It sounds like it defies the laws of economics: When you subscribe to a magazine, you must first meet a rigid criteria. The threshold includes 50 million yuan of personal capital and a reputable social status.

What publication can afford to be so choosy in today's era of fierce media competition? The answer: the Robb Report, a 30-year-old American luxury and

lifestyle magazine, which entered the Chinese market in October through a copyright collaboration with the Trendsmag Group.

Claiming to be China's only high-end commodities and lifestyle magazine, Robb Report believes subscription by invitation only is a key way to reach their target audience.

Instead of using Trendsmag Group's existing strong circulation team and network, Robb Report has chosen to establish its own sales network with its own staff. "China does not have a mature circulation channel targeted at only high-end readers," says Jacky Jin, executive officer of Robb Report's Chinese edition.

He explains that it is impossible to put the magazine on newsstands with a price tag of 100 yuan, alongside countless fashion magazines selling at 20 yuan apiece.

Instead, Robb Report collects information on Chinese elites and reaches out to them one by one. In the US, however, the magazine can be subscribed to through a wide database provided by banks, luxury hotels and high-end supermarkets.

China has at least 100,000 people with 100 million yuan in capital and Robb Report's target group is much bigger, Jin says. He is confident the magazine can attract 100,000 subscribers within three years.

Jin has successfully introduced two male magazines for the Trendsmag Group - For Him Magazine (FHM) and Men's Health. FHM, which entered China three years ago, has a circulation of 400,000 copies, similar to many female fashion magazines.

"Materialism at the moment dominates peoples' consumption behavior in China, including rich people," he says. For example, many of the elite use high-end goods to show off their wealth and social status.

A major function for the magazine is to provide a networking platform for its readers. "Our marketing research indicates that wealthy Chinese have a huge demand for meeting potential clients and making friends. Robb Report readers can not only get a quality magazine, but also get to know a group of people who share their social status, values and life views," Jin says.

The magazine holds events like wine tastings, art shows, auctions and networking dinners on a regular basis. But they are kept small. For example, the magazine will hold a dinner for entrepreneurs in Hangzhou, but instead of having several hundred guests, it will invite only 20 who can each bring one guest of equal status.

To serve its function, about half of Robb Report's 28 staff are devoted to public relations, marketing and circulation.

Admitting that circulation alone cannot make the company a profit, Jin eyes the advertising segment. "I expect annual sales revenue of at least 50 million yuan in three years' time. I will break even within one year," he says. By comparison, 3-year-old FHM's annual advertising income is 30 million yuan, and for 14-year-old Marie Claire, advertising income is 100 million yuan.

In the first issue of Robb Report, about 10 to 12 percent of the pages are advertisements from brands like Chanel and Montblanc, and that percentage will grow to 33 percent as the magazine matures, Jin says.

He is confident that Robb Report's audience will appeal to advertisers. The magazine also has a strategy to work with ad buyers to tailor-make ads for its readers.

The Chinese edition of the magazine will more focus on Chinese demand. For example, while the US extensively covers the California wine, the Chinese version will be more focused on French wine, which is regarded as mainstream by wealthy Chinese.

(China Daily 11/12/2007 page6)