Sinsaegae TV shopping counterattack… T commerce No. 1 K Shopping to be chased
[ Park Min Yeong ironlung@ ] | 2017-11-17 11:26:45
Shinsegae TV shopping, the second largest in the T-commerce industry, narrows its sales gap with the No. 1 K-shop. Both companies are anticipating a turnaround in the fourth quarter, when they will achieve both top-line growth and profitability.
According to the Financial Supervisory Service, the K-Shopping and Shinsegae TV stores posted sales of KRW 27.5 billion and KRW 19.5 billion, respectively, in the third quarter of this year. The gap between K-shopping and Shinsegae TV shopping in the third quarter of last year was KRW 12.2 billion, but narrowed to KRW 8 billion in the third quarter. K shopping is the number one spot with 38.2% more sales than the same period last year, but Shinsegae TV shopping is also catching up with its three-digit sales growth (153.2%).
The two companies, which failed to generate profits in the first and second tiers of the T-commerce industry, are also looking to turn to black in the fourth quarter. In the case of Shinsegae TV shopping, the operating loss amounted to KRW 4.2 billion in the third quarter, which is 46.8% less than the same period last year. Shinsegae TV shopping was reported to have increased the burden of broadcasting commissions due to preempting one-digit channels this year from Ole TV, Hyundai HCN, and Skylife. However, channel accessibility improved, and profitability improved as sales grew.
Shinsegae TV Shopping expects a surplus in the first quarter after opening in the fourth quarter. K shopping does not disclose its operating loss, but it has been reported that it has reduced its deficit by targeting top-line growth and improving profitability from the beginning of the year. K shopping is expected to turn to black in the second half of this year.
K shopping and Shinsegae TV shopping have been different strategies since they are traditional IT companies and traditional distribution companies. Shinsegae TV Shopping has expanded its stand-alone product launching `Shadei` this year, starting with `affordability` of fashion own brand (PB) last year. This year, SSG.com, a subsidiary integrated online mall, also expanded its broadcasting network and distribution network by making it possible to order Shinsegae TV shopping broadcasts. E-Mart, Shinsegae Department Store, and other affiliates. Shinsegae TV shopping is aimed at investing in the reorganization of the screen platform and streamlining of the settlement system, and to win in the market power.
KTH, the operator of K-shopping, is making a difference in technology using ICT platform and content distribution business know-how. Currently, K Shopping owns 19 T-commerce related patents, the most in the industry. K shopping officials said, "T-commerce should be differentiated by trying things that conventional TV home shopping has not done before." Starting with the trip PB launch this year, next year we will increase the number of independent brands and increase our product power. "
An industry official said, "T-commerce is important for data management and is an interactive service, so securing technology is more important than TV home shopping." In the case of Shinsegae TV shopping, the parent company is investing and marketing aggressively using its know- It will be possible to achieve the above. "
By Park Min Yeong ironlung@
[ copyright ⓒ The Digitaltimes ]
According to the Financial Supervisory Service, the K-Shopping and Shinsegae TV stores posted sales of KRW 27.5 billion and KRW 19.5 billion, respectively, in the third quarter of this year. The gap between K-shopping and Shinsegae TV shopping in the third quarter of last year was KRW 12.2 billion, but narrowed to KRW 8 billion in the third quarter. K shopping is the number one spot with 38.2% more sales than the same period last year, but Shinsegae TV shopping is also catching up with its three-digit sales growth (153.2%).
The two companies, which failed to generate profits in the first and second tiers of the T-commerce industry, are also looking to turn to black in the fourth quarter. In the case of Shinsegae TV shopping, the operating loss amounted to KRW 4.2 billion in the third quarter, which is 46.8% less than the same period last year. Shinsegae TV shopping was reported to have increased the burden of broadcasting commissions due to preempting one-digit channels this year from Ole TV, Hyundai HCN, and Skylife. However, channel accessibility improved, and profitability improved as sales grew.
Shinsegae TV Shopping expects a surplus in the first quarter after opening in the fourth quarter. K shopping does not disclose its operating loss, but it has been reported that it has reduced its deficit by targeting top-line growth and improving profitability from the beginning of the year. K shopping is expected to turn to black in the second half of this year.
K shopping and Shinsegae TV shopping have been different strategies since they are traditional IT companies and traditional distribution companies. Shinsegae TV Shopping has expanded its stand-alone product launching `Shadei` this year, starting with `affordability` of fashion own brand (PB) last year. This year, SSG.com, a subsidiary integrated online mall, also expanded its broadcasting network and distribution network by making it possible to order Shinsegae TV shopping broadcasts. E-Mart, Shinsegae Department Store, and other affiliates. Shinsegae TV shopping is aimed at investing in the reorganization of the screen platform and streamlining of the settlement system, and to win in the market power.
KTH, the operator of K-shopping, is making a difference in technology using ICT platform and content distribution business know-how. Currently, K Shopping owns 19 T-commerce related patents, the most in the industry. K shopping officials said, "T-commerce should be differentiated by trying things that conventional TV home shopping has not done before." Starting with the trip PB launch this year, next year we will increase the number of independent brands and increase our product power. "
An industry official said, "T-commerce is important for data management and is an interactive service, so securing technology is more important than TV home shopping." In the case of Shinsegae TV shopping, the parent company is investing and marketing aggressively using its know- It will be possible to achieve the above. "
By Park Min Yeong ironlung@