Published : 2014-02-23 19:51
Updated : 2014-02-23 19:51
The government and industry insiders are in talks to launch another television shopping channel to secure sales routes for small and mid-sized companies struggling to promote their brand image in the market.
If established, it will be the seventh shopping channel in the country and the second dedicated to venture firms’ products. The current channels are operated by GS, CJ, Hyundai, Lotte, NS and Home and Shopping.
The Home and Shopping channel ― owned mostly by the Korea Federation of Small and Medium Business, the Small Business Distribution Center and the Industrial Bank of Korea ― is dedicated to products by “small but competitive” firms.
However, the portion of large corporations including Amore Pacific, LG and others on air has been increasing over the past few years.
There also have been claims that Home and Shopping has been collecting a greater sales commission from small manufacturers than other channels owned by the conglomerates and large corporations.
“It is a dream for many venture firms to have their products on TV shopping channels to enhance their brand awareness and boost sales over short periods of time. But in reality, they rarely get the chance,” said professor Choi Gyeong-il of Hankuk University of Foreign Studies at a recent forum by the Korea Venture Business Association and the Korea Venture Business Women’s Association.
“The new channel should be able to provide a comprehensive retail platform that merges Internet and mobile services,” he added.
The KVBA said that it will hold public hearings and discussions to push for the project.
The government said it has no immediate plans to authorize another channel but admitted that anything is possible. “If we see large demand, we might launch one,” said Oh Yong-su, an official at the Ministry of Science, ICT and Future Planning.
According to the Korea Chamber of Commerce and Industry, Korea’s TV shopping market amounted to 11.1 trillion won in 2013, about 3,000 times the 3.4 billion won from 1995, when the country first adopted TV shopping channels.