Home-shopping firms unite for high standards

The founders are True GS, GMM CJO Shopping, Shop Global (Thailand), TVD Shopping and TV Direct. 

Songpol Shanmatkit, chief executive officer of TV Direct and the chairman of the association, said all parties in this Bt8-billion home-shopping industry had agreed to move forward with the same commitment to protect their customers. 

Under this agreement, all members will work together to co-regulate and govern related parties such as local home-shopping operators, consumers and product owners. They will also deal with the regulator of this industry, the National Broadcasting and Telecommunications Commission. 

The association also aims to promote public awareness about home-shopping business through seminars and marketing events. 

In the past couple of years, home shopping has become increasingly important in Thailand. South Korean and Japanese home-shopping firms have flocked into the country via joint-venture agreements. GMM Grammy entered a 51:49 JV with Seoul-based CJ O Shopping to operate GMM CJ O Shopping, under registered capital of Bt540 million. The JV operates the O Shopping channel.

Meanwhile, GS Shop, South Korea’s leading home-shopping operator, formed a partnership with three leading Thai companies – The Mall Group; CP All, the operator of 7-Eleven convenience stores; and TrueVisions, the country’s leading subscription-based TV operator – to operate True Select, a home-shopping channel on TrueVisions’ platform.

Japan’s Sumitomo Corporation also landed in this market through a joint-venture firm, Shop Global (Thailand), in conjunction with Central Department Store and Saha Group’s ICC International. The JV operates the Shop Channel. 

Songpol predicted that this industry would continue to grow by 20 per cent a year. Combined revenue from the association’s five founders represents 80 per cent of the total industry.