O Shopping Thailand expecting sales to triple
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TV home-shopping group O Shopping Thailand expects its sales to triple to about THB5 billion (US$150 million) annually in the next three to five years, up from the THB1.7-1.8 billion targeted for this year.
CEO Sung Nakje of GMM CJ O Shopping, which runs the business, says the company’s growth ambitions dovetail with the government’s goals for the Thailand 4.0 initiative to promote small and medium-sized enterprises (SMEs).
However, he says that as not every SME can enter the modern retailing system, TV home shopping can serve as a distribution and market-testing channel for them, as well as providing direct sales to consumers.
“We provide opportunities for Thai SMEs with fewer conditions and lower investment, so this makes it more accessible for them,” says Sung.
GMM CJ O Shopping is a Thai/South Korean JV established in 2012 that sells products on TV and via an e-commerce platform. “TV home shopping focuses on women between 35 and 55 years, while the e-commerce side focuses on younger age groups.”
Sung says that as part of its growth goals, O Shopping has also sought to promote the expansion of its business partners. Rather than focusing on competing with rival TV home-shopping rivals, it has instead sought to increase the overall size of the business pie.
Meanwhile, GMM CJ O Shopping has decided to continue its corporate social responsibility campaign O Hug, aimed at encouraging children to play sports. Sung says the company has been supporting major taekwondo events such as this year’s fifth Kukkiwon Cup Thai-Korean Choi Young Seok Taekwondo Championship, which drew more than 1000 Thai and international athletes.
Questions & Answers
Q.How does O Shopping Thailand plan to achieve its significant sales growth target?
How does O Shopping Thailand plan to achieve its significant sales growth target?
O Shopping Thailand aims to triple sales by expanding its business partners and increasing the overall market size, rather than focusing on direct competition with rivals. It also plans to use TV home shopping for SMEs and target different age groups with its TV and e-commerce platforms.
Q.What role does O Shopping Thailand play in supporting Thai small and medium-sized enterprises?
What role does O Shopping Thailand play in supporting Thai small and medium-sized enterprises?
O Shopping Thailand acts as a distribution and market-testing channel for SMEs, offering them opportunities with fewer conditions and lower investment than modern retailing. This makes it more accessible for these businesses to sell their products directly to consumers.
Q.What is the strategic difference in targeting customers between O Shopping Thailand's TV and e-commerce platforms?
What is the strategic difference in targeting customers between O Shopping Thailand's TV and e-commerce platforms?
The TV home shopping platform primarily targets women between 35 and 55 years of age. In contrast, the e-commerce platform is focused on reaching and serving younger age groups among its customer base.