Behind the Cosmo empire

An interview with George J. Green, president of Hearst Magazines International

(PRWEB) January 23, 2004 --Drawing on the success of Hearst's flagship title, Arif Durrani talks to the illustrious leader about what it takes to become the world's most successful international publisher

"Welcome to New York. Please come in, come in -- thanks for finding the time." On the 42nd floor of his mid-Manhattan office, George Green, president and ceo of Hearst Magazines International (HMI), is in a typically sociable mood. Since HMI's inauguration in September 1989, Green has built an international reputation for being one of the most amiable and emotive men in publishing. But, with 135 editions of 12 titles, published in 48 countries -- distributed in more than 100 -- and written in 30 different languages, it is his capacious knowledge of magazine markets and cross-border publishing for which he is known best.

HMI celebrates its 15th birthday in 2004, while The Hearst Corporation has been publishing abroad since William Randolph Hearst bought two British magazines, Pall Mall and Nash, in 1910. These early acquisitions made Hearst the first American company to publish magazines outside the US.

Today, Hearst's publications are published through a mix of wholly-owned subsidiaries, joint ventures, and licensing arrangements. Despite intense competition, a global advertising recession and a poor economic climate, HMI saw an upturn in results in 2003, and recorded significant gains in both advertising and circulation. The secret, says Green, is in choosing the right partners and being prepared to take the necessary risks.

Entering a market
With a portfolio of world-renowned money-spinners, including: Harpers BAZAAR (18 editions), Good Housekeeping (14 editions), Seventeen (15 editions), Popular Mechanics (12 editions), Esquire (10 editions) several editions of CosmoGIRL!, Redbook, House Beautiful and Country Living and, the queen herself, Cosmopolitan (49 editions), Green could be forgiven for being blasé about the requirements needed before entering a new market. But nothing could be further from the truth.

"Before you do anything else, you need to have three solid levels of understanding. Ask yourself what you bring to the market, what the market brings to you, and what you have to do to make the two work together to produce a profit", says Green. Obvious stuff? Perhaps. But a quick glance at the growing list of domestic giants that have become overseas failures suggests publishers, often blinded by talk of ready markets and winning formulas, continue to overlook such basics. Green warns: "I think a lot of publishers in the past, and to some extent to this day, have allowed their size, money and track record to push them toward believing if it works in their home country, it'll work the same way anywhere.

"Big mistake. I don't care how big you are. I don't care how many places you publish. I don't care how many successful titles you have. The one thing you'll never have is the visceral attachment that can only come from growing up there. Which is why our strategy has always been very clear: We publish with partners. We don't publish until we find the right partner. It's that simple."

Finding a partner
As a specialist for Stanford University's publishing courses, and welcome speaker at conference podia around the world, there is one piece of advice Green always reserves for top billing: Finding the right partner.

"Your partner is key", he tells me. "You need someone you can communicate with, who knows the market, and you can trust. A good partnership is like a marriage. This is particularly true when your partnership crosses time zones, continents and cultures. It demands a lot of give and take. We don't dictate to our partners, and we don't just hand over our magazines and say 'go have fun', either. We make sure they are aware of a brand's core value. Of course it's a system that combines outlines of black and shades of grey. We believe in what works. And we'll do what works even if it means bending the rules or setting precedents."

To illustrate his point Green cites the differences between the international editions of Cosmopolitan, "because each is written and edited in the voice and ways of a particular country". Despite this, they all continue to reflect the Cosmo core value. "It's all about her", he explains: "Her love life, her clothes, her problems, her job, her well-being. The differences between national editions just reflect how these values are played out in each market." Such understanding has led to Cosmopolitan Thailand retaining a massive 90% of the US edition editorial, "after our local partner convinced me that this is what the Thai women wanted." More than six years on, and the successful decision still proves to be an astute one, meanwhile other editions continue to thrive solely on local content.

