Sunday 26 April 2015

India's Home Shopping is Hopping

We have seen the growth story of Indian Organized retail in my previous article. Today we will have a look around the TV home shopping business.
Yes , you have heard it right , many indian's are now spending more time watching TV as they are getting larger phone screens , easy availability of the Hi speed internet , where they can watch many videos as they want. So this starts the shopping habit as the watching the videos of the products online check the specification on the website and order them.

Majority consumer base for the home shopping are increasing due to :
1. Easily availability of the larger screen phones with high speed internet.
2. Increase in the disposable income.
3. Womens order kitchen/household items after watching working of the product live somewhere. There are other products as well like jewellery etc.

This is where the home shopping through comes into picture.We have also seen e-commerce space is always in the headlines but this industry is also seeing tremendous growth , as we see many companies including snapdeal , homeshop18 , naaptol are also entering into tv shopping domain.
They are eyeing the growth in this as well.

We can see the following graph how home tv shopping market size of China has grown over the years.

How it has seen the growth from year 2004 to year 2011, I feel these were the years when chinese economy emerged from bottom to top.

One of the advantage of the home shopping channels for people will be they can see the demonstration instead of just watching the specifications on the websites or the mobile applications , few items like household items , kitchen items , interiors need demonstration and you will definitely order if you see it is demonstrated by your favorite actor or actress. :)

As per the data from financial experss there are also new entrants in this arena Best Deal TV, Bag It Today , Naaptol.

The question here arises who will survive in this home shopping business. Amongst these STAR CJ(NOW SHOP CJ) have around 20 years of operational experience of this type business strategies as Providence equities one of the joint venture partner is looking for IPO in few years.(click here)

Growth for this kind of business in India is tremendous as growth in other countries come somewhere around only 8-9% annually.(click here)

Image Courtesy : Financial Express

Image Courtesy : , , financial express

No comments:

Post a Comment