Television shopping in China embraces e-commerce

Shanghai Oriental TV Shopping, the largest television shopping operator on the mainland, said the industry must embrace e-commerce to fend off fierce competition from rivals like Alibaba's T-mall or Walmart-backed Yihaodian.

"Our growth dropped significantly last year as the Shanghainese felt that they were less rich in light of the lukewarm stock market and the curbs in surging property prices," said Kim Heung-soo, managing director for SMG-CJ Homeshopping, a joint venture between Shanghai Media Group and Korean media company CJ, which runs Shanghai Oriental.

E-commerce sales in China were estimated to have grown by a quarter to 10 trillion yuan (HK$12.7 trillion) last year, analysts said.

"The relationship between e-commerce and home-shopping is getting increasingly dynamic," said Benjamin Lee, a sourcing agent for TV shopping channels on the mainland. "Hong Kong manufacturers will want to use more than one channel if they want to tap the market."

Last year, Shanghai Oriental's sales rose only 10 per cent, compared with 63 per cent yearly growth posted over the past 10 years.

Shanghai Oriental airs two television shopping channels in the city. It saw its sales increase to 8.5 billion yuan last year from 150 million yuan in 2004, cashing in on an emerging middle class in Shanghai who snapped up jewellery and designer handbags while watching their television sets.