fbpx
InvestSolution 17:06 26 Oct 2023

Ukraine’s book business during war: Ukrainians want to read their own, but Russia may enter the market again

How has the situation in the book market changed, and what is it like now? What are the main challenges publishers and booksellers face in Ukraine, and what is the forecast for the book business? What cause do market players have to be optimistic?

We discussed it with Oleksandra Koval, director of the Ukrainian Book Institute; Yulia Orlova, general director of Vivat publishing house; and Diana Slonchenko, the founder of the art bookstore Misto, which was opened during the war.

What is the problem?

The beginning of war stopped the market at the peak of development

In 2022, the number of book market players who suspended their activities was 40% of the 2021 and 50% of the pre-2019 levels, according to data from the Book Chamber of Ukraine.

книжковий бізнес в Україні

Infographic provided by Oleksandra Koval

The beginning of the war brought a halt to Ukraine's publishing industry at the peak of its development.

In 2021, the Ukrainian government initiated a program allowing Ukrainians who have received two vaccinations against COVID-19 to receive ₴1,000 as an incentive. Many Ukrainians spent this money specifically for the purchase of literature, recalls Yuliia Orlova, the general director of the Vivat publishing house:

"On February 24, 2022, the Vivat staff numbered 120 employees, a third of whom we lost during the first months of the war — they went abroad, where they settled and later found a new job. Not only us, but also other publishing houses faced such a situation." 

Because of the war, professional translators, editors, and illustrators left Ukraine. The industry has lost them, perhaps forever. It was a period of losses: bookstores and warehouses were damaged, bookshelves flooded, printing presses stopped, logistical processes interrupted, and obligations to publishers from retailers frozen.

What is the solution?

An optimistic mood dominates the market

книжковий бізнес в Україні

Many new bookstores and publishing houses have opened recently.

Koval claims that the market, especially on social networks, is dominated by an optimistic mood after the emotional downturn of 2022. New publishing houses are opening, like Bearded Tamarin, The Third Color, One More Page, Kitap Qalesi, apublishing house of Crimean Tatar literature, 333 Publishing House, Gravity, Projector Publishing, and new bookstores: Movie bookstore in the cinema Zhovten, Skovoroda, Plekai (opening soon), Vivat in Kyiv and Kharkiv, Bookstore-cafe Stary Lev in Lviv.

"Among the newly opened stores is the big bookstore Readeat, which caused so many emotions. Let's hope that new book stores will open in the future – and not only in Kyiv or other large cities of Ukraine," says Oleksandra Koval, director of the Ukrainian Book Institute (UBI).

Олександра Коваль

Oleksandra Koval, director of the Ukrainian Book Institute. Photo: UBI

Orlova says the industry began to revive after a few months of full-scale war. Bookstores opened, offering the books printed already during the full-scale war: "Of course, printing was very slow compared to the pre-war period. In May, we received 11 books from the printing house, 10 of which were submitted for printing even before the beginning of the invasion. In April 2022, we prepared only one book for printing, and in May — we already did four. It's not much, but it's something."

Юлія Орлова

Yuliia Orlova, general director of the Vivat publishing house. Photo: Yuliia Orlova's Facebook page

The publishing house Vivat had to quickly rebuild its logistical and publishing processes to look for new warehouses and people. The publishing house's books even traveled around the country: about twenty twenty-ton trucks moved from Kharkiv to Rivne.

книжковий бізнес в Україні

Ukrainians not only missed books but also live communication in bookstores.

Orlova shared with Rubryka that the change of warehouse made their work more manageable for some time, but another problem arose. Vivat kept the books printed by the Kharkiv printing house, which was fully operational in the spring, in a warehouse in Kharkiv. Books printed before the full-scale invasion were stored in a warehouse in Rivne. It turned out that synchronizing the shipment was an even bigger challenge, so the team transported all the books back to Kharkiv. Vivat returned to pre-war sales in August 2022. The publishing house did not stop there, and in early October 2022, opened its first bookstore in Kyiv.

Orlova recalls: "On that day, despite the rain and the threat of rocket fire, so many visitors came that there was almost no space between the bookshelves. We realized that Ukrainians not only missed books but also live communication in a cozy book space, where you can hide from the horrors of war."

