Seeking Alpha

Eileen Gu's  Instablog

Eileen Gu
Send Message
Providing industry information, market research, indepth analysis and data from China research and Intelligence. China Research and Intelligence publishes market research reports, industry analytical reports, company reports and industry databases. CRI also provides outsourcing and custom... More
My company:
China Research and Intelligence
My blog:
Marketinfoguide
  • Cri-report Development Course And Defects Of Chinese TV Shopping Industry 0 comments
    May 29, 2012 9:32 PM

    (CRI-report)-TV shopping entered China in 1992. In 1996, the first-generation TV shopping institutions emerged which were represented by ETVs and so on. After that, both the provincial satellite TVs and the local television stations spot the potential business opportunity of TV shopping, and nearly all of them start programs of TV shopping. However, in the pursuit of excessive profits, the whole industry lacks integrity. So in 2000, TV shopping industry fell into the bottle, while it began to overall recover in 2008. In the new-round rapid development period, customers mainly prefer TV shopping products, such as digital products, costumes, household products, electrical equipment, etc.

    In 2009, with a sound development momentum, the market scale of Chinese TV shopping industry reached about CNY 23.4 billion. On Sep. 10, 2009, the State Administration of Radio, Film and Television officially issued Broadcast Management Measures of Radio and TV Advertisements and Notices on Enhancement of TV Shopping Short Ads and Management of Home Shopping Programs of State Administration of Radio, Film and Television synchronously, so as to strengthen the supervision for TV shopping industry. The new management measures begin to be implemented since Jan. 1, 2010.

    In 2010, Chinese TV shopping entered a new time -- the combination of three networks, i.e. the telephone network, television network and Internet. The inter infiltration and compatibility form a unified "big network" across the country. Under such a policy background, TV shopping industry begins a new revolution and enters the interactive DTV shopping times.

    On May, 24, 2011, Hao 24 shopping of Jiangsu declared its plan of developing towards the nation. The "regular army" under the leadership of the State Administration of Radio, Film and Television of Chinese TV shopping industry forms the pattern of tripartite confrontation, and those are separately Happigo of Hunan, OCJ of Shanghai and Hao 24 Shopping of Jiangsu.

    Chinese TV shopping has a huge increase space and potential, with the increase of Chinese retail sum value, TV shopping market will had a rapid growth momentum in the future, becoming one of the significant channels of Chinese domestic demand market.

    However, TV shopping industry has its defects. In the long term, it is with four defects. Firstly, it is the problem of lack of credibility. Misleading promotion has become a popular industrial phenomenon, which is presented by the exaggeration of functions, the endorsement of celebrities, escape of supervision and so on. Secondly, it is the pursuit of excessive profits. Prices of products are much higher than the value of products. It is said that the majority of product prices in TV shopping are 10 times higher than factory prices. Thirdly, the product quality and after-sale services cannot be guaranteed. Fourthly, it is the problem of industrial chaos. In the past three years, a lot of people commit crimes through embezzling data due to the low threshold, disordered employees and lack of industrial rules.

    Because of the careless checking, the exaggerating ad words, the poor after-sale service in the early time and so on, customers have no faith in TV shopping industry seriously. To deal with the problem, Media Shopping Professional Committee of CGCC (China General Chamber of Commerce) proposes several countermeasures. First of all, it gives strict exposure to TV stations and enterprises fishing in troubled water. Illegal products should be disclosed to the media every three months; moreover, it establishes industrial self-discipline testing centers with leading manufacturers of TV shopping industry and the sound quality assurance and service mechanisms. TV shopping manufactures are also recommended to build real stores. Taking the method of the combination between real stores and TV shopping can make customers experience the high quality of products and good services.

    The rapid development of TV shopping industry is restricted by many factors. For example, the positioning of TV shopping is not explicit, whether it is the TV programs or ads is always the focus of disputes. In Aug. 2006, SAIC (the State Administration of Industry and Commerce) and National Broadcasting Board jointly announced that TV shopping ads about the introductions of drugs, medical equipment, breast augmentation, weight loss and so on were stopped.

    More research:www.cri-report.com/219-research-report-o...

Back To Eileen Gu's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.