Leading TV commerce company Den Snapdeal TV-Shop is eyeing to touch a Gross Merchandise Value (GMV) of Rs 500 crore by the end of this year.
“We hope to touch a GMV of Rs 500 crore by the end of this calender year and Rs 1,000 crore by 2016,” company CEO Maneesh Goel told PTI in an interview after launching a 24-hour shopping channel in Kannada here.
The company expects to garner 70 per cent of revenue from Tier II and Tier III markets, Goel said.
He added, “The urban markets fetch us 30 per cent of our revenues because of the brand name.”
“We are targeting customers in Tier II and Tier III markets who have disposable income, but do not have e-retailing avenues due to internet connectivity problems and off-line retailing outlets,” he said.
The company announced significant growth plans for Karnataka by launching a dedicated 24-hour shopping channel in Kannada.
“We ran a pilot TV shopping in Kannada in our regular Hindi and English channel between June and July. We received a very good response and decided to launch a dedicated channel in Kannada to tap Karnataka market,” he said.
At present, the estimated size of TV commerce industry in India is 1 billion US dollar, he said.
“According to industry statistics, there are over 400 million people (100 million households) in the country that consume content through television and a majority of them still do not have access to the internet,” he said.
This scenario has propelled growth in this sector with over 40 per cent growth in the last four or five years, Goel said adding that new players are increasingly foraying in to this segment to tap the existing and future business potential of TV commerce, he added.
Karnataka market has been able to garner total sales of Rs 15 crore in the past eight months and Bengaluru contributed Rs 5 crore to the total sales in Karnataka during the same period, Goel said.
The top selling categories in Karnataka are mobile phones and tablets followed by home and kitchen appliances and furnishings, men’s apparels, men’s footwear, lifestyle and apparel among others, he said.
DEN Snapdeal TV- Shop is a joint venture between the cable distribution firm DEN Networks and Jasper Infotech, the holding company of e-commerce major Snapdeal.
By this calendar year end it would be available in over 80 million homes when it reaches all DTH platforms, he added.
The channel already reaches customers in 10 of the state’s largest cities – Bengaluru, Dharwad, Belgavi, Mangaluru and Mysuru among others, Goel said.