Home shopping firms unite 

Home shopping firms unite 

TV channels want to raise standards

TV home shopping operators have formed an association aimed at raising business standards and generating annual revenue of 22 billion baht by 2019.

Shown here is the studio for the home shopping channel TV Direct. Analysts believe home shopping has huge growth potential.  

The Thai TV Home Shopping Association comprises five major operators — TrueSelect Channel, O Shopping Channel, Shop Channel, TVD Shop and TV Direct Channel.

President Songpol Shanmatkij said the association was established so consumers would have more confidence in home shopping and complaints would decline.

The group will serve as a one-stop information service for consumers, and its members will work hard to enhance business efficiency and morality, he said.

"Unfortunately, many small home-shopping operators sell low-quality or even fake products, and this has ruined the overall industry," Mr Songpol said.

The association will support National Broadcasting and Telecommunications Commission policies of regulating the TV home shopping industry and issuing licences to registered operators.

Recent years have seen 20% growth in TV home shopping, a trend that is expected to continue since there are huge opportunities in the market, Mr Songpol said.

Forecasters peg the value of the TV home shopping industry at 22 billion baht by 2019.

Foreign home-shopping operators are keen on expanding into Thailand including Japanese and South Korean players.

"Thailand has the potential to be a hub for home shopping in Southeast Asia," said Sung Nak-je, chief executive of the CJO Shopping Channel, a joint venture between South Korea's CJO and GMM Grammy.

As the Thai population ages, home shopping should increase as old people who spend a lot of time at home make up a large percentage of the customers. The advent of digital TV will also help.

South Korea and Japan can serve as role models for Thailand, as home shopping represents 15% of South Korean GDP and 20% of Japan's, Mr Sung said.

The South Korean government has allocated some terrestrial TV channels for home shopping so people can watch them for free.

"Traditional retailing here is worth 1.2 trillion baht a year, while home shopping is valued at only 8 billion," he said.

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