Category management, Borders's controversial consumer research strategy, is coming to the graphic novel category. And for the first time the bookstore chain has designated a distributor, Client Distribution Services, distributor of such graphic novel publishers as Tokyopop, Marvel, CrossGen and Titan Books, as the lead supplier for the graphic novel category.
Jenie Dahlmann, Borders spokesperson, acknowledged that choosing a distributor as the lead supplier was unusual—it's usually a single publisher—but noted, "CDS brought big and small publishers along and was able to provide expertise on a wide range of graphic novel publishing." CDS executive v-p Steve Black said CDS was picked because "we represent a lot of sales and a lot of different publishers in the category. We see this as a confirmation of the growth and potential for growth of graphic novels." CDS began working in the program in October 2003, said Black, "in a collaborative effort with our publisher clients." Black told PW, "We studied where the category should be in the store; signage, how to merchandise. We looked at everything across the board to get a greater understanding of the viability of the category."
Dahlmann dismissed fears that lead suppliers will pick their own books at the expense of their competitors. "We want companies that are open to the process. We pick lead suppliers that want to better the category, not just their own company." Dahlmann said that there was some concern about having "three or four competitors in the room at one time. But it's been wonderful working with the CDS publishers. There's been no favoritism."
Beginning with its largest categories, Borders has been systematically examining each traditional bookstore category since the program began in 2000. The graphic novel category was next in line, said Dahlmann. "We've been selling graphic novels from early on, but they are a much bigger force in pop culture these days." She explained that the category management process often leads to a change in names (e.g., business is now called business and financial management) and definitions. "Publishing is often focused on the editorial side. We try to understand how consumers use the definition of a category, how they shop and how they use the store." Dahlmann emphasized that "no specific titles or products are mentioned in the plan. It is offered to all the companies selling books in the category."
She also acknowledged that lead suppliers pay a fee to the Partnering Group, an outside consulting firm that Borders uses to provide training about the category management process. However, Dahlmann told PW, "the fees vary. The process has been streamlined over time, and fees are much smaller than they were at the beginning."