In March 2023, the first Vivat bookstore was opened in Ivano-Frankivsk, and in August — a second bookstore in Kharkiv. "That is, in a year and a half of the war, we opened three new bookstores, and we do not plan to stop there," the general director of the publishing house affirms.

Diana Slonchenko, founder of the art bookstore Misto: "It was easy to dare morally"

Meanwhile, Diana Slonchenko, a former flight attendant, made the decision to found her own independent bookstore in Kyiv.

Діана Слонченко

Diana Slonchenko, the founder of the art bookstore Misto. Photo: Diana Slonchenko

"This decision was made as easily as possible given war conditions. As waiting for the best time for anything is a pointless exercise, it was easy to dare morally. It was more difficult to calculate and fit into one's own budget so that it did not require any loans or interventions from third parties," shares Diana Slonchenko, the founder of the art bookstore Misto, which opened in March of 2023.

How does it work?

The role of the law restricting Russian books and translations

The adoption of the law on restrictions of Russian books and translations began to radically change the publishing landscape, Koval says.

книжковий бізнес в Україні

The ban on Russian books prompted Ukrainians to read more in their native language.

Its main provisions are:

  • a complete ban on the import of books from the Russian Federation,
  • the requirement to make new translations only in Ukrainian,
  • restrictions on the publication of works by authors who are citizens of the Russian Federation.

According to the observations of the director of UBI, Ukrainian publishers are actively using this unique opportunity — there is already a noticeable shortage of translators and editors on the market.

книжковий бізнес в Україні

Table about the main points of the law on Amendments to Certain Laws of Ukraine Regarding the Establishment of Restrictions on the Import and Distribution of Publishing Products Concerning the Aggressor State, the Republic of Belarus, the Temporarily Occupied Territory of Ukraine" — provided by the Ukrainian Book Institute.

The share of the book market before the invasion was quite noticeably filled with Russian-language literature, as Slonchenko recalls. After removing this layer, a niche appeared which had to be filled. This was felt by readers and understood by publishers, who became more active in translating modern bestsellers into Ukrainian and republishing classics. 

"What is most gratifying is publishing authors not well known to the general public. At the moment, the situation is such that avid readers can prepare for autumn and winter, full of book novelties," Slonchenko told Rubryka.

книжковий бізнес в Україні

Misto has a wide selection of books catering to any reader's taste. Photo provided by Diana Slonchenko

Yuliia Orlova: "Demand for quality Ukrainian books has grown significantly"

Orlova, general director of the Vivat publishing house, also says that since the beginning of the full-scale invasion, the remnants of Russian-language books have been removed from websites and physical stores.

Ukrainians began to switch to Ukrainian en masse, and as a result, the demand for quality Ukrainian books grew significantly both in Ukraine and abroad, where millions of Ukrainians went, she says. Demand for Ukrainian books has also increased abroad among foreigners who want to learn more about Ukraine.

книжковий бізнес в Україні

Illustrative photo.

Until February 24, 2022, most people believed that Ukrainians and Russians were one "brotherly" people. Therefore, Ukrainian publishing houses faced new tasks: to tell the world the truth about Ukraine and this war through a new Ukrainian book and to establish international delivery and cooperation with modern Ukrainian authors.

Orlova continues: "On the one hand, Ukrainians should get quality literature for self-reflection and development, and on the other hand, modern writers deserve to be heard. Publishing houses are mediators between readers and authors. This is how the trend for books about the war for children and adults was formed. The full-scale war has been going on for over a year and a half, but this trend is still consistently high."

Intensive international contacts

What did the Ukrainian Book Institute do for this?

Koval gives examples of the efforts made by the institution she heads with the help of partners to support the Ukrainian book since the beginning of the war.

During the Books Without Borders campaign, almost 300,000 children's books were printed in Ukrainian in 29 countries and distributed among refugees fleeing the war.

книжковий бізнес в Україні

Illustrative photo.

