Retailing, Franchising, and Consumerism Business Intelligence in China

TV Direct Sales In China Reached CNY7 Billion In 2007

According to the latest report on China's TV direct sales released by Chinese market research and consulting agency Analysys International, in 2007, TV direct sales in China reached CNY7 billion, a year-on-year increase of 55.6%.

However, the TV direct sales industry is also facing severe competition pressure from traditional retail channels and new retail channels such as online shopping. At present, TV direct sales operators are trying to work out new strategies and some of them have launched multi-channel retail system, covering online retail business, mail-order business, and phone sales, based on their resource advantages. In 2007, sales made through non-TV channels accounted for 13.5% of the total revenue of these operators.

At the same time, the structure of TV direct sales changed over the past year. In 2007, Acorn International topped the Chinese TV direct sales market with market share of 17%, followed by Happigo and Orient CJ with market shares of 13% and 12%, respectively while CNTVS, originally a representative of the information advertising model, fell to the fourth position as the new home TV shopping model rose in the last two years.

Analysys International points out that in the current Chinese market, there is a development trend that the domestic demand will promote the economic growth of China. The manufacturers are eager to find effective ways to motivate the sales channels and the purchase ability of Chinese consumers continue to improve. Because of the reasons cited above China's TV direct sales industry is expected to maintain a continuous growth. In addition, the supervision of the TV shopping industry in China has been enhanced, which will lead the industry to a healthy development.

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