Taking the risk
No amount of understanding or partnership expertise can ever eliminate all the risks surrounding a magazine launch. And showing confidence that befits the head of one of the world's largest and most revered publishers, Green voices his frustrations at what he views as, "the total unwillingness to take the necessary responsibility in some executives today". Growing increasingly passionate in a series of lucid statements, Green provides an excellent insight into what still makes him get up in the morning.

"Look, there are no guarantees. If you're not willing to take chances in publishing you're in the wrong business. Whether sitting here or travelling the world, I'm looking for reasons to publish. I don't want reasons not to do something." This enthusiasm and hunger has paid off handsomely in the case of HMI. Green continues: "Yes, of course mistakes have been made -- but I promise you this, if you point to any period of our expansion there will always be at least 10, 15 if not 20 successes surrounding every single mistake. Risks, sure -- but let's remember what we do."

It becomes apparent that the dynamic visionary is dubious about the value of extensive research, viewing it more as a crutch and at best a side issue. "Often research just confuses the issue, and almost certainly slows you down," he says. "When I need a general overview of a marketplace I'll buy a review from The Economist."

With an average of four new editions of Cosmopolitan launched each year since 1997 (not to mention sister title CosmoGIRL!) the ability to enter markets quickly is a characteristic trait of HMI, and something Green points to when accounting for HMI's success. "We've done magazines in 30 days before, [CosmoGIRL, Turkey -- May 2000] and to launch within 40 to 50 days after making the decision really is no big deal," he says, adding: "I've never seen a first issue that didn't change anyway, so what's the difference if it happens before the first one, on issue 5 or with issue 10? It is more important to be fast on your feet and to change with your consumer needs.

Many people can purport to be experts, but ultimately its always best to find out for yourself. Take our Cosmopolitan launches in Latvia [March 2002] and Lithuania [April 1998] for example -- any research would only have discouraged us from going into the markets. Today both are going very well for us. And when we entered Russia 10 years ago [May 1994] it was at a time when their concept of a brand was non-existent. It's hard to imagine today, but I remember walking into shops and just seeing shelves of unmarked cans and boxes. If I'd consulted an analyst he would have called us crazy."

The future
Since achieving near optimum exposure in the mature markets of the UK, Australia, France, Germany and Japan during the 70s and 80s, Cosmopolitan's expansion over the last decade has revolved around forays into emerging markets: Turkey (1992), the Czech Republic (1994), Argentina and India (1996), Indonesia (1997), China (1998), Ukraine (1999), Korea (2000), Slovenia (2001), Latvia (2002) and Israel (2003). And with a Bulgarian-language version scheduled for March 2004, the journey is set to continue. Says Green: Central and Eastern Europe, together with East Asia, will remain important growth areas for us throughout 2004."

That the pioneering achievements of HMI have helped redefine boundaries for magazines is undeniable. Providing inspiration and motivation the world over, the company has led publishing's overseas revolution ever since its inception. In a recent candid interview in MediaWeek, Lord Heseltine, chairman of Haymarket Publishing, the UK's largest private magazine publisher, admitted to basing much of the company's international activity -- currently comprising of consumer, b2b and customer titles published in 23 languages and accounting for 25% of overall annual revenues -- down to the successful globalisation he first saw with Cosmopolitan.

At the close of 2003 -- the year of the 'lost advertising recovery -- every edition of Cosmo is reportedly running in the black. A quite remarkable feat. And if Green's enthusiasm is anything to go by, the expansion can only continue.    
    
email: arif@fipp.com

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George Green received the Henry Johnson Fisher for significant and long-standing contributions to the publishing industry in 1998. In 1999 he received The ACE International Publishing Personality of the Year Award.

Under Greens leadership HMI has been presented with the International Press Directorys award for Best International Major Publisher and Best International Publishing Brand.

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Cosmopoltian - The queen of mags
COSMOPOLITAN: First launched in the US in 1886, there are now 49 international editions. It is the biggest-selling (bought) women's title on the planet, with more than 34 million readers.
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