Q&A: Research Report on Chinese TV Shopping Industry, 2010-2011

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18 Mar 2011

Research Report on Chinese television Shopping Industry, 2010-2011

Research Report on Chinese television Shopping Industry, 2010-2011


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Home Page > Business > Business Opportunities > Research Report on Chinese television Shopping Industry, 2010-2011

Research Report on Chinese television Shopping Industry, 2010-2011

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Posted: Oct 11, 2010 |Comments: 0
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www.shcri.com – television shopping is a non-store income mode that transmits merchandise information to customers by TV, World wide web and telephone, etc., receives orders through telephone or World wide web and then delivers goods to the customers. It changes the traditional commodity exchange usage 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 income channel. Without agents, distributors and income 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, television shopping has prominent advantages compared with other shopping patterns:
1. Strong advertising effect. For enterprises, television 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 massive number of audiences. Thus, television shopping is an immediate and effective way to enhance the popularity and income of products.

2. Flat income channel. television shopping is a flat income channel in contrast to the traditional income channel. It cuts down the intermediate segments of circulation and saves cost to the greatest extent. Hence, consumers can purchase commodities at preferential direct selling prices. This non-store direct income 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 apiece function and strong point of products. No matter foods, garments, jewelry or digital products, television shopping programs can perfectly display them and thereby attract consumers to purchase them.

4. Growing product variety. Products suitable for television 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 television shopping.

For small and medium enterprises with low popularity and unsound income channels, television shopping is a good way for them to enter Chinese retail market in a short period. television shopping can generate over one thousand income 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 income 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 television shopping becomes the prior bourgeois to attract manufacturers. television shopping demands low construction cost in the primeval 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 television shopping business does not demand much fag power. It just needs to find out suitable television shopping channels and choose suitable products. television shopping manages to shorten the business process and reduce circulation segments.

Nowadays, television 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 television shopping as a new income channel for their products.

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

Presently, over 300 million families and 1 billion people in China have access to television programs. The gigantic television shopping market in China shows great potential. In 2009, the revenue of Chinese television shopping industry was about CNY 23 billion (USD 3.38 billion), bookkeeping for only 0.18% of the total retail income (CNY 12.53 trillion or USD 1.84 trillion), far below the proportion of developed countries. Nonetheless, Chinese television shopping industry maintains high growth rate of annual income 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 television shopping industry is confronted with some setbacks during the development. Consumers’ discredit on it has never ceased. Nevertheless, the saint marketing channel – television 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 television shopping industry.

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

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

Source: http://www.shcri.com/reportdetail.asp?id=477

http://www.marketinfoguide.com/marketinfoguide/Html/?101635792.html

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Alice Chen -
About the Author:

Based on the database, Interviews and research methods from China Research and Intelligence, CRI analyzes the development and opportunities in this industry clearly. Contacts: Eileen Gu China Research and Intelligence www.shcri.com Email: eileen@shcri.com TEL: 86-21-6852-1029 86-21-5842-6733

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Based on the database, Interviews and research methods from China Research and Intelligence, CRI analyzes the development and opportunities in this industry clearly. Contacts: Eileen Gu China Research and Intelligence www.shcri.com Email: eileen@shcri.com TEL: 86-21-6852-1029 86-21-5842-6733

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