The Chinese homeshopping market witnessed strong current value growth throughout 2012, rising by 24%, with value sales reaching RMB29 billion.
There are three main types of home shopping: mail or telephone ordering from catalogues; telephone ordering in response to advertisements in print and electronic media (such as periodicals, TV and radio); and online shopping.
The rapid growth in internet retailing and other retailing formats continues to pose a threat to the growth of homeshopping, leading to a slowdown in current value growth of homeshopping to 24% in 2012, compared to 39% in 2011.
Furthermore, thanks to the wide presence of other retailing formats, homeshopping is underdeveloped in China, representing rather less than 1% of total retailing value in 2012.
TV based retailers outperform other retailers, with Shanghai SMG-CJ Homeshopping Co Ltd dominating the Chinese homeshopping market, with a value share of 18% in 2012, unchanged from 2011.
With coverage in many regions in China, Shanghai SMG-CJ adopts a multi-channel format, covering TV homeshopping, mail order and internet retailing, with TV homeshopping taking the lion's share of total revenue.
Recent years saw Shanghai SMG-CJ's penetration into Mid and West China, either by setting up joint ventures with local operators or purchasing time slots from local TV channel for its homeshopping programme.
As an alternative retailing format, homeshopping does meet the shopping demand of certain consumer groups in China.
With rising consumer sophistication and the penetration of homeshopping into more regions in China, homeshopping is likely to be accepted by more consumers, which will underpin a buoyant value CAGR of 17%, the second highest among all retail categories, over the next few years.
For more information on the Chinese homeshopping market, see the latest research: Chinese Homeshopping Market
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