TV SHOP

Introduction to communication

CHEN YANG 20108021

TV Shop is a teleshopping channel broadcasting 24 hours a day. It became famous in Europe by being one of the earliest FTA channels on the Astra satellite. The service was initially set up by Modern Times Group but in 2007 was sold to Guthy-Renker.

They offer a wide range of products, mostly training devices, that are always claimed to be 'revolutionary' and 'more efficient than common methods'. There is almost always a limited time offer, such as 'Call within 15 minutes and you will also get...at no extra cost!' and 'Call now and you can also order these...for just $15!' These claims are repeated more than once, sometimes even twice every five minutes.

Due to the constant claiming of the products being revolutionary, many are doubtful to these products.

“The world is full of channel flickers.”

Mike Hancox, chief executive of Ideal Shopping Direct

Asked to explain the rise in TV shopping, he happily admits that couch potatoes are a key driver of sales. “We see huge spikes in calls following ad breaks on the main terrestrial TV channels.”

In the downturn, TV shopping executives say they have a growing audience as more people spend time at home watching the telly. This is reflected in steadily rising sales – the UK TV shopping market is worth £756m, according to research house Verdict, and is predicted to reach £800m by 2015.

By Claer Barrett, Retail Correspondent September 28, 2011 5:05 pm

In an increasingly multichannel retail world, TV channels are looking to boost sales by moving online, and big high street names including Argos and Debenhams are trying to tap into the growing appeal of TV selling.

Argos began a year-long trial of its Sky TV shopping channel in June in an attempt to reach new audiences and boost flagging sales. “TV shopping appeals to two types of customer; bargain hunters and inspiration seekers,” says Darren Frost, head of Argos TV.

Although the average TV shopper is aged between 35 and 65, Argos is pushing toys and children’s clothing in an attempt to fill “a gap in the market”. Coleen Rooney made a guest appearance on Tuesday to promote her Argos jewellery range, but the channel’s main purpose is to point shoppers towards the Argos website or call centre.

TV shopping programs head more upmarket

Traditionally, sales of high-end products do not occur at home, but that's coming to an end if some entrepreneurs have their way.

Many television shopping programs have sprung up in recent years, and rather than selling cheap goods, they are moving upmarket to sell gold, cars, even houses. "It's not like Fifth Avenue. It's more like those (out-of-town) outlets where you get both high quality and a reasonable price," said Zhang Dazhong, chairman of Oriental CJ, one of the largest home shopping companies in China.

The company started in high-end product sales with gold and found that trust developed among people as the market is maturing. It then went into diamond and car sales.

The company sold the latest model of the Toyota Camry in 2009. To Zhang's surprise, in less than an hour after the show was broadcast, 266 cars were sold - an average of one every 13 seconds, far faster than showroom averages.

Oriental CJ's reputation grew and with it came financial returns. In 2010, total sales of the company hit 5 billion yuan ($769 million), almost double the 2.8 billion yuan in 2009, according to Zhang.

Total transaction volumes of China's television shopping reached 23.4 billion yuan in 2009, according to industry figures. Experts expect that the figure will rise to 500 billion yuan by 2020.

Sources

http://en.wikipedia.org/wiki/TV_Shop

http://www.ft.com/intl/cms/s/0/56dd2dd2-e7a2-11e0-9da3-00144feab49a.html#axzz1aAyFuHMg

http://english.peopledaily.com.cn/90001/90778/90860/7394587.html