The crisis in the TV shopping industry

from Since the advent of the television shopping industry, it has been argued that the outlook is very good and that the industry is very limited in its development. Now the situation of the TV shopping enterprise bleak , is showing the world the hardships of the industry's development path.

For the everyone love less hate many TV shopping industry, now may have the biggest difficulties.

The domestic market intelligence analysis agency CMiC sent out a strange report. The agency expects the Chinese TV shopping industry to surpass advertising in 2012, and believes that in the next 10 years, as China's total retail sales increase, the size of the TV shopping market is expected to soar from 2009 to 500 billion yuan in 2020.

CMiC's predictions seem to depict a bright prospect for the TV shopping industry. However, not only in the early days, the actual situation of the industry in recent times was quite different from the expected. The two leading companies are doing badly.

In the second quarter of 2010, which was dubbed the "originator" of domestic television shopping, the quarterly operating loss was $2.6 million trillion. This is not the first loss of Acorn International. 2008, after landing on the New York Stock Exchange, Acorn International surrendered its first loss report in more than 10 years, and "net operating loss" was more than 140 million yuan. Another media shopping platform-seven-star shopping day is also bad, since 2006, since the shell listing, seven-star shopping has been in the mire of loss can not extricate themselves.

Market analysis institutions in the eyes of a broad foreground of the television shopping industry, in the actual operation is very difficult, in an industry reorganization sound, the domestic TV shopping enterprises why the dilemma?

Struggling

10 years ago, Acorn International introduced the popular TV retailing model to the mainland, and led the domestic TV shopping industry to develop rapidly. But since 2008, Acorn International's situation has suddenly been frustrated: the NYSE's share price plummeted and 2008 's net operating loss of more than 140 million yuan, which is the first net loss of Acorn International in 10 years. Coincidentally, seven-star shopping since the second half of 2007 has also been mired in losses. The company's loss amounted to HK $380 million in 2008 years.

"Acorn International, seven-star shopping and other private TV shopping continued to lose money, the culprit is the cost is too high." "Chinese analysts say. It is understood that in 2007, the seven-star shopping station advertising costs increased to HK $380 million, a year earlier than the previous increase of 10%-30%.

In recent years, the domestic television advertising costs have increased sharply, a provincial television station advertising fees than a few years ago has soared 10 times times, and a slightly larger television costs are even more alarming. "Acorn International purchase advertising period of cost accounting for about 35% of sales revenue, coupled with logistics distribution, marketing costs, management fees accounted for about 20% of the income, sales of product gross margin of more than 55% to be possible to profit." ”

The advertising expenses of TV shopping companies are increasing, but the turnover is not improving. "2008~2009 China TV shopping industry Development Report" pointed out that 2007 China's TV Shopping program volume grew to 93,000 hours, compared with 2006 growth of 82%. The program was broadcast for a long time, but with limited viewing capacity. Nearly 50% of the respondents who watched TV shopping programs in the year 76.57% said, "Take a look at it and change the channel", and only 10.53% of people have bought.

"Because of the lack of innovative TV products and the rising cost of TV channels, it is getting harder for TV shopping companies to gasp." Industry analysts think. Not only that, more and more shopping channels appear to the private TV shopping enterprises pose a threat, they rely on the advantage of resources to greatly compress the private TV shopping enterprises living space.

June 12, Guizhou satellite TV's home has a shopping company to form a joint venture with Jilin TV station, Jilin region to expand the province of TV shopping. In this way, it is the first time to advance the shopping channel in China. In the joint ventures formed by the two sides, in addition to the home of the shopping channel owner Guizhou TV station, Jilin TV station as the relative largest shareholder shareholding 45%, Global Electric International Advertising company as a strategic investor shareholding 15%.

This newspaper reporter learned from the relevant people, the shopping channel from the major shareholder radio and television group rented TV channels, television cost is very low. According to the introduction, Oriental Shopping channel use fee for 3% of the annual income, significantly lower than acorn 35% advertising costs accounted for, and home shopping channel backed by local radio and television group, with independent TV channels, by attracting many products for sale, and to income sharing, earning the poor way to achieve income. Home TV channels generally have dedicated TV channels that can be continuously marketed 24 hours a day.

In fact, because SARFT encourages all levels of television to run the TV shopping channel, these shopping channels from the brand to the promotion channels and costs, compared to the TV shopping companies have more advantages.

Working with traditional channels

At present, the Korean TV shopping sales accounted for the total retail volume of 12%, the United States as 8%, and China's less than 1%, the industry believes that China's TV shopping industry still has a lot of market space.

This year, Hunan Radio and television's Happy Shopping Limited liability company (hereinafter referred to as "happy to buy") access to 330 million yuan investment, Jiangsu Radio and television under the "Good" shopping channel officially aired, CCTV's Chinese shopping is also speeding up financing, but because of years of domestic television shopping industry, More and more irregular enterprises to join the industry is increasingly confusing.

In view of the good and bad situation of the TV shopping industry, SARFT has launched two times in 2003 to launch a big rectification of TV shopping industry, but the results are not satisfactory. Last September, SARFT issued "on the strengthening of TV shopping short film advertising and home Shopping program management notice", and the official implementation of the January 1 this year, the television shopping ads on TV business, from registered capital, enterprise size, after-sales service, industrial integrity and other aspects of the establishment of access threshold.

The promulgation of the latest notice has a certain positive influence on standardizing the TV shopping industry. According to our correspondent understand, the notice makes some not standardized enterprises are eliminated, there are some enterprises can only change careers or transformation, and some to the home shopping enterprise delivery, and some to E-commerce, but also to the newspaper advertising and the use of the database established before continue to sell products.

At present, there are nearly 300 domestic and mixed TV shopping companies with fierce competition. 2009, Oriental shopping to 2.8 billion yuan sales ranked first, the second is happy to buy, sales income of 2.1 billion yuan, after years of the Boss Acorn International to 1.9 billion yuan to the third.

Chaotic industry situation, the increasing cost of channel, so that TV shopping enterprises have to find another way, high cost forced to follow up a number of TV shopping enterprises to set aside the TV direct purchase time advertising business model, and began to work directly with the traditional channels, in order to play the TV shopping platform to create a certain influence brand

Last June, founder and Hunan Happy Purchase signed this year to promote 10,000 sets of sales agreement, before this, Lenovo, Sony, BenQ and other PC manufacturers total and happy purchase signed more than 400 million yuan big single. Happy shopping is a TV shopping operator built by Hunan TV, which is a new type of home TV shopping which has three functions of publicity, shopping and sales.

Acorn International also from the beginning of last year to continue to the plane and network and other media development, and the country has established a wide range of ground distribution network, covering almost all of the domestic and county-level cities, a total of more than 20,000 retail outlets, forming a multi-channel integrated marketing platform Acorn. Seven-star shopping also said, "In view of the future development, seven-star shopping plan this year first to Shanghai as a pilot, transformation into television, online shopping and mail-order combination of the ' air store ' new sales channel model." ”

In the industry, how to get the trust of consumers, and find the right products and operating mode, is the biggest problem for TV shopping enterprises.