GMM CJ O Shopping Co, a TV home shopping joint venture between GMM Z and CJ O Shopping of South Korea, aims to see its sales grow five times to 500 million baht this year.
The high projection has been set even though last year's sales of 100 million baht were 40 million baht below target.
Several products sold on O Shopping TV last year did not suit Thai customers.
"We adjusted our merchandising to match Thai consumer habits already. We hope we can achieve this year's ambitious goal," said Sung Nak Je, chief executive of GMM CJ O Shopping.
The company will enhance its operations and service to be in line with Thai consumer needs. It will double its lines to 200 this year, with more local products.
Kitchenware is the best-selling product, followed by cosmetics, skincare and food supplements. The channel has 50,000 customers, with 70% women.
The company will use a corporate expertise reputation (CER) strategy to boost sales.
Grammy, which owns a 49% stake in the joint venture, will also use its strength in the entertainment business to help O Shopping TV reach more customers.
Although newcomers including Sumitomo, Central Group and ICC International are entering the Thai TV home shopping market, O Shopping TV does not expect its sales to be affected.
On the other hand, it will spur the market and encourage people to try home shopping, Mr Sung said.
"We saw brighter revenue prospects in the first quarter as sales have already reached more than 100 million baht, which is higher than last year's total. The TV home shopping market here is still small compared with South Korea, China, Japan and India," he said.
He expects the TV home shopping market in Thailand to grow by 30% to 10 billion baht this year.
"The strong baht helps us import products at cheaper prices, which will benefit customers as well," Mr Sung said.
He has set a goal for the company to become the market leader in the next five years with annual sales of 6 billion baht. TV Direct Plc is currently No.1 with annual sales of about 2 billion baht.
About the author
- Writer: Saengwit Kewaleewongsatorn
Position: Business Reporter