Koval can roll off a list of successful projects: at the request of UBI, the Federation of European Publishers announced a fundraiser and purchased almost €50,000 worth of Ukrainian books. The charity fund of the Kyiv School of Economics allocated $50,000 for the purchase of books for Olena Zelenska's Ukrainian Bookshelf project. With UBI's assistance, the Goethe Institute started The Suitcase with Books project, purchasing Ukrainian books for German libraries. "We are currently working on the possibility of making it easier for foreign libraries to catalog Ukrainian books, which should facilitate larger purchases."

Koval also emphasizes strong support for Ukrainian publishers from the organizers of the most important international book fairs in Europe. At the first book fair in Bologna after the full-scale invasion, they agreed that Ukraine would receive free stands at these events and that the fairs would not accept Russian participants.

"We took the opportunity and organized collective stands at eight fairs in 2022, and this year, there should be 10 of them," says the director of the Ukrainian Book Institute.

книжковий бізнес в Україні

Illustrative photo.

Koval is convinced that over time, these international contacts will bring Ukrainian publishers to an entirely new level. In her opinion, all this supports the market's growth in general because publishers who have learned something from foreign colleagues bring knowledge and standards to Ukraine, and other publishers gradually adopt them. 

Koval also notes that during the full-scale Russian invasion, the quality of Ukrainian books has increased. "I attribute this primarily to the intensification of international contacts," she says. The quality, which seemed excessive and financially unjustified even during the pandemic, has now become the norm, and the Ukrainian reader, even in the conditions of rising book prices and reduced purchasing power, demands quality publications. "Of course, we would like to see books on the market that are affordable for everyone, and the publishers and booksellers have a say in this."

книжковий бізнес в Україні

Illustrative photo.

This year, within its funding (₴72.4 million), the Ukrainian Book Institute supports:

  • publishing books by Ukrainian authors in Ukraine according to thematic priorities and distributing them to libraries (more than ₴36.3 million has been allocated for this), translations of works of Ukrainian literature into foreign languages (₴23.73 million);
  • participation in international book fairs (₴8.89 million);
  • measures to promote Ukrainian literature and reading and improve publishers' professional qualifications (₴3.45 million).

Does it really work?

What challenges remain for publishers and sellers

Slonchenko, founder of the art bookstore Misto, says that the biggest challenge for any business in Ukraine at the moment is to survive. "This especially applies to businesses unrelated to military products or the retail of essential goods in general. That is why bookstores have not existed in the mono-format of book sales for some time. Now, these are coffee shops, cafes, art spaces, and co-working spaces. Currently, this is a way of keeping clients."

Книгарня

The Misto bookstore is decorated with a mosaic panel with sights of Kyiv. Photo: Diana Slonchenko

At the same time, Slonchenko is convinced people have read and will continue to read. "Another question is which of the players in this field will win a larger share of the audience — chain online stores or independent bookstores. Time will tell," she believes.

книжковий бізнес в Україні

The interior of the Misto bookstore. Photo: Diana Slonchenko

Orlova, general director of the Vivat publishing house, cites the four most significant challenges for the book business. 

  1. Lack of qualified personnel: translators, editors, proofreaders, and designers who went abroad and stayed there indefinitely. This situation slows down the development of the book market because the demand for Ukrainian books is quite high, and the opportunities are limited. This is a threat to the entire book industry.
  2. Non-compliance with the law: Even though Ukraine's president signed a law in June of 2023 prohibiting the import and distribution of books from Russia and Belarus, Russian books can be readily found today in Kharkiv, Kyiv, and even Lviv book markets. Selling counterfeit goods during the war is not only a violation of the law of Ukraine but also support for the aggressor country.
  3. The increase in book prices. Since the beginning of the invasion, books' value has increased by about 60-65%, and will likely continue to grow because the cost of living and services increases, and the hryvnia loses value. "I know how sensitive our readers perceive even a slight increase in book prices. And since books are not essential goods, there is a risk that sales will fall as soon as the purchasing power of Ukrainians decreases again."
  4. Remote work, which always reduces team productivity. It is more challenging to organize and control work processes at a distance. Shelling, lack of sleep, and anxiety exhaust people. Some employees have returned to Kharkiv, but most are scattered around Ukraine and the world. This is a challenge both for the book sphere and for the entire business sphere of Ukraine.

