with Amazon to sell Kindles.
She says: “Getting into places like Waterstones, depending on the exclusivity of the Amazon deal, and John Lewis is vital for Barnes & Noble as the device needs to be in those types of places, where its customer are going to be.
“Its Microsoft partnership may help get the Nook into technology stores. Barnes & Noble could also partner with large grocery stores, though the benefit in the US is [it] being in large book stores, with expert help on hand.”
Byfield-Green says Barnes & Noble needs to increase brand awareness of the Nook because it is little known internationally. If Barnes & Noble can develop a store presence for the device, as it has in the US, by finding the right UK retail partner, it might just an impact in the UK.
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