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China TV Shopping Industry Business Model and Investment Risk Analysis Report, 2013-2017

China TV Shopping Industry Business Model and Investment Risk Analysis Report, 2013-2017

Last Update:2014-04-20

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Proportion of TV shopping sales revenue to total social retail sales is 8%-12% in the TV-shopping well developed countries like America and Korea. However the proportion in China is less than 1%. And TV shopping is different from area to area in China. In Taiwan more than 4% televiewers will spend 3 hours or more in watching TV shopping program while the overall mainland televiewers will spend only 1 minute in watching TV shopping program in their 3-hour-a-day TV watching time. In Taiwan 50% of the televiewers who watch the TV shopping program will become TV shopping customers while it is only 10% in mainland.

Such data reflects either the development of domestic TV shopping is quite tough or the great market potential for China TV shopping industry. Take the development of the TV shopping program—happigo as an example, it established in March, 2006 and now covers 19 provinces and more than 300 cities. It turns to be the widest covering shopping program. For its branch,, annual growth rate is more than 100% and revenue is about 100 million Yuan.

Current these years, continuous heat of commercial real estate directly increases the store cost of sales end-entity. And channel construction cost turns to be the major business cost. With the perfection of logistic, payment and legal system, non-store retailing will be the mainstream in the future. Non-store retailing has become a focal point in the State Retailing “Twelfth Five Years” Plan. As a major method of non-store shopping, it attracts highly attention of central and local governments.

In the meantime, it is the key moment for the TV shopping industry to change the development model. It was released in November, 2011 that the 4-year-accumulated loss before tax of Seven Star Shopping was nearly 1 billion HK Dollar. The successful image bankrupt of Seven Star Shopping drops a hint that the traditional TV direct marketing advertising model is a sunset one in TV shopping industry. In contrast, the establishment of professional family shopping programs like Home Shopping, Eastern CJ and Happigo reflects the well development of family shopping model which is based on TV program and broadcasting & TV background. The family shopping model becomes the mainstream of TV shopping industry.

Product structure is the key for the TV shopping to change the development model. The first core factor is commodities popularization. In the Korean TV shopping proportion of rice sales volume to total sales volume is 10% while in Taiwan the fresh-water crab is the most popular TV shopping goods. Different from "conceptual products” in traditional TV direct marketing, brand products which have been accepted through traditional marketing channels are much more popular. The second core factor is category differentiation. For example, the Home Shopping focuses on household goods. Its positioning is “special price for household goods everyday”. In this way it efficiently breaks through the homogenization of TV shopping industry and gains acceptation from customers. The commodities popularization and category differentiation are the direct signs to discriminate the TV shopping program to other shopping program.

View from the market development potential, due to the authority and easy contact of the TV media consumption potential is stronger in third and fourth tier cities than in first and second tier cities. Along with the sunset of TV direct marketing adverting model and development of professional family shopping program model, the TV shopping industry is developing towards a more regulated and professional direction.

Here, we’d like to express our sincere gratitude to National Bureau of Statistics of China, International Information Institute, National Institute of the Ministry of Commerce, National Tsing Hua University Library, Institute of Market Economy of the State Council Development Research Center, and Beijing Qinghua Forward Market Research Center, etc. Thank you so much!

Notice: all the market data, especially the corporation list data in this report is only for business reference. Please don’t take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!


Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of TV Shopping Industry

China TV Shopping Industry Report" related reports »

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