INDEX // mb Ideas on Publishing Books in Canada (and other attempts to write good)

ChaptersIndigo’s Book Community: The First Year

Social networks for booklovers have been in the news lately. The reports seem to suggest Amazon is cornering the market on community sites, but not to be forgotten is Indigo Books’ entry in this space. Indigo’s “Community“, as it is so blandly called, launched last September. I wanted to mark the anniversary by gathering my thoughts on the effort so far.

From an outsider’s perspective it seems like book retailers of all kinds realized — all at once — their existing web platforms were stale. That was 18-24 months ago. Since then we have seen reinvention, reinvestment, and more vigour in web-based book retail from all players.

Amazon, of course, is the juggernaut here. Their strategy seems to extend along two different axis. One, they have been growing their offering. The Amazon mp3 store, Unbox, and the video streaming service are the most audacious examples. But they also did a cute bait and switch with book publishers by enticing content owners to surrender book files to power the search inside feature, then to turn around and use those files to kick start the Kindle program and procure a leg up in the POD sector. At first this expansionist strategy was on the down low but it has received increasing industry attention as Amazon’s moves have become bolder.

None the less, other book retailers simply lack the vision and resources to out-maneuver Bezos on this level. Instead, they have answered by tweaking their websites at the customer interface level. Here, Amazon seems less than innovative. Their strategy seems to be primarily algorithm based. They surface content to the visitor through mechanical means. Net-new content is annexed to a smattering of blogs and podcasts. This works OK but other book retailers’ web efforts really take aim at Amazon’s plodding (I would say boring) customer engagement strategy.

Just this year, Borders broke from Amazon and established its own property. They put content from Borders Media front and centre. They also used Flash technology to approximate the in-store browsing experience with their bookshelf. Their media-rich site is likely the best destination for book readers going right now.

Barnes & Noble’s media programming isn’t as rich as Borders but they are basically riffing on the same strategy.

Even a smaller retailer like McNally Robinson upended their website, choosing to background the ecommerce element and showcase blog content instead.

Which brings me back to Indigo Community. The powers that be at Indigo.ca clearly realized they couldn’t compete with Amazon on new features. They didn’t have the engineering know-how to do so. Like competing with Amazon on discount, adding new features would be a race to the bottom. They also realized they didn’t have deep enough pockets to produce unique rich-media content. The publisher-generated content wouldn’t necessarily improve their search rank, as the web doesn’t reward you for having the same content as other sites. They couldn’t go the way of Borders and B&N.

Instead, they hatched a quasi-blue ocean strategy. Indigo looked at what they had that Amazon didn’t and went from there. Sure they had brick & mortar stores, but their website was already tightly integrated with their instore kiosks. That wasn’t going to help them. But the 5000 or so store employees certainly could.

If they could harness the wisdom of their staff, Indigo could provide that human touch that Amazon’s algorithm couldn’t. I think that insight was brilliant.

Once a customer-facing staff portal was envisioned, it was a short beat to make it a full fledged public community. On that level — as a facebook-for-books — it didn’t strike me as all that brilliant. Goodreads, Shelfari, and LibraryThing already existed. And really, why invent a facebook-for-books when you could just use facebook? But in an Amazon context it worked. Hereunto disenfranchised staff would get an outlet and the whole thing would get bookstrapped.

To be a success Indigo’s booklovers’ community needed to capture the imagination of Indigo/Chapters employees, it needed to have a rich enough feature set (to at least compete with the other book communities), and it needed to be open so that authors and publishers could easily service their content (especially those foreign authors who can’t invest a lot of time in a Canadian site).

A year later, how are they doing?

There is also the everpresent spectre of a backlash. In other online communities you eventually encounter a user uprising (see digg or facebook). How the governing company deals with upset users is always a true test of their mettle. Up until now the indigo book community has been free of PR disasters. It will be interesting to see if Indigo can avoid those minefields while they ratchet things up in preparation for the inevitable surge by Amazon — co-ordinated (or not) amongst their communities.

I am looking forward to year two.


