Teleshopping to double in next 5 yrs

Mumbai, Nov 22 | Updated: Nov 23 2005, 07:50am hrs
Tele-commerce, better known as teleshopping, which has grown to about Rs 250 crore in 10 years in India, is now projected to double in next five years, according to industry experts.

Teleshopping players in the country like Asian Sky Shop, Tellybrand, Shop 24 Seven and TVC believe that the industry would be growing around 20-25% annually.

Interestingly, jewellery linked to religion and astronomy seems to be the hottest selling product currently. The female-male shopper's ratio was 90:10 during the early days, but now it has come to 60:40.

However, the Indian players are far behind their foreign counterparts. US-based Tele Shopping Network boasts of $2.4 billion sales last year. Touch and feel is very important in the Indian context and hence the need for franchisee outlets.

But this increases the cost of products and also a lot of duplication and passing off happen at these outlets.

"A customer buying a motorised treadmill at Rs 30,000 would have been unheard of a decade ago," said Asian Sky Shop, CEO, Dinesh Wadiwala. Players believe that consumers are willing to make big ticket purchases even through a phone call.

Changes in consumer tastes and preferences have made players beef up their strategies. Shop 24 Seven has re-modeled its Mumbai network to Shop 24 Seven M-Plex, a 24-hour virtual multiplex.

The viewer gets a variety of programs like movies, popular songs and popular events and has the convenience of getting products at his doorstep.

Asian Sky Shop plans to provide a basket of products, competitive pricing and also look at corporate tie ups.

Broadcasters are obviously happy with the revenue from airing shopping shows, but at the same time feel that a lot more can be done.

"With unique product, good pricing and credibility, one is bound to win," said Star India, senior vice president, marketing & communication, Ajay Vidyasagar.