Question 1: What is DirectGroup Bertelsmann?

DirectGroup Bertelsmann is a division of Bertelsmann AG, comprised of a wide range of media clubs, bookstores and Internet activities, publishing and distribution businesses in 16 countries.

DirectGroup's largest country by revenues is France, where it operates two general-interest media clubs, a bookstore chain and an online media shop under the DirectGroup France umbrella. For an overview of our subsidiaries, please go to the Companies page.

DirectGroup's 11,000 employees generated revenues of around €1.55 billion in 2008.

The DirectGroup Board chaired by Fernando Carro is responsible for the company's business.

Question 2: What is DirectGroup Bertelsmann’s strategy?

The DirectGroup pursues a three-pronged strategy:

1. Fundamental overhaul of the Club business models
Given the decline in member numbers in the Western media markets, we firmly believe that the club concept must be opened further. We are working on developing and implementing numerous innovative ideas in this regard.

2. Integration of our multi-channel organisations
DirectGroup companies which sell products to their customers both through the club and through online and offline booksellers will be interconnected more intensively, for better customer retention and higher revenues.

3. Expansion of Direct Sales
DirectGroup knows and understands its customers – and can therefore offer them products that are a good match. These additional offers, outside the traditional range of media, will be stepped up across all DirectGroup companies. For example, in 2008 more than 400,000 DirectGroup customers from nine countries travelled with us. If products go down well with customers and members, we will increasingly offer them to additional customer groups as well.

The task at hand is to implement these changes in an environment of fundamentally changing media usage – in particular with regard to eBooks and social networks.‬

Question 3: What countries does DirectGroup Bertelsmann have operations in?

DirectGroup Bertelsmann is originally a media-club business. Today, the Bertelsmann division operates media clubs, bookstores, online activities, publishers and distribution companies in 16 countries, as follows.

French-speaking countries:
France, Canada (Quebec), Switzerland and Belgium

German-speaking countries:
Germany, Austria, Switzerland

Southern Europe:
Spain, Portugal and Italy

Eastern Europe and other countries:
Ukraine, Russia, Poland, Czech Republic, Slovakia and Australia/New Zealand

Please go to the Companies section for a complete overview of DirectGroup’s countries and businesses.

Question 4: What are DirectGroup’s strengths?

DirectGroup’s expertise is focused in two areas: book expertise, and years of direct-marketing expertise.

1. Book expertise:
   For many years DirectGroup’s publishers and programme planners have been a successful part of the global book community, while also cultivating an optimal network with authors, agents and booksellers in their respective countries. Many international best-selling authors are proud to publish their books with DirectGroup companies – be it through one of our media clubs or publishers.
2. Direct-marketing expertise:
   We’ve known the market, the industry, our customers, and their needs for many decades. And we are in dialogue with them – through our service hotline as well as online and in our hundreds of club stores. In other words, DirectGroup’s media clubs have extensive experience in analysing the wishes and needs of their customers.

On this basis, our companies are increasingly developing new products to offer to their members – and is also increasingly approaching customer groups outside our traditional membership. This has been a great success in the area of travel, for instance: more than 400,000 club members from nine countries have already travelled with us in 2008.

Question 5: DirectGroup is a multi-channel provider. What does this mean?

Multi-channel distribution means that a company reaches its customers on multiple channels. We want to be where our customers are. A good example of this approach is DirectGroup France where our customers can make their purchases either in physical bookstores or the online shop under the Chapitre.com brand, or through the media club France Loisirs.

In this way, DirectGroup aligns itself to the customers’ media and shopping behaviour.

This approach is also economically expedient, because integrating multiple sales channels in media retail makes it possible to increase one’s share of the consumers’ media budget while also realising significant cost advantages.

Question 6: What is the regional breakdown of DirectGroup’s revenues?

DirectGroup doesn't publish regional details of its revenue figures.

Bertelsmann's financial reports are posted here: Bertelsmann AG Business Reports

Question 7: How does a book club work?

Various types of book club exist in the markets where DirectGroup does business.

Basically, members commit to making a certain number of purchases per year. In return, they get very attractive prices through the clubs, along with a specially tailored selection of books and other products.

Question 8: What is DirectGroup doing in response to declining book club member figures?

The DirectGroup is stabilizing and developing its media clubs and pursues a three-pronged strategy:

1. Fundamental overhaul of the Club business models
Given the decline in member numbers in the Western media markets, we firmly believe that the club concept must be opened further. We are working on developing and implementing numerous innovative ideas in this regard.

2. Integration of our multi-channel organisations
DirectGroup companies which sell products to their customers both through the club and through online and offline booksellers will be interconnected more intensively, for better customer retention and higher revenues.

3. Expansion of Direct Sales
DirectGroup knows and understands its customers – and can therefore offer them products that are a good match. These additional offers, outside the traditional range of media, will be stepped up across all DirectGroup companies. For example, in 2008 more than 400,000 DirectGroup customers from nine countries travelled with us. If products go down well with customers and members, we will increasingly offer them to additional customer groups as well.
 

Question 9: What is the connection between DirectGroup and Bertelsmann AG?

DirectGroup is one of Bertelsmann AG's five divisions.

Question 10: What is DirectGroup doing with regard to e-books?

DirectGroup does not have a single centralised approach to e-books, but allows subsidiary companies to choose the right approach for their customers in accordance with market conditions.

However, DirectGroup does promote knowledge sharing on the topic of e-books and coordinates the work of the professionals in the various companies.

Our French bookstore Chapitre.com offers its customers e-books and also e-reader devices. For more information on this offer, please click here: Chapitre.com E-Book

Question 11: What activities does DirectGroup carry out on the Internet?

DirectGroup is a seasoned and successful player in the online sector – from the media club websites, which now contribute a substantial revenue share, to the recently expanded area of online media shops (e.g. BOL.it is Italy's number two online media shop while Chapitre.com is number four in France).

In many of our companies, community and Web 2.0 applications are being added to the existing sites – for instance, by the beginning of 2009 members of the German club had already posted 30,000 customers reviews on www.derclub.de.

Question 12: What do you mean when you talk about direct sales at DirectGroup?

Our traditional book club business is essentially media retail using the sales channel of direct marketing.

DirectGroup’s media clubs in all the countries possess years, and in most cases decades of experience in analyzing the wishes and needs of their customers.

Based on this, our companies are increasingly developing new products that are also sold directly to members – and are also increasingly approaching customer groups beyond the traditional member base.

This has been done very successfully e.g. in the travel business. 400,000 club members in nine countries have traveled with us in 2008 alone.

Question 13: What does decentralisation mean at DirectGroup?

We understand the principle of decentralisation, which has its origins in Bertelsmann’s corporate culture, to mean a management culture characterised by independence in terms of choosing content and doing business: in their countries, our managing directors have extensive autonomy in decision-making, and the same applies to our editorial managers.

This ensures that DirectGroup’s entrepreneurs and publishers can make decisions and act in the best interests of their customers.

You can read more about Bertelsmann’s corporate culture here: bertelsmann.com/responsibility