Shift to Mobile
The main channel for home shopping is becoming mobile devices, not TVs, and home shopping companies are changing their business models to match with the times.
According to CJ O Shopping, its mobile shopping sales increased by 79 percent during the Thanksgiving holiday season of this year when compared to that of 2013. In contrast, TV home shopping sales increased only 40 percent during the same period. The percentages were 160 percent versus 10 percent for Hyundai Home Shopping, respectively. The ratio of mobile-based sales to the overall sales tripled to 21.4 percent during the period for Lotte Home Shopping, too.
The competition for the top spot in the industry between CJ O Shopping and GS Shop is expected to revolve around who will win over more mobile customers. The companies recorded mobile-based sales of 159.7 billion won (US$154.3 million) and 124.9 billion won (US$120.5 million) each last quarter.