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Major Teleshopping Networks – Retail

Web18.Network 18  Network18 is one of India's leading full play media conglomerate with interests in television. CNBC-TV18 and CNBC Awaaz. as well as one of India’s leading real time financial information and news terminals Newswire18 3 .  Network18 operates in the general news and entertainment space with leading general news channels CNN-IBN and IBN7 and has launched IBN Lokmat. print. a Marathi news channel in partnership with the Lokmat group. internet.  It also runs one of India’s largest Internet players .  Network18 operates India’s leading business news television channels. filmed entertainment. mobile content and allied businesses.

HomeShop18 G S Home Shopping of Korea. has a 15% stake in the company. the third largest home shopping company in the world. Network 18 has the controlling stake of 51% Promoted by Network18 – India’s premier Media & Broadcasting Group – which owns the most admired media brands in the country. .

5 .000 sq. ft. including state-of-the-art hubs in Mumbai and Delhi.  It has a team of over 3500 people spread across 30 bureau locations (3 of which are overseas).HomeShop18  HomeShop18 (HS18) is a new venture from the Network18. Godrej. Philips.  HomeShop18 is the Group’s online & on-air retail marketing and distribution venture which has launched India’s first 24 hour Home Shopping TV channel on April 9 ‘08. Reebok and many more……  A 24-hour call centre also allows customers to call in and book orders as per their convenience. Motorola. It will deliver products to over 3000 cities free of cost. primarily through cable TV and internet. HS18 is a nationally televised home shopping service. such as Apple.  HomeShop18 has partnered with the best brand owners. It has established 220. of fully integrated broadcast & other infrastructure. Kaya. selling credible brands through interactive electronic media.

owned by the media giant-Zee. pioneered the concept of teleshopping in India.  During the mid-1990s. The other major players in the Indian Teleshopping market were TVC and TSNM. TSN (another major US-based teleshopping network) and Asian Sky Shop(ASK) which was founded in 1984.Origin During early 1990s Indian laws prohibited customers to import products. without acquiring prior permission from the regulating authorities.Telebrands India. a 100% subsidiary of Telebrands Corp. In mid-1995. 6 . headquartered in Mumbai.How it all started ? . also entered the market.

7 . • Providing viewers with telephone numbers of these call centers and asking them to call their nearest call centers for further queries. • Setting up call centers in various cities. on the basis of the scale of operations and the extent of penetration expected.Modus Operandi • Buying time slots on popular channels that had high penetration and enjoyed good viewership among the target customers. • Providing a special product code for every product and displaying it along with its price.

jewellery. Its surprising to note that the size of the sauna belt market in India is Rs 100 – 150 crore ?!! And the bulk of this happens through Tele. make an infomercial. but the success of the model is borne out by its continuing presence in the exorbitantly priced world of TV airtime.). 8 . It’s like setting up a whole retail store or a marketplace on TV that allows for 24x7shopping. books. • Home shopping is a completely different concept. buy airtime and let the business roll The model is simple – buy the product.Teleshopping Vs.000 SKU’s across electrical. textiles. electronics. Home shopping • Tele-shopping is a one product phenomenon. HS 18 work with 350 brands and manage over 19. The Teleshopping model tends to focus on health and wellness (mostly sports and weight loss equipment) and spirituality (crystals. holiday packages etc. Generally the quality of the products and the veracity of their claims is dubious. rudraksh etc.

In 2007. their journey started as an idea…TV SHOPPING Who will buy their products ? Poor Perceptions of TV Shopping .Magic Products .Not for Me What products will work ? How should they build credibility ? What kind of content will work ? There were no past experiences to learn from. there were only questions… 2 .Down market .

tacky execution…No credibility! 3 .The image of Home shopping was linked to teleshopping… Thus far. dubbed infomercial. India had only witnessed teleshopping in the following way… • Sauna Belt • Rudraksh • Hair-raising (!) solutions • Before-and-after miracles Magic products.

 Free home delivery. and the ever growing number of BPO employees. 11 .Convenience provided by HomeShop18  Anytime shopping: especially convenient to working couples and the working women who are short on time.  Easy payment options.000 cities with an average timeframe of 7 days from order to doorstep delivery.  Armchair shopping: delivered at doorstep across 3.  15 Days Money Back Guarantee.

