Central, ICC join Japan's Sumitomo in joint venture

Central, ICC join Japan's Sumitomo in joint venture

The Japanese Sumitomo Corporation has joined Central Department Store Co and the Saha Group subsidiary ICC International Plc to explore business opportunities in the 10-billion-baht TV shopping business in Thailand.

From left: Shigeru Ohashi, president and CEO of Shop Global (Thailand) Co; YuwadeeChirathivat, president of Central Department Store Co; Kenji Shinmori, general manager at Sumitomo Corporation; and Boonkiet Chokwatana, president of ICC.

A joint venture called Shop Global (Thailand) Co has been set up with registered capital of 600 million baht, with Sumitomo holding 40%. The rest is held by Central Department Store (30%) and ICC International (30%).

Shigeru Ohashi, president and chief executive of Shop Global (Thailand), said Sumitomo has 15 years in the TV shopping business and is keen to branch out overseas this year.

"We chose Thailand as the first country because of its healthy economy and steady growth over the years," he said.

The growing number of middle-income viewers is another factor.

The Shop Channel will air 24 hours a day on Channel 62 of the PSI Satellite station, C Band. Some 70% of the items, including jewellery, fashion, food and electric appliances, will come from Japan and the rest from elsewhere.

Shop Global is the market leader in Japanese TV shopping, controlling some 30% of the US$5-billion business.

Sales from the Thai channel are expected to reach 300 million baht in the first year and hit 3 billion baht within five years.

Kenji Shinmori, general manager for lifestyle and retail at Sumitomo, said the company is also conducting feasibility studies for expansion into Vietnam, Malaysia, Indonesia, Taiwan and China.

Central Department Store president Yuwadee Chirathivat said changes in lifestyles and advanced technology have benefited TV shopping.

ICC president Boonkiet Chokwatana said his company has been interested in TV shopping for years and believes the business has promising growth with the ongoing development of satellite TV in Thailand.

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