More funds promised for Shanghai's bookshops

People relax at the Momi Cafe Bookstore outlet in Xintiandi yesterday. — Zhang Suoqing

Shanghai government will this year provide additional financial support for bookstores in a bid to help them compete against online retailers and digital media, officials said yesterday.

While the exact amount has yet to be decided, the focus will be on stores located near schools, and within local communities and commercial centers, said Xin Yu, director of the release management division at the Shanghai Press and Publication Administration.

"Lots of people enjoy going to bookstores because of the ambience, though they tend to do their buying online because it's cheaper," Xin said.

"But as long as there is demand, we believe there is a good reason for physical bookstores to stay."

Over the past two years, the administration has allocated 23.5 million yuan (US$3.8 million) to supporting the city's bookshops, after almost 700 outlets closed down between 2008 and 2011. Similarly, the central government last year exempted all bricks-and-mortar bookstores from paying value added tax until 2017.

According to Xin, the problem is that with the massive change in the way people buy and consume books these days, bookstore owners must become more entrepreneurial and explore new ways to generate revenue.

"The funding is intended only as a way to help bookstores that are in trouble find new ways to survive," he said.

"The government can't help them forever."

Shanghai has about 8,000 physical bookstores and many of them are struggling to survive in a climate of rising rents and labor costs, and a never-ending price war with their online competitors.

Specialist stores

A good example is the independent Lu Ming Bookstore, which opened in 1997 close to Fudan University, but slowly faded under growing economic pressures and eventually went out of business. Thankfully, under a deal with the university, the store known for specializing in academic titles and once a gathering place for scholars reopened last month on Guoquan Road.