INDIAN TELESHOPPING

MARKET

Presented by :-
Amrit pal singh
Rahul gupta
Shailender chaudhary
Varun bhardwaj
 BASIC CONCEPT

You should be offering what is not

available in the market.
OFFERING MIRACULOUS PRODUCTS

 Teleshopping networks provided consumers with

miraculous products such as weight reducing
machines ,disease curing teas, skin care products,
wondrous kitchen, household equipments, etc.

 The products claimed to provide miraculous

results. Such as reduce weight & get into shape
without exercising or dieting.
 BACKGROUND NOTE

 Teleshopping is an another name for Direct Response

Television Shopping(DRTV). Other being catalog, letters,
brochures, etc.

 Teleshopping networks became operational in 1990s in

the country.

 Two types of infomercials:-

1)Some featured celebrities using products and
benefiting from it scheduled on TV.
2)In studio productions with a live audience.
 In countries like US and Australia teleshopping had
dedicated 24 hrs home shopping channels . Its
market in US valued around $2 billion in yr 2000.

 However it was not successful in other parts of the

world due to low penetration, lack of innovation
offerings, poor promotion & advertising techniques
and lack of awareness among consumers.

 By 2001 its total business in world amounted to

over $ 5billion ( change in lifestyle and
improvement in standard of living)
 Major teleshopping networks
in various
COUNTRY Major teleshopping networks in various
countries countries

US Home shopping network, QVC,

telebrands , TSN

Japan Shop channel

Europe TV-SHOP
Australia TVSN

China China shopping network

Brazil Shop time

INDIA Telebrands(india), Asian Sky Shop

 INDIAN SCENARIO

 During early 1990s Indian laws prohibited customers to import

products, without acquiring prior permission from the regulating
authorities.

 During the mid-1990s, Telebrands India, a 100% subsidiary of

Telebrands Corp., pioneered the concept of teleshopping in India.

 In mid-1995, TSN (another major US-based teleshopping

network) and Asian Sky Shop (ASK), owned by the media giant -
Zee[1] , also entered the market. The other major players in the
Indian teleshopping market were TVC, TSNM and Star Warnaco.
All these networks adopted the
following modus operandi:
 Buying time slots on popular channels that had high
penetration and enjoyed good viewership among the target
customers. These time slots ranged from two minutes to 1
hour and comprised infomercials/product presentations,
explaining the product's utility.
 Providing a special product code for every product and
displaying it along with its price
 Setting up call centers in various cities, on the basis of the
scale of operations and the extent of penetration expected.
 Providing viewers with telephone numbers of these call
centers and asking them to call their nearest call centre for
further enquiries or to order the product.
Rise in Indian teleshopping
market
• Teleshopping companies targeted segment premium-end
TV viewers, with high purchasing power which were
mainly nuclear families pursuing career

• Offered value for money products such as electronic goods,

fitness devices, home appliances and toys

• It used to import products from abroad to India

• India-based networks such as ASK also offered products

made in India apart from their imported range.
 Local player entered the teleshopping
market through local cable channels

 Teleshopping market players started

offering customized products such as
Jewellery with birth stones..
REASONS FOR TELESHOPPING
SLOW-GROWTH
 Though teleshopping market was showing
positive growth trend, its growth rate was much
below the expectations of the players involved.
Most of the teleshopping networks in the country
were not making any profits.

 The main reason for slow growth was the

abundant supply of imitation products.
Types of products offered

Two types of products offered:-

 Utility products- Majority of sale

Such as : fitness devices, healthcare/auto care
products, household appliances and electrical
devices

 Value expressive products- Low sale products

Such as: jewellery, apparels and, home decor
 Imitated products producers and sellers also offered
the facility to personally touch and appraise the
product to the customer or consumers.

 Higher product prices by teleshopping networks.

 Dubbed advertisements failed to have impact on

prospective customers

 Infomercials were criticized on the grounds of being

rather awkward mouthing dialogs in Hindi and other
regional languages
SWOT ANALYSIS OF
TELESHOPPING
BUSINESS IN INDIA
 STRENGTHS
It can be done conveniently- The product can be watched on
television and ordered on phone.

Focus on innovative and value for money products. Such

products are not easily available in the market such as disease
curing teas, wondrous kitchen and household equipments,
innovative fitness devices and toys.

A strong distribution network- The distributors are across the

major cities and provide their telephone numbers for further
enquiry which facilitates the buying process.
Credit cards are also accepted to respond to their offers.
 WEEKNESS

 Higher prices- Products were prized between Rs.1000-5000.

Customers were unwilling to pay this amount for lifestyle
products.

 Dubbed infomercials hampers the prospects of teleshopping

market as cultures and languages .

 The distribution networks focus mainly on metros and B class

cities.

 Teleshopping in India focus mainly on educated and premium

end customers.
 OPPORTUNITIES

Changes in life style and a general improvement standard

of living can help teleshopping pick up momentum.

Opportunities exist for teleshopping in the customer base

of convenience-seeking people and the middle class
population as they are more towards trying out innovative
products and concepts.

To boost the growth they can offer online-shopping

services through retail websites
 THREATS

 The Analysts- They question the reliability of the product

and its effectiveness. This could lead to negative impact
on consumer behavior about the products offered.
 Abundant supply of imitated , cheaper versions of these
products by local entrepreneurs.
 Emergence of interactive home shopping. The retailers
and consumers use interactive electronic systems to buy
products online.
 Lack of online purchase awareness among the consumers
and the low rate of credit card penetration in India can
hamper growth of teleshopping market in India
 Trusted shopkeepers of the customers to buy
expressive products like jewellery , apparels
and home décor.
 The increasing competition among the various
teleshopping firms in India.
The measures should be taken by teleshopping
to address these problem are:-
1. Introducing innovative product and concept
2. Online –shopping
3. Opening Retail outlets in major cities.
4. Keep in mind what customer wants.
 FUTURE PROSPECTS

 Increasing Base of convenience seeking people

and middle class family.

 Improvement in the standard of living of people

which made them try innovative products.

 Offering online shopping services through special

retail outlets.