Research Report on China TV Shopping Market, 2009

The TV shopping is a marketing dissemination pattern which requires the television station, the merchants and the consumer’s interactions. The direct broadcasting shopping pattern is now becoming the mainstream of Chinese TV shopping and demonstrating the conformity indication of media, retail trade and the circulation of materials, meanwhile, it has tremendous impulse to Chinese other retail trade patterns. In 1995, the TV shopping program was first broadcasted by Beijing, Shanghai, Guangzhou and Shenzhen television stations. The new, wonderful, special commodities and the brand-new sales idea had won a lot of IN consumers overnight. After 2000, due to the traditional pattern gradually lost the charm towards clients, the TV direct selling had been experiencing its downhill path for a while. At the end of 2000, the number of TV shopping companies was sharply declined from over one thousand to only two or three hundred and the professional gross income also shrank from 20 billion RMB to 4 billion RMB.

Starting from 2003, some shopping channels geared up in local television stations to rally their forces after this defeat. New shopping channel is just a medium trader, and differing from previously commodity through TV direct selling. What’s more, owing to its bases upon broadcasting group, shopping channel enjoys the strong brand and customer’s prestige, therefore, its development potential is quite powerful. Shanghai OCJ, Hunan Happigo and Zhejiang Haoyigou are the top-notch who swim with the new TV shopping tide. All in all, the new direct broadcasting shopping has its own distinguished characteristics:

1. Shopping channelization. The former TV shopping occupied the TV station’s non-prime time, taking advantages of each channel’s edge spell to broadcast direct selling information; the new direct broadcasting shopping adopts the whole channel or hypothesized channel to run TV shopping business, concentrating in the professional channel, broadcasting at large-scale time, which forms a constant stimulation to the consumer’s senses of hearing and vision, hence has brought very high sales volume.

2. TV direct broadcasting liability. One’s consumption impulse plays an important role in his shopping behavior; the TV direct broadcasting would greatly stimulate the consumption impulse. Since the beginning of broadcasting, “Happigo” has been adopted the internationally popular sales way—TV direct broadcast, selling commodity with 8 hours’ direct broadcasting every day. TV shopping direct broadcasting displays audio-visual sales statistics, intense visual shock, appealing sound and the immediate interaction effects, in which the former TV shopping is deficient.

3. Direct selling liability. The product goes directly from the supplier to the consumer, omits the middle links, thus the circulation of materials has been provided with efficiency enhancement. Opposite to traditional medium trader (e.g. supermarket), it has reduced approach fees and so forth, the nonessential costs.

4. Chain liability. The chain-like management marketing pattern takes TV media of Pan-Chinese certain developed cities as chief circuits, with the unified commodity purchase, the unified call orders, and the unified service standard assemblies and deliveries, enables the scale to be the profit. For instance, “Happigo” has already covered the entire Hunan Province. It is without peradventure that once you chose the direct broadcasting shopping means you are to success. There are several tips to turn such attraction into purchasing power: As you should choose appropriate best seller. Not all commodities are suitable to this kind of pattern, the product which appears onto the screen ought to be those are novel, unusual and highly-technical ones, or those seem simple at first sight but actually require complex operation and explanation. And we also need a wise linkman, and all the TV shopping program has a linkman who explains the product’s information and introduction, apart from introducing, they should give free rein to expense appeal ability, arouse consumer’s purchase desire; Tips also include the conformity of multimedia, TV shopping can transform the on-line shopping, the mail-order, such channels of distribution into the net of TV shopping, making a bigger cake corporately.

In consideration of the fact that Chinese television has high popular rate and high viewing ratio, and the consumer trusts the national television broadcast station, we may foresee, the TV shopping will be more and more popular, and the business opportunity will emerge unceasingly.

This report is carefully and painstakingly presented by China Research and Intelligence. The report not only introduces the TV shopping’s development course, development patterns, merits and demerits in global and China, but also analyzes the successful enterprises, products and medias in Chinese TV shopping market systematically. And it also provides the solution scheme of TV shopping, elaborates the existing opportunities for investment in TV shopping profession, and puts forward the development proposal. The report is highly worthwhile towards those TV shopping Industry operators and potential investors to understand the profession’s present situation and the development tendency hence grasp the market opportunity.

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