INDIAN TELESHOPPING MARKET

Presented by :-Amrit pal singhRahul gupta Shailender chaudharyVarun bhardwaj

BASIC CONCEPT

You should be offering what is not available in the market.

OFFERING MIRACULOUS PRODUCTS Teleshopping networks provided consumers with

miraculous products such as weight reducing machines ,disease curing teas, skin care products, wondrous kitchen, household equipments, etc.

The products claimed to provide miraculous results. Such as reduce weight & get into shape without exercising or dieting.

BACKGROUND NOTE

Teleshopping is an another name for Direct Response Television Shopping(DRTV). Other being catalog, letters, brochures, etc.

Teleshopping networks became operational in 1990s in the country.

Two types of infomercials:- 1)Some featured celebrities using products

and benefiting from it scheduled on TV. 2)In studio productions with a live audience.

In countries like US and Australia teleshopping had dedicated 24 hrs home shopping channels . Its market in US valued around $2 billion in yr 2000.

However it was not successful in other parts of the world due to low penetration, lack of innovation offerings, poor promotion & advertising techniques and lack of awareness among consumers.

By 2001 its total business in world amounted to over $ 5billion ( change in lifestyle and improvement in standard of living)

Major teleshopping networks in various countries COUNTRY Major teleshopping networks

in various countries

US Home shopping network, QVC, telebrands , TSN

Japan Shop channel

Europe TV-SHOP

Australia TVSN

China China shopping network

Brazil Shop time

INDIA Telebrands(india), Asian Sky Shop

INDIAN SCENARIO

During early 1990s Indian laws prohibited customers to import products, without acquiring prior permission from the regulating authorities.

During the mid-1990s, Telebrands India, a 100% subsidiary of Telebrands Corp., pioneered the concept of teleshopping in India.

In mid-1995, TSN (another major US-based teleshopping network) and Asian Sky Shop (ASK), owned by the media giant - Zee[1] , also entered the market. The other major players in the Indian teleshopping market were TVC, TSNM and Star Warnaco.

All these networks adopted the following modus operandi: Buying time slots on popular channels that had high

penetration and enjoyed good viewership among the target customers. These time slots ranged from two minutes to 1 hour and comprised infomercials/product presentations, explaining the product's utility.

Providing a special product code for every product and displaying it along with its price

Setting up call centers in various cities, on the basis of the scale of operations and the extent of penetration expected.

Providing viewers with telephone numbers of these call centers and asking them to call their nearest call centre for further enquiries or to order the product.

Rise in Indian teleshopping market• Teleshopping companies targeted segment premium-end

TV viewers, with high purchasing power which were mainly nuclear families pursuing career

• Offered value for money products such as electronic goods, fitness devices, home appliances and toys

• It used to import products from abroad to India

• India-based networks such as ASK also offered products made in India apart from their imported range.

Local player entered the teleshopping market through local cable channels

Teleshopping market players started offering customized products such as Jewellery with birth stones..

REASONS FOR TELESHOPPING SLOW-GROWTH

Though teleshopping market was showing positive growth trend, its growth rate was much below the expectations of the players involved. Most of the teleshopping networks in the country were not making any profits.

The main reason for slow growth was the abundant supply of imitation products.

Types of products offered

Two types of products offered:-

Utility products- Majority of sale

Such as : fitness devices, healthcare/auto care products, household appliances and electrical devices

Value expressive products- Low sale products

Such as: jewellery, apparels and, home decor

Imitated products producers and sellers also offered the facility to personally touch and appraise the product to the customer or consumers.

Higher product prices by teleshopping networks.

Dubbed advertisements failed to have impact on prospective customers

Infomercials were criticized on the grounds of being rather awkward mouthing dialogs in Hindi and other regional languages

SWOT ANALYSIS OF TELESHOPPING BUSINESS IN INDIA

STRENGTHS

It can be done conveniently- The product can be watched on television and ordered on phone.

Focus on innovative and value for money products. Such products are not easily available in the market such as disease curing teas, wondrous kitchen and household equipments, innovative fitness devices and toys.

A strong distribution network- The distributors are across the major cities and provide their telephone numbers for further enquiry which facilitates the buying process.

Credit cards are also accepted to respond to their offers.

WEEKNESS

Higher prices- Products were prized between Rs.1000-5000. Customers were unwilling to pay this amount for lifestyle products.

Dubbed infomercials hampers the prospects of teleshopping market as cultures and languages .

The distribution networks focus mainly on metros and B class cities.

Teleshopping in India focus mainly on educated and premium end customers.

OPPORTUNITIES

Changes in life style and a general improvement standard of living can help teleshopping pick up momentum.

Opportunities exist for teleshopping in the customer base of convenience-seeking people and the middle class population as they are more towards trying out innovative products and concepts.

To boost the growth they can offer online-shopping services through retail websites

THREATS

The Analysts- They question the reliability of the product and its effectiveness. This could lead to negative impact on consumer behavior about the products offered.

Abundant supply of imitated , cheaper versions of these products by local entrepreneurs.

Emergence of interactive home shopping. The retailers and consumers use interactive electronic systems to buy products online.

Lack of online purchase awareness among the consumers and the low rate of credit card penetration in India can hamper growth of teleshopping market in India

Trusted shopkeepers of the customers to buy expressive products like jewellery , apparels and home décor.

The increasing competition among the various teleshopping firms in India.

The measures should be taken by teleshopping to address these problem are:-

1. Introducing innovative product and concept

2. Online –shopping3. Opening Retail outlets in major

cities.4. Keep in mind what customer wants.

FUTURE PROSPECTS

Increasing Base of convenience seeking people and middle class family.

Improvement in the standard of living of people which made them try innovative products.

Offering online shopping services through special retail outlets.