CASE STUDYON

• HomeShop18 is a venture of theNetwork18 Group, India's fastest growing media and entertainment Group.

• It has a team of over 3500 people spread across 30 bureau locations (3 of which are overseas). It has established 220,000 sq. ft. of fully integrated broadcast & other infrastructure, including state-of-the-art hubs in Mumbai and Delhi.

ABOUT HS18

• HomeShop18 is the Group’s online & on-air retail marketing and distribution venture which has launched India’s first 24 hour Home Shopping TV channel.

• HomeShop18 operates in a multimedia environment including television, web, catalogue and print to reach high quality products and services directly to customers across the country.

• HomeShop18 has partnered with the best brand owners, such as Apple, Motorola, Philips, Kaya, Godrej and many more to provide superlative quality and exceptional value

• Its highly customer-centric practices, including free home delivery*, multiple payment options and 15 days money back guarantee, make shopping with HomeShop18 a smarter and more intelligent experience.

• HomeShop18 aims to represent a one-stop shopping destination for all segments including youth, men, women and children.

• Customers can choose from a range of branded products across various categories along with value-added propositions.

• A 24-hour call center also allows customers to call in and book orders as per their convenience. It will deliver products to over 3000 cities free of cost.

• Customers also have the option of sending products to multiple shipping addresses while placing a single order.

• Customers can review his order, apart from tracking the status of his orders online at any point in time. It has multiple payment options like credit cards, cash on delivery amongst others.

Products at Homeshop18

• Consumer Electronics: Camera

• Mobile Phone and Microwave Ovens.

•  Home Appliances • Jewellery

Some Facts about HOME SHOP 18

• Homeshop18 is a virtual mall

• Homeshop18 is a TV channel

• Home shop displays the products better than any other retail

format

• Home shop has crossed 2Mn. customers; 1 customer is added

every 6 seconds

• Home shop accounts for 5% of all digital cameras sold in India;

It’s is the largest retailer for Reebok.

• Home shop has 800 people team managing 5oo brands

across every conceivable product category

• A TV channel like Homeshop18 converts eyeballs into transactions; Viewer

ship into customers

• The revenue of Homeshop18 is not from advertisement but from

transactions

• The major challenge is to build confidence. Therefore, the focus is on

selling branded products

• Internet is not as interactive as TV; it works as a catalogue for what’s on

TV.

• Customers prefer to use the internet more to spread the message that

they have purchased a product via a TV channel and find similar people

who can validate that it is OK to do that.

• Payment mechanisms have and will evolve with time. Homeshop18 is one

of the 1st ones to introduce Cash-on-delivery model which is not without

its challenges

• There’s a lot of scope to sell various products via a TV channel;

Homeshop18 is already selling Jewellery and insurance products and plan

to get into Real Estate.

• TV is a very strong medium and would continue to grow as we move

ahead and internet would form a great support system and would evolve

with time.

PRODUCT Product Variety Quality Product Availability of designs Brand names After Sales Service Features Innovative Product

Offering Packaging

PRICE Least Price Discount Seasonable Offers Financing Schemes Credit Policy Allowances

SWOT ANALYSIS

• 24 Hours shopping available.

• In Every 6 Seconds a new customer.

• 2 million customer base

• Big Brands Plays – Nokia, Samsung, Levis, Dell, Apple etc

• Cash on Delivery

• Distribution structure with wide range

STRENGHTS

• India has 6500 cities/towns, but courier goes only to 3000. • There are 10+ companies in DTH, and we are supported with only 3 companies (Big TV. Airtel, Dish TV) • Rural Market is not the focus area. • Not deals in Sport Products like Cricket kits. • The approach of channel is not too much on cable. • Long delivery time,in camparision from competitors.

WEAKNESS

• It can also open mobile stores in market, which can also help us in reducing the delivery time.

• It can give shows on more TV channels. • Use different medium of Selling Product like Radio Show and

mobile, TV show, should not only the medium.

• Market and Brand Growth with increased penetration in rural market.

• Increasing income level of the middle class.

OPPORTUNITIES

THREATS

• Competitors have finally arrived. • Aggressive Price competition from local &

multinational Players like – hotspot, mobile shop. • Increase consumer spends on Education, food,

travelling not on consumer durables.

Key statistics of Homeshop18 business

• 51% of the business comes from TV channel ; Internet constitutes only15%

• 35% of buyers are from the metros; 65% Tier II and Tier III cities

• 60% of buyers are males ; 40% females

• 2750 Brands; 20,000 SKUs (Stock keeping units)

• 2 Million Customers

• 18% are repeat customers.

• New transaction every 06 seconds.

• Run-rate of Rs. 1 Crore a day.

Thank You