CEO Sung Nak Je: ‘My company is negotiating with five potential commercial digital TV broadcasters to co-produce and supply them product tie-ins.’
O Shopping in talks for TV programmes
AIMS TO REACH 7M HOMES
TO REACH a wider audience after digital commercial terrestrial TV arrives, GMM CJ O Shopping, the operator of the “O Shopping” 24-hour channel, is negotiating with five potential TV stations to produce tie-in programmes for them.
“Last year, the company collaborated with famous TV host Tripop Limpapath of Born and Associated to create a product tie-in programme during his culinary show called ‘Krua Khun Toi’, airing in the afternoon on Channel 3.
“This format will be increasingly seen this year through the new digital TV channels,” CEO Sung Nak Je told The Nation last week.
Under this approach, the company can introduce its products to a wider audience and generate more revenue.
The company would also focus more on online marketing, on-ground events. O Shopping uses satellite TV platforms such as GMM Z, PSI, IPM and Big4 and leases airtime from other satellite TV channels such as Workpoint Entertainment’s Channel 6, T-News and GMM Grammy’s JKN.
Last year, O Shopping reached 5 million households. With more windows in digital terrestrial TV, it aims to cover more than 7 million households this year.
5% of sales set for TV production, marketing
About 5 per cent of its sales – projected to double this year to Bt1.12 billion – is earmarked for TV production and a series of marketing campaigns throughout the year.
To cope with the baht’s depreciation, which directly affects imported products from South Korea, the company will focus more on international brands that are made in Thailand. Imported brands will be reduced to 50 per cent from 70 per cent of total available items.
“Cosmetics and household products in daily use like kitchenware, bed sets and electronic devices will be a hero category for this year’s strategy,” he said.
The Bt5-billion home shopping business is still attractive to new players. One or two would be coming into the market this year – one from South Korea and the other possibly from either Japan or Europe.
Kasikorn Research Centre forecasts this industry surging 20-25 per cent to Bt6 billion-6.25 billion this year, mainly fuelled by the debut of digital terrestrial TV.
GMM CJ O Shopping is a 49:51 joint venture of South Korean home-shopping giant CJ O Shopping and Thailand’s leading music and entertainment conglomerate, GMM Grammy. It has registered capital of Bt540 million.