By Rachel Lee
Home shopping channels have become more fashion conscious than ever. According to industry statistics, sales of fashion goods through these channels have risen over the past five years, becoming one of the most profitable categories.
“We previously focused on affordable commodities, mainly household appliances, but now our consumers want to purchase a wide range of products including cosmetics and clothes. This is because an increasing number of people are working so they do not have enough time to go shopping,” a CJ O Shopping spokesman said. CJ O Shopping owns Korea’s top home shopping network, along with online stores and catalog businesses.
According to the company, fashion items accounted for 27 percent of its overall sales in 2010, increasing to 30 percent in 2011 and 35 percent last year. The total sales of fashion goods reached 1.3 trillion won last year, becoming the main source of the company’s revenue.
“We have achieved such a good result by trying various things such as promoting private brands, collaborating with well-known fashion designers, sponsoring training for talented young designers and devising special fashion television shows,” the company spokesman added.
The company’s first private brand is Fidelia, which was launched in 2001. It now runs a total of 13 private brands. It worked with supermodel Gisele Bunchen in 2011 and wedding dress designer Vera Wang, who helped relaunch the brand last year. The company has also collaborated with former Christian Dior designer Cilia Boes and has participated in the Paris International Lingerie Show four times since the brand’s launch.
CJ O Shopping’s rival, GS Shop, has also put more focus on fashion, bringing more designer brands into the company. In 2008, the company started selling established and familiar brands to the customers including Compagna, VIKI and Studio Bonnie. In addition to domestic brands, the company has also sold global fashion brands since 2011 such as Morgan, GIGLIOTTI and Laurel, all of which instantly became fast selling brands.
“Now consumers seek value for money in this unstable economic environment. So they tend to buy designer goods at the lower prices that we offer. It’s more economical for them,” a GS Shop spokesman said. “So we have worked with top Korean fashion designers like Lee Suk-tae and Son Jung-wan and launched such new brands as KAAL E.SUKTAE X ROB and SJ.WANI. Also last October, we have broadcast a special television program, “The Collection,” dedicated only to introducing fashion items.”
Industry insiders say fashion will play a bigger role in the home shopping channel industry in the future.
“Overall quality improved for sure over the past years. Of course the average prices have also gone up as we present more luxurious, better quality products,” said the CJ O Shopping spokesman. “The trend will continue for a long time, and we are prepared to help consumers purchase goods through various channels not only television but also social commerce, the Internet and mobile applications. Demand for luxury products is expected to increase in the future.”