Bt500m investment plan for 'O Shopping' TV channel
GMM CJ O Shopping, a home-shopping satellite TV operator and subsidiary of leading music and entertainment giant GMM Grammy, is investing Bt540 million to launch its "O Shopping" TV channel from June 18.
It also aims to break even in the next four years with accumulated income of Bt3 billion.
“Currently, satellite and cable-TV businesses are becoming popular, so this is the right time to expand into the home-shopping industry. I have been keen on this kind of business for more than two decades,” said Paiboon Damrongchaitham, chairman of GMM Grammy.
He added that CJ O Shopping was recognised as the No 1 home-shopping channel in South Korea and No 2 worldwide, while GMM Grammy was highly experienced in entertainment and artist management. This joint venture would be a perfect marriage of two giants.
Of the total investment, Bt100 million will be spent for broadcasting production and a 430-square-metre studio, while the rest will be used for marketing and a system for a call centre, payment and logistics. This 24-hour home-shopping channel will offer a wide range of products, both local and imported from South Korea, ranging from cosmetics, kitchenware, food supplements, electrical appliances, information technology, fashion and real estate to vehicles.
All products will be presented and demonstrated by selected celebrities. The programme will be aired on GMM Z Channel 9 and cable TV channels.
In the future, the firm will invest in shopping outlets through catalogues and Internet and mobile browsing.
Sung Nak-je, global business director of CJ O Shopping, said: “We hope to change Thai consumers’ shopping behaviour like in many countries where we have a presence.”
The head of CJ O Shopping added that Thailand had a good logistics system that would facilitate and support his business.
After studying the feasibility of this venture two years ago, GMM CJ O Shopping was incorporated late last year with registered capital of Bt540 million and operations set to begin on June 18.
CJ O Shopping, which has been in the global home-shopping business for 15 years, has joint ventures in Japan, India, Vietnam and three major cities in China – Shanghai, Tianjin and Guangzhou.
CJ O Shopping is an af filiate of Cheil Jedang, which was established in August 1953 as part of Samsung’s first manufacturing operations. CJ Corporation, the holding company of CJ O Shopping, is a leading South Korean firm that does business in various sectors, including food services, bio-pharmaceuticals, entertainment and media, home shopping and logistics.
