Bharat Book Bureau

Research Report on Chinese TV Shopping Industry, 2010-2011

TV shopping is a non-store sales mode that transmits merchandise information to customers by TV, Internet and telephone, etc., receives orders through telephone or Internet and then delivers goods to the customers. It changes the traditional commodity exchange habit and consumption pattern that have existed for thousands of years. People can enjoy the fun of shopping without leaving their home. This meets the living and consumption demands of modern people.

TV shopping shortens the distance between enterprises and consumers, reduces the marketing period of products and curtails the marketing cost. It overthrows the traditional sales channel. Without agents, distributors and sales terminals, it simplifies the marketization of products and unifies the management of brands. This is a more advanced business model, which signifies a retail revolution following general merchandise markets and stockroom-style supermarkets.

In China, TV shopping has prominent advantages compared with other shopping patterns:
1. Strong advertising effect. For enterprises, TV shopping is not only a kind of marketing mode, but also assumes prominent features of advertisement. After broadcast through television, product advertisements can receive a large number of audiences. Thus, TV shopping is an immediate and effective way to enhance the popularity and sales of products.

2. Flat sales channel. TV shopping is a flat sales channel in contrast to the traditional sales channel. It cuts down the intermediate segments of circulation and saves cost to the greatest extent. Hence, consumers can buy commodities at preferential direct selling prices. This non-store direct sales mode effectively curtails the expenses on stores and promotional personnel, thus reducing the operating cost substantially.

3. Perfect presentation of programs. The detailed introduction covers every function and strong point of products. No matter foods, garments, jewelry or digital products, TV shopping programs can perfectly display them and thereby attract consumers to buy them.

4. Growing product variety. Products suitable for TV shopping include small household appliances, garments & accessories, healthcare foods, digital products, watches & jewelry, collections, automobiles, and even tourism and insurance services. Theoretically, legal products with numerous target consumers can all be sold through TV shopping.

For small and medium enterprises with low popularity and unsound sales channels, TV shopping is a good way for them to enter Chinese retail market in a short period. TV shopping can generate over one thousand sales orders for an unknown product only in a few minutes. It can also make a brand known to all within a few days. All these are prior to traditional sales modes.

The high admission fees and publicity expenses of retail channels like supermarkets and shopping plazas in China become a heavy burden to enterprises. Naturally, the low cost of TV shopping becomes the prior factor to attract manufacturers. TV shopping demands low construction cost in the early period and low maintenance cost in the later period. Besides logistics cost and advertising expense, manufacturers do not need to pay extra charges.

To run the TV shopping business does not demand much labor power. It just needs to find out suitable TV shopping channels and select suitable products. TV shopping manages to shorten the business process and reduce circulation segments.

Nowadays, TV shopping has become an effective method for Chinese small and medium enterprises to withstand the financial crisis, exploit market and search for breakthroughs and business opportunities. Many Chinese manufacturers and traders of textiles, garments, kitchen ware and household articles have transferred their market focus from the overseas to China.

According to the investigation of China Research and Intelligence, many small and medium enterprises in China have taken TV shopping as a new sales channel for their products.

Of course TV shopping is just one of the diverse sales channels of enterprises. Not all products are marketable on TV shopping channels. Currently, products suitable to TV shopping should possess some distinctiveness and differentiation. Besides, they have to be daily consumables instead of chemical raw materials or major farm produces.

Presently, over 300 million families and 1 billion people in China have access to TV programs. The gigantic TV shopping market in China shows great potential. In 2009, the revenue of Chinese TV shopping industry was about CNY 23 billion (USD 3.38 billion), accounting for only 0.18% of the total retail sales (CNY 12.53 trillion or USD 1.84 trillion), far below the proportion of developed countries. Nonetheless, Chinese TV shopping industry maintains high growth rate of annual sales revenue. It is forecast that the revenue of the industry will come to over CNY 100 billion in 2015.

Due to problems of honesty and integrity, Chinese TV shopping industry is confronted with some setbacks during the development. Consumers’ discredit on it has never ceased. Nevertheless, the ideal marketing channel – TV shopping with its special advantages can assist domestic small and medium enterprises, especially those concerning export, in acquiring excellent market opportunities and reviving in spite of the global financial crisis.

The sustaining growth of China’s economy can raise the income and living standard of the Chinese. Accordingly, the scale of Chinese retail market will also enlarge, providing a broad space for the further development of Chinese TV shopping industry.

Through this report, readers can acquire more information:
-Status quo of Chinese TV shopping industry
-Competition in Chinese TV shopping market
-Analysis on major enterprises in Chinese TV shopping industry
-Successful experience in Chinese TV shopping industry
-Analysis on hot products in Chinese TV shopping industry
-Prediction on development tendency of Chinese TV shopping industry
-Analysis on investment opportunities in Chinese TV shopping industry

Following persons are recommended to buy this report:
-TV shopping enterprises
-TV stations
-Retail enterprises
-Investors concerning Chinese non-store retailing industry
-Investors concerning Chinese TV shopping industry
-Research institutes concerning Chinese non-store retailing industry
-Research institutes concerning Chinese TV shopping industry
-Others concerning Chinese TV shopping industry

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