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Chinese TV Shopping Industry Goes Forward against the Tendency under Financial Crisis

www.shcri.com - The TV shopping is a home-delivery sales mode without stores and shops, which conveys the product information through the media, such as TV stations, internet, cell phones and catalogs etc and then receives orders through the cell phones or internet, changing the traditional exchange habits of the commodities and consumption means. People can enjoy the shopping happiness at home, comforting to the living and consumption demands of the modern people.

 

The TV shopping, which narrows down the gap between the consumers and the business, shortened the cycle of the product spread and cut down the spread costs, is the subversion of the traditional sales channels and is a more scientific mode without agency, distributors and sales terminals, making the product marketization simpler and the brand management more unified. The TV shopping, like virtual air supermarket, is another retail revolution after the department stores and storage supermarkets.

 

Compared with other shopping modes, the TV shopping has obvious advantages:

A. Strong advertising effects. For the enterprises side, the TV shopping is not only a kind of marketing means with strong advertising colors and more covering populations after the TV spread, but also the most effective means to increase the product fame and sales.

 

B. Flat sales channels. Compared with the traditional sales channels, the TV shopping is actually the flat sales channel, which cuts down the intermediate steps in the product circulation as much as possible, saves the costs at maximum and lets the consumers enable to buy the commodities at comparative preferential price. The direct sales mode without stores turns down the expenses for stores and promoters and drops the operation costs.

 

C. Comparatively complete programs forms, detailed product introductions, which bring each function and advantage into full play. The effects of the products, regardless of the foods, clothes, ornaments or digital products can be played fully through the TV shopping so as to attract the consumers to buy.

 

D. More product Varieties. The products comforting to the TV shopping conclude the small household appliances, home supplies, clothes, foods, health products, digital products, watches, ornaments, collections and even contain some services, such as tourist and insurance etc. theoretically speaking, the products suitable to sell but not the popular one can be spread through TV shopping.

 

The TV shopping has been the key point for Chinese and foreign famous brands to open up the channels. The personal computer enterprises, such as Lenovo, HP, Sony, Samsung, Founder and ASUS etc, have signed the strategic cooperation with the TV shopping channels like Happy Home Shopping of HNTV, Shanghai CJ TV shopping and Best One Home Shopping Network. Others, such as the cell phone industry, have also already attached to the TV shopping and extend the TV shopping channels.

 

As for the enterprises turning to extend the domestic market with the influences of international financial crisis, it can be said the TV shopping is a comparative good means to open up the market in short time due to the incompletion of its own sales channels and networks. The TV shopping can make an infamous product increase thousands of orders in decades of minutes and let a brand well-known within several days, which is unmatched for the traditional sales modes.

 

Taking the sales of the domestic produced cell phones for example, Chinese domestic cell phone industry suffered from the cold winter from 2008. During that period, the cell phones manufacturers, which had signed with the TV shopping companies, went up against the tendency and achieved marked operation results. The win-win commercial and cooperative mode has made more and more manufacturers in different industries in favor of the cooperative mode with the TV shopping companies, especially during the period of the general economic decline at present, the TV shopping, enabling to go up against the tendency, is even more attractive and vitality.

 

Today, as the high entry and publicity fees have become the heavy burdens for the companies to step into the supermarkets and shopping malls, the low costs, undoubtedly, become the initial element that the TV shopping attracts the manufacturers. For the manufacturers’ side, the TV shopping channel need less construction fees in the early period and the maintenance fees in the late period and they basically need to pay for no extra fees apart from the logistics distribution fee and advertising fees.

 

The TV shopping do not need more labor force and only need to find out the suitable TV shopping channels and choose the suitable products, which narrows down the commercial steps and cuts down the circulation steps.

 

The TV shopping has become the effective means for the medium and small-sized enterprises in China to cope with the international financial crisis increase the market shares and look for breakthrough and business opportunities. Many textile, clothes, kitchen ware and home supply manufacturers and traders have transferred their key point from the oversea market to Chinese domestic market.

 

According to the investigations made by China Research and Intelligence, many medium and small-sized enterprises have taken the TV shopping as the new product sales channel.

 

Of course, the TV shopping is one of the multiple sales channels. For the enterprises side, not all the products are suitable to be publicized in the TV shopping channels. The products comforting to the TV shopping have certain differences and specificity in the daily consumption goods category, but not the chemical raw materials and the mass agricultural products etc.

 

There are one billion populations in 300 million families watch the TV programs in China. Therefore, the TV shopping has broad market and strong potential in China. In 2008, the revenues of Chinese TV shopping industry reached RMB12.8 billion Yuan (1.87 billion USD), accounting for less than 1% of the total retail amounts of 1.8488 trillion Yuan. It is predicted that the revenues of Chinese TV shopping industry can reach 16 billion Yuan in 2009.

 

In China, the TV shopping industry suffered from setbacks in the process of development due to the credit problems and the consumers’ suspect voices never stop. However, the TV shopping enables the domestic medium and small-sized enterprises, especially the export enterprises to go up against tendency and obtain development opportunities under the international financial crisis.  

 

Source: China Research and Intelligence

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