HomeShop18 – Also India’s only true VIRTUAL Retail Business TELEVISON WEB NEWS CATALOGUE MOBLE (to launch soon) India’s only comprehensive direct-to-home business .

5Mn 0. has the concept worked? Has the customer accepted this new domain of shopping? 7.000 1.000 15.700 Customer base Calls (daily) 40.12Mn A new customer every 8 sec.So.5Mn 25. 2 Mn CRM base.000 3Mn 1. 18% repeat… 9 .

Distributes and Builds Brand Equity 10 .000 Daily Transactions 2 3X in 3 a ye Ann.000 350 425 ● in a ye 9.200 4. Liquidation platform and an Alternate Distribution channel that Demonstrates.000 2.5% of digicam market ● 3 rs 3.And has it worked for the Brand partners and Vendor associates? 10. Gross Sales (INR Mn) rs 5.000 X 26 2.000 ● Largest retailer of steel dinner sets Largest retailer for Reebok ● ● 5+ cr Jewellery every month 2nd Largest retailer of Microwave Ovens for Whirlpool A Launch Pad.

HomeShop18: Unique Business Model in India It’s “direct to customer” But it’s many businesses all rolled into one .

Great Consumer offers Wide range of offerings 20+ 20+ Product Product Categories Categories 68+ 68+ Sub Sub Categories Categories Mega Brands Innovative & Exclusive Products & Offers Food Saver is a appliance which preserves food by Vacuum Packing it. Exclusive partner for Converse 3 idiots merchandise An industry first – T-Series content loaded cards with mobiles Product developed exclusive for HomeShop18 .HomeShop18: Strengths in Sourcing.

Product Line:             Electronics & Computing Cameras & Mobiles Kids & Toys Jewellery Watches Fashion & Accessories Health & beauty Home & Kitchen House Hold Appliances Books Movies & Music Flowers .

HomeShop18: Super Consumer Experience • In-house managed 250-seat call centre • Integrated single point ordering and after sales support • Consistent quality of service • Doorstep “Free Home Delivery” in 2750+ cities across India • Consumer centric policies:   15 days no questions asked money back guarantee Multiple payment options including “Cash on Delivery” .

20000 SKUs Integrated.2 shopping website A logistics footprint reaching 2750 cities 24 hour in-house 400-agent sales center 400+ vendors. real-time IT Systems .HomeShop18: Leaving no stone unturned to build Credibility & Trust for HomeShopping India’s 1st & only 24 hour TV shopping channel India’s No.

Today HomeShop18 is a formidable force – Brands see value in us New Launches Exclusive right for Oster Food Saver – an innovative concept to preserve food Oster Food Saver Product Share gains HomeShop18 is the largest retailer for Reebok in certain categories Stock Liquidation 8000 pieces of Motorola F-3 were liquidated in a month Brand visibility Has helped small regional players become visible nationally .

HomeShop18 is becoming the preferred shopping destination for customers Great Value • • • • Unparalleled Convenience • 2750+ city • Doorstep Delivery Super Quality • • • • MahaSale Diwali Dhamaal Weekend Loot Today’s Best Value Whirlpool Samsung Peter England IFB .

500 + cities in India. •New transaction every 13 seconds. 1 crore a day. The company raised $21mn from SAF Partners and Network18.3mn customers •18% are repeat customers. 20. in July of 2008 and now reaches out to over 2. Internet constitutes only15% •35% of buyers are from the metros. •Sales of Rs.Key Statistics •51% of the business comes from TV channel . 40% females •350 brands. 22 .000 SKUs (Stock keeping units) •1. 65% Tier II and Tier III cities •60% of buyers are males .

CEO. Driven by short term mind-set – sold ‘magic’ more than genuine products. HomeShop18 “Teleshopping has been all about selling particular category of products (spirituality/health/wellness).” “It’s quite a unique model given that it stands between the retail and virtual world.Sundeep Malhotra.” 23 . What’s interesting is that the company is interested in present in all consumer channel. except retail and is the first one to break into full time TV programming.

Thank You 17 .