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“We will bring real choice and competition in Homeshopping…”

Pallavi Srivastava September 2, 2010
 

Star Network recently made its debut in the Television shopping space. It is the second channel in the category. Paritosh Joshi, CEO, Star CJ Network is very optimistic about the growth of this category in India. He shares his strategy, business model and future plans in a conversation with MediaWorldBuzz’s Pallavi Srivastava…




Mr. Paritosh Joshi, CEO, Star CJ Network

MediaWorldBuzz: What is the reason behind getting the TV shopping category? Do you think Indian consumers are ready for that kind of experience at this point of time?

Paritosh Joshi: Shopping via TV has been available for years now but home shopping as a medium in India still hasn’t kicked off in a big way. So while there is awareness, it is not of the right kind.

One of the reasons for home shopping channels having not been prolific could be factors ranging from low TV penetration, lack of /negative awareness, odd timings and expensive TV slots. Also due to a few shady telebrands, the image of home shopping has been tarnished and consumers are cynical of this medium of shopping. Innovation and understanding of the consumer’s needs is the need of the hour. The audience needs to be convinced of the benefits of home shopping and that the particular player/ brand is a credible one - one who can be relied upon to deliver on their promise.

   

The Indian consumer has evolved and is willing to explore different options. With the hectic lifestyles that one leads today, people are looking for options that are time-saving and home shopping is definitely a winner on that front. Homeshopping will definitely be a part of the future of shopping and is here to stay.

MediaWorldBuzz: What is the unique positioning of STAR CJ?

Paritosh Joshi: STAR CJ Alive is a premium home shopping channel which offers reputed brands that consumers are familiar with. You will never find a strange lady promoting a sauna belt or strange miracle gems on the channel. It is essentially positioned as a channel bringing you the best brands with the best deals 24 hours a day.

MediaWorldBuzz: Why have you chosen a global partner for this channel? What do they bring to the table?

Paritosh Joshi: CJ O Shopping was the first home shopping company in South Korea and is a leading homeshopping and media brand across the globe. CJ has already expanded to and is further rapidly expanding to other geographies, taking advantage of the insights and knowhow in homeshopping business gained from its experience in the South Korean market. Our association with CJ O Shopping gifts us a rich pool of knowledge and customer experience which has helped us understand the consumer’s psyche and thus serve him/ her better.

MediaWorldBuzz: Can you share some details about the distribution network of the channel?

Paritosh Joshi: Our distribution services are currently available in Maharashtra, Chandigarh, Haryana, Punjab and Delhi/ NCR. We plan to eventually expand to other regions in a phased manner.

MediaWorldBuzz: Can you share some details of the launch marketing campaign? What will be the media mix and the marketing budget?

Paritosh Joshi: The launch campaign involved reaching out to the consumers and creating an awareness of the launch of the 24 hour channel thereby driving them to tune into STAR CJ Alive. Our aim was to also make the customer aware of home shopping as a strong retail option among other options. We have used a healthy media mix comprising television ads, radio spots, print and outdoor to educate the consumer that STAR CJ alive is a multi-brand outlet in a new online avatar.

MediaWorldBuzz: What is your revenue model? Are you looking for advertising as a revenue source? Why or Why not?

Paritosh Joshi: We do not sell advertising inventory. The primary revenue model is the margins we earn as a cash-and-carry wholesaler. Consumer orders placed with a STAR CJ Alive franchisee are aggregated by the franchisee into a purchase order on STAR CJ Alive. As more consumers patronize the franchisee, STAR CJ Alive’s cash and carry business grows and the wholesale margin grows too.

MediaWorldBuzz: Network 18's Homeshop18 is the pioneer in the category. So how different will STAR CJ be from that?

Paritosh Joshi: With only one existing player in the category, our entry will bring real choice and competition and should accelerate category growth. We will draw upon the creative insights of STAR and the domain knowledge of CJ to build a premium home shopping business in India. Our goal is to convince the consumer that our channel is an enjoyable, trustworthy and extremely convenient alternative to his / her current shopping modes. Also as mentioned earlier, the profile of the brands available on STAR CJ Alive is more premium than that on Homeshop18. Also as a business process, STAR CJ Alive is actually responsible for reaching the good/s to the cutomer’s doorstep unlike Homeshop18

MediaWorldBuzz: Your take on the competition in this space?

Paritosh Joshi: As mentioned earlier, at present here is only one player in the home shopping space in India. Our aim is to educate the consumers about homeshopping as a viable and trustworthy retail medium in today’s times and the potential it has to grow into a large market.

MediaWorldBuzz: What is the estimated size of this category on television? How much growth do you expect in the next few years?

Paritosh Joshi: The homeshopping market in India is still in its nascent stage. Legacy ‘teleshopping’ operations are estimated to generate a consumer spend ~Rs. 1000 crores. There is only one serious player in the category at present. Our entry will bring real choice and competition and should accelerate category growth. The Indian retail market, which is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the retail sector by AT Kearney's eighth annual Global Retail Development Index (GRDI) in 2009.

Because of the phenomenal reach and penetration that television as a medium offers, several premium brands are now considering homeshopping as an option to reach out to consumers across several towns and cities. Hence, we see huge growth potential across markets. However, as already mentioned, since the trend is still in its nascent stage, our goal at the moment is to create awareness and establish home shopping as a credible concept.