South Korea’s CJ O Shopping and STAR network have come together as STAR CJ Alive with India’s first round the clock home shopping channel. The channel’s chief executive officer Paritosh Joshi spoke to Pravda Godbole about the plans in store for this venture.
In the STAR CJ alliance, what kind of expertise have the respective groups brought in?
STAR CJ Network India is the result of a strategic partnership between STAR (One of India’s largest broadcasters) and CJ O Shopping (South Korea’s most successful home shopping business) to offer Indian consumers shopping experience without having to move out of the comfort of their homes. The two groups bring with them a wealth of knowledge and expertise which has helped the rise and growth of STAR CJ Alive as a channel. Our association with them brings us a rich pool of knowledge and customer experience which has helped us understand the consumer’s psyche and thus serve them better.
When did it launch?
STAR CJ Alive was launched as a six hour slot on STAR Utsav in September 2009. The full fledged 24 hour channel was launched on August 1, 2010. The business will celebrate its first anniversary on September 22, 2010.
By when does the channel expect to break even?
The company is privately held by STAR and CJ and we are not at liberty to disclose this information.
So far how has been the TRP pattern?
We are not a TRP driven channel. While TRPs may help in throwing up valuable information on the kind of viewership our channel is enjoying, it is not the basis on which we will measure the success / performance of STAR CJ Alive. However we do track the distribution footprint to ensure that the signal is available in all markets which the franchisee and fulfillment logistics system are capable of serving.
What kind of targets have been set for market penetration?
Our first channel programmes in Hindi and we propose to cover HSM or Hindi Speaking Markets over the next 18 months. This will give the business a footprint stretching from Goa in the South West to Kolkata in the East and the PHCHP markets in the North.
While the Indian consumer is willing to explore different options, how open do you think he is to this pattern?
In India, shopping via TV has been available for years now but home shopping as a medium in India still hasn’t kicked off in a big way. One of the reasons for home shopping channels not being successful could be due to factors ranging from low TV penetration, lack of / negative awareness, odd timings and expensive TV slots. The audience needs to be convinced of the benefits of home shopping and that the player is a credible one, one who can be relied upon to deliver on their promise.
How many brands have signed up so far?
STAR CJ’s brand partners span a wide range of premium, upscale categories and brands. To name a few: Satya Paul saris, Benetton, Hidesign, Gitanjali, Adidas, American Tourister, Samsung along with plenty of international brands on board.
Which are untouched segments currently that you may enter into eg F&B and the like?
While F&B is an interesting category, it requires a B2C cold chain. We are still struggling with a basic logistic infrastructure that reaches consumer homes, so this will likely be of business interest at least 2-3 years out.
How much investment did the STAR Network put in this project?
This is confidential.
What is the transaction so count so far?
Recently, we crossed average daily sales of over Rs 1 crore owing to the phenomenal response to Independence Day promotional offers available on the channel. Our franchisees are now adding over a thousand new consumer homes every day.
