According to Business Research Insight, TV Home Shopping market worldwide would reach US$ 438.98 billion within 2030 with compound annual growth rate (CAGR) by 6%, which is in contrary of the continuously decreasing number of TV viewers. However, one of the factors that boost the market is transform to digitalization.
One of the major strategies is speedy adjustment as the 12 years journey of True Shopping has been constantly adjusting to the market trend and consumers. On this occasion, True blog has invited 2 top management; Mr. Ongard Prapakamol Chief Executive Officer TRUE GS Co., Ltd. and Mr. Yoonjae Shin Chief Operating Officer, TRUE GS Co., Ltd. to share the business timeline and strategies in leading the operation forward amid the changing market landscape.
Starting from selling Hard Line products and sales from frying pan reached up to 55 million baht per month
True Shopping started the TV Home Shopping business since 2011, a collaboration among GS, the No,1 Home Shopping from Korea, along with True Visions and CP All and the Mall Group by broadcasting on TrueVisions channels. After that, it created a sales phenomenal on Hard Line products that drew strong market response, particularly home appliances such as Diamond Chef that generated monthly sales up to 55 million baht.
True Shopping has constantly adapted and adjusted the strategies. During the COVID-19 period, it has adjusted strategy to be in line with consumer’s behavior, focusing on Soft Line in the health & beauty category, resulting in 50.4% increase in revenue in 2020, which went against the trend in other market and has strengthened the customer-base.
“Currently, True Shopping up to 4.08 million customer-base; of which, 77% are from upcountry. The customers in TV Home Shopping are those aged 45 years and above with high purchasing power. Although the portion of customers from the television has decreased by half but TV platform is still the main distribution channel that has customers with purchasing power so we have maintained the customer base while expanding to online channel and propel to become Omni Channel,” Mr. Ongard revealed the current market situation.
Currently, True Shopping up to 4.08 million customer-base; of which, 77% are from upcountry. The customers in TV Home Shopping are those aged 45 years and above with high purchasing power. Although the portion of customers from the television has decreased by half but TV platform is still the main distribution channel that has customers with purchasing power so we have maintained the customer base while expanding to online channel and propel to become Omni Channel
12th Year Anniversary to become an integrated Omni Channel
In the past few years, the challenge of TV Home Shopping is the significant drop in the number of TV audiences worldwide, directly resulting in TV Home Shopping business. Moreover, the consumer’s lifestyle has changed; however, True Shopping business is able to continue the operation which both executives agreed that it is based on the swiftly adjustment.
“We rapidly adjusted the strategy to catch up with the trend and demand of customers. Previously, True Shopping did not only focus on TV channels, but also expanded to E-Commerce for 5-6 years while adapting to become Omni Chanel. We have swiftly made the adjustment without sway from our main business to strengthen both our brand and business,” said Mr. Ongard.
This year, True Shopping implemented the strategy to Omni Channel by focusing on 360-degree distribution channels. Currently, the integrated channels consisted of;
- TV:Broadcasting on TrueVisions channels throughout 24 hours with the expansion to satellite TV and digital TV channels. The TV sales channels help remain the existing customer base while expanding to new customers in other various TV channels.
- E-Commerce: A new sales channel that is in line with the lifestyle of customer in the digital era by using websites, applications while opening shops in Market Place such as Shopee, Lazada and in social media channels. Currently, it has launched on TikTok to accommodate new customers and act as an Enabler to help business clients enter E-Commerce channel.
- Telesales:Another channel that penetrates off-line and existing customers to serve both Inbound / Outbound through continuously sales offering with privileges to customers who help promote products through words of mouth.
- Retail Shops: Join forces with affiliates under the group such as 7-Eleven and Lotus along with other alliances such as The Mall, Boots and Watson.
- Total Solution: Provide a complete integrated service for clients who have products including Direct Marketing with End to End and Back to Endservices.
The advantages of True Shopping as a long-term player in the market with infrastructure to penetrate the market 24/7 are as followed;
- Recognition:True Shopping has been well-known and credible in the business for a long period of time. Customers are assured on the quality of products and after-sales services including insurance in various products.
- Seamless Experience:Having Omni Channel increases the sales opportunity for various group of customers while creating seamless shopping experience such as customer who see the product on TV could see the actual product in the retail shops before making the purchase on the website of social media,
- Convenience:Implement integrated infrastructure to increase more conveniences to shop from many channels along with after-sales service throughout 24 hours including delivery service that could control the timeline with 1-2 days nationwide with return product policy from home.
- Innovation:Having integrated Infrastructure from True helps swiftly develop various platforms with modern technology from technique or data to creating content that better serve and constantly attract customers.
Synergy with Lala Station, the No. 1 Live Commerce from Korea
The market expansion plan that aims to penetrate working people and teenagers along with elevating home shopping to match consumer behavior in the digital era has led to a collaboration with Lala Station, the No.1 Live Commerce from South Korea with more know-how to expand to Live Commerce Platform as a communication and shopping channel following the Korean trend called Livetact to create differentiation and attract Thai consumers.
Mr. Yoonjae Shin said that the strategy that has been adapted to the context of Thai market is
“The Home Shopping market in Korea uses state-of-the-art technology from Virtual Studio with 3D background and camera angle that move along with the program’s host. In other words, it is similar with an entertainment show. The collaboration with Lala Station has strong points in terms of technology and creativity, enabling True Shopping to have creative content to attract more shoppers. In the technology side, an AI Shopping Host that could speak Thai with expression that is in line with Thai culture would help create a selling point that better service customers. These new ideas are expected to be implemented in 2024.”
Besides technology, new market opportunity will occur with production selection from Korea under the brands of Lala Station to exclusive sell on in Thailand under True Shopping brand.
“Lala Station has over 140 brands and by recruiting popular and top-sales products from Korea to sell in Thailand will initially prove that the products have quality and fit the demand of customers. It is better than source our own products or brands by ourselves which is why this synergy happens.” Mr. Ongard added.
Lala Station has over 140 brands and by recruiting popular and top-sales products from Korea to sell in Thailand will initially prove that the products have quality and fit the demand of customers. It is better than source our own products or brands by ourselves which is why this synergy happens.
Not focus on size but on profit
Amid the significant changes in market landscape, competitors in the TV Home Shopping gradually faded or adjusted to other business directions. On the other hand, the competitors in the digital and online landscape dramatically increase which means everyone is opening shop on social media or various Marketplaces.
The ultimate goal for True Shopping is not to expand business to become larger than competitors in the market but to capture the Niche market to generate continuous and sustainable profit.
“We don’t want to be big in size and loss in business operation but we want to focus on generating revenue with profit, sustainable growth for trade partners and customers. We target to become Specialty Shop that serve the real need of customers.” CEO of TRUE GS concluded.