Like Koval, Orlova says that now the players of the Ukrainian book market have a window of opportunity: "Still, we have to understand that it will close quite quickly because Russia will recover. And when it recovers, it will again want to wedge itself into the book market of Ukraine, opening subsidiary companies."

книжковий бізнес в Україні

One of the Kyiv's bookstores.

"From a legal point of view, there are no claims against them, and that is why they are still working and will continue to work and open in the future, capturing the market. Russia will never give up its interests, especially when it comes to such a delicacy," warns the general director of the Vivat publishing house.

What solutions can help the market?

At least 417 book stores operate in Ukraine

With the help of a survey on Facebook, the Ukrainian Book Institute recently counted the number of Ukrainian bookstores.

"We started collecting information about bookstores because the Ukrainian Book Institute is entrusted with the obligation to pay subsidies for rent compensation for subjects of the book trade in stationary bookstores," explains Koval.

книжковий бізнес в Україні

One of the capital's bookstores.

UBI has counted 130 to 160 bookstores through its own efforts, but it has faced criticism because it had never before collected information on the number of publishing houses, bookstores, or printers in Ukraine. Such a register is maintained by the State Committee for Television and Radio Broadcasting of Ukraine, which, however, does not update it. Social networks helped, however.

книжковий бізнес в Україні

Illustrative photo.

"This survey showed me the great interest and solidarity of the readers, their interest in joining and helping. I would like to take this opportunity to thank everyone who sent us bookstore addresses. Now, it is important to show the same shift and direct more people to these bookstores. Then, the market indicators will improve. Thanks to all the good people, we have 417 bookstores on our list. Probably, several dozen more will be added," Koval told Rubryka.

книжковий бізнес в Україні

Illustrative photo from a Kyiv bookstore.

In her opinion, one shouldn't judge whether it's a lot or a little; good, or bad: "We have what we have. When I see this number, the first thing I ask myself is: why were two thirds of this number not tempted by the opportunity to receive a state subsidy?"

Koval speculates that book store owners see their revenue as sufficient and would prefer government funds be directed to the Armed Forces. Another possibility is that they trade and will trade in Russian publications, and plan to find ways to circumvent the restrictions by importing Russian books from other countries.

"I also ask myself – although I do not question the need to help bookstores develop their business – 'are subsidies for rent compensation really the most effective way not only to support but also to develop the bookstore network and, as a result, increase turnover in the book market?'" Koval told Rubryka. "Perhaps institutional support grants for booksellers and printers, like COVID-19 grants for publishers, would be more effective? Or subsidies or state grants for opening new bookstores, especially in cities where they do not exist and will not exist in the near future?"

книжковий бізнес в Україні

Illustrative photo.

What are the prospects?

The book business and civil society will develop

Orlova is positive about the development of the book market in Ukraine.

книжковий бізнес в Україні

Illustrative photo.

She has her reasons. Next year, the state will allocate ₴466 million to support the activities of the Ukrainian Book Institute. It's not a lot of money,  but in 2022, it received no financial aid at all. Therefore, even such a small amount is a welcome development for the industry.

New players appear on the market, introducing other work approaches, rules, and behavior. Healthy and fair competition is always an opportunity to go beyond the usual.

During more than a year and a half of full-scale war in Ukraine, some publishing houses stopped working, and some publishing houses closed their shops. Instead, new publishing houses, book spaces, Telegram channels, YouTube channels, reading clubs, and communities appeared. People go into the book business and invest money and resources, and this means that people believe in the development and growth of the industry.

According to Orlova, it is not only about popularizing Ukrainian books and reading but about forming a civil society — an even smarter and more conscious one, capable of critical thinking and freely expressing its opinion.

книжковий бізнес в Україні

Illustrative photo.

For its part, Vivat plans to open several new bookstores next year and publish 400 books, which is 1.5 books every day!

"I can't find a single negative in the fact that the readership is constantly growing!" says Slonchenko. "The book is no longer a source of knowledge, but rather a source of pleasure. A moment alone with yourself. The moment of disconnection from online. A moment of observation of another world and heroes. The moment of being in another reality. It seems that it is a good proposition for the modern world."

Photo: Mykola Tymchenko

1665

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Leave a Reply

Spelling error report

The following text will be sent to our editors: