Shop CJ, which was earlier known as Star CJ, has parted ways from Star Network and has introduced a brand new identity. Now a 50:50 joint venture between the South Korean home shopping major, CJ O Shopping Co. Ltd. and Providence Equity Partners group, Shop CJ will focus on its core USP of product portfolio, content and a multichannel business model.
The format will reach out to its customers with a mix of Indian, international and private brands to offer them variety and choice like never before.
Shop CJ is accessible through television (T-commerce), mobile application and an e-commerce portal (Shopcj. Com). However, TV is its biggest revenue generator, says Kenny Si Yeol Shin, Director & CEO, Shop CJ. “TV is our bread and butter. Our 94 per cent revenue comes through T- retailing.”
The company has also registered 35,000 downloads for its mobile application, Yeol informs.
Elaborating on the T-retailing market in India, he notes, “The market size of T- retailing in India stands at staggering USD 5.25 million. It may not be as big as e-commerce but, it is definitely a sizable share of the overall retail market.”
Speaking on product mix on Shop CJ, he says, “We retail almost every category. However, the higeest sales contribution comes from kitchen and household items at about 20 per cent of total sales. It is followed by electronics IT and electronice devices at around 17 per cent. Fashion is about 5 to 11 per cent. Magic Mop and Laundry Hanger are our best selling products. We have sold at least 8,000 units of Magic Mop so far.”
Yeol also informed that 70- 80 per cent of TV products are also avaliable on the company’s e-commerce portal.
Shop CJ’s direct competitors are HomeShop18 and Naaptol.com, Yeol confirms. “But T- commerce market is not fully evoloved. So we consider them as important part of overall market rather than competitors.”
In terms of distribution strategies, he feels that east India is the most challenging; the company plans to shortly establish a warehouse in Kolkata to facilitate logistics.
According to Yeol, Delhi-NCR and Mumbai combined sales contribution is at 40 per cent. “For boosting revenues from other territories, we will be more focused on the Hindi-speaking belt,” he adds.
In addition, Shop CJ will also be adding new categories to its brand mix, though Yeol did not divulge specifics.
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