7 Comments

This is a great one-year review. You are right that Indigo’s social community is really nothing new or truly innovative but it does provide as you put it, the human touch and far-reaching community that very few booksellers in Canada can provide.

The other underlying strategy of Indigo’s approach has been to boost their Google ranking against Amazon. That’s a tough objective to strive for but they’ve been encouraging publishers and authors to link and provide content on the community for them. I’m sure it’s working, but whether or not it is enough has yet to be determined.

Posted by Ehren Cheung on 12 September 2008 @ 11am

Hit submit a little too quickly. I wanted to add that Futureshop actually has a great online community developed despite the fact that it is a walled garden. What may actually be beneficial to Indigo in the near future is the Google Book Search engine — of course that will require publishers to co-operate as well.

Posted by Ehren Cheung on 12 September 2008 @ 11am

Search Inside at Indigo is definitely overdue. They have been fussing with their own solution, but GBS would indeed be an amazing way to go.

I haven’t seen the FS community upclose but I am going to stick to my guns on the walled garden thing. People want to be able to take their content with them. Import/export at sites like digg (eventually will allow) and facebook (will likely never allow) is going to be a flash point in the future. Make everyone’s life easier and just get over the proprietary thing.

That goes for Indigo, Future Shop, My.Cineplex.com, or anyone else.
Then again time will tell.
cheers
mb

Posted by Mark on 12 September 2008 @ 11am

The online community is interesting, for sure..

But it’s not what Indigo customers asked for.

Customers wanted to purchase iTunes cards to go along with their store-bought iPods. They’ve been asking for downloadable audio books for years, and are asking more and more every day for ebooks. They want coupons that don’t require a $35 purchase to become valid. They’ve wanted a clearer official explanation about US pricing differences for the last year - and have received lots of soft language and finger pointing. They’ve wanted to know why books are listed as “Temporarily Available To Order,” years after they’ve gone out of print. (A problem since long before the takeover.)

Indigo took a step down a path that many are taking (Future Shop et al), and it’s hardly as innovative as they’re making it out to be. The time, money and effort put into the social networking arm of chapters.indigo.ca could have been invested back into the core site and the sorts of services that customers have been asking for, for quite some time.

Posted by Steven on 12 September 2008 @ 7pm

Steven — I too find it amazing the “Temporarily (un)Available To Order” issue is unresolved. Come to think of it I am kind of amazed they haven’t folded the online division all together.

And to think they almost blocked Amazon from doing business here. By the sounds of it, you seem glad you can shop there.

I have a feeling Indigo will bobble the ebook thing. On one hand I think it is ridiculous that you can’t buy ebooks directly from publishers. On the other hand, I like having a central iTunes-like hub to buy from. Either way it is Indigo’s market to lose. And if they get spanked in the ebook area they may close their ecommerce group for good. Then all the site will be is a social network. It will atrophy and die.

I hope they get into ebooks and downloadable audio. And I hope they innovate more on their core site, but I am not holding my breath.

Thanks for the comment.

Posted by mb on 12 September 2008 @ 7pm

I guess what irks me most is the ignored potential.

Indigo sells Apple products, which are always a hit in every incarnation and model. Certain Apple products are capable of delivering on-demand media over wifi. Including, but not limited to music, audiobooks and ebooks.

Enormous potential for partnership and profits.

As it were, Apple partners with Starbucks for iTunes access and exclusive media. The very same Starbucks that has enormous presence within Indigo stores already. Theoretically, one could buy an iPod touch at a Chapters, cross the floor into the Starbucks, and start downloading the same audiobook they could have bought yards away, while sipping an Americano.

The Indigo Community is nice for what it is: Mostly rich, friendly and insightful. A step in the right direction. But it’s not going to generate the sort of buzz and innovation that will carry the business through the revolution that everyone can plainly see on the horizon.

Posted by Steven on 13 September 2008 @ 9am

I agree. They are definitely leaving money on the table. That might, in fact, be the biggest understatement of week. I have watched Blockbuster over the years, and they knew full well what was coming. Chain book retail is in for the same fate, unless as you point out, they get it together.

Posted by mb on 13 September 2008 @ 10am

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