How we consume books has certainly changed. The convenience that E-readers provide us is unmatched. With E-readers such as Amazon's Kindle, we can carry hundreds of books with us anywhere we go. I don't intend to contribute to the debate of E-books and paperbacks, as I don't foresee that any argument, regardless of how sound, will bring an end to the debate of e-books vs. paperbacks. My intent here is to investigate the nuanced claim that local indie bookstores are making a comeback, and that they are here to stay. I want to specifically focus my attention on a niche business plan for a bookstore in Bronx, NY that is utilizing crowdfunding to cover a percent of its start-up costs.
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| I have been looking for you |
Ok. Are local bookstores dying or thriving? Well it depends on how your interpret the numbers. Though there has been a decline in the number of bookstores nationwide, there has actually been an increase of 13% in the membership of the independent bookseller trade group, the American Booksellers Association (Marketwatch). It is also argued that e-books sales have dropped by 2%. However, an article on Fortune argues that even if its true that e-books sales are falling, it is rather an implication that the competitive market for consumers' attention is squeezing books out and other type of content in. So, the overall market for books is shrinking. Since how we consume content has changed drastically, it is only logical for us to stipulate that we will continue in our digital consumption path. Local bookstores may not be dead yet, but they are certainly on life support if our current consumption trend continues.
For bookstores to survive the purge of the books, they need to focus on serving a niche market (offering unique selection or marketing to a specific group). One such potential niche bookstore is TheLitBar.
So far TheLitBar has raised $62,000 on Indiegogo.com, a crowdfunding platform that has recently added a feature that enables entrepreneurs to raise money for their ideas as well as opens investment opportunities to the general public - so now, you too may have a stake in a startup with the potential for big returns. Noëlle is certainly utilizing the groundswell to her advantage here.
TheLitBar is a feel good business plan. A young women notices a problem in her community and wills herself to action. Noëlle plans to create a local community space for events and a niche hangout space while selling books and wine in hopes of transforming Bronx into a lit borough (as in literate). These goals are admirable. However, if we dig a little deeper into TheLitBar plan, we find that the problem definition is flawed, as well as the proposed business solution.
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| Solve the right problem |
It is true there currently is no local bookstore in the Bronx. But this doesn't mean that the people in the Bronx lack access to books. There are local public libraries in the Bronx and about five colleges which I believe welcome the community to use their resources - if that is not the case this may be a problem that is worth addressing. Most of all, each of us, whether we are a Bronx resident or not, has access to a bookstore that is open 24/7, everyday of the year, and that is Amazon.com. At Amazon.com, you can buy books at competitive prices and receive suggestions from reviewers that read the book you are considering and Amazon's algorithm - this is machine-human collaboration at its best. So the problem is not lack of access.
If the problem definition is flawed, the business solution is bound to be as erroneous. Let me try to put it simple: There are no bookstores in my community, I will open a bookstore, but I can't make money from just selling books. Oh, I will also sell wine at over 200% mark-up. Great, does the Bronx really need another establishment that provides liquor, or "soft liquor"?
I don't think so. A space that offers intellectual escape need not serve any substance other than tea and coffee (which I consider holy drinks). I am more concerned about the message this sends to children in the borough. Even if a certain area is reserved for children and teens (KiddieLit), I bet that teens will be tempted by the fancy adult bar made of books and wonder how sweet that class of wine must taste. Let's not propagate the notion that people of color need alcohol to socialize. Let's get lit on books instead of the wine.
As ingenious as the idea of a bookstore serving wine sounds, it will not appeal to the current residents of the Bronx. Bronx's residents have access to multiple libraries, five colleges, and Amazon's bookstores. As for the wine, Bronx has no shortage of liquor stores and bars. Whether TheLitBar will work once the Bronx is fully gentrified and officially becomes the Piano District is another story. TheLitBar does not tackle the bigger problem, that books are going out of style. Once the veil is lifted, and we can see through the sentimental appeal, the clever utilizing of social platforms by the founder, we can conclude that TheLitBar solves a problem, but it is not the (right) problem.
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| I feel smarter with every glass |
Jing, I agree that the lit bar will be offering a unique experience to its customers. However, the selling point of the business is not on the niche experience but rather on the founders argument that lack of a bookstore in a community, regardless of the size is a concern in our highly connected world. A friend argued that not everyone has access to internet, a computer, an e-reader, etc. But the lit bar doesn't offer a solution for this market as well. The library is a better equipped to tackle this problem. The Lit Bar could certainly serve as a community spaces. The founder's hopes of exposing local talent from artists to authors contributes to the community argument. Yet, I argue that the lit bar may be very limited in attaining its aspirations.
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