ABS-CBN Corp. is investing P200 million in a joint venture with South Korea’s biggest home shopping company, CJ O Shopping, as it seeks to tap growth opportunities in the segment.
The company, whose SkyMall shopping channel was discontinued by 2000 due to poor public reception, believed the time was ripe for ABS-CBN to venture again into a home TV shopping program, company chair Eugenio Lopez III said in a press briefing Tuesday.
“We have a strong partner that is across Asia with half a million to a million products being sold,” Lopez said. “It gives us the opportunity to do that here.”
No figures were provided but ABS-CBN business development head Paolo Pineda said the home shopping market was “still small” in the Philippines.
“We just decided that it was time to do this today,” Pineda said. He said ABS-CBN was prepared to invest more should the business grow.
The venture has started operating the O Shopping Channel that broadcasts 24/7 on SkyCable and Global Destiny, and airs programs on Studio 23 at 1 a.m. to 2 a.m. and 5 a.m. to 6 a.m. from Mondays to Fridays and at 1 a.m. to 2 a.m. on Saturdays and Sundays. It also airs on ABS-CBN Channel 2 after “Banana Nite” from Mondays to Fridays, after “Sports Unlimited” on Saturdays and after “Sunday’s Best” on Sundays, the company said in a statement.
Pineda said the partnership launched initially 10 products, mainly kitchen-related items like cooking pans and blenders, mostly Korean brands. Sales have been “going quite well” since it was launched on Oct. 16, he said.
O Shopping has a dedicated call center where agents are ready to take orders from teleshoppers. Buyers can pay cash on delivery or on mobile POS debit card and credit card (MasterCard and Visa).
Pineda said O Shopping would also eventually offer cosmetic products and other merchandise that would be demanded by its customers.
“Eventually we will serve what the market will demand. We will find a way to get feedback and comments from people who buy our products, as long as there is interest and a sizeable market